Exploring FERGUSON PLC (NYSE:FERG)s quality characteristics.

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if FERGUSON PLC (NYSE:FERG) is suited for quality investing. Investors should of course do their own research, but we spotted FERGUSON PLC showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

Why NYSE:FERG may be interesting for quality investors.

• FERGUSON PLC has shown strong performance in revenue growth over the past 5 years, with a 7.46% increase. This indicates the company's ability to generate consistent revenue growth and reflects its potential for long-term success.
• With a robust ROIC excluding cash and goodwill at 30.92%, FERGUSON PLC showcases its effective allocation of capital and operational excellence. This metric signifies the company's ability to generate attractive returns and supports its long-term financial performance.
• FERGUSON PLC maintains a healthy Debt/Free Cash Flow Ratio of 1.65, indicating a strong financial position and prudent debt management. This ratio suggests the company has sufficient free cash flow to cover its debt obligations and highlights its ability to generate cash from operations.
• FERGUSON PLC demonstrates consistent Profit Quality over the past 5 years, with a strong 89.76%. This indicates the company's ability to generate sustainable and reliable profits, showcasing its long-term profitability and financial stability.
• FERGUSON PLC has consistently achieved strong EBIT growth over the past 5 years, with a 15.07% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
• FERGUSON PLC has achieved impressive EBIT 5-year growth, surpassing its Revenue 5-year growth. This indicates the company's ability to improve its profitability and operational efficiency, highlighting its strong financial performance.

What is the full fundamental picture of NYSE:FERG telling us.

ChartMill assigns a Fundamental Rating to every stock. This score, ranging from 0 to 10, is updated daily and is determined by evaluating multiple fundamental indicators and properties.

Overall FERG gets a fundamental rating of 6 out of 10. We evaluated FERG against 52 industry peers in the Trading Companies & Distributors industry. FERG scores excellent points on both the profitability and health parts. This is a solid base for a good stock. FERG is valued correctly, but it does not seem to be growing.

For an up to date full fundamental analysis you can check the fundamental report of FERG

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.