Why Quality-Oriented Investors Should Consider NYSE:FERG.

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.

Highlighting Notable Quality Metrics of NYSE:FERG.

• FERGUSON PLC has achieved substantial revenue growth over the past 5 years, with a 7.46% increase. This signifies the company's ability to successfully capture market opportunities and generate sustained revenue growth.
• With a notable ROIC excluding cash and goodwill at 26.28%, FERGUSON PLC demonstrates its commitment to generating sustainable returns for shareholders. This metric emphasizes the company's effective use of capital and its ability to deliver long-term value.
• FERGUSON PLC maintains a healthy Debt/Free Cash Flow Ratio of 1.56, 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 demonstrated consistent growth in EBIT over the past 5 years, with a strong 15.07%. This signifies the company's ability to generate sustainable earnings and reflects its positive financial trajectory.
• FERGUSON PLC demonstrates a remarkable trend where its EBIT 5-year growth exceeds its Revenue 5-year growth. This indicates the company's ability to enhance its profitability through improved cost control and operational efficiency.

Fundamental Analysis Observations

Every day ChartMill assigns a Fundamental Rating to every stock. The score ranges from 0 to 10 and is determined by evaluating multiple fundamental indicators and properties.

We assign a fundamental rating of 5 out of 10 to FERG. FERG was compared to 51 industry peers in the Trading Companies & Distributors industry. FERG scores excellent on profitability, but there are some minor concerns on its financial health. FERG is valued expensive and it does not seem to be growing.

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

Our Caviar Cruise screen will find you more ideas suited for quality investing.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.