FERGUSON ENTERPRISES INC (FERG) Stock Fundamental Analysis
USA - NYSE:FERG - US31488V1070 - Common Stock
236.54 USD
+0.85 (+0.36%)
236.54 USD
0 (0%)
FERG gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 50 industry peers in the Trading Companies & Distributors industry. FERG scores excellent on profitability, but there are some minor concerns on its financial health. FERG has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year FERG was profitable.
FERG had a positive operating cash flow in the past year.
FERG had positive earnings in each of the past 5 years.
Each year in the past 5 years FERG had a positive operating cash flow.
1.2 Ratios
The Return On Assets of FERG (10.47%) is better than 82.00% of its industry peers.
Looking at the Return On Equity, with a value of 31.82%, FERG belongs to the top of the industry, outperforming 92.00% of the companies in the same industry.
FERG's Return On Invested Capital of 16.85% is amongst the best of the industry. FERG outperforms 96.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FERG is significantly above the industry average of 9.31%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.47% | ||
| ROE | 31.82% | ||
| ROIC | 16.85% |
ROA(3y)10.92%
ROA(5y)11.41%
ROE(3y)33.41%
ROE(5y)35.03%
ROIC(3y)18.09%
ROIC(5y)18.28%
1.3 Margins
FERG's Profit Margin of 6.03% is fine compared to the rest of the industry. FERG outperforms 68.00% of its industry peers.
In the last couple of years the Profit Margin of FERG has grown nicely.
FERG has a Operating Margin of 8.72%. This is in the better half of the industry: FERG outperforms 62.00% of its industry peers.
FERG's Operating Margin has improved in the last couple of years.
FERG has a Gross Margin of 30.67%. This is comparable to the rest of the industry: FERG outperforms 54.00% of its industry peers.
FERG's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.72% | ||
| PM (TTM) | 6.03% | ||
| GM | 30.67% |
OM growth 3Y-4.18%
OM growth 5Y4.88%
PM growth 3Y-6.7%
PM growth 5Y4.6%
GM growth 3Y0.02%
GM growth 5Y0.44%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so FERG is creating value.
Compared to 1 year ago, FERG has less shares outstanding
FERG has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, FERG has an improved debt to assets ratio.
2.2 Solvency
FERG has an Altman-Z score of 5.38. This indicates that FERG is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of FERG (5.38) is better than 86.00% of its industry peers.
The Debt to FCF ratio of FERG is 2.59, which is a good value as it means it would take FERG, 2.59 years of fcf income to pay off all of its debts.
FERG's Debt to FCF ratio of 2.59 is fine compared to the rest of the industry. FERG outperforms 78.00% of its industry peers.
FERG has a Debt/Equity ratio of 0.64. This is a neutral value indicating FERG is somewhat dependend on debt financing.
The Debt to Equity ratio of FERG (0.64) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 2.59 | ||
| Altman-Z | 5.38 |
ROIC/WACC2.02
WACC8.35%
2.3 Liquidity
A Current Ratio of 1.68 indicates that FERG should not have too much problems paying its short term obligations.
FERG's Current ratio of 1.68 is in line compared to the rest of the industry. FERG outperforms 48.00% of its industry peers.
FERG has a Quick Ratio of 1.68. This is a bad value and indicates that FERG is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.94, FERG is doing worse than 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.68 | ||
| Quick Ratio | 0.94 |
3. Growth
3.1 Past
FERG shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.68%.
The Earnings Per Share has been growing by 14.44% on average over the past years. This is quite good.
Looking at the last year, FERG shows a small growth in Revenue. The Revenue has grown by 3.80% in the last year.
FERG shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.06% yearly.
EPS 1Y (TTM)2.68%
EPS 3Y-1.3%
EPS 5Y14.44%
EPS Q2Q%16.78%
Revenue 1Y (TTM)3.8%
Revenue growth 3Y2.5%
Revenue growth 5Y9.06%
Sales Q2Q%6.93%
3.2 Future
The Earnings Per Share is expected to grow by 11.31% on average over the next years. This is quite good.
Based on estimates for the next years, FERG will show a quite strong growth in Revenue. The Revenue will grow by 8.51% on average per year.
EPS Next Y11.49%
EPS Next 2Y10.65%
EPS Next 3Y11.11%
EPS Next 5Y11.31%
Revenue Next Year5.13%
Revenue Next 2Y5.42%
Revenue Next 3Y5.65%
Revenue Next 5Y8.51%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 23.77, which indicates a rather expensive current valuation of FERG.
The rest of the industry has a similar Price/Earnings ratio as FERG.
When comparing the Price/Earnings ratio of FERG to the average of the S&P500 Index (25.51), we can say FERG is valued inline with the index average.
The Price/Forward Earnings ratio is 21.32, which indicates a rather expensive current valuation of FERG.
The rest of the industry has a similar Price/Forward Earnings ratio as FERG.
The average S&P500 Price/Forward Earnings ratio is at 34.98. FERG is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.77 | ||
| Fwd PE | 21.32 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FERG is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, FERG is valued a bit cheaper than 62.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.92 | ||
| EV/EBITDA | 16.25 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates FERG does not grow enough to justify the current Price/Earnings ratio.
FERG has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.07
PEG (5Y)1.65
EPS Next 2Y10.65%
EPS Next 3Y11.11%
5. Dividend
5.1 Amount
FERG has a Yearly Dividend Yield of 1.37%. Purely for dividend investing, there may be better candidates out there.
FERG's Dividend Yield is a higher than the industry average which is at 2.04.
Compared to an average S&P500 Dividend Yield of 2.44, FERG's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.37% |
5.2 History
On average, the dividend of FERG grows each year by 11.33%, which is quite nice.
FERG has been paying a dividend for at least 10 years, so it has a reliable track record.
FERG has decreased its dividend recently.
Dividend Growth(5Y)11.33%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
26.35% of the earnings are spent on dividend by FERG. This is a low number and sustainable payout ratio.
FERG's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP26.35%
EPS Next 2Y10.65%
EPS Next 3Y11.11%
236.54
+0.85 (+0.36%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners96.02%
Inst Owner Change-2.68%
Ins Owners2.47%
Ins Owner Change5.39%
Market Cap46.36B
Revenue(TTM)30.76B
Net Income(TTM)1.86B
Analysts79.33
Price Target258.39 (9.24%)
Short Float %1.49%
Short Ratio1.46
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.37% |
Yearly Dividend2.46
Dividend Growth(5Y)11.33%
DP26.35%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)17.83%
Min EPS beat(2)14.35%
Max EPS beat(2)21.31%
EPS beat(4)2
Avg EPS beat(4)5.14%
Min EPS beat(4)-8.26%
Max EPS beat(4)21.31%
EPS beat(8)3
Avg EPS beat(8)1.5%
EPS beat(12)5
Avg EPS beat(12)1.59%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-0.15%
Min Revenue beat(2)-0.98%
Max Revenue beat(2)0.67%
Revenue beat(4)1
Avg Revenue beat(4)-0.84%
Min Revenue beat(4)-2.7%
Max Revenue beat(4)0.67%
Revenue beat(8)1
Avg Revenue beat(8)-1.63%
Revenue beat(12)3
Avg Revenue beat(12)-1.21%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)1.69%
PT rev (3m)7.25%
EPS NQ rev (1m)-0.95%
EPS NQ rev (3m)-6.41%
EPS NY rev (1m)0.36%
EPS NY rev (3m)3.4%
Revenue NQ rev (1m)-0.3%
Revenue NQ rev (3m)-2.04%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-0.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.77 | ||
| Fwd PE | 21.32 | ||
| P/S | 1.51 | ||
| P/FCF | 28.92 | ||
| P/OCF | 24.3 | ||
| P/B | 7.95 | ||
| P/tB | 17.55 | ||
| EV/EBITDA | 16.25 |
EPS(TTM)9.95
EY4.21%
EPS(NY)11.09
Fwd EY4.69%
FCF(TTM)8.18
FCFY3.46%
OCF(TTM)9.74
OCFY4.12%
SpS156.96
BVpS29.76
TBVpS13.48
PEG (NY)2.07
PEG (5Y)1.65
Graham Number81.62
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.47% | ||
| ROE | 31.82% | ||
| ROCE | 22.93% | ||
| ROIC | 16.85% | ||
| ROICexc | 17.89% | ||
| ROICexgc | 25.17% | ||
| OM | 8.72% | ||
| PM (TTM) | 6.03% | ||
| GM | 30.67% | ||
| FCFM | 5.21% |
ROA(3y)10.92%
ROA(5y)11.41%
ROE(3y)33.41%
ROE(5y)35.03%
ROIC(3y)18.09%
ROIC(5y)18.28%
ROICexc(3y)19.15%
ROICexc(5y)19.83%
ROICexgc(3y)27.13%
ROICexgc(5y)28.39%
ROCE(3y)24.61%
ROCE(5y)24.87%
ROICexgc growth 3Y-8.87%
ROICexgc growth 5Y2.77%
ROICexc growth 3Y-7.91%
ROICexc growth 5Y3.93%
OM growth 3Y-4.18%
OM growth 5Y4.88%
PM growth 3Y-6.7%
PM growth 5Y4.6%
GM growth 3Y0.02%
GM growth 5Y0.44%
F-Score6
Asset Turnover1.74
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 2.59 | ||
| Debt/EBITDA | 1.23 | ||
| Cap/Depr | 81.77% | ||
| Cap/Sales | 0.99% | ||
| Interest Coverage | 14.2 | ||
| Cash Conversion | 62.43% | ||
| Profit Quality | 86.37% | ||
| Current Ratio | 1.68 | ||
| Quick Ratio | 0.94 | ||
| Altman-Z | 5.38 |
F-Score6
WACC8.35%
ROIC/WACC2.02
Cap/Depr(3y)110.07%
Cap/Depr(5y)101.48%
Cap/Sales(3y)1.24%
Cap/Sales(5y)1.16%
Profit Quality(3y)97.9%
Profit Quality(5y)82.34%
High Growth Momentum
Growth
EPS 1Y (TTM)2.68%
EPS 3Y-1.3%
EPS 5Y14.44%
EPS Q2Q%16.78%
EPS Next Y11.49%
EPS Next 2Y10.65%
EPS Next 3Y11.11%
EPS Next 5Y11.31%
Revenue 1Y (TTM)3.8%
Revenue growth 3Y2.5%
Revenue growth 5Y9.06%
Sales Q2Q%6.93%
Revenue Next Year5.13%
Revenue Next 2Y5.42%
Revenue Next 3Y5.65%
Revenue Next 5Y8.51%
EBIT growth 1Y1.17%
EBIT growth 3Y-1.78%
EBIT growth 5Y14.38%
EBIT Next Year21.21%
EBIT Next 3Y13%
EBIT Next 5Y11.75%
FCF growth 1Y6.8%
FCF growth 3Y23.12%
FCF growth 5Y4.9%
OCF growth 1Y1.87%
OCF growth 3Y18.42%
OCF growth 5Y4.31%
FERGUSON ENTERPRISES INC / FERG FAQ
What is the ChartMill fundamental rating of FERGUSON ENTERPRISES INC (FERG) stock?
ChartMill assigns a fundamental rating of 6 / 10 to FERG.
What is the valuation status for FERG stock?
ChartMill assigns a valuation rating of 4 / 10 to FERGUSON ENTERPRISES INC (FERG). This can be considered as Fairly Valued.
What is the profitability of FERG stock?
FERGUSON ENTERPRISES INC (FERG) has a profitability rating of 8 / 10.
Can you provide the PE and PB ratios for FERG stock?
The Price/Earnings (PE) ratio for FERGUSON ENTERPRISES INC (FERG) is 23.77 and the Price/Book (PB) ratio is 7.95.
Can you provide the dividend sustainability for FERG stock?
The dividend rating of FERGUSON ENTERPRISES INC (FERG) is 5 / 10 and the dividend payout ratio is 26.35%.