FERGUSON ENTERPRISES INC (FERG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FERG - US31488V1070 - Common Stock
251.73 USD
+0.16 (+0.06%)
251.73 USD
0 (0%)
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 not valued too expensively and it also shows a decent growth rate.
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.
- FERG had positive earnings in each of the past 5 years.
- In the past 5 years FERG always reported a positive cash flow from operatings.
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 has a better Return On Invested Capital (16.59%) than 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 9.64%.
| 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
- With a decent Profit Margin value of 6.28%, FERG is doing good in the industry, outperforming 66.00% of the companies in the same industry.
- FERG's Profit Margin has improved in the last couple of years.
- Looking at the Operating Margin, with a value of 8.95%, FERG is in the better half of the industry, outperforming 62.00% of the companies in the same industry.
- FERG's Operating Margin has improved in the last couple of years.
- With a Gross Margin value of 30.81%, FERG perfoms like the industry average, outperforming 56.00% 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
- 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.
- Compared to 5 years ago, FERG has less shares outstanding
- The debt/assets ratio for FERG has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 5.71 indicates that FERG is not in any danger for bankruptcy at the moment.
- The Altman-Z score of FERG (5.71) is better than 84.00% 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.
- 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.
- With a Debt to Equity ratio value of 0.68, FERG perfoms like the industry average, outperforming 48.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 2.5 | ||
| Altman-Z | 5.71 |
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 has a Current ratio (1.88) which is in line with its industry peers.
- A Quick Ratio of 1.01 indicates that FERG should not have too much problems paying its short term obligations.
- The Quick ratio of FERG (1.01) is worse than 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.
- FERG shows a small growth in Revenue. In the last year, the Revenue has grown by 4.92%.
- 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
- The Earnings Per Share is expected to grow by 11.31% on average over the next years. This is quite good.
- The Revenue is expected to grow by 8.51% on average over the next years. This is quite good.
EPS Next Y11.07%
EPS Next 2Y11.56%
EPS Next 3Y10.1%
EPS Next 5Y11.31%
Revenue Next Year5.66%
Revenue Next 2Y5.52%
Revenue Next 3Y5.62%
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
- FERG is valuated rather expensively with a Price/Earnings ratio of 24.35.
- FERG's Price/Earnings ratio is in line with the industry average.
- When comparing the Price/Earnings ratio of FERG to the average of the S&P500 Index (28.60), we can say FERG is valued inline with the index average.
- FERG is valuated rather expensively with a Price/Forward Earnings ratio of 20.33.
- FERG's Price/Forward Earnings ratio is in line with the industry average.
- The average S&P500 Price/Forward Earnings ratio is at 25.83. FERG is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.35 | ||
| Fwd PE | 20.33 |
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 68.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.95 | ||
| EV/EBITDA | 16.72 |
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)2.2
PEG (5Y)1.69
EPS Next 2Y11.56%
EPS Next 3Y10.1%
5. Dividend
5.1 Amount
- FERG has a Yearly Dividend Yield of 1.41%. 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 1.31.
- FERG's Dividend Yield is slightly below the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.41% |
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
- 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 2Y11.56%
EPS Next 3Y10.1%
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 24.35 and the Price/Book (PB) ratio is 8.15.
How financially healthy is FERGUSON ENTERPRISES INC?
The financial health rating of FERGUSON ENTERPRISES INC (FERG) is 6 / 10.