FERGUSON ENTERPRISES INC (FERG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FERG - US31488V1070 - Common Stock
227.06 USD
-1.63 (-0.71%)
227.06 USD
0 (0%)
Taking everything into account, FERG scores 6 out of 10 in our fundamental rating. FERG was compared to 50 industry peers in the Trading Companies & Distributors industry. FERG has an excellent profitability rating, but there are some minor concerns on its financial health. FERG has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
FERG had positive earnings in the past year.
In the past year FERG had a positive cash flow from operations.
In the past 5 years FERG has always been profitable.
In the past 5 years FERG always reported a positive cash flow from operatings.
1.2 Ratios
FERG has a better Return On Assets (11.05%) than 92.00% of its industry peers.
With an excellent Return On Equity value of 32.30%, FERG belongs to the best of the industry, outperforming 92.00% of the companies in the same industry.
With an excellent Return On Invested Capital value of 16.59%, FERG belongs to the best of the industry, outperforming 94.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for FERG is significantly above the industry average of 9.63%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.05% | ||
| ROE | 32.3% | ||
| ROIC | 16.59% |
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
With a decent Profit Margin value of 6.28%, FERG is doing good in the industry, outperforming 66.00% of the companies in the same industry.
In the last couple of years the Profit Margin of FERG has grown nicely.
Looking at the Operating Margin, with a value of 8.95%, FERG is in the better half of the industry, outperforming 62.00% of the companies in the same industry.
In the last couple of years the Operating Margin of FERG has grown nicely.
With a Gross Margin value of 30.81%, FERG perfoms like the industry average, outperforming 54.00% of the companies in the same industry.
In the last couple of years the Gross Margin of FERG has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.95% | ||
| PM (TTM) | 6.28% | ||
| GM | 30.81% |
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
FERG has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for FERG has been reduced compared to 1 year ago.
The number of shares outstanding for FERG has been reduced compared to 5 years ago.
The debt/assets ratio for FERG has been reduced compared to a year ago.
2.2 Solvency
FERG has an Altman-Z score of 5.46. This indicates that FERG is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 5.46, FERG belongs to the best of the industry, outperforming 82.00% of the companies in the same industry.
The Debt to FCF ratio of FERG is 2.50, which is a good value as it means it would take FERG, 2.50 years of fcf income to pay off all of its debts.
FERG has a Debt to FCF ratio of 2.50. This is in the better half of the industry: FERG outperforms 74.00% of its industry peers.
A Debt/Equity ratio of 0.68 indicates that FERG is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.68, FERG is in line with its industry, outperforming 46.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 2.5 | ||
| Altman-Z | 5.46 |
ROIC/WACC1.73
WACC9.58%
2.3 Liquidity
A Current Ratio of 1.88 indicates that FERG should not have too much problems paying its short term obligations.
FERG's Current ratio of 1.88 is in line compared to the rest of the industry. FERG outperforms 50.00% of its industry peers.
A Quick Ratio of 1.01 indicates that FERG should not have too much problems paying its short term obligations.
The Quick ratio of FERG (1.01) is worse than 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.88 | ||
| Quick Ratio | 1.01 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.96% over the past year.
The Earnings Per Share has been growing by 14.44% on average over the past years. This is quite good.
FERG shows a small growth in Revenue. In the last year, the Revenue has grown by 4.92%.
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)8.96%
EPS 3Y-1.3%
EPS 5Y14.44%
EPS Q2Q%15.92%
Revenue 1Y (TTM)4.92%
Revenue growth 3Y2.5%
Revenue growth 5Y9.06%
Sales Q2Q%5.11%
3.2 Future
Based on estimates for the next years, FERG will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.31% on average per year.
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 Y12.11%
EPS Next 2Y11.72%
EPS Next 3Y10.31%
EPS Next 5Y11.31%
Revenue Next Year5.78%
Revenue Next 2Y5.5%
Revenue Next 3Y5.81%
Revenue Next 5Y8.51%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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
With a Price/Earnings ratio of 21.96, FERG is valued on the expensive side.
The rest of the industry has a similar Price/Earnings ratio as FERG.
FERG is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.84, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 18.28, FERG is valued on the expensive side.
Based on the Price/Forward Earnings ratio, FERG is valued a bit cheaper than the industry average as 62.00% of the companies are valued more expensively.
FERG's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.96 | ||
| Fwd PE | 18.28 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as FERG.
68.00% of the companies in the same industry are more expensive than FERG, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.02 | ||
| EV/EBITDA | 15.19 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of FERG may justify a higher PE ratio.
PEG (NY)1.81
PEG (5Y)1.52
EPS Next 2Y11.72%
EPS Next 3Y10.31%
5. Dividend
5.1 Amount
FERG has a Yearly Dividend Yield of 1.56%.
Compared to an average industry Dividend Yield of 0.98, FERG pays a better dividend. On top of this FERG pays more dividend than 82.00% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.00, FERG is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.56% |
5.2 History
On average, the dividend of FERG grows each year by 11.33%, which is quite nice.
FERG has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of FERG decreased recently.
Dividend Growth(5Y)11.33%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
FERG pays out 33.38% of its income as dividend. This is a sustainable payout ratio.
The dividend of FERG is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP33.38%
EPS Next 2Y11.72%
EPS Next 3Y10.31%
227.06
-1.63 (-0.71%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners95.26%
Inst Owner Change-2.68%
Ins Owners1.76%
Ins Owner Change6.06%
Market Cap44.50B
Revenue(TTM)31.16B
Net Income(TTM)1.96B
Analysts81.29
Price Target263.68 (16.13%)
Short Float %1.17%
Short Ratio1.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.56% |
Yearly Dividend2.46
Dividend Growth(5Y)11.33%
DP33.38%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)11.29%
Min EPS beat(2)8.24%
Max EPS beat(2)14.35%
EPS beat(4)3
Avg EPS beat(4)9.26%
Min EPS beat(4)-6.84%
Max EPS beat(4)21.31%
EPS beat(8)4
Avg EPS beat(8)2.72%
EPS beat(12)5
Avg EPS beat(12)1.94%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-0.62%
Min Revenue beat(2)-0.98%
Max Revenue beat(2)-0.27%
Revenue beat(4)1
Avg Revenue beat(4)-0.23%
Min Revenue beat(4)-0.98%
Max Revenue beat(4)0.67%
Revenue beat(8)1
Avg Revenue beat(8)-1.52%
Revenue beat(12)2
Avg Revenue beat(12)-1.3%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)2.05%
PT rev (3m)7.04%
EPS NQ rev (1m)4.44%
EPS NQ rev (3m)43.8%
EPS NY rev (1m)0.56%
EPS NY rev (3m)0.92%
Revenue NQ rev (1m)7.29%
Revenue NQ rev (3m)13.04%
Revenue NY rev (1m)0.62%
Revenue NY rev (3m)0.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.96 | ||
| Fwd PE | 18.28 | ||
| P/S | 1.43 | ||
| P/FCF | 27.02 | ||
| P/OCF | 22.33 | ||
| P/B | 7.35 | ||
| P/tB | 15.41 | ||
| EV/EBITDA | 15.19 |
EPS(TTM)10.34
EY4.55%
EPS(NY)12.42
Fwd EY5.47%
FCF(TTM)8.4
FCFY3.7%
OCF(TTM)10.17
OCFY4.48%
SpS158.99
BVpS30.9
TBVpS14.74
PEG (NY)1.81
PEG (5Y)1.52
Graham Number84.79
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.05% | ||
| ROE | 32.3% | ||
| ROCE | 22.57% | ||
| ROIC | 16.59% | ||
| ROICexc | 17.33% | ||
| ROICexgc | 23.67% | ||
| OM | 8.95% | ||
| PM (TTM) | 6.28% | ||
| GM | 30.81% | ||
| FCFM | 5.29% |
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-Score7
Asset Turnover1.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 2.5 | ||
| Debt/EBITDA | 1.3 | ||
| Cap/Depr | 91.78% | ||
| Cap/Sales | 1.11% | ||
| Interest Coverage | 14.68 | ||
| Cash Conversion | 62.95% | ||
| Profit Quality | 84.2% | ||
| Current Ratio | 1.88 | ||
| Quick Ratio | 1.01 | ||
| Altman-Z | 5.46 |
F-Score7
WACC9.58%
ROIC/WACC1.73
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)8.96%
EPS 3Y-1.3%
EPS 5Y14.44%
EPS Q2Q%15.92%
EPS Next Y12.11%
EPS Next 2Y11.72%
EPS Next 3Y10.31%
EPS Next 5Y11.31%
Revenue 1Y (TTM)4.92%
Revenue growth 3Y2.5%
Revenue growth 5Y9.06%
Sales Q2Q%5.11%
Revenue Next Year5.78%
Revenue Next 2Y5.5%
Revenue Next 3Y5.81%
Revenue Next 5Y8.51%
EBIT growth 1Y8.18%
EBIT growth 3Y-1.78%
EBIT growth 5Y14.38%
EBIT Next Year23.29%
EBIT Next 3Y12.36%
EBIT Next 5Y11.75%
FCF growth 1Y-29.77%
FCF growth 3Y23.12%
FCF growth 5Y4.9%
OCF growth 1Y-28.36%
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 21.96 and the Price/Book (PB) ratio is 7.35.
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 33.38%.