FERGUSON ENTERPRISES INC (FERG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FERG - US31488V1070 - Common Stock
224.66 USD
-3.54 (-1.55%)
225.77 USD
+1.11 (+0.49%)
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. FERG has an excellent profitability rating, but there are some minor concerns on its financial health. FERG has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year FERG was profitable.
FERG had a positive operating cash flow in the past year.
In the past 5 years FERG has always been profitable.
In the past 5 years FERG always reported a positive cash flow from operatings.
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.
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
Looking at the Profit Margin, with a value of 6.28%, FERG is in the better half of the industry, outperforming 66.00% of the companies in the same industry.
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.
FERG has a Gross Margin (30.81%) which is comparable to the rest of the 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
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.
The number of shares outstanding for FERG has been reduced compared to 5 years ago.
Compared to 1 year ago, FERG has an improved debt to assets ratio.
2.2 Solvency
FERG has an Altman-Z score of 5.43. This indicates that FERG is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 5.43, FERG belongs to the best 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.
With a decent Debt to FCF ratio value of 2.50, FERG is doing good in the industry, outperforming 74.00% of the companies in the same industry.
A Debt/Equity ratio of 0.68 indicates that 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 | 5.43 |
ROIC/WACC1.71
WACC9.69%
2.3 Liquidity
FERG has a Current Ratio of 1.88. This is a normal value and indicates that FERG is financially healthy and should not expect problems in meeting its short term obligations.
FERG has a Current ratio (1.88) which is comparable to the rest of the industry.
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.
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
The Earnings Per Share is expected to grow by 11.31% on average over the next years. This is quite good.
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
A Price/Earnings ratio of 21.73 indicates a rather expensive 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 is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.56, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 18.34, which indicates a rather expensive current valuation of FERG.
Based on the Price/Forward Earnings ratio, FERG is valued a bit cheaper than 62.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.79. FERG is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.73 | ||
| Fwd PE | 18.34 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of FERG indicates a somewhat cheap valuation: FERG is cheaper than 68.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.73 | ||
| EV/EBITDA | 15.04 |
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)1.97
PEG (5Y)1.51
EPS Next 2Y10.96%
EPS Next 3Y10.45%
5. Dividend
5.1 Amount
FERG has a Yearly Dividend Yield of 1.58%.
Compared to an average industry Dividend Yield of 0.96, FERG pays a better dividend. On top of this FERG pays more dividend than 82.00% of the companies listed in the same industry.
FERG's Dividend Yield is comparable with the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.58% |
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.
FERG has decreased its dividend 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 2Y10.96%
EPS Next 3Y10.45%
224.66
-3.54 (-1.55%)
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 Cap44.03B
Revenue(TTM)31.16B
Net Income(TTM)1.96B
Analysts81.29
Price Target262.32 (16.76%)
Short Float %2.08%
Short Ratio2.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.58% |
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)4.24%
EPS NQ rev (3m)37.68%
EPS NY rev (1m)-0.41%
EPS NY rev (3m)3.09%
Revenue NQ rev (1m)1.41%
Revenue NQ rev (3m)5.36%
Revenue NY rev (1m)0.3%
Revenue NY rev (3m)-0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.73 | ||
| Fwd PE | 18.34 | ||
| P/S | 1.41 | ||
| P/FCF | 26.73 | ||
| P/OCF | 22.09 | ||
| P/B | 7.27 | ||
| P/tB | 15.25 | ||
| EV/EBITDA | 15.04 |
EPS(TTM)10.34
EY4.6%
EPS(NY)12.25
Fwd EY5.45%
FCF(TTM)8.4
FCFY3.74%
OCF(TTM)10.17
OCFY4.53%
SpS158.99
BVpS30.9
TBVpS14.74
PEG (NY)1.97
PEG (5Y)1.51
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 | 5.43 |
F-Score7
WACC9.69%
ROIC/WACC1.71
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 21.73 and the Price/Book (PB) ratio is 7.27.
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%.