FERGUSON ENTERPRISES INC (FERG) Stock Fundamental Analysis
USA - NYSE:FERG - US31488V1070 - Common Stock
236.895 USD
+0.36 (+0.15%)
Taking everything into account, FERG scores 6 out of 10 in our fundamental rating. FERG was compared to 50 industry peers in the Trading Companies & Distributors industry. While FERG has a great profitability rating, there are some minor concerns on its financial health. FERG has a decent growth rate and is not valued too expensively.
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.
Each year in the past 5 years FERG had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 10.47%, FERG belongs to the best of the industry, outperforming 82.00% of the companies in the same industry.
FERG has a Return On Equity of 31.82%. This is amongst the best in the industry. FERG outperforms 92.00% of its industry peers.
FERG's Return On Invested Capital of 16.85% is amongst the best of the industry. FERG outperforms 96.00% 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 9.31%.
| 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
With a decent Profit Margin value of 6.03%, FERG is doing good in the industry, outperforming 68.00% of the companies in the same industry.
In the last couple of years the Profit Margin of FERG has grown nicely.
FERG's Operating Margin of 8.72% is fine compared to the rest of the industry. FERG outperforms 62.00% of its industry peers.
FERG's Operating Margin has improved in the last couple of years.
FERG has a Gross Margin of 30.67%. This is comparable to the rest of the industry: FERG outperforms 54.00% of its industry peers.
FERG's Gross Margin has been stable in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), FERG is creating value.
The number of shares outstanding for FERG has been reduced compared to 1 year ago.
FERG has less shares outstanding than it did 5 years ago.
FERG has a better debt/assets ratio than last year.
2.2 Solvency
FERG has an Altman-Z score of 5.39. This indicates that FERG is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of FERG (5.39) is better than 86.00% of its industry peers.
The Debt to FCF ratio of FERG is 2.59, which is a good value as it means it would take FERG, 2.59 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of FERG (2.59) is better than 78.00% of its industry peers.
A Debt/Equity ratio of 0.64 indicates that FERG is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.64, FERG is in line with its industry, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 2.59 | ||
| Altman-Z | 5.39 |
ROIC/WACC2.02
WACC8.34%
2.3 Liquidity
A Current Ratio of 1.68 indicates that FERG should not have too much problems paying its short term obligations.
FERG has a Current ratio of 1.68. This is comparable to the rest of the industry: FERG outperforms 48.00% of its industry peers.
A Quick Ratio of 0.94 indicates that FERG may have some problems paying its short term obligations.
With a Quick ratio value of 0.94, FERG is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.68 | ||
| Quick Ratio | 0.94 |
3. Growth
3.1 Past
FERG shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.68%.
The Earnings Per Share has been growing by 14.44% on average over the past years. This is quite good.
FERG shows a small growth in Revenue. In the last year, the Revenue has grown by 3.80%.
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
Based on estimates for the next years, FERG will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.31% on average per year.
Based on estimates for the next years, FERG will show a quite strong growth in Revenue. The Revenue will grow by 8.51% on average per year.
EPS Next Y11.49%
EPS Next 2Y10.65%
EPS Next 3Y11.11%
EPS Next 5Y11.31%
Revenue Next Year5.13%
Revenue Next 2Y5.42%
Revenue Next 3Y5.65%
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.
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
FERG is valuated rather expensively with a Price/Earnings ratio of 23.81.
FERG's Price/Earnings ratio is in line with the industry average.
FERG's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.51.
The Price/Forward Earnings ratio is 21.36, which indicates a rather expensive current valuation of FERG.
FERG's Price/Forward Earnings ratio is in line with the industry average.
FERG is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 34.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.81 | ||
| Fwd PE | 21.36 |
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 62.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.96 | ||
| EV/EBITDA | 16.31 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
FERG has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.07
PEG (5Y)1.65
EPS Next 2Y10.65%
EPS Next 3Y11.11%
5. Dividend
5.1 Amount
FERG has a Yearly Dividend Yield of 1.37%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.04, FERG pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, FERG's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.37% |
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 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 2Y10.65%
EPS Next 3Y11.11%
NYSE:FERG (11/19/2025, 10:47:09 AM)
236.895
+0.36 (+0.15%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners96.02%
Inst Owner Change-2.68%
Ins Owners2.47%
Ins Owner Change5.39%
Market Cap46.43B
Revenue(TTM)30.76B
Net Income(TTM)1.86B
Analysts79.33
Price Target258.39 (9.07%)
Short Float %1.49%
Short Ratio1.46
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.37% |
Yearly Dividend2.46
Dividend Growth(5Y)11.33%
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)1.69%
PT rev (3m)7.25%
EPS NQ rev (1m)-0.95%
EPS NQ rev (3m)-6.41%
EPS NY rev (1m)0.36%
EPS NY rev (3m)3.4%
Revenue NQ rev (1m)-0.3%
Revenue NQ rev (3m)-2.04%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-0.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.81 | ||
| Fwd PE | 21.36 | ||
| P/S | 1.51 | ||
| P/FCF | 28.96 | ||
| P/OCF | 24.33 | ||
| P/B | 7.96 | ||
| P/tB | 17.57 | ||
| EV/EBITDA | 16.31 |
EPS(TTM)9.95
EY4.2%
EPS(NY)11.09
Fwd EY4.68%
FCF(TTM)8.18
FCFY3.45%
OCF(TTM)9.74
OCFY4.11%
SpS156.96
BVpS29.76
TBVpS13.48
PEG (NY)2.07
PEG (5Y)1.65
Graham Number81.62
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.47% | ||
| ROE | 31.82% | ||
| ROCE | 22.93% | ||
| ROIC | 16.85% | ||
| ROICexc | 17.89% | ||
| ROICexgc | 25.17% | ||
| 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)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-Score6
Asset Turnover1.74
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 2.59 | ||
| Debt/EBITDA | 1.23 | ||
| Cap/Depr | 81.77% | ||
| Cap/Sales | 0.99% | ||
| Interest Coverage | 14.2 | ||
| Cash Conversion | 62.43% | ||
| Profit Quality | 86.37% | ||
| Current Ratio | 1.68 | ||
| Quick Ratio | 0.94 | ||
| Altman-Z | 5.39 |
F-Score6
WACC8.34%
ROIC/WACC2.02
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 Y11.49%
EPS Next 2Y10.65%
EPS Next 3Y11.11%
EPS Next 5Y11.31%
Revenue 1Y (TTM)3.8%
Revenue growth 3Y2.5%
Revenue growth 5Y9.06%
Sales Q2Q%6.93%
Revenue Next Year5.13%
Revenue Next 2Y5.42%
Revenue Next 3Y5.65%
Revenue Next 5Y8.51%
EBIT growth 1Y1.17%
EBIT growth 3Y-1.78%
EBIT growth 5Y14.38%
EBIT Next Year21.21%
EBIT Next 3Y13%
EBIT Next 5Y11.75%
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 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 23.81 and the Price/Book (PB) ratio is 7.96.
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%.