FERGUSON PLC (NYSE:FERG) can be considered a quality stock. Here's why.

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if FERGUSON PLC (NYSE:FERG) is suited for quality investing. Investors should of couse do their own research, but we spotted FERGUSON PLC showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

Why NYSE:FERG may be interesting for quality investors.

• Over the past 5 years, FERGUSON PLC has experienced impressive revenue growth, with 8.18% increase. This demonstrates the company's ability to effectively expand its top line and suggests a positive outlook for future revenue generation.
• FERGUSON PLC exhibits a strong ROIC excluding cash and goodwill, indicating efficient capital utilization and profitable operations. The 33.89% reflects the company's ability to generate returns on invested capital and underscores its commitment to delivering value to shareholders.
• FERGUSON PLC demonstrates a well-balanced Debt/Free Cash Flow Ratio of 2.15, indicating effective debt management and strong cash flow generation. This ratio suggests the company has a sustainable financial position and the capacity to allocate capital efficiently.
• With a favorable Profit Quality (5-year) ratio of 77.24%, FERGUSON PLC showcases its ability to consistently deliver high-quality profits. This metric signifies the company's financial strength and its capacity to generate sustainable earnings over an extended period.
• With a robust 5-year EBIT growth of 17.61%, FERGUSON PLC showcases its ability to consistently expand its operating profitability. This trend indicates the company's effective cost management and revenue generation strategies.
• With EBIT 5-year growth outpacing its Revenue 5-year growth, FERGUSON PLC showcases its effective cost management and enhanced operational performance. This suggests the company's ability to generate higher earnings from its revenue streams.

Fundamental analysis of NYSE:FERG

As part of its analysis, ChartMill provides a comprehensive Fundamental Rating for each stock. This rating, ranging from 0 to 10, is updated on a daily basis and is based on the evaluation of various fundamental indicators and properties.

Overall FERG gets a fundamental rating of 6 out of 10. We evaluated FERG against 52 industry peers in the Trading Companies & Distributors industry. FERG has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. FERG has a correct valuation and a medium growth rate.

Our latest full fundamental report of FERG contains the most current fundamental analsysis.

Our Caviar Cruise screen will find you more ideas suited for quality investing.

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.