FERGUSON ENTERPRISES INC (FERG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FERG - US31488V1070 - Common Stock
225.47 USD
+0.81 (+0.36%)
225.47 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to FERG. FERG was compared to 50 industry peers in the Trading Companies & Distributors industry. While FERG belongs to the best of the industry regarding profitability, 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.
In the past year FERG had a positive cash flow from operations.
FERG had positive earnings in each of the past 5 years.
FERG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
FERG has a Return On Assets of 11.05%. This is amongst the best in the industry. FERG outperforms 92.00% of its industry peers.
FERG has a Return On Equity of 32.30%. This is amongst the best in the industry. FERG outperforms 92.00% of its industry peers.
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
FERG's Profit Margin of 6.28% is fine compared to the rest of the industry. FERG outperforms 66.00% of its industry peers.
In the last couple of years the Profit Margin of FERG has grown nicely.
With a decent Operating Margin value of 8.95%, FERG is doing good in the industry, outperforming 62.00% of the companies in the same industry.
FERG's Operating Margin has improved in the last couple of years.
The Gross Margin of FERG (30.81%) is comparable to the rest of the 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so FERG is creating value.
The number of shares outstanding for FERG has been reduced compared to 1 year ago.
FERG has less shares outstanding than it did 5 years ago.
The debt/assets ratio for FERG has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.43 indicates that FERG is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.43, FERG belongs to the top 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.
FERG has a Debt/Equity ratio of 0.68. This is a neutral value indicating FERG is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.68, FERG perfoms like the industry average, outperforming 44.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 2.5 | ||
| Altman-Z | 5.43 |
ROIC/WACC1.71
WACC9.69%
2.3 Liquidity
FERG has a Current Ratio of 1.88. This is a normal value and indicates that FERG is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of FERG (1.88) is comparable to the rest of the industry.
A Quick Ratio of 1.01 indicates that FERG should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.01, FERG is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
| 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.
Measured over the past years, FERG shows a quite strong growth in Earnings Per Share. The EPS has been growing by 14.44% on average per year.
The Revenue has been growing slightly by 4.92% in the past 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)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
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 Y11.04%
EPS Next 2Y10.96%
EPS Next 3Y10.45%
EPS Next 5Y11.31%
Revenue Next Year5.44%
Revenue Next 2Y5.67%
Revenue Next 3Y5.87%
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
A Price/Earnings ratio of 21.81 indicates a rather expensive valuation of FERG.
FERG's Price/Earnings ratio is in line with the industry average.
FERG's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.55.
Based on the Price/Forward Earnings ratio of 18.40, the valuation of FERG can be described as rather expensive.
Based on the Price/Forward Earnings ratio, FERG is valued a bit cheaper than 62.00% of the companies in the same industry.
FERG's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.78.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.81 | ||
| Fwd PE | 18.4 |
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 68.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.83 | ||
| EV/EBITDA | 15.04 |
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)1.98
PEG (5Y)1.51
EPS Next 2Y10.96%
EPS Next 3Y10.45%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.58%, FERG has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 0.97, 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 an average S&P500 Dividend Yield of 1.87, FERG has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.58% |
5.2 History
The dividend of FERG is nicely growing with an annual growth rate of 11.33%!
FERG has been paying a dividend for at least 10 years, so it has 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
33.38% of the earnings are spent on dividend by FERG. This is a low number and 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 2Y10.96%
EPS Next 3Y10.45%
225.47
+0.81 (+0.36%)
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 Cap44.19B
Revenue(TTM)31.16B
Net Income(TTM)1.96B
Analysts81.29
Price Target262.32 (16.34%)
Short Float %2.08%
Short Ratio2.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.58% |
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)1.52%
PT rev (3m)6.49%
EPS NQ rev (1m)4.24%
EPS NQ rev (3m)37.68%
EPS NY rev (1m)-0.41%
EPS NY rev (3m)3.09%
Revenue NQ rev (1m)1.41%
Revenue NQ rev (3m)5.36%
Revenue NY rev (1m)0.3%
Revenue NY rev (3m)-0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.81 | ||
| Fwd PE | 18.4 | ||
| P/S | 1.42 | ||
| P/FCF | 26.83 | ||
| P/OCF | 22.17 | ||
| P/B | 7.3 | ||
| P/tB | 15.3 | ||
| EV/EBITDA | 15.04 |
EPS(TTM)10.34
EY4.59%
EPS(NY)12.25
Fwd EY5.43%
FCF(TTM)8.4
FCFY3.73%
OCF(TTM)10.17
OCFY4.51%
SpS158.99
BVpS30.9
TBVpS14.74
PEG (NY)1.98
PEG (5Y)1.51
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 | 5.43 |
F-Score7
WACC9.69%
ROIC/WACC1.71
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 Y11.04%
EPS Next 2Y10.96%
EPS Next 3Y10.45%
EPS Next 5Y11.31%
Revenue 1Y (TTM)4.92%
Revenue growth 3Y2.5%
Revenue growth 5Y9.06%
Sales Q2Q%5.11%
Revenue Next Year5.44%
Revenue Next 2Y5.67%
Revenue Next 3Y5.87%
Revenue Next 5Y8.51%
EBIT growth 1Y8.18%
EBIT growth 3Y-1.78%
EBIT growth 5Y14.38%
EBIT Next Year22.45%
EBIT Next 3Y12.51%
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 21.81 and the Price/Book (PB) ratio is 7.3.
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%.