Is NYSE:FERG suited for quality investing?

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 course 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.

• FERGUSON PLC has demonstrated significant revenue growth over the past 5 years, with a 7.46% increase. This underscores the company's ability to adapt to market dynamics and capitalize on growth opportunities.
• 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.
• The Debt/Free Cash Flow Ratio of FERGUSON PLC stands at 1.56, reflecting the company's prudent capital structure and cash flow dynamics. This ratio highlights the company's ability to generate robust free cash flow relative to its debt obligations.
• FERGUSON PLC demonstrates consistent Profit Quality over the past 5 years, with a strong 89.76%. This indicates the company's ability to generate sustainable and reliable profits, showcasing its long-term profitability and financial stability.
• With a robust 5-year EBIT growth of 15.07%, 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.

Fundamental analysis of NYSE:FERG

At ChartMill, a crucial aspect of their analysis is the assignment of a Fundamental Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous fundamental indicators and properties.

Overall FERG gets a fundamental rating of 5 out of 10. We evaluated FERG against 52 industry peers in the Trading Companies & Distributors industry. FERG scores excellent on profitability, but there are some minor concerns on its financial health. FERG is valued expensive and it does not seem to be growing.

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

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.

Keep in mind

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.