FERGUSON ENTERPRISES INC (FERG)
US31488V1070 - Common Stock
FERG gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 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 is not valued too expensively and it also shows 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.
In the past 5 years FERG has always 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 10.47% is amongst the best of the industry. FERG outperforms 82.35% of its industry peers.
FERG's Return On Equity of 30.89% is amongst the best of the industry. FERG outperforms 96.08% of its industry peers.
FERG has a better Return On Invested Capital (17.17%) than 94.12% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for FERG is significantly above the industry average of 9.29%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.47% | ||
| ROE | 30.89% | ||
| ROIC | 17.17% |
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
The Profit Margin of FERG (5.85%) is better than 60.78% of its industry peers.
In the last couple of years the Profit Margin of FERG has grown nicely.
The Operating Margin of FERG (8.95%) is comparable to the rest of the industry.
FERG's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 30.55%, FERG perfoms like the industry average, outperforming 52.94% of the companies in the same industry.
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 | 8.95% | ||
| PM (TTM) | 5.85% | ||
| GM | 30.55% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), FERG is creating some value.
FERG has less shares outstanding than it did 1 year ago.
FERG has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, FERG has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.70 indicates that FERG is not in any danger for bankruptcy at the moment.
FERG has a better Altman-Z score (5.70) than 88.24% of its industry peers.
The Debt to FCF ratio of FERG is 2.61, which is a good value as it means it would take FERG, 2.61 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of FERG (2.61) is better than 66.67% of its industry peers.
A Debt/Equity ratio of 0.67 indicates that FERG is somewhat dependend on debt financing.
FERG has a Debt to Equity ratio (0.67) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 2.61 | ||
| Altman-Z | 5.7 |
ROIC/WACC1.5
WACC11.43%
2.3 Liquidity
FERG has a Current Ratio of 1.80. 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 (1.80) which is in line with its industry peers.
FERG has a Quick Ratio of 1.00. This is a normal value and indicates that FERG is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.00, FERG is not doing good in the industry: 72.55% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.8 | ||
| Quick Ratio | 1 |
3. Growth
3.1 Past
FERG shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.42%.
Measured over the past years, FERG shows a quite strong growth in Earnings Per Share. The EPS has been growing by 14.56% on average per year.
The Revenue has decreased by -0.33% in the past year.
The Revenue has been growing slightly by 6.13% on average over the past years.
EPS 1Y (TTM)-1.42%
EPS 3Y12.31%
EPS 5Y14.56%
EPS Q2Q%7.58%
Revenue 1Y (TTM)-0.33%
Revenue growth 3Y9.15%
Revenue growth 5Y6.13%
Sales Q2Q%1.38%
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 8.20% yearly.
FERG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.54% yearly.
EPS Next Y2.8%
EPS Next 2Y7.81%
EPS Next 3Y9.07%
EPS Next 5Y8.2%
Revenue Next Year2.46%
Revenue Next 2Y4.42%
Revenue Next 3Y5.37%
Revenue Next 5Y7.54%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 21.56, FERG is valued on the expensive side.
The rest of the industry has a similar Price/Earnings ratio as FERG.
FERG's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 29.20.
The Price/Forward Earnings ratio is 20.98, which indicates a rather expensive current valuation of FERG.
The rest of the industry has a similar Price/Forward Earnings ratio as FERG.
FERG is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.00, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.56 | ||
| Fwd PE | 20.98 |
4.2 Price Multiples
FERG's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of FERG indicates a somewhat cheap valuation: FERG is cheaper than 66.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.94 | ||
| EV/EBITDA | 15 |
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)7.71
PEG (5Y)1.48
EPS Next 2Y7.81%
EPS Next 3Y9.07%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.55%, FERG has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.73, FERG pays a bit more dividend than its industry peers.
FERG's Dividend Yield is slightly below the S&P500 average, which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.55% |
5.2 History
The dividend of FERG is nicely growing with an annual growth rate of 14.96%!
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 45.19% of its income as dividend. This is a bit on the high side, but may be sustainable.
FERG's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP45.19%
EPS Next 2Y7.81%
EPS Next 3Y9.07%
FERGUSON ENTERPRISES INC
NYSE:FERG (11/22/2024, 8:04:01 PM)
After market: 208.94 0 (0%)208.94
+2.49 (+1.21%)
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 Cap41.94B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.55% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.56 | ||
| Fwd PE | 20.98 | ||
| 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)7.71
PEG (5Y)1.48
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.47% | ||
| ROE | 30.89% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 8.95% | ||
| PM (TTM) | 5.85% | ||
| GM | 30.55% | ||
| 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 | 0.67 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.8 | ||
| Quick Ratio | 1 | ||
| 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)-1.42%
EPS 3Y12.31%
EPS 5Y
EPS Q2Q%
EPS Next Y2.8%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-0.33%
Revenue growth 3Y9.15%
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