FERGUSON ENTERPRISES INC (FERG) Stock Fundamental Analysis
NYSE:FERG - New York Stock Exchange, Inc. - US31488V1070 - Common Stock - Currency: USD
FERG gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 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 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.
Each year in the past 5 years FERG has been profitable.
Each year in the past 5 years FERG had a positive operating cash flow.
1.2 Ratios
FERG's Return On Assets of 10.00% is amongst the best of the industry. FERG outperforms 85.11% of its industry peers.
FERG has a Return On Equity of 29.81%. This is amongst the best in the industry. FERG outperforms 93.62% of its industry peers.
FERG has a Return On Invested Capital of 17.05%. This is amongst the best in the industry. FERG outperforms 93.62% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FERG is significantly above the industry average of 9.69%.
| 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 comparable to the rest of the industry: FERG outperforms 59.57% of its industry peers.
In the last couple of years the Profit Margin of FERG has grown nicely.
FERG has a Operating Margin (8.68%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of FERG has grown nicely.
The Gross Margin of FERG (30.51%) 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 | 8.68% | ||
| 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
FERG has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some 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 a worse debt to assets ratio.
2.2 Solvency
FERG has an Altman-Z score of 4.95. This indicates that FERG is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.95, FERG is in the better half of the industry, outperforming 76.60% of the companies in the same industry.
FERG has a debt to FCF ratio of 3.07. This is a good value and a sign of high solvency as FERG would need 3.07 years to pay back of all of its debts.
FERG's Debt to FCF ratio of 3.07 is fine compared to the rest of the industry. FERG outperforms 70.21% 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 of 0.61. This is comparable to the rest of the industry: FERG outperforms 55.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 3.07 | ||
| Altman-Z | 4.95 |
ROIC/WACC1.49
WACC11.45%
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 63.83% 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.
The Quick ratio of FERG (0.91) is worse than 68.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.68 | ||
| Quick Ratio | 0.91 |
3. Growth
3.1 Past
The earnings per share for FERG have decreased by -0.42% in the last year.
The Earnings Per Share has been growing by 14.56% 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 0.64%.
Measured over the past years, FERG shows a small growth in Revenue. The Revenue has been growing by 6.13% on average per year.
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.
FERG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.54% yearly.
EPS Next Y0.17%
EPS Next 2Y6.25%
EPS Next 3Y8.14%
EPS Next 5Y8.2%
Revenue Next Year1.84%
Revenue Next 2Y3.84%
Revenue Next 3Y4.84%
Revenue Next 5Y7.54%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 19.16, FERG is valued on the expensive side.
FERG's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of FERG to the average of the S&P500 Index (28.51), we can say FERG is valued slightly cheaper.
With a Price/Forward Earnings ratio of 16.62, FERG is valued correctly.
Based on the Price/Forward Earnings ratio, FERG is valued a bit cheaper than the industry average as 61.70% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of FERG to the average of the S&P500 Index (93.88), we can say FERG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.16 | ||
| Fwd PE | 16.62 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FERG indicates a slightly more expensive valuation: FERG is more expensive than 61.70% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, FERG is valued a bit cheaper than the industry average as 68.09% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.91 | ||
| EV/EBITDA | 13.39 |
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 a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)114.64
PEG (5Y)1.32
EPS Next 2Y6.25%
EPS Next 3Y8.14%
5. Dividend
5.1 Amount
FERG has a Yearly Dividend Yield of 1.83%. Purely for dividend investing, there may be better candidates out there.
FERG's Dividend Yield is rather good when compared to the industry average which is at 1.83. FERG pays more dividend than 85.11% of the companies in the same industry.
FERG's Dividend Yield is comparable with the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.83% |
5.2 History
On average, the dividend of FERG grows each year by 14.96%, which is quite nice.
FERG has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)14.96%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
FERG pays out 37.49% 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.
DP37.49%
EPS Next 2Y6.25%
EPS Next 3Y8.14%
FERGUSON ENTERPRISES INC
NYSE:FERG (1/30/2025, 7:16:09 PM)
After market: 181.85 0 (0%)181.85
+3.07 (+1.72%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners87.4%
Inst Owner Change0.15%
Ins Owners0.82%
Ins Owner Change10.1%
Market Cap36.36B
Analysts80
Price Target229.8 (26.37%)
Short Float %1.51%
Short Ratio1.87
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.83% |
Yearly Dividend3.87
Dividend Growth(5Y)14.96%
DP37.49%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
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)-1.26%
PT rev (3m)-0.92%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-12.4%
EPS NY rev (1m)0%
EPS NY rev (3m)-10.12%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.18%
Revenue NY rev (1m)-0.31%
Revenue NY rev (3m)-0.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.16 | ||
| Fwd PE | 16.62 | ||
| P/S | 1.22 | ||
| P/FCF | 27.91 | ||
| P/OCF | 21.89 | ||
| P/B | 6.43 | ||
| P/tB | 14.14 | ||
| EV/EBITDA | 13.39 |
EPS(TTM)9.49
EY5.22%
EPS(NY)10.94
Fwd EY6.02%
FCF(TTM)6.52
FCFY3.58%
OCF(TTM)8.31
OCFY4.57%
SpS148.53
BVpS28.28
TBVpS12.86
PEG (NY)114.64
PEG (5Y)1.32
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 | 4.95 |
F-Score5
WACC11.45%
ROIC/WACC1.49
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 Year1.84%
Revenue Next 2Y3.84%
Revenue Next 3Y4.84%
Revenue Next 5Y7.54%
EBIT growth 1Y-4.23%
EBIT growth 3Y10.79%
EBIT growth 5Y12.13%
EBIT Next Year6.56%
EBIT Next 3Y8.17%
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%