FERGUSON ENTERPRISES INC (FERG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FERG - US31488V1070 - Common Stock
241.15 USD
+2.29 (+0.96%)
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 has a great profitability rating, 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.
In the past year FERG had a positive cash flow from operations.
In the past 5 years FERG has always been profitable.
FERG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
FERG has a Return On Assets of 11.05%. This is amongst the best in the industry. FERG outperforms 92.00% of its industry peers.
Looking at the Return On Equity, with a value of 32.30%, FERG belongs to the top of the industry, outperforming 92.00% of the companies in the same industry.
FERG's Return On Invested Capital of 16.59% is amongst the best of 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.
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.
In the last couple of years the Operating Margin of FERG has grown nicely.
FERG has a Gross Margin (30.81%) which is in line with its industry peers.
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so FERG 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.
The debt/assets ratio for FERG has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.58 indicates that FERG is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.58, FERG belongs to the top of the industry, outperforming 82.00% of the companies in the same industry.
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 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 (0.68) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 2.5 | ||
| Altman-Z | 5.58 |
ROIC/WACC1.73
WACC9.59%
2.3 Liquidity
A Current Ratio of 1.88 indicates that FERG should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.88, FERG is in line with its industry, outperforming 50.00% of the companies in the same industry.
A Quick Ratio of 1.01 indicates that FERG should not have too much problems paying its short term obligations.
FERG has a worse Quick ratio (1.01) than 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.88 | ||
| Quick Ratio | 1.01 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.96% over the past year.
The Earnings Per Share has been growing by 14.44% on average over the past years. This is quite good.
FERG shows a small growth in Revenue. In the last year, the Revenue has grown by 4.92%.
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
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.
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 Year5.78%
Revenue Next 2Y5.5%
Revenue Next 3Y5.81%
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 23.32, which indicates a rather expensive current valuation of FERG.
Compared to the rest of the industry, the Price/Earnings ratio of FERG is on the same level as its industry peers.
FERG's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.19.
The Price/Forward Earnings ratio is 19.42, which indicates a rather expensive current valuation of FERG.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FERG indicates a somewhat cheap valuation: FERG is cheaper than 66.00% of the companies listed in the same industry.
FERG's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.32 | ||
| Fwd PE | 19.42 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FERG is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, FERG is valued a bit cheaper than the industry average as 70.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.69 | ||
| EV/EBITDA | 15.92 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of FERG may justify a higher PE ratio.
PEG (NY)1.93
PEG (5Y)1.62
EPS Next 2Y11.72%
EPS Next 3Y10.31%
5. Dividend
5.1 Amount
FERG has a Yearly Dividend Yield of 1.55%.
Compared to an average industry Dividend Yield of 1.35, FERG pays a bit more dividend than its industry peers.
FERG's Dividend Yield is comparable with the S&P500 average which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.55% |
5.2 History
The dividend of FERG is nicely growing with an annual growth rate of 11.33%!
FERG has been paying a dividend for at least 10 years, so it has 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.
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%
NYSE:FERG (1/12/2026, 3:51:09 PM)
241.15
+2.29 (+0.96%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners95.41%
Inst Owner Change-0.09%
Ins Owners1.76%
Ins Owner Change6.06%
Market Cap47.26B
Revenue(TTM)31.16B
Net Income(TTM)1.96B
Analysts81.29
Price Target263.68 (9.34%)
Short Float %1.17%
Short Ratio1.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.55% |
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)0.52%
PT rev (3m)3.77%
EPS NQ rev (1m)4.44%
EPS NQ rev (3m)14.6%
EPS NY rev (1m)0.97%
EPS NY rev (3m)0.92%
Revenue NQ rev (1m)7.29%
Revenue NQ rev (3m)10.06%
Revenue NY rev (1m)0.32%
Revenue NY rev (3m)0.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.32 | ||
| Fwd PE | 19.42 | ||
| P/S | 1.52 | ||
| P/FCF | 28.69 | ||
| P/OCF | 23.71 | ||
| P/B | 7.8 | ||
| P/tB | 16.36 | ||
| EV/EBITDA | 15.92 |
EPS(TTM)10.34
EY4.29%
EPS(NY)12.42
Fwd EY5.15%
FCF(TTM)8.4
FCFY3.48%
OCF(TTM)10.17
OCFY4.22%
SpS158.99
BVpS30.9
TBVpS14.74
PEG (NY)1.93
PEG (5Y)1.62
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 | 5.58 |
F-Score7
WACC9.59%
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 Year5.78%
Revenue Next 2Y5.5%
Revenue Next 3Y5.81%
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 4 / 10 to FERGUSON ENTERPRISES INC (FERG). This can be considered as Fairly Valued.
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 23.32 and the Price/Book (PB) ratio is 7.8.
How financially healthy is FERGUSON ENTERPRISES INC?
The financial health rating of FERGUSON ENTERPRISES INC (FERG) is 6 / 10.