FERGUSON ENTERPRISES INC (FERG) Stock Fundamental Analysis
USA - NYSE:FERG - US31488V1070 - Common Stock
238.73 USD
-1.69 (-0.7%)
Overall FERG gets a fundamental rating of 6 out of 10. We evaluated FERG against 49 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 is valied quite expensively at the moment, while it does show a decent growth rate.
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.
FERG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
FERG has a better Return On Assets (10.47%) than 89.80% of its industry peers.
FERG's Return On Equity of 31.82% is amongst the best of the industry. FERG outperforms 89.80% of its industry peers.
FERG has a better Return On Invested Capital (16.85%) than 93.88% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for FERG is significantly above the industry average of 10.03%.
| 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 67.35% 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 8.72%, FERG is doing good in the industry, outperforming 63.27% of the companies in the same industry.
FERG's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 30.67%, FERG perfoms like the industry average, outperforming 53.06% of the companies in the same industry.
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
FERG has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
FERG has less shares outstanding than it did 1 year ago.
The number of shares outstanding for FERG has been reduced compared to 5 years ago.
Compared to 1 year ago, FERG has an improved debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of FERG is 2.34, which is a good value as it means it would take FERG, 2.34 years of fcf income to pay off all of its debts.
FERG has a better Debt to FCF ratio (2.34) than 77.55% of its industry peers.
A Debt/Equity ratio of 0.64 indicates that FERG is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.64, FERG perfoms like the industry average, outperforming 48.98% of the companies in the same industry.
Even though the debt/equity ratio score it not favorable for FERG, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 2.34 | ||
| Altman-Z | N/A |
ROIC/WACC1.81
WACC9.32%
2.3 Liquidity
A Current Ratio of 1.68 indicates that FERG should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.68, FERG is in line with its industry, outperforming 42.86% of the companies in the same industry.
A Quick Ratio of 0.94 indicates that FERG may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.94, FERG is doing worse than 63.27% 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.
The Revenue has been growing by 9.06% on average over the past years. This is quite good.
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
Based on estimates for the next years, FERG will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.44% on average per year.
The Revenue is expected to grow by 5.73% on average over the next years.
EPS Next Y11.09%
EPS Next 2Y9.99%
EPS Next 3Y10.44%
EPS Next 5YN/A
Revenue Next Year5.14%
Revenue Next 2Y5.59%
Revenue Next 3Y5.73%
Revenue Next 5YN/A
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 23.99, the valuation of FERG can be described as rather expensive.
FERG's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.49, FERG is valued at the same level.
FERG is valuated rather expensively with a Price/Forward Earnings ratio of 21.60.
FERG's Price/Forward Earnings is on the same level as the industry average.
FERG's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.99.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.99 | ||
| Fwd PE | 21.6 |
4.2 Price Multiples
FERG's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of FERG indicates a somewhat cheap valuation: FERG is cheaper than 63.27% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.21 | ||
| EV/EBITDA | 16.44 |
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)2.16
PEG (5Y)1.66
EPS Next 2Y9.99%
EPS Next 3Y10.44%
5. Dividend
5.1 Amount
FERG has a Yearly Dividend Yield of 1.41%. 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 2.84.
Compared to an average S&P500 Dividend Yield of 2.43, FERG's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.41% |
5.2 History
The dividend of FERG is nicely growing with an annual growth rate of 11.29%!
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)11.29%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
FERG pays out 26.35% of its income as dividend. This is a sustainable payout ratio.
FERG's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP26.35%
EPS Next 2Y9.99%
EPS Next 3Y10.44%
NYSE:FERG (10/15/2025, 12:07:49 PM)
238.73
-1.69 (-0.7%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners96.02%
Inst Owner Change0.11%
Ins Owners2.47%
Ins Owner Change0.02%
Market Cap46.83B
Analysts78.67
Price Target254.09 (6.43%)
Short Float %1.14%
Short Ratio1.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.41% |
Yearly Dividend2.45
Dividend Growth(5Y)11.29%
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)4.91%
PT rev (3m)9.08%
EPS NQ rev (1m)-4.94%
EPS NQ rev (3m)-4.87%
EPS NY rev (1m)3.14%
EPS NY rev (3m)3.03%
Revenue NQ rev (1m)-2.61%
Revenue NQ rev (3m)-2.66%
Revenue NY rev (1m)-0.31%
Revenue NY rev (3m)-0.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.99 | ||
| Fwd PE | 21.6 | ||
| P/S | 1.52 | ||
| P/FCF | 29.21 | ||
| P/OCF | 24.54 | ||
| P/B | 8.03 | ||
| P/tB | 13.9 | ||
| EV/EBITDA | 16.44 |
EPS(TTM)9.95
EY4.17%
EPS(NY)11.05
Fwd EY4.63%
FCF(TTM)8.17
FCFY3.42%
OCF(TTM)9.73
OCFY4.07%
SpS156.83
BVpS29.73
TBVpS17.17
PEG (NY)2.16
PEG (5Y)1.66
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.47% | ||
| ROE | 31.82% | ||
| ROCE | 22.93% | ||
| ROIC | 16.85% | ||
| ROICexc | 17.89% | ||
| ROICexgc | 23.03% | ||
| 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)26.42%
ROICexgc(5y)27.96%
ROCE(3y)24.61%
ROCE(5y)24.87%
ROICexcg growth 3Y-11.52%
ROICexcg growth 5Y0.96%
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 | 2.34 | ||
| Debt/EBITDA | 1.23 | ||
| Cap/Depr | 81.77% | ||
| Cap/Sales | 0.99% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 62.43% | ||
| Profit Quality | 86.37% | ||
| Current Ratio | 1.68 | ||
| Quick Ratio | 0.94 | ||
| Altman-Z | N/A |
F-Score6
WACC9.32%
ROIC/WACC1.81
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 Y11.09%
EPS Next 2Y9.99%
EPS Next 3Y10.44%
EPS Next 5YN/A
Revenue 1Y (TTM)3.8%
Revenue growth 3Y2.5%
Revenue growth 5Y9.06%
Sales Q2Q%6.93%
Revenue Next Year5.14%
Revenue Next 2Y5.59%
Revenue Next 3Y5.73%
Revenue Next 5YN/A
EBIT growth 1Y1.17%
EBIT growth 3Y-1.78%
EBIT growth 5Y14.38%
EBIT Next Year21.21%
EBIT Next 3Y12.25%
EBIT Next 5YN/A
FCF growth 1Y6.8%
FCF growth 3Y23.12%
FCF growth 5Y4.9%
OCF growth 1Y1.87%
OCF growth 3Y18.42%
OCF growth 5Y4.31%