FERGUSON ENTERPRISES INC (FERG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FERG - US31488V1070 - Common Stock
229.42 USD
+7.55 (+3.4%)
229.42 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. While FERG has a great profitability rating, there are some minor concerns on its financial health. FERG is not valued too expensively and it also shows a decent growth rate.
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.
In the past 5 years FERG has always been profitable.
FERG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
FERG has a better Return On Assets (11.05%) than 92.00% of its industry peers.
FERG's Return On Equity of 32.30% is amongst the best of the industry. FERG outperforms 92.00% of its industry peers.
FERG has a better Return On Invested Capital (16.59%) than 94.00% of its industry peers.
FERG had an Average Return On Invested Capital over the past 3 years of 18.09%. This 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
Looking at the Profit Margin, with a value of 6.28%, FERG is in the better half of 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.
FERG's Gross Margin of 30.81% is in line compared 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 | 8.95% | ||
| 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), FERG is creating value.
FERG has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, FERG has less shares outstanding
The debt/assets ratio for FERG has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.48 indicates that FERG is not in any danger for bankruptcy at the moment.
FERG has a Altman-Z score of 5.48. This is amongst the best in the industry. FERG outperforms 82.00% of its industry peers.
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.
The Debt to FCF ratio of FERG (2.50) is better than 74.00% of its industry peers.
A Debt/Equity ratio of 0.68 indicates that FERG is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.68, FERG perfoms like the industry average, outperforming 48.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 2.5 | ||
| Altman-Z | 5.48 |
ROIC/WACC1.73
WACC9.59%
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.
Looking at the Current ratio, with a value of 1.88, FERG is in line with its industry, outperforming 50.00% of the companies in the same industry.
A Quick Ratio of 1.01 indicates that FERG should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.01, FERG is doing worse than 60.00% of the companies in the same industry.
| 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.
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
The Earnings Per Share is expected to grow by 11.31% on average over the next years. This is quite good.
FERG is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.51% yearly.
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
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
Based on the Price/Earnings ratio of 22.19, the valuation of FERG can be described as rather expensive.
FERG's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.00, FERG is valued at the same level.
With a Price/Forward Earnings ratio of 18.47, 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 64.00% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 23.70. FERG is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.19 | ||
| Fwd PE | 18.47 |
4.2 Price Multiples
FERG's Enterprise Value to EBITDA ratio is in line with the industry average.
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 | 27.3 | ||
| EV/EBITDA | 15.34 |
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.
The excellent profitability rating of FERG may justify a higher PE ratio.
PEG (NY)1.83
PEG (5Y)1.54
EPS Next 2Y11.72%
EPS Next 3Y10.31%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.60%, FERG has a reasonable but not impressive dividend return.
FERG's Dividend Yield is rather good when compared to the industry average which is at 1.01. FERG pays more dividend than 82.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 1.94, FERG has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.6% |
5.2 History
The dividend of FERG is nicely growing with an annual growth rate of 11.33%!
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%
229.42
+7.55 (+3.4%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners95.41%
Inst Owner Change0%
Ins Owners1.76%
Ins Owner Change6.06%
Market Cap44.96B
Revenue(TTM)31.16B
Net Income(TTM)1.96B
Analysts81.29
Price Target263.68 (14.93%)
Short Float %1.17%
Short Ratio1.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.6% |
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)3.77%
EPS NQ rev (1m)4.44%
EPS NQ rev (3m)14.6%
EPS NY rev (1m)0.97%
EPS NY rev (3m)0.92%
Revenue NQ rev (1m)7.29%
Revenue NQ rev (3m)10.06%
Revenue NY rev (1m)0.32%
Revenue NY rev (3m)0.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.19 | ||
| Fwd PE | 18.47 | ||
| P/S | 1.44 | ||
| P/FCF | 27.3 | ||
| P/OCF | 22.56 | ||
| P/B | 7.42 | ||
| P/tB | 15.57 | ||
| EV/EBITDA | 15.34 |
EPS(TTM)10.34
EY4.51%
EPS(NY)12.42
Fwd EY5.41%
FCF(TTM)8.4
FCFY3.66%
OCF(TTM)10.17
OCFY4.43%
SpS158.99
BVpS30.9
TBVpS14.74
PEG (NY)1.83
PEG (5Y)1.54
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 | 5.48 |
F-Score7
WACC9.59%
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.
Can you provide the valuation status for FERGUSON ENTERPRISES INC?
ChartMill assigns a valuation rating of 4 / 10 to FERGUSON ENTERPRISES INC (FERG). This can be considered as Fairly Valued.
Can you provide the profitability details for FERGUSON ENTERPRISES INC?
FERGUSON ENTERPRISES INC (FERG) has a profitability rating of 8 / 10.
What are the PE and PB ratios of FERGUSON ENTERPRISES INC (FERG) stock?
The Price/Earnings (PE) ratio for FERGUSON ENTERPRISES INC (FERG) is 22.19 and the Price/Book (PB) ratio is 7.42.
How financially healthy is FERGUSON ENTERPRISES INC?
The financial health rating of FERGUSON ENTERPRISES INC (FERG) is 6 / 10.