Why FERGUSON PLC (NYSE:FERG) Deserves Consideration as a Quality Investment.

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.

Key Considerations for Quality Investors.

• The 5-year revenue growth of FERGUSON PLC has been remarkable, with 7.46% increase. This showcases the company's strong performance in driving revenue growth and indicates its competitiveness within the market.
• 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.
• 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 has achieved impressive EBIT 5-year growth, surpassing its Revenue 5-year growth. This indicates the company's ability to improve its profitability and operational efficiency, highlighting its strong financial performance.

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

Every day ChartMill assigns a Fundamental Rating to every stock. The score ranges from 0 to 10 and is determined by evaluating multiple fundamental indicators and properties.

FERG gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals 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.

Check the latest full fundamental report of FERG for a complete fundamental analysis.

More ideas for quality investing can be found on ChartMill 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.