Analyzing the Quality Characteristics of FERGUSON PLC (NYSE:FERG).

In this article we will dive into FERGUSON PLC (NYSE:FERG) as a possible candidate for quality investing. Investors should always do their own research, but we noticed FERGUSON PLC showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

Why NYSE:FERG may be interesting for quality investors.

• Over the past 5 years, FERGUSON PLC has experienced impressive revenue growth, with 7.46% increase. This demonstrates the company's ability to effectively expand its top line and suggests a positive outlook for future revenue generation.
• FERGUSON PLC demonstrates impressive performance in terms of ROIC excluding cash and goodwill, with a 26.28% ratio. This highlights the company's efficient utilization of capital and its focus on maximizing returns for investors.
• With a favorable Debt/Free Cash Flow Ratio of 1.56, FERGUSON PLC showcases its sound financial discipline and cash flow management. This ratio indicates the company's ability to service its debt obligations while maintaining sufficient free cash flow for future investments or operational needs.
• 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 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.

A complete fundamental analysis of NYSE:FERG

ChartMill assigns a proprietary Fundamental Rating to each stock. The score is computed daily by evaluating various fundamental indicators and properties. The score ranges from 0 to 10.

Overall FERG gets a fundamental rating of 5 out of 10. We evaluated FERG against 52 industry peers in the Trading Companies & Distributors industry. While FERG has a great profitability rating, there are some minor concerns on its financial health. FERG has a expensive valuation and it also scores bad on growth.

Our latest full fundamental report of FERG contains the most current fundamental analsysis.

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

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.