FERGUSON ENTERPRISES INC (FERG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FERG - US31488V1070 - Common Stock
242.62 USD
-6.38 (-2.56%)
242.62 USD
0 (0%)
Taking everything into account, FERG scores 6 out of 10 in our fundamental rating. FERG was compared to 50 industry peers in the Trading Companies & Distributors industry. While FERG has a great profitability rating, 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.
- FERG had positive earnings in each of the past 5 years.
- FERG had a positive operating cash flow in each of the past 5 years.
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.
- Looking at the Return On Invested Capital, with a value of 16.59%, FERG belongs to the top of the industry, outperforming 94.00% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for FERG 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.
- FERG's Profit Margin has improved in the last couple of years.
- With a decent Operating Margin value of 8.95%, FERG is doing good in the industry, outperforming 62.00% of the companies in the same industry.
- FERG's Operating Margin has improved in the last couple of years.
- FERG has a Gross Margin of 30.81%. This is comparable 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
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so FERG is creating value.
- Compared to 1 year ago, FERG has less shares outstanding
- 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
- FERG has an Altman-Z score of 5.68. This indicates that FERG is financially healthy and has little risk of bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 5.68, FERG is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
- 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.
- The Debt to FCF ratio of FERG (2.50) is better 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 (0.68) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 2.5 | ||
| Altman-Z | 5.68 |
ROIC/WACC1.73
WACC9.61%
2.3 Liquidity
- A Current Ratio of 1.88 indicates that FERG should not have too much problems paying its short term obligations.
- FERG's Current ratio of 1.88 is in line compared 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.
- Looking at the Quick ratio, with a value of 1.01, FERG is doing worse than 60.00% of the companies in the same industry.
| 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.
- Measured over the past years, FERG shows a quite strong growth in Revenue. The Revenue has been growing by 9.06% on average per year.
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
- FERG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.31% yearly.
- Based on estimates for the next years, FERG will show a quite strong growth in Revenue. The Revenue will grow by 8.51% on average per year.
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
- The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 23.46, which indicates a rather expensive current valuation of FERG.
- The rest of the industry has a similar Price/Earnings ratio as FERG.
- When comparing the Price/Earnings ratio of FERG to the average of the S&P500 Index (27.38), we can say FERG is valued inline with the index average.
- FERG is valuated rather expensively with a Price/Forward Earnings ratio of 19.54.
- FERG's Price/Forward Earnings ratio is in line with the industry average.
- 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 | 23.46 | ||
| Fwd PE | 19.54 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as FERG.
- 68.00% of the companies in the same industry are more expensive than FERG, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.87 | ||
| EV/EBITDA | 16.55 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- FERG has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.94
PEG (5Y)1.63
EPS Next 2Y11.72%
EPS Next 3Y10.31%
5. Dividend
5.1 Amount
- FERG has a Yearly Dividend Yield of 1.42%. Purely for dividend investing, there may be better candidates out there.
- 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 1.84.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.42% |
5.2 History
- The dividend of FERG is nicely growing with an annual growth rate of 11.33%!
- FERG has paid a dividend for at least 10 years, which is a reliable track record.
- The dividend of FERG decreased recently.
Dividend Growth(5Y)11.33%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
- 33.38% of the earnings are spent on dividend by FERG. This is a low number and sustainable payout ratio.
- The dividend of FERG is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP33.38%
EPS Next 2Y11.72%
EPS Next 3Y10.31%
242.62
-6.38 (-2.56%)
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 Cap47.55B
Revenue(TTM)31.16B
Net Income(TTM)1.96B
Analysts81.29
Price Target267.21 (10.14%)
Short Float %1.37%
Short Ratio1.76
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 | 23.46 | ||
| Fwd PE | 19.54 | ||
| P/S | 1.53 | ||
| P/FCF | 28.87 | ||
| P/OCF | 23.86 | ||
| P/B | 7.85 | ||
| P/tB | 16.46 | ||
| EV/EBITDA | 16.55 |
EPS(TTM)10.34
EY4.26%
EPS(NY)12.42
Fwd EY5.12%
FCF(TTM)8.4
FCFY3.46%
OCF(TTM)10.17
OCFY4.19%
SpS158.99
BVpS30.9
TBVpS14.74
PEG (NY)1.94
PEG (5Y)1.63
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
WACC9.61%
ROIC/WACC1.73
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 23.46 and the Price/Book (PB) ratio is 7.85.
How financially healthy is FERGUSON ENTERPRISES INC?
The financial health rating of FERGUSON ENTERPRISES INC (FERG) is 6 / 10.