FERGUSON ENTERPRISES INC (FERG)
US31488V1070 - Common Stock
We assign a fundamental rating of 6 out of 10 to FERG. FERG was compared to 48 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 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.
FERG had a positive operating cash flow in the past year.
Each year in the past 5 years FERG has been profitable.
FERG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
FERG has a better Return On Assets (10.00%) than 83.33% of its industry peers.
FERG has a Return On Equity of 29.81%. This is amongst the best in the industry. FERG outperforms 93.75% of its industry peers.
FERG has a better Return On Invested Capital (17.05%) than 93.75% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for FERG is significantly above the industry average of 9.72%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10% | ||
| ROE | 29.81% | ||
| ROIC | 17.05% |
ROA(3y)11.94%
ROA(5y)10.74%
ROE(3y)37.96%
ROE(5y)33.06%
ROIC(3y)19.52%
ROIC(5y)17.16%
1.3 Margins
FERG has a Profit Margin of 5.68%. This is in the better half of the industry: FERG outperforms 60.42% of its industry peers.
FERG's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 8.68%, FERG perfoms like the industry average, outperforming 56.25% of the companies in the same industry.
In the last couple of years the Operating Margin of FERG has grown nicely.
Looking at the Gross Margin, with a value of 30.51%, FERG is in line with its industry, outperforming 50.00% 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 | 8.68% | ||
| PM (TTM) | 5.68% | ||
| GM | 30.51% |
OM growth 3Y1.51%
OM growth 5Y5.66%
PM growth 3Y-3.22%
PM growth 5Y3.07%
GM growth 3Y-0.08%
GM growth 5Y0.8%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), FERG is creating some 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
Compared to 1 year ago, FERG has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.94 indicates that FERG is not in any danger for bankruptcy at the moment.
FERG has a Altman-Z score of 4.94. This is in the better half of the industry: FERG outperforms 79.17% of its industry peers.
The Debt to FCF ratio of FERG is 3.07, which is a good value as it means it would take FERG, 3.07 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of FERG (3.07) is better than 70.83% of its industry peers.
A Debt/Equity ratio of 0.61 indicates that FERG is somewhat dependend on debt financing.
FERG has a Debt to Equity ratio (0.61) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 3.07 | ||
| Altman-Z | 4.94 |
ROIC/WACC1.52
WACC11.23%
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 worse than 64.58% of its industry peers.
FERG has a Quick Ratio of 1.68. This is a bad value and indicates that FERG is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.91, FERG is doing worse than 70.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.68 | ||
| Quick Ratio | 0.91 |
3. Growth
3.1 Past
FERG shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -0.42%.
Measured over the past years, FERG shows a quite strong growth in Earnings Per Share. The EPS has been growing by 14.56% on average per year.
The Revenue has been growing slightly by 0.64% in the past year.
The Revenue has been growing slightly by 6.13% on average over the past years.
EPS 1Y (TTM)-0.42%
EPS 3Y12.31%
EPS 5Y14.56%
EPS Q2Q%-7.55%
Revenue 1Y (TTM)0.64%
Revenue growth 3Y9.15%
Revenue growth 5Y6.13%
Sales Q2Q%0.83%
3.2 Future
The Earnings Per Share is expected to grow by 8.20% on average over the next years. This is quite good.
The Revenue is expected to grow by 7.54% on average over the next years.
EPS Next Y0.17%
EPS Next 2Y6.25%
EPS Next 3Y8.14%
EPS Next 5Y8.2%
Revenue Next Year2.16%
Revenue Next 2Y4.18%
Revenue Next 3Y5.19%
Revenue Next 5Y7.54%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 18.77, the valuation of FERG can be described as rather expensive.
FERG's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.20, FERG is valued a bit cheaper.
FERG is valuated correctly with a Price/Forward Earnings ratio of 16.29.
FERG's Price/Forward Earnings is on the same level as the industry average.
FERG is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.73, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.77 | ||
| Fwd PE | 16.29 |
4.2 Price Multiples
FERG's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. FERG is more expensive than 60.42% of the companies in the same industry.
66.67% of the companies in the same industry are more expensive than FERG, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.34 | ||
| EV/EBITDA | 13.35 |
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)112.32
PEG (5Y)1.29
EPS Next 2Y6.25%
EPS Next 3Y8.14%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.90%, FERG has a reasonable but not impressive dividend return.
FERG's Dividend Yield is rather good when compared to the industry average which is at 1.86. FERG pays more dividend than 83.33% of the companies in the same industry.
FERG's Dividend Yield is comparable with the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.9% |
5.2 History
The dividend of FERG is nicely growing with an annual growth rate of 14.96%!
FERG has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)14.96%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
37.49% 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.
DP37.49%
EPS Next 2Y6.25%
EPS Next 3Y8.14%
FERGUSON ENTERPRISES INC
NYSE:FERG (12/20/2024, 8:10:26 PM)
Premarket: 177.33 -0.84 (-0.47%)178.17
+3.41 (+1.95%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners87.4%
Inst Owner Change12919.1%
Ins Owners0.82%
Ins Owner Change10.69%
Market Cap35.63B
Analysts80.83
Price Target232.74 (30.63%)
Short Float %1.24%
Short Ratio1.56
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.9% |
Dividend Growth(5Y)14.96%
DP37.49%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-3.04%
Min EPS beat(2)-8.26%
Max EPS beat(2)2.17%
EPS beat(4)1
Avg EPS beat(4)-3.83%
Min EPS beat(4)-8.26%
Max EPS beat(4)2.17%
EPS beat(8)2
Avg EPS beat(8)-1.72%
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-2.69%
Min Revenue beat(2)-2.7%
Max Revenue beat(2)-2.68%
Revenue beat(4)0
Avg Revenue beat(4)-2.81%
Min Revenue beat(4)-3.26%
Max Revenue beat(4)-2.57%
Revenue beat(8)1
Avg Revenue beat(8)-1.84%
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0.35%
PT rev (3m)2.09%
EPS NQ rev (1m)-12.4%
EPS NQ rev (3m)-12.4%
EPS NY rev (1m)-2.56%
EPS NY rev (3m)-10.12%
Revenue NQ rev (1m)-4.18%
Revenue NQ rev (3m)-4.18%
Revenue NY rev (1m)-0.3%
Revenue NY rev (3m)-3.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.77 | ||
| Fwd PE | 16.29 | ||
| P/S | 1.2 | ||
| P/FCF | 27.34 | ||
| P/OCF | 21.45 | ||
| P/B | 6.3 | ||
| P/tB | 13.85 | ||
| EV/EBITDA | 13.35 |
EPS(TTM)9.49
EY5.33%
EPS(NY)10.94
Fwd EY6.14%
FCF(TTM)6.52
FCFY3.66%
OCF(TTM)8.31
OCFY4.66%
SpS148.53
BVpS28.28
TBVpS12.86
PEG (NY)112.32
PEG (5Y)1.29
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10% | ||
| ROE | 29.81% | ||
| ROCE | 23.19% | ||
| ROIC | 17.05% | ||
| ROICexc | 18.02% | ||
| ROICexgc | 25.5% | ||
| OM | 8.68% | ||
| PM (TTM) | 5.68% | ||
| GM | 30.51% | ||
| FCFM | 4.39% |
ROA(3y)11.94%
ROA(5y)10.74%
ROE(3y)37.96%
ROE(5y)33.06%
ROIC(3y)19.52%
ROIC(5y)17.16%
ROICexc(3y)20.83%
ROICexc(5y)19.21%
ROICexgc(3y)29.84%
ROICexgc(5y)27.75%
ROCE(3y)26.54%
ROCE(5y)23.43%
ROICexcg growth 3Y-2.31%
ROICexcg growth 5Y-1.42%
ROICexc growth 3Y-1.25%
ROICexc growth 5Y0.09%
OM growth 3Y1.51%
OM growth 5Y5.66%
PM growth 3Y-3.22%
PM growth 5Y3.07%
GM growth 3Y-0.08%
GM growth 5Y0.8%
F-Score5
Asset Turnover1.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 3.07 | ||
| Debt/EBITDA | 1.18 | ||
| Cap/Depr | 103.77% | ||
| Cap/Sales | 1.21% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 56.83% | ||
| Profit Quality | 77.28% | ||
| Current Ratio | 1.68 | ||
| Quick Ratio | 0.91 | ||
| Altman-Z | 4.94 |
F-Score5
WACC11.23%
ROIC/WACC1.52
Cap/Depr(3y)114.92%
Cap/Depr(5y)105.2%
Cap/Sales(3y)1.25%
Cap/Sales(5y)1.25%
Profit Quality(3y)82.6%
Profit Quality(5y)91.33%
High Growth Momentum
Growth
EPS 1Y (TTM)-0.42%
EPS 3Y12.31%
EPS 5Y14.56%
EPS Q2Q%-7.55%
EPS Next Y0.17%
EPS Next 2Y6.25%
EPS Next 3Y8.14%
EPS Next 5Y8.2%
Revenue 1Y (TTM)0.64%
Revenue growth 3Y9.15%
Revenue growth 5Y6.13%
Sales Q2Q%0.83%
Revenue Next Year2.16%
Revenue Next 2Y4.18%
Revenue Next 3Y5.19%
Revenue Next 5Y7.54%
EBIT growth 1Y-4.23%
EBIT growth 3Y10.79%
EBIT growth 5Y12.13%
EBIT Next Year10.63%
EBIT Next 3Y9.88%
EBIT Next 5Y8.15%
FCF growth 1Y-1.73%
FCF growth 3Y9.57%
FCF growth 5Y11.47%
OCF growth 1Y0.06%
OCF growth 3Y10.66%
OCF growth 5Y7.74%