FERGUSON ENTERPRISES INC (FERG) Stock Fundamental Analysis
USA - NYSE:FERG - US31488V1070 - Common Stock
242.8 USD
-0.38 (-0.16%)
242.8 USD
0 (0%)
Taking everything into account, FERG scores 6 out of 10 in our fundamental rating. FERG was compared to 51 industry peers in the Trading Companies & Distributors industry. FERG scores excellent on profitability, but 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.
FERG had a positive operating cash flow in the past year.
In the past 5 years FERG has always been profitable.
FERG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
FERG's Return On Assets of 10.47% is amongst the best of the industry. FERG outperforms 82.35% of its industry peers.
With an excellent Return On Equity value of 31.82%, FERG belongs to the best of the industry, outperforming 90.20% of the companies in the same industry.
The Return On Invested Capital of FERG (16.85%) is better than 94.12% 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 10.12%.
| 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 66.67% of its industry peers.
FERG's Profit Margin has improved in the last couple of years.
The Operating Margin of FERG (8.72%) is better than 62.75% of its industry peers.
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 54.90% of its industry peers.
In the last couple of years the Gross Margin of FERG has remained more or less at the same level.
| 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
FERG has less shares outstanding than it did 5 years ago.
The debt/assets ratio for FERG has been reduced compared to a year ago.
2.2 Solvency
FERG has a debt to FCF ratio of 2.34. This is a good value and a sign of high solvency as FERG would need 2.34 years to pay back of all of its debts.
FERG has a better Debt to FCF ratio (2.34) than 78.43% of its industry peers.
A Debt/Equity ratio of 0.64 indicates that FERG is somewhat dependend on debt financing.
FERG's Debt to Equity ratio of 0.64 is in line compared to the rest of the industry. FERG outperforms 49.02% of its industry peers.
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 | 2.34 | ||
| Altman-Z | N/A |
ROIC/WACC1.83
WACC9.21%
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.
FERG has a Current ratio of 1.68. This is comparable to the rest of the industry: FERG outperforms 45.10% of its industry peers.
A Quick Ratio of 0.94 indicates that FERG may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.94, FERG is doing worse than 62.75% of the companies in the same industry.
| 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.
The Revenue has been growing slightly by 3.80% in the past year.
FERG shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.06% yearly.
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
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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
The Price/Earnings ratio is 24.40, which indicates a rather expensive current valuation of FERG.
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 25.89.
With a Price/Forward Earnings ratio of 21.89, FERG is valued on the expensive side.
The rest of the industry has a similar Price/Forward Earnings ratio as FERG.
FERG's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 34.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.4 | ||
| Fwd PE | 21.89 |
4.2 Price Multiples
FERG's Enterprise Value to EBITDA is on the same level as the industry average.
62.75% 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 | 29.68 | ||
| EV/EBITDA | 16.6 |
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)2.12
PEG (5Y)1.69
EPS Next 2Y10.65%
EPS Next 3Y11.11%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.37%, FERG has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.04, FERG pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.37, FERG pays less dividend than the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.37% |
5.2 History
On average, the dividend of FERG grows each year by 11.33%, which is quite nice.
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.
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%
242.8
-0.38 (-0.16%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners96.02%
Inst Owner Change-1.26%
Ins Owners2.47%
Ins Owner Change5.38%
Market Cap47.58B
Revenue(TTM)30.76B
Net Income(TTM)1.86B
Analysts79.33
Price Target258.39 (6.42%)
Short Float %1.2%
Short Ratio1.27
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)-1.62%
EPS NQ rev (3m)-6.41%
EPS NY rev (1m)0.36%
EPS NY rev (3m)3.4%
Revenue NQ rev (1m)0.63%
Revenue NQ rev (3m)-2.04%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-0.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.4 | ||
| Fwd PE | 21.89 | ||
| P/S | 1.55 | ||
| P/FCF | 29.68 | ||
| P/OCF | 24.94 | ||
| P/B | 8.16 | ||
| P/tB | 14.13 | ||
| EV/EBITDA | 16.6 |
EPS(TTM)9.95
EY4.1%
EPS(NY)11.09
Fwd EY4.57%
FCF(TTM)8.18
FCFY3.37%
OCF(TTM)9.74
OCFY4.01%
SpS156.96
BVpS29.76
TBVpS17.19
PEG (NY)2.12
PEG (5Y)1.69
Graham Number81.62
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.47% | ||
| ROE | 31.82% | ||
| ROCE | 22.93% | ||
| ROIC | 16.85% | ||
| ROICexc | 17.89% | ||
| ROICexgc | 23.03% | ||
| 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)26.42%
ROICexgc(5y)27.96%
ROCE(3y)24.61%
ROCE(5y)24.87%
ROICexgc growth 3Y-11.52%
ROICexgc growth 5Y0.96%
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 | 2.34 | ||
| Debt/EBITDA | 1.23 | ||
| Cap/Depr | 81.77% | ||
| Cap/Sales | 0.99% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 62.43% | ||
| Profit Quality | 86.37% | ||
| Current Ratio | 1.68 | ||
| Quick Ratio | 0.94 | ||
| Altman-Z | N/A |
F-Score6
WACC9.21%
ROIC/WACC1.83
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 24.4 and the Price/Book (PB) ratio is 8.16.
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%.