FERGUSON ENTERPRISES INC (FERG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FERG - US31488V1070 - Common Stock
245.8 USD
-2.58 (-1.04%)
241.37 USD
-4.43 (-1.8%)
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. While FERG belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. FERG is valied quite expensively at the moment, while it does show a decent growth rate.
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.
Each year in the past 5 years FERG had a positive operating cash flow.
1.2 Ratios
FERG has a better Return On Assets (10.47%) than 82.00% of its industry peers.
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.
The Return On Invested Capital of FERG (16.85%) is better than 96.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FERG is significantly above the industry average of 9.42%.
| 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
FERG's Profit Margin of 6.03% is fine compared to the rest of the industry. FERG outperforms 66.00% of its industry peers.
In the last couple of years the Profit Margin of FERG has grown nicely.
Looking at the Operating Margin, with a value of 8.72%, FERG is in line with its industry, outperforming 60.00% of the companies in the same industry.
In the last couple of years the Operating Margin of FERG has grown nicely.
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
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
Compared to 5 years ago, FERG has less shares outstanding
FERG has a better debt/assets ratio than last year.
2.2 Solvency
FERG has an Altman-Z score of 5.48. This indicates that FERG is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of FERG (5.48) is better than 84.00% of its industry peers.
FERG has a debt to FCF ratio of 2.59. This is a good value and a sign of high solvency as FERG would need 2.59 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.59, FERG is in the better half of the industry, outperforming 74.00% of the companies in the same industry.
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 in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 2.59 | ||
| Altman-Z | 5.48 |
ROIC/WACC1.73
WACC9.76%
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 comparable to the rest of the industry.
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's Quick ratio of 0.94 is on the low side compared to the rest of the industry. FERG is outperformed by 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.68 | ||
| Quick Ratio | 0.94 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.68% over the past year.
FERG shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 14.44% yearly.
FERG shows a small growth in Revenue. In the last year, the Revenue has grown by 3.80%.
Measured over the past years, FERG shows a quite strong growth in Revenue. The Revenue has been growing by 9.06% on average per year.
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
FERG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.31% yearly.
The Revenue is expected to grow by 8.51% on average over the next years. This is quite good.
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
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.
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 24.70 indicates a rather expensive valuation of FERG.
FERG's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 26.34. FERG is around the same levels.
Based on the Price/Forward Earnings ratio of 22.25, the valuation of FERG can be described as rather expensive.
FERG's Price/Forward Earnings ratio is in line with the industry average.
FERG is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.56, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.7 | ||
| Fwd PE | 22.25 |
4.2 Price Multiples
FERG's Enterprise Value to EBITDA ratio is in line with 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 | 30.05 | ||
| EV/EBITDA | 16.9 |
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)2.24
PEG (5Y)1.71
EPS Next 2Y10.96%
EPS Next 3Y10.45%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.33%, FERG has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.97, FERG pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.33, FERG pays less dividend than the S&P500 average, which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.33% |
5.2 History
The dividend of FERG is nicely growing with an annual growth rate of 11.33%!
FERG has been paying a dividend for at least 10 years, so it has 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
26.35% 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.
DP26.35%
EPS Next 2Y10.96%
EPS Next 3Y10.45%
245.8
-2.58 (-1.04%)
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 Change5.28%
Market Cap48.17B
Revenue(TTM)30.76B
Net Income(TTM)1.86B
Analysts81.29
Price Target262.32 (6.72%)
Short Float %2.08%
Short Ratio2.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.33% |
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)1.52%
PT rev (3m)8.3%
EPS NQ rev (1m)-0.2%
EPS NQ rev (3m)-6.9%
EPS NY rev (1m)-0.41%
EPS NY rev (3m)3.09%
Revenue NQ rev (1m)-0.8%
Revenue NQ rev (3m)-2.97%
Revenue NY rev (1m)0.3%
Revenue NY rev (3m)-0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.7 | ||
| Fwd PE | 22.25 | ||
| P/S | 1.57 | ||
| P/FCF | 30.05 | ||
| P/OCF | 25.25 | ||
| P/B | 8.26 | ||
| P/tB | 18.23 | ||
| EV/EBITDA | 16.9 |
EPS(TTM)9.95
EY4.05%
EPS(NY)11.05
Fwd EY4.49%
FCF(TTM)8.18
FCFY3.33%
OCF(TTM)9.74
OCFY3.96%
SpS156.96
BVpS29.76
TBVpS13.48
PEG (NY)2.24
PEG (5Y)1.71
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 | 5.48 |
F-Score6
WACC9.76%
ROIC/WACC1.73
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 Y11.04%
EPS Next 2Y10.96%
EPS Next 3Y10.45%
EPS Next 5Y11.31%
Revenue 1Y (TTM)3.8%
Revenue growth 3Y2.5%
Revenue growth 5Y9.06%
Sales Q2Q%6.93%
Revenue Next Year5.44%
Revenue Next 2Y5.67%
Revenue Next 3Y5.87%
Revenue Next 5Y8.51%
EBIT growth 1Y1.17%
EBIT growth 3Y-1.78%
EBIT growth 5Y14.38%
EBIT Next Year22.45%
EBIT Next 3Y12.51%
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 3 / 10 to FERGUSON ENTERPRISES INC (FERG). This can be considered as Overvalued.
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 24.7 and the Price/Book (PB) ratio is 8.26.
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%.