FERGUSON ENTERPRISES INC (FERG)
JE00BJVNSS43 - Common Stock
Taking everything into account, FERG scores 5 out of 10 in our fundamental rating. FERG was compared to 51 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 does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
FERG had positive earnings in the past year.
FERG had a positive operating cash flow in the past year.
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 11.35%, FERG belongs to the top of the industry, outperforming 84.31% of the companies in the same industry.
Looking at the Return On Equity, with a value of 33.83%, FERG belongs to the top of the industry, outperforming 88.24% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 18.49%, FERG belongs to the top of the industry, outperforming 94.12% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for FERG is significantly above the industry average of 10.37%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.35% | ||
| ROE | 33.83% | ||
| ROIC | 18.49% |
ROA(3y)12.03%
ROA(5y)10.59%
ROE(3y)37.47%
ROE(5y)31.97%
ROIC(3y)20.05%
ROIC(5y)17.57%
1.3 Margins
FERG has a Profit Margin (6.33%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of FERG has remained more or less at the same level.
The Operating Margin of FERG (8.88%) is comparable to the rest of the industry.
FERG's Operating Margin has improved in the last couple of years.
The Gross Margin of FERG (30.46%) 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 | 8.88% | ||
| PM (TTM) | 6.33% | ||
| GM | 30.46% |
OM growth 3Y12.45%
OM growth 5Y7.08%
PM growth 3Y9.65%
PM growth 5Y0.8%
GM growth 3Y0.38%
GM growth 5Y0.77%
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.
Compared to 1 year ago, FERG has less shares outstanding
FERG has less shares outstanding than it did 5 years ago.
FERG has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.52 indicates that FERG is not in any danger for bankruptcy at the moment.
FERG has a better Altman-Z score (5.52) than 84.31% of its industry peers.
FERG has a debt to FCF ratio of 1.76. This is a very positive value and a sign of high solvency as it would only need 1.76 years to pay back of all of its debts.
FERG's Debt to FCF ratio of 1.76 is fine compared to the rest of the industry. FERG outperforms 72.55% 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.
FERG has a Debt to Equity ratio (0.64) which is comparable to the rest of the 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 | 1.76 | ||
| Altman-Z | 5.52 |
ROIC/WACC2.22
WACC8.33%
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 62.75% 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.
FERG has a worse Quick ratio (0.94) than 68.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.68 | ||
| Quick Ratio | 0.94 |
3. Growth
3.1 Past
FERG shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -4.34%.
Measured over the past years, FERG shows a quite strong growth in Earnings Per Share. The EPS has been growing by 17.21% on average per year.
The Revenue has decreased by -1.14% in the past year.
The Revenue has been growing slightly by 7.46% on average over the past years.
EPS 1Y (TTM)-4.34%
EPS 3Y24.69%
EPS 5Y17.21%
EPS Q2Q%5.45%
Revenue 1Y (TTM)-1.14%
Revenue growth 3Y14.25%
Revenue growth 5Y7.46%
Sales Q2Q%2.35%
3.2 Future
FERG is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.20% yearly.
FERG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.11% yearly.
EPS Next Y0.11%
EPS Next 2Y4.81%
EPS Next 3Y7.03%
EPS Next 5Y6.2%
Revenue Next Year0.72%
Revenue Next 2Y2.99%
Revenue Next 3Y4.44%
Revenue Next 5Y6.11%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
With a Price/Earnings ratio of 20.06, FERG is valued on the expensive side.
Based on the Price/Earnings ratio, FERG is valued a bit more expensive than the industry average as 60.78% of the companies are valued more cheaply.
FERG's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 29.62.
FERG is valuated rather expensively with a Price/Forward Earnings ratio of 17.61.
The rest of the industry has a similar Price/Forward Earnings ratio as FERG.
When comparing the Price/Forward Earnings ratio of FERG to the average of the S&P500 Index (21.22), we can say FERG is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.06 | ||
| Fwd PE | 17.61 |
4.2 Price Multiples
62.75% of the companies in the same industry are cheaper than FERG, based on the Enterprise Value to EBITDA ratio.
FERG's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. FERG is cheaper than 72.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.39 | ||
| EV/EBITDA | 14.22 |
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.
The decent profitability rating of FERG may justify a higher PE ratio.
PEG (NY)178.95
PEG (5Y)1.17
EPS Next 2Y4.81%
EPS Next 3Y7.03%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.64%, FERG has a reasonable but not impressive dividend return.
FERG's Dividend Yield is a higher than the industry average which is at 1.89.
Compared to the average S&P500 Dividend Yield of 2.26, FERG is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.64% |
5.2 History
The dividend of FERG decreases each year by -9.86%.
FERG has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-9.86%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
FERG pays out 33.14% of its income as dividend. This is a sustainable payout ratio.
DP33.14%
EPS Next 2Y4.81%
EPS Next 3Y7.03%
FERGUSON ENTERPRISES INC
NYSE:FERG (9/6/2024, 8:12:35 PM)
After market: 190.2 0 (0%)190.2
-2.93 (-1.52%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap38.21B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.64% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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Revenue beat(2)
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PT rev (1m)
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EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
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Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.06 | ||
| Fwd PE | 17.61 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)178.95
PEG (5Y)1.17
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.35% | ||
| ROE | 33.83% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 8.88% | ||
| PM (TTM) | 6.33% | ||
| GM | 30.46% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.68 | ||
| Quick Ratio | 0.94 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-4.34%
EPS 3Y24.69%
EPS 5Y
EPS Q2Q%
EPS Next Y0.11%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-1.14%
Revenue growth 3Y14.25%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y