Exploring NYSE:FERG's quality characteristics.

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.

Some of the quality metrics of NYSE:FERG highlighted

• FERGUSON PLC has shown strong performance in revenue growth over the past 5 years, with a 7.46% increase. This indicates the company's ability to generate consistent revenue growth and reflects its potential for long-term success.
• FERGUSON PLC exhibits a strong ROIC excluding cash and goodwill, indicating efficient capital utilization and profitable operations. The 26.28% reflects the company's ability to generate returns on invested capital and underscores its commitment to delivering value to shareholders.
• FERGUSON PLC maintains a healthy Debt/Free Cash Flow Ratio of 1.56, indicating a strong financial position and prudent debt management. This ratio suggests the company has sufficient free cash flow to cover its debt obligations and highlights its ability to generate cash from operations.
• With a favorable Profit Quality (5-year) ratio of 89.76%, 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.
• FERGUSON PLC has experienced impressive EBIT growth over the past 5 years, with 15.07% increase. This reflects the company's effective operational performance and highlights its potential for long-term financial success.
• 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.

How does the complete fundamental picture look for NYSE:FERG?

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.

Overall FERG gets a fundamental rating of 5 out of 10. We evaluated FERG against 51 industry peers in the Trading Companies & Distributors industry. FERG scores excellent on profitability, but there are some minor concerns on its financial health. FERG does not seem to be growing, but still is valued expensively.

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

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

Disclaimer

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.