Should Quality-Oriented Investors Explore FERGUSON PLC (NYSE:FERG)?

In this article we will dive into FERGUSON PLC (NYSE:FERG) as a possible candidate for quality investing. Investors should always do their own research, but we noticed FERGUSON PLC showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

Why NYSE:FERG may be interesting for quality investors.

• FERGUSON PLC has achieved substantial revenue growth over the past 5 years, with a 7.46% increase. This signifies the company's ability to successfully capture market opportunities and generate sustained revenue growth.
• With a robust ROIC excluding cash and goodwill at 27.79%, FERGUSON PLC showcases its effective allocation of capital and operational excellence. This metric signifies the company's ability to generate attractive returns and supports its long-term financial performance.
• FERGUSON PLC demonstrates a well-balanced Debt/Free Cash Flow Ratio of 1.63, 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.
• FERGUSON PLC exhibits impressive Profit Quality (5-year) with a 89.76% ratio, reflecting its consistent ability to generate high-quality profits. This metric underscores the company's strong financial performance and commitment to delivering sustainable earnings.
• With a robust 5-year EBIT growth of 14.06%, FERGUSON PLC showcases its ability to consistently expand its operating profitability. This trend indicates the company's effective cost management and revenue generation strategies.
• FERGUSON PLC demonstrates a remarkable trend where its EBIT 5-year growth exceeds its Revenue 5-year growth. This indicates the company's ability to enhance its profitability through improved cost control and operational efficiency.

What is the full fundamental picture of NYSE:FERG telling us.

ChartMill utilizes a proprietary algorithm to assign a Fundamental Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of fundamental indicators and properties.

Taking everything into account, FERG scores 5 out of 10 in our fundamental rating. FERG was compared to 54 industry peers in the Trading Companies & Distributors industry. FERG has an excellent profitability rating, but there are some minor concerns on its financial health. FERG has a valuation in line with the averages, but it does not seem to be growing.

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

More quality stocks can be found in our Caviar Cruise screen.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.