FERGUSON ENTERPRISES INC (FERG) Stock Fundamental Analysis
NYSE:FERG - New York Stock Exchange, Inc. - US31488V1070 - Common Stock - Currency: USD
FERG gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals 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 Return On Assets of 9.92%. This is amongst the best in the industry. FERG outperforms 81.63% of its industry peers.
FERG has a Return On Equity of 29.88%. This is amongst the best in the industry. FERG outperforms 85.71% of its industry peers.
The Return On Invested Capital of FERG (16.09%) is better than 87.76% of its industry peers.
FERG had an Average Return On Invested Capital over the past 3 years of 19.52%. This is significantly above the industry average of 9.65%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.92% | ||
| ROE | 29.88% | ||
| ROIC | 16.09% |
ROA(3y)11.94%
ROA(5y)10.74%
ROE(3y)37.96%
ROE(5y)33.06%
ROIC(3y)19.52%
ROIC(5y)17.16%
1.3 Margins
The Profit Margin of FERG (5.49%) is better than 63.27% of its industry peers.
In the last couple of years the Profit Margin of FERG has grown nicely.
Looking at the Operating Margin, with a value of 8.40%, FERG is in line with its industry, outperforming 57.14% of the companies in the same industry.
FERG's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 30.35%, FERG is in line with its industry, outperforming 51.02% 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 | 8.4% | ||
| PM (TTM) | 5.49% | ||
| GM | 30.35% |
OM growth 3Y1.51%
OM growth 5Y5.66%
PM growth 3Y-3.22%
PM growth 5Y3.07%
GM growth 3Y-0.08%
GM growth 5Y0.8%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), FERG 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.
FERG has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.07 indicates that FERG is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 5.07, FERG belongs to the best of the industry, outperforming 81.63% of the companies in the same industry.
FERG has a debt to FCF ratio of 3.05. This is a good value and a sign of high solvency as FERG would need 3.05 years to pay back of all of its debts.
The Debt to FCF ratio of FERG (3.05) is better than 67.35% of its industry peers.
FERG has a Debt/Equity ratio of 0.72. This is a neutral value indicating FERG is somewhat dependend on debt financing.
FERG has a Debt to Equity ratio (0.72) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 3.05 | ||
| Altman-Z | 5.07 |
ROIC/WACC1.64
WACC9.83%
2.3 Liquidity
A Current Ratio of 1.82 indicates that FERG should not have too much problems paying its short term obligations.
The Current ratio of FERG (1.82) is comparable to the rest of the industry.
FERG has a Quick Ratio of 1.82. This is a bad value and indicates that FERG is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of FERG (0.98) is worse than 61.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.82 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
The earnings per share for FERG have decreased by -0.96% in the last year.
FERG shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 14.56% yearly.
Looking at the last year, FERG shows a small growth in Revenue. The Revenue has grown by 1.84% in the last year.
The Revenue has been growing slightly by 6.13% on average over the past years.
EPS 1Y (TTM)-0.96%
EPS 3Y12.31%
EPS 5Y14.56%
EPS Q2Q%-12.64%
Revenue 1Y (TTM)1.84%
Revenue growth 3Y9.15%
Revenue growth 5Y6.13%
Sales Q2Q%2.98%
3.2 Future
FERG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.20% yearly.
The Revenue is expected to grow by 7.54% on average over the next years.
EPS Next Y-6.48%
EPS Next 2Y2.06%
EPS Next 3Y5.77%
EPS Next 5Y8.2%
Revenue Next Year1.75%
Revenue Next 2Y3.43%
Revenue Next 3Y4.51%
Revenue Next 5Y7.54%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 22.03, the valuation of FERG can be described as rather expensive.
The rest of the industry has a similar Price/Earnings ratio as FERG.
FERG's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.29.
A Price/Forward Earnings ratio of 20.23 indicates a rather expensive valuation of FERG.
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 22.17. FERG is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.03 | ||
| Fwd PE | 20.23 |
4.2 Price Multiples
FERG's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, FERG is valued a bit cheaper than the industry average as 63.27% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.49 | ||
| EV/EBITDA | 13.76 |
4.3 Compensation for Growth
FERG has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.51
EPS Next 2Y2.06%
EPS Next 3Y5.77%
5. Dividend
5.1 Amount
FERG has a Yearly Dividend Yield of 1.81%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.70, FERG pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.38, FERG is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.81% |
5.2 History
The dividend of FERG is nicely growing with an annual growth rate of 14.98%!
FERG has been paying a dividend for at least 10 years, so it has a reliable track record.
FERG has decreased its dividend recently.
Dividend Growth(5Y)14.98%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
FERG pays out 38.84% 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.
DP38.84%
EPS Next 2Y2.06%
EPS Next 3Y5.77%
NYSE:FERG (6/3/2025, 10:40:09 AM)
204.2
+23.91 (+13.26%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners91.55%
Inst Owner Change3.91%
Ins Owners2.44%
Ins Owner Change2.72%
Market Cap40.57B
Analysts78.57
Price Target198.05 (-3.01%)
Short Float %1.85%
Short Ratio2.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.81% |
Yearly Dividend3.87
Dividend Growth(5Y)14.98%
DP38.84%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-7.55%
Min EPS beat(2)-8.26%
Max EPS beat(2)-6.84%
EPS beat(4)1
Avg EPS beat(4)-3.68%
Min EPS beat(4)-8.26%
Max EPS beat(4)2.17%
EPS beat(8)2
Avg EPS beat(8)-1.7%
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-1.52%
Min Revenue beat(2)-2.7%
Max Revenue beat(2)-0.33%
Revenue beat(4)0
Avg Revenue beat(4)-2.07%
Min Revenue beat(4)-2.7%
Max Revenue beat(4)-0.33%
Revenue beat(8)1
Avg Revenue beat(8)-1.63%
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)-9.62%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-11.49%
EPS NY rev (1m)0%
EPS NY rev (3m)-5.98%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.12%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.03 | ||
| Fwd PE | 20.23 | ||
| P/S | 1.36 | ||
| P/FCF | 28.49 | ||
| P/OCF | 23.94 | ||
| P/B | 7.39 | ||
| P/tB | 16.7 | ||
| EV/EBITDA | 13.76 |
EPS(TTM)9.27
EY4.54%
EPS(NY)10.09
Fwd EY4.94%
FCF(TTM)7.17
FCFY3.51%
OCF(TTM)8.53
OCFY4.18%
SpS150.47
BVpS27.62
TBVpS12.22
PEG (NY)N/A
PEG (5Y)1.51
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.92% | ||
| ROE | 29.88% | ||
| ROCE | 21.89% | ||
| ROIC | 16.09% | ||
| ROICexc | 17.24% | ||
| ROICexgc | 24.14% | ||
| OM | 8.4% | ||
| PM (TTM) | 5.49% | ||
| GM | 30.35% | ||
| FCFM | 4.76% |
ROA(3y)11.94%
ROA(5y)10.74%
ROE(3y)37.96%
ROE(5y)33.06%
ROIC(3y)19.52%
ROIC(5y)17.16%
ROICexc(3y)20.83%
ROICexc(5y)19.21%
ROICexgc(3y)29.84%
ROICexgc(5y)27.75%
ROCE(3y)26.54%
ROCE(5y)23.43%
ROICexcg growth 3Y-2.31%
ROICexcg growth 5Y-1.42%
ROICexc growth 3Y-1.25%
ROICexc growth 5Y0.09%
OM growth 3Y1.51%
OM growth 5Y5.66%
PM growth 3Y-3.22%
PM growth 5Y3.07%
GM growth 3Y-0.08%
GM growth 5Y0.8%
F-Score7
Asset Turnover1.81
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 3.05 | ||
| Debt/EBITDA | 1.38 | ||
| Cap/Depr | 76.55% | ||
| Cap/Sales | 0.91% | ||
| Interest Coverage | 13.57 | ||
| Cash Conversion | 59.16% | ||
| Profit Quality | 86.83% | ||
| Current Ratio | 1.82 | ||
| Quick Ratio | 0.98 | ||
| Altman-Z | 5.07 |
F-Score7
WACC9.83%
ROIC/WACC1.64
Cap/Depr(3y)114.92%
Cap/Depr(5y)105.2%
Cap/Sales(3y)1.25%
Cap/Sales(5y)1.25%
Profit Quality(3y)82.6%
Profit Quality(5y)91.33%
High Growth Momentum
Growth
EPS 1Y (TTM)-0.96%
EPS 3Y12.31%
EPS 5Y14.56%
EPS Q2Q%-12.64%
EPS Next Y-6.48%
EPS Next 2Y2.06%
EPS Next 3Y5.77%
EPS Next 5Y8.2%
Revenue 1Y (TTM)1.84%
Revenue growth 3Y9.15%
Revenue growth 5Y6.13%
Sales Q2Q%2.98%
Revenue Next Year1.75%
Revenue Next 2Y3.43%
Revenue Next 3Y4.51%
Revenue Next 5Y7.54%
EBIT growth 1Y-4.16%
EBIT growth 3Y10.79%
EBIT growth 5Y12.13%
EBIT Next Year0.89%
EBIT Next 3Y6.74%
EBIT Next 5Y8.15%
FCF growth 1Y-15.29%
FCF growth 3Y9.57%
FCF growth 5Y11.47%
OCF growth 1Y-18.94%
OCF growth 3Y10.66%
OCF growth 5Y7.74%