FERGUSON ENTERPRISES INC (FERG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FERG - US31488V1070 - Common Stock
249 USD
-0.86 (-0.34%)
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 belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. FERG is quite expensive at the moment. It does show a decent 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.
- Each year in the past 5 years FERG has been profitable.
- Each year in the past 5 years FERG had a positive operating cash flow.
1.2 Ratios
- FERG's Return On Assets of 11.05% is amongst the best of the industry. FERG outperforms 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.
- The Return On Invested Capital of FERG (16.59%) is better than 94.00% 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 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.
- The Operating Margin of FERG (8.95%) is better than 62.00% of its industry peers.
- FERG's Operating Margin has improved in the last couple of years.
- With a Gross Margin value of 30.81%, FERG perfoms like the industry average, outperforming 56.00% 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
- 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
- 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
- FERG has an Altman-Z score of 5.69. This indicates that FERG is financially healthy and has little risk of bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 5.69, FERG is in the better half of the industry, outperforming 80.00% 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 better Debt to FCF ratio (2.50) than 76.00% 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.
- Looking at the Debt to Equity ratio, with a value of 0.68, FERG is in line with its industry, outperforming 48.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 2.5 | ||
| Altman-Z | 5.69 |
ROIC/WACC1.73
WACC9.57%
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.
- With a Current ratio value of 1.88, FERG perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
- FERG has a Quick Ratio of 1.01. This is a normal value and indicates that FERG is financially healthy and should not expect problems in meeting 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
- FERG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.96%, which is quite good.
- 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
- 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.
- 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.
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- FERG is valuated rather expensively with a Price/Earnings ratio of 24.08.
- Compared to the rest of the industry, the Price/Earnings ratio of FERG is on the same level as its industry peers.
- FERG is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.54, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 20.05, FERG is valued on the expensive side.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of FERG is on the same level as its industry peers.
- The average S&P500 Price/Forward Earnings ratio is at 24.31. FERG is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.08 | ||
| Fwd PE | 20.05 |
4.2 Price Multiples
- FERG's Enterprise Value to EBITDA ratio is in line with the industry average.
- FERG's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. FERG is cheaper than 68.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.63 | ||
| EV/EBITDA | 16.6 |
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)1.99
PEG (5Y)1.67
EPS Next 2Y11.72%
EPS Next 3Y10.31%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.55%, FERG has a reasonable but not impressive dividend return.
- FERG's Dividend Yield is a higher than the industry average which is at 1.35.
- Compared to an average S&P500 Dividend Yield of 1.92, FERG has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.55% |
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.
- FERG has decreased its dividend 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.
- FERG's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP33.38%
EPS Next 2Y11.72%
EPS Next 3Y10.31%
NYSE:FERG (1/16/2026, 2:49:22 PM)
249
-0.86 (-0.34%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)12-09 2025-12-09/bmo
Earnings (Next)03-09 2026-03-09
Inst Owners95.41%
Inst Owner Change-0.09%
Ins Owners1.76%
Ins Owner Change6.06%
Market Cap48.80B
Revenue(TTM)31.16B
Net Income(TTM)1.96B
Analysts81.29
Price Target263.68 (5.9%)
Short Float %1.17%
Short Ratio1.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.55% |
Yearly Dividend2.46
Dividend Growth(5Y)11.33%
DP33.38%
Div Incr Years1
Div Non Decr Years1
Ex-Date01-02 2026-01-02 (0.89)
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)0.52%
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 | 24.08 | ||
| Fwd PE | 20.05 | ||
| P/S | 1.57 | ||
| P/FCF | 29.63 | ||
| P/OCF | 24.49 | ||
| P/B | 8.06 | ||
| P/tB | 16.9 | ||
| EV/EBITDA | 16.6 |
EPS(TTM)10.34
EY4.15%
EPS(NY)12.42
Fwd EY4.99%
FCF(TTM)8.4
FCFY3.38%
OCF(TTM)10.17
OCFY4.08%
SpS158.99
BVpS30.9
TBVpS14.74
PEG (NY)1.99
PEG (5Y)1.67
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 | 5.69 |
F-Score7
WACC9.57%
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 3 / 10 to FERGUSON ENTERPRISES INC (FERG). This can be considered as Overvalued.
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 24.08 and the Price/Book (PB) ratio is 8.06.
How financially healthy is FERGUSON ENTERPRISES INC?
The financial health rating of FERGUSON ENTERPRISES INC (FERG) is 6 / 10.