FERGUSON ENTERPRISES INC (FERG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FERG - US31488V1070 - Common Stock
249 USD
-0.86 (-0.34%)
249.06 USD
+0.06 (+0.02%)
We assign a fundamental rating of 6 out of 10 to FERG. FERG was compared to 50 industry peers in the Trading Companies & Distributors industry. While FERG belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. FERG is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- FERG had positive earnings in the past year.
- FERG had a positive operating cash flow in the past year.
- Each year in the past 5 years FERG has been profitable.
- In the past 5 years FERG always reported a positive cash flow from operatings.
1.2 Ratios
- FERG has a better Return On Assets (11.05%) than 92.00% of its industry peers.
- The Return On Equity of FERG (32.30%) is better than 92.00% of its industry peers.
- FERG has a Return On Invested Capital of 16.59%. This is amongst the best in the industry. FERG outperforms 94.00% of its industry peers.
- FERG had an Average Return On Invested Capital over the past 3 years of 18.09%. This is significantly above the industry average of 9.63%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.05% | ||
| ROE | 32.3% | ||
| ROIC | 16.59% |
ROA(3y)10.92%
ROA(5y)11.41%
ROE(3y)33.41%
ROE(5y)35.03%
ROIC(3y)18.09%
ROIC(5y)18.28%
1.3 Margins
- FERG has a Profit Margin of 6.28%. This is in the better half of the industry: FERG outperforms 66.00% of its industry peers.
- In the last couple of years the Profit Margin of FERG has grown nicely.
- FERG has a Operating Margin of 8.95%. This is in the better half of the industry: FERG outperforms 62.00% of its industry peers.
- In the last couple of years the Operating Margin of FERG has grown nicely.
- FERG's Gross Margin of 30.81% is in line compared to the rest of the industry. FERG outperforms 56.00% of its industry peers.
- In the last couple of years the Gross Margin of FERG has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.95% | ||
| PM (TTM) | 6.28% | ||
| GM | 30.81% |
OM growth 3Y-4.18%
OM growth 5Y4.88%
PM growth 3Y-6.7%
PM growth 5Y4.6%
GM growth 3Y0.02%
GM growth 5Y0.44%
2. Health
2.1 Basic Checks
- FERG has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- FERG has less shares outstanding than it did 1 year ago.
- The number of shares outstanding for FERG has been reduced compared to 5 years ago.
- FERG has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 5.68 indicates that FERG is not in any danger for bankruptcy at the moment.
- The Altman-Z score of FERG (5.68) is better than 80.00% of its industry peers.
- The Debt to FCF ratio of FERG is 2.50, which is a good value as it means it would take FERG, 2.50 years of fcf income to pay off all of its debts.
- FERG has a better Debt to FCF ratio (2.50) than 76.00% of its industry peers.
- FERG has a Debt/Equity ratio of 0.68. This is a neutral value indicating FERG is somewhat dependend on debt financing.
- FERG has a Debt to Equity ratio of 0.68. This is comparable to the rest of the industry: FERG outperforms 48.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 2.5 | ||
| Altman-Z | 5.68 |
ROIC/WACC1.71
WACC9.69%
2.3 Liquidity
- FERG has a Current Ratio of 1.88. This is a normal value and indicates that FERG is financially healthy and should not expect problems in meeting its short term obligations.
- FERG has a Current ratio of 1.88. This is comparable to the rest of the industry: FERG outperforms 50.00% of its industry peers.
- FERG has a Quick Ratio of 1.01. This is a normal value and indicates that FERG is financially healthy and should not expect problems in meeting its short term obligations.
- FERG's Quick ratio of 1.01 is on the low side compared to the rest of the industry. FERG is outperformed by 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.88 | ||
| Quick Ratio | 1.01 |
3. Growth
3.1 Past
- FERG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.96%, which is quite good.
- FERG shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 14.44% yearly.
- Looking at the last year, FERG shows a small growth in Revenue. The Revenue has grown by 4.92% in the last year.
- FERG shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.06% yearly.
EPS 1Y (TTM)8.96%
EPS 3Y-1.3%
EPS 5Y14.44%
EPS Q2Q%15.92%
Revenue 1Y (TTM)4.92%
Revenue growth 3Y2.5%
Revenue growth 5Y9.06%
Sales Q2Q%5.11%
3.2 Future
- Based on estimates for the next years, FERG will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.31% on average per year.
- The Revenue is expected to grow by 8.51% on average over the next years. This is quite good.
EPS Next Y12.11%
EPS Next 2Y11.72%
EPS Next 3Y10.31%
EPS Next 5Y11.31%
Revenue Next Year5.67%
Revenue Next 2Y5.52%
Revenue Next 3Y5.64%
Revenue Next 5Y8.51%
3.3 Evolution
- Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 24.08, the valuation of FERG can be described as rather expensive.
- FERG's Price/Earnings ratio is in line with the industry average.
- FERG's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.38.
- The Price/Forward Earnings ratio is 20.05, which indicates a rather expensive current valuation of FERG.
- The rest of the industry has a similar Price/Forward Earnings ratio as FERG.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.29, FERG is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.08 | ||
| Fwd PE | 20.05 |
4.2 Price Multiples
- FERG's Enterprise Value to EBITDA is on the same level as the industry average.
- Based on the Price/Free Cash Flow ratio, FERG is valued a bit cheaper than the industry average as 68.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.63 | ||
| EV/EBITDA | 16.55 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates FERG does not grow enough to justify the current Price/Earnings ratio.
- FERG has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.99
PEG (5Y)1.67
EPS Next 2Y11.72%
EPS Next 3Y10.31%
5. Dividend
5.1 Amount
- FERG has a Yearly Dividend Yield of 1.42%.
- FERG's Dividend Yield is a higher than the industry average which is at 1.48.
- FERG's Dividend Yield is slightly below the S&P500 average, which is at 1.85.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.42% |
5.2 History
- On average, the dividend of FERG grows each year by 11.33%, which is quite nice.
- FERG has paid a dividend for at least 10 years, which is a reliable track record.
- FERG has decreased its dividend recently.
Dividend Growth(5Y)11.33%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
- FERG pays out 33.38% of its income as dividend. This is a sustainable payout ratio.
- FERG's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP33.38%
EPS Next 2Y11.72%
EPS Next 3Y10.31%
249
-0.86 (-0.34%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)12-09 2025-12-09/bmo
Earnings (Next)03-09 2026-03-09
Inst Owners95.41%
Inst Owner Change-0.04%
Ins Owners1.76%
Ins Owner Change6.06%
Market Cap48.80B
Revenue(TTM)31.16B
Net Income(TTM)1.96B
Analysts81.29
Price Target267.21 (7.31%)
Short Float %1.17%
Short Ratio1.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.42% |
Yearly Dividend2.46
Dividend Growth(5Y)11.33%
DP33.38%
Div Incr Years1
Div Non Decr Years1
Ex-Date01-02 2026-01-02 (0.89)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)11.06%
Min EPS beat(2)7.77%
Max EPS beat(2)14.35%
EPS beat(4)3
Avg EPS beat(4)9.15%
Min EPS beat(4)-6.84%
Max EPS beat(4)21.31%
EPS beat(8)4
Avg EPS beat(8)2.66%
EPS beat(12)5
Avg EPS beat(12)1.91%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-0.62%
Min Revenue beat(2)-0.98%
Max Revenue beat(2)-0.27%
Revenue beat(4)1
Avg Revenue beat(4)-0.23%
Min Revenue beat(4)-0.98%
Max Revenue beat(4)0.67%
Revenue beat(8)1
Avg Revenue beat(8)-1.52%
Revenue beat(12)2
Avg Revenue beat(12)-1.3%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)1.86%
PT rev (3m)5.16%
EPS NQ rev (1m)12.01%
EPS NQ rev (3m)27.78%
EPS NY rev (1m)0.97%
EPS NY rev (3m)0.92%
Revenue NQ rev (1m)2.15%
Revenue NQ rev (3m)10.87%
Revenue NY rev (1m)0.22%
Revenue NY rev (3m)0.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.08 | ||
| Fwd PE | 20.05 | ||
| P/S | 1.57 | ||
| P/FCF | 29.63 | ||
| P/OCF | 24.49 | ||
| P/B | 8.06 | ||
| P/tB | 16.9 | ||
| EV/EBITDA | 16.55 |
EPS(TTM)10.34
EY4.15%
EPS(NY)12.42
Fwd EY4.99%
FCF(TTM)8.4
FCFY3.38%
OCF(TTM)10.17
OCFY4.08%
SpS158.99
BVpS30.9
TBVpS14.74
PEG (NY)1.99
PEG (5Y)1.67
Graham Number84.79
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.05% | ||
| ROE | 32.3% | ||
| ROCE | 22.57% | ||
| ROIC | 16.59% | ||
| ROICexc | 17.33% | ||
| ROICexgc | 23.67% | ||
| OM | 8.95% | ||
| PM (TTM) | 6.28% | ||
| GM | 30.81% | ||
| FCFM | 5.29% |
ROA(3y)10.92%
ROA(5y)11.41%
ROE(3y)33.41%
ROE(5y)35.03%
ROIC(3y)18.09%
ROIC(5y)18.28%
ROICexc(3y)19.15%
ROICexc(5y)19.83%
ROICexgc(3y)27.13%
ROICexgc(5y)28.39%
ROCE(3y)24.61%
ROCE(5y)24.87%
ROICexgc growth 3Y-8.87%
ROICexgc growth 5Y2.77%
ROICexc growth 3Y-7.91%
ROICexc growth 5Y3.93%
OM growth 3Y-4.18%
OM growth 5Y4.88%
PM growth 3Y-6.7%
PM growth 5Y4.6%
GM growth 3Y0.02%
GM growth 5Y0.44%
F-Score7
Asset Turnover1.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 2.5 | ||
| Debt/EBITDA | 1.3 | ||
| Cap/Depr | 91.78% | ||
| Cap/Sales | 1.11% | ||
| Interest Coverage | 14.68 | ||
| Cash Conversion | 62.95% | ||
| Profit Quality | 84.2% | ||
| Current Ratio | 1.88 | ||
| Quick Ratio | 1.01 | ||
| Altman-Z | 5.68 |
F-Score7
WACC9.69%
ROIC/WACC1.71
Cap/Depr(3y)110.07%
Cap/Depr(5y)101.48%
Cap/Sales(3y)1.24%
Cap/Sales(5y)1.16%
Profit Quality(3y)97.9%
Profit Quality(5y)82.34%
High Growth Momentum
Growth
EPS 1Y (TTM)8.96%
EPS 3Y-1.3%
EPS 5Y14.44%
EPS Q2Q%15.92%
EPS Next Y12.11%
EPS Next 2Y11.72%
EPS Next 3Y10.31%
EPS Next 5Y11.31%
Revenue 1Y (TTM)4.92%
Revenue growth 3Y2.5%
Revenue growth 5Y9.06%
Sales Q2Q%5.11%
Revenue Next Year5.67%
Revenue Next 2Y5.52%
Revenue Next 3Y5.64%
Revenue Next 5Y8.51%
EBIT growth 1Y8.18%
EBIT growth 3Y-1.78%
EBIT growth 5Y14.38%
EBIT Next Year23.29%
EBIT Next 3Y12.36%
EBIT Next 5Y11.75%
FCF growth 1Y-29.77%
FCF growth 3Y23.12%
FCF growth 5Y4.9%
OCF growth 1Y-28.36%
OCF growth 3Y18.42%
OCF growth 5Y4.31%
FERGUSON ENTERPRISES INC / FERG FAQ
What is the ChartMill fundamental rating of FERGUSON ENTERPRISES INC (FERG) stock?
ChartMill assigns a fundamental rating of 6 / 10 to FERG.
Can you provide the valuation status for FERGUSON ENTERPRISES INC?
ChartMill assigns a valuation rating of 3 / 10 to FERGUSON ENTERPRISES INC (FERG). This can be considered as Overvalued.
Can you provide the profitability details for FERGUSON ENTERPRISES INC?
FERGUSON ENTERPRISES INC (FERG) has a profitability rating of 8 / 10.
What are the PE and PB ratios of FERGUSON ENTERPRISES INC (FERG) stock?
The Price/Earnings (PE) ratio for FERGUSON ENTERPRISES INC (FERG) is 24.08 and the Price/Book (PB) ratio is 8.06.
How financially healthy is FERGUSON ENTERPRISES INC?
The financial health rating of FERGUSON ENTERPRISES INC (FERG) is 6 / 10.