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Grafton Group plc (GFTU.L)

Industrials Dividend payer

Grafton Group runs the builder's merchants and DIY stores where local tradespeople pick up timber, bricks, and tools each morning.

£9.66

Is Grafton Group plc a good stock for a UK beginner?

The honest version: Grafton Group runs the builder's merchants and DIY stores where local tradespeople pick up timber, bricks, and tools each morning.

No rating · no target price · nothing for sale here
Price-10.6%
52-week range+5% past year
£9.66
Low £7.89High £10.10
Where today's price sits versus its past year - context, not a signal.
If you had put £1,000 into Grafton Group plc
£894-11%

Over about 2 years to 2026-07-31. This is the share price only - reinvesting the dividends would add to it. Past performance is not a guide to the future, and it could just as easily have fallen.

Market cap: The company's total value on the stock market - share price times the number of shares. Big = 'large-cap', small = 'small-cap'.
£1.91B
Avg volume: How many shares change hands on a typical day. Higher means it's easy to buy or exit without moving the price.
344.69K
Day range: The lowest and highest price the shares traded at during the latest day.
£9.57 – £9.91
52-week range: The lowest and highest the shares have traded over the past year - a sense of how wide the swings have been.
£7.89 – £10.10
P/E ratio: Price-to-earnings: the share price divided by yearly profit per share. Lower can mean cheaper; higher often means investors expect fast growth.
12.5
Dividend yield: The yearly dividend as a percentage of the share price - roughly the income you'd earn from dividends alone.
3.9%
Beta: How bumpy the share price is versus the whole market. Above 1 swings more than the market; below 1 is calmer. It's about the ride, not whether it goes up or down.
1.07
How bumpy is it?Beta: How bumpy the share price is versus the whole market. Above 1 swings more than the market; below 1 is calmer. It's about the ride, not whether it goes up or down. 1.07
Calm
Wild
Roughly in step with the market

Based on beta - how much the price swings versus the whole market. Bumpier isn't bad; it just means a rougher ride, which matters more the sooner you might need the money.

Why has it been moving?▲ +2% past week · ▲ +5% past year

Prices move on results, news and the mood of the whole market - no single headline explains a day, and a quiet week is usually just noise, not a signal.

The bull case

Successful expansion of merchant branches and smart digital ordering pay off handsomely.

The bear case

Online-only rivals chip away at traditional branch customer loyalty.

What does Grafton Group plc do?

Ever popped into Selco or local timber yards to fix up a kitchen or build an extension? That is Grafton at work, supplying materials to builders, plumbers, and decorators mostly across the UK and Ireland. The takings come from buying supplies in bulk and selling them on to trade professionals who need them right away. The big thing to keep an eye on is how busy the housing and home-renovation market is, as it directly drives their daily sales.

VQGMI
Factor profile

On our factor screen it looks strongest on income and value, and weakest on quality.

Value: How cheap the stock looks versus profits, sales and assets (higher = cheaper). 65Quality: How profitable and financially healthy the company is (higher = stronger). 46Growth: How fast revenue and earnings are growing (higher = faster). 61Momentum: How the share price has been trending recently (higher = stronger recent run). 57Income: The dividend income on offer and how sustainable it looks (higher = more/steadier). 75
Quick checks
What's strong
  • Income screens high (75/100)
  • Well-known brands that tradespeople trust and visit regularly
  • Solid cash generation supporting a regular dividend payout
  • Balanced presence across the UK and Ireland
What to watch
  • A sharp slowdown in housing repairs and new builds
  • Rising costs for transporting and storing heavy building supplies
  • Economic pressures dampening consumer and trade confidence

What do Grafton Group plc's numbers mean?

P/E
12.5
This tells us investors are paying twelve and a half times the company's recent yearly profits, which is a way to see if a share is priced high or low compared to its earnings.
Dividend yield
3.9%
This shows the cash payout returned to shareholders relative to the share price, roughly matching what you might get from a decent savings account.
Gross margin
37.9%
This means for every pound of goods sold, about 38 pence is left over after covering the direct cost of the products before running expenses.
Return on equity
8.4%
This measures how efficiently the business generates profit from the money shareholders have put into it.

Does Grafton Group plc pay a dividend?

Yes - Grafton Group plc currently pays a dividend of about 3.9% a year (the yearly payout as a share of the price). A dividend is a slice of profit handed to shareholders; the yield moves as the price moves, and a company can cut or stop it.

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What are the scenarios for Grafton Group plc?

An illustrative range for the year ahead, with the assumption behind each case — not a prediction or a price target.

£12£10£7today · £10▲ Bull · £11• Base · £10▼ Bear · £8in 1 yearILLUSTRATIVE · NOT A PREDICTION OR PRICE TARGET
Bull
+10% to +18%A surprise bounce in home renovation spending boosts branch visits.
Base
-3% to +5%Trading remains steady as builders keep ticking over jobs.
Bear
-15% to -22%Higher interest rates put a sudden freeze on property repairs and new builds.

What are the pros and cons of Grafton Group plc?

3bull points
6bear points

How many points the write-up makes each way — a balance check, not a score or verdict.

The bull case3
  • Well-known brands that tradespeople trust and visit regularly
  • Solid cash generation supporting a regular dividend payout
  • Balanced presence across the UK and Ireland
The catch3
  • Profit margins are relatively slim, leaving little room for error
  • Highly sensitive to the ups and downs of the property market
  • Fierce competition from other large builders' merchants
Key risks3
  • A sharp slowdown in housing repairs and new builds
  • Rising costs for transporting and storing heavy building supplies
  • Economic pressures dampening consumer and trade confidence
What would flip the thesis

The write-up's own warning lights — if these start happening, the case above changes.

Confidence: medium · data: GBP · flags: none · Charts by TradingView Lightweight Charts™
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Built from public filings & market prices, checked for an education-only tone, and never a price target. How we make these →

This plain-English summary was auto-generated on 2026-08-01 from public data and checked for an education-only, no-advice tone (the figures above carry their own, usually fresher, 'as of' date). It's information, never a recommendation.

Figures as of 2026-08-01. Prices may be delayed and numbers can go stale - always double-check before acting.