FERGUSON ENTERPRISES INC (FERG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FERG - US31488V1070 - Common Stock
228.69 USD
+0.16 (+0.07%)
228.69 USD
0 (0%)
Overall FERG gets a fundamental rating of 6 out of 10. We evaluated FERG against 50 industry peers in the Trading Companies & Distributors industry. FERG scores excellent on profitability, but there are some minor concerns on its financial health. FERG has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year FERG was profitable.
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
With an excellent Return On Assets value of 11.05%, FERG belongs to the best of the industry, outperforming 92.00% of the companies in the same industry.
FERG has a Return On Equity of 32.30%. This is amongst the best in the industry. FERG outperforms 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
The Profit Margin of FERG (6.28%) is better than 66.00% of its industry peers.
In the last couple of years the Profit Margin of FERG has grown nicely.
FERG has a better Operating Margin (8.95%) than 62.00% of its industry peers.
FERG's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 30.81%, FERG is in line with its industry, outperforming 54.00% of the companies in the same industry.
FERG's Gross Margin has been stable in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), FERG is creating value.
The number of shares outstanding for FERG has been reduced compared to 1 year ago.
Compared to 5 years ago, FERG has less shares outstanding
FERG has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.47 indicates that FERG is not in any danger for bankruptcy at the moment.
The Altman-Z score of FERG (5.47) is better than 82.00% of its industry peers.
FERG has a debt to FCF ratio of 2.50. This is a good value and a sign of high solvency as FERG would need 2.50 years to pay back of all of its debts.
FERG's Debt to FCF ratio of 2.50 is fine compared to the rest of the industry. FERG outperforms 74.00% 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.
Looking at the Debt to Equity ratio, with a value of 0.68, FERG is in line with its industry, outperforming 44.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 2.5 | ||
| Altman-Z | 5.47 |
ROIC/WACC1.74
WACC9.56%
2.3 Liquidity
A Current Ratio of 1.88 indicates that FERG should not have too much problems paying its short term obligations.
FERG has a Current ratio (1.88) which is comparable to the rest of the industry.
A Quick Ratio of 1.01 indicates that FERG should not have too much problems paying 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.
The Revenue has been growing slightly by 4.92% in the past year.
The Revenue has been growing by 9.06% on average over the past years. This is quite good.
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.
FERG is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.51% yearly.
EPS Next Y11.04%
EPS Next 2Y10.96%
EPS Next 3Y10.45%
EPS Next 5Y11.31%
Revenue Next Year5.44%
Revenue Next 2Y5.67%
Revenue Next 3Y5.87%
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.
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
The Price/Earnings ratio is 22.12, which indicates a rather expensive current valuation of FERG.
FERG's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.57, FERG is valued at the same level.
FERG is valuated rather expensively with a Price/Forward Earnings ratio of 18.67.
62.00% of the companies in the same industry are more expensive than FERG, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 24.04. FERG is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.12 | ||
| Fwd PE | 18.67 |
4.2 Price Multiples
FERG's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, FERG is valued a bit cheaper than 68.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.21 | ||
| EV/EBITDA | 15.28 |
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.
The excellent profitability rating of FERG may justify a higher PE ratio.
PEG (NY)2
PEG (5Y)1.53
EPS Next 2Y10.96%
EPS Next 3Y10.45%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.56%, FERG has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 0.98, FERG pays a better dividend. On top of this FERG pays more dividend than 82.00% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.00, FERG is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.56% |
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.
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 2Y10.96%
EPS Next 3Y10.45%
228.69
+0.16 (+0.07%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners95.26%
Inst Owner Change-2.68%
Ins Owners1.76%
Ins Owner Change6.06%
Market Cap44.82B
Revenue(TTM)31.16B
Net Income(TTM)1.96B
Analysts81.29
Price Target263.68 (15.3%)
Short Float %1.36%
Short Ratio1.61
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.56% |
Yearly Dividend2.46
Dividend Growth(5Y)11.33%
DP33.38%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)11.29%
Min EPS beat(2)8.24%
Max EPS beat(2)14.35%
EPS beat(4)3
Avg EPS beat(4)9.26%
Min EPS beat(4)-6.84%
Max EPS beat(4)21.31%
EPS beat(8)4
Avg EPS beat(8)2.72%
EPS beat(12)5
Avg EPS beat(12)1.94%
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)1.52%
PT rev (3m)6.49%
EPS NQ rev (1m)8.37%
EPS NQ rev (3m)43.14%
EPS NY rev (1m)-0.41%
EPS NY rev (3m)3.09%
Revenue NQ rev (1m)7.1%
Revenue NQ rev (3m)11.28%
Revenue NY rev (1m)0.3%
Revenue NY rev (3m)-0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.12 | ||
| Fwd PE | 18.67 | ||
| P/S | 1.44 | ||
| P/FCF | 27.21 | ||
| P/OCF | 22.49 | ||
| P/B | 7.4 | ||
| P/tB | 15.52 | ||
| EV/EBITDA | 15.28 |
EPS(TTM)10.34
EY4.52%
EPS(NY)12.25
Fwd EY5.36%
FCF(TTM)8.4
FCFY3.67%
OCF(TTM)10.17
OCFY4.45%
SpS158.99
BVpS30.9
TBVpS14.74
PEG (NY)2
PEG (5Y)1.53
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 | 5.47 |
F-Score7
WACC9.56%
ROIC/WACC1.74
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 Y11.04%
EPS Next 2Y10.96%
EPS Next 3Y10.45%
EPS Next 5Y11.31%
Revenue 1Y (TTM)4.92%
Revenue growth 3Y2.5%
Revenue growth 5Y9.06%
Sales Q2Q%5.11%
Revenue Next Year5.44%
Revenue Next 2Y5.67%
Revenue Next 3Y5.87%
Revenue Next 5Y8.51%
EBIT growth 1Y8.18%
EBIT growth 3Y-1.78%
EBIT growth 5Y14.38%
EBIT Next Year22.45%
EBIT Next 3Y12.51%
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.
What is the valuation status for FERG stock?
ChartMill assigns a valuation rating of 4 / 10 to FERGUSON ENTERPRISES INC (FERG). This can be considered as Fairly Valued.
What is the profitability of FERG stock?
FERGUSON ENTERPRISES INC (FERG) has a profitability rating of 8 / 10.
Can you provide the PE and PB ratios for FERG stock?
The Price/Earnings (PE) ratio for FERGUSON ENTERPRISES INC (FERG) is 22.12 and the Price/Book (PB) ratio is 7.4.
Can you provide the dividend sustainability for FERG stock?
The dividend rating of FERGUSON ENTERPRISES INC (FERG) is 5 / 10 and the dividend payout ratio is 33.38%.