FERGUSON ENTERPRISES INC (FERG) Stock Fundamental Analysis
USA - NYSE:FERG - US31488V1070 - Common Stock
249.17 USD
+4.15 (+1.69%)
247.97 USD
-1.2 (-0.48%)
Taking everything into account, FERG scores 6 out of 10 in our fundamental rating. FERG was compared to 49 industry peers in the Trading Companies & Distributors industry. FERG scores excellent on profitability, but 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.
In the past year FERG had a positive cash flow from operations.
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
Looking at the Return On Assets, with a value of 10.47%, FERG belongs to the top of the industry, outperforming 89.80% of the companies in the same industry.
The Return On Equity of FERG (31.82%) is better than 89.80% of its industry peers.
With an excellent Return On Invested Capital value of 16.85%, FERG belongs to the best of the industry, outperforming 93.88% of the companies in the same industry.
FERG had an Average Return On Invested Capital over the past 3 years of 18.09%. This is significantly above the industry average of 10.04%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.47% | ||
| ROE | 31.82% | ||
| ROIC | 16.85% |
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 (6.03%) is better than 67.35% of its industry peers.
In the last couple of years the Profit Margin of FERG has grown nicely.
With a decent Operating Margin value of 8.72%, FERG is doing good in the industry, outperforming 63.27% of the companies in the same industry.
In the last couple of years the Operating Margin of FERG has grown nicely.
The Gross Margin of FERG (30.67%) is comparable to the rest of the industry.
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 | 8.72% | ||
| PM (TTM) | 6.03% | ||
| GM | 30.67% |
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.
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
The Debt to FCF ratio of FERG is 2.34, which is a good value as it means it would take FERG, 2.34 years of fcf income to pay off all of its debts.
FERG has a better Debt to FCF ratio (2.34) than 77.55% of its industry peers.
FERG has a Debt/Equity ratio of 0.64. This is a neutral value indicating FERG is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.64, FERG perfoms like the industry average, outperforming 48.98% of the companies in the same industry.
Even though the debt/equity ratio score it not favorable for FERG, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 2.34 | ||
| Altman-Z | N/A |
ROIC/WACC1.83
WACC9.19%
2.3 Liquidity
FERG has a Current Ratio of 1.68. This is a normal value and indicates that FERG is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of FERG (1.68) is comparable to the rest of the industry.
A Quick Ratio of 0.94 indicates that FERG may have some problems paying its short term obligations.
FERG has a worse Quick ratio (0.94) than 63.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.68 | ||
| Quick Ratio | 0.94 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.68% over the past year.
Measured over the past years, FERG shows a quite strong growth in Earnings Per Share. The EPS has been growing by 14.44% on average per year.
The Revenue has been growing slightly by 3.80% 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)2.68%
EPS 3Y-1.3%
EPS 5Y14.44%
EPS Q2Q%16.78%
Revenue 1Y (TTM)3.8%
Revenue growth 3Y2.5%
Revenue growth 5Y9.06%
Sales Q2Q%6.93%
3.2 Future
The Earnings Per Share is expected to grow by 10.44% on average over the next years. This is quite good.
Based on estimates for the next years, FERG will show a small growth in Revenue. The Revenue will grow by 5.73% on average per year.
EPS Next Y11.09%
EPS Next 2Y9.99%
EPS Next 3Y10.44%
EPS Next 5YN/A
Revenue Next Year5.14%
Revenue Next 2Y5.59%
Revenue Next 3Y5.73%
Revenue Next 5YN/A
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
FERG is valuated quite expensively with a Price/Earnings ratio of 25.04.
FERG's Price/Earnings is on the same level as the industry average.
FERG is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.91, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 22.54, which indicates a rather expensive current valuation of FERG.
FERG's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.92, FERG is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.04 | ||
| Fwd PE | 22.54 |
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 63.27% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.49 | ||
| EV/EBITDA | 16.73 |
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)2.26
PEG (5Y)1.73
EPS Next 2Y9.99%
EPS Next 3Y10.44%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.35%, FERG has a reasonable but not impressive dividend return.
FERG's Dividend Yield is a higher than the industry average which is at 1.80.
With a Dividend Yield of 1.35, FERG pays less dividend than the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.35% |
5.2 History
On average, the dividend of FERG grows each year by 11.29%, which is quite nice.
FERG has been paying a dividend for at least 10 years, so it has a reliable track record.
FERG has decreased its dividend recently.
Dividend Growth(5Y)11.29%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
FERG pays out 26.35% of its income as dividend. This is a sustainable payout ratio.
The dividend of FERG is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP26.35%
EPS Next 2Y9.99%
EPS Next 3Y10.44%
249.17
+4.15 (+1.69%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners96.02%
Inst Owner Change0.01%
Ins Owners2.47%
Ins Owner Change5.39%
Market Cap48.83B
Revenue(TTM)30.76B
Net Income(TTM)1.86B
Analysts78.67
Price Target254.09 (1.97%)
Short Float %0.83%
Short Ratio0.88
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.35% |
Yearly Dividend2.45
Dividend Growth(5Y)11.29%
DP26.35%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)17.83%
Min EPS beat(2)14.35%
Max EPS beat(2)21.31%
EPS beat(4)2
Avg EPS beat(4)5.14%
Min EPS beat(4)-8.26%
Max EPS beat(4)21.31%
EPS beat(8)3
Avg EPS beat(8)1.5%
EPS beat(12)5
Avg EPS beat(12)1.59%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-0.15%
Min Revenue beat(2)-0.98%
Max Revenue beat(2)0.67%
Revenue beat(4)1
Avg Revenue beat(4)-0.84%
Min Revenue beat(4)-2.7%
Max Revenue beat(4)0.67%
Revenue beat(8)1
Avg Revenue beat(8)-1.63%
Revenue beat(12)3
Avg Revenue beat(12)-1.21%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)3.15%
PT rev (3m)7.39%
EPS NQ rev (1m)-5.58%
EPS NQ rev (3m)-5.51%
EPS NY rev (1m)3.14%
EPS NY rev (3m)3.03%
Revenue NQ rev (1m)-1.7%
Revenue NQ rev (3m)-1.74%
Revenue NY rev (1m)-0.31%
Revenue NY rev (3m)-0.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.04 | ||
| Fwd PE | 22.54 | ||
| P/S | 1.59 | ||
| P/FCF | 30.49 | ||
| P/OCF | 25.62 | ||
| P/B | 8.38 | ||
| P/tB | 14.51 | ||
| EV/EBITDA | 16.73 |
EPS(TTM)9.95
EY3.99%
EPS(NY)11.05
Fwd EY4.44%
FCF(TTM)8.17
FCFY3.28%
OCF(TTM)9.73
OCFY3.9%
SpS156.83
BVpS29.73
TBVpS17.17
PEG (NY)2.26
PEG (5Y)1.73
Graham Number81.59
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.47% | ||
| ROE | 31.82% | ||
| ROCE | 22.93% | ||
| ROIC | 16.85% | ||
| ROICexc | 17.89% | ||
| ROICexgc | 23.03% | ||
| OM | 8.72% | ||
| PM (TTM) | 6.03% | ||
| GM | 30.67% | ||
| FCFM | 5.21% |
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)26.42%
ROICexgc(5y)27.96%
ROCE(3y)24.61%
ROCE(5y)24.87%
ROICexgc growth 3Y-11.52%
ROICexgc growth 5Y0.96%
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-Score6
Asset Turnover1.74
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 2.34 | ||
| Debt/EBITDA | 1.23 | ||
| Cap/Depr | 81.77% | ||
| Cap/Sales | 0.99% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 62.43% | ||
| Profit Quality | 86.37% | ||
| Current Ratio | 1.68 | ||
| Quick Ratio | 0.94 | ||
| Altman-Z | N/A |
F-Score6
WACC9.19%
ROIC/WACC1.83
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)2.68%
EPS 3Y-1.3%
EPS 5Y14.44%
EPS Q2Q%16.78%
EPS Next Y11.09%
EPS Next 2Y9.99%
EPS Next 3Y10.44%
EPS Next 5YN/A
Revenue 1Y (TTM)3.8%
Revenue growth 3Y2.5%
Revenue growth 5Y9.06%
Sales Q2Q%6.93%
Revenue Next Year5.14%
Revenue Next 2Y5.59%
Revenue Next 3Y5.73%
Revenue Next 5YN/A
EBIT growth 1Y1.17%
EBIT growth 3Y-1.78%
EBIT growth 5Y14.38%
EBIT Next Year21.21%
EBIT Next 3Y12.25%
EBIT Next 5YN/A
FCF growth 1Y6.8%
FCF growth 3Y23.12%
FCF growth 5Y4.9%
OCF growth 1Y1.87%
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 3 / 10 to FERGUSON ENTERPRISES INC (FERG). This can be considered as Overvalued.
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 25.04 and the Price/Book (PB) ratio is 8.38.
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 26.35%.