FERGUSON ENTERPRISES INC (FERG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FERG - US31488V1070 - Common Stock
222.63 USD
-2.94 (-1.3%)
222.7 USD
+0.07 (+0.03%)
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 belongs to the best of the industry regarding profitability, 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
FERG had positive earnings in the past year.
In the past year FERG had a positive cash flow from operations.
In the past 5 years FERG has always been profitable.
In the past 5 years FERG always reported a positive cash flow from operatings.
1.2 Ratios
FERG has a better Return On Assets (11.05%) than 92.00% of its industry peers.
FERG has a Return On Equity of 32.30%. This is amongst the best in the industry. FERG outperforms 92.00% of its industry peers.
FERG has a better Return On Invested Capital (16.59%) than 94.00% 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 9.63%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.05% | ||
| ROE | 32.3% | ||
| ROIC | 16.59% |
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 6.28% 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.
The Operating Margin of FERG (8.95%) is better than 62.00% of its industry peers.
FERG's Operating Margin has improved in the last couple of years.
The Gross Margin of FERG (30.81%) 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 | 8.95% | ||
| PM (TTM) | 6.28% | ||
| GM | 30.81% |
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.
FERG has less shares outstanding than it did 1 year ago.
The number of shares outstanding for FERG has been reduced compared to 5 years ago.
FERG has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.44 indicates that FERG is not in any danger for bankruptcy at the moment.
The Altman-Z score of FERG (5.44) is better than 82.00% of its industry peers.
The Debt to FCF ratio of FERG is 2.50, which is a good value as it means it would take FERG, 2.50 years of fcf income to pay off all of its debts.
FERG has a better Debt to FCF ratio (2.50) than 74.00% of its industry peers.
FERG has a Debt/Equity ratio of 0.68. This is a neutral value indicating FERG is somewhat dependend on debt financing.
FERG's Debt to Equity ratio of 0.68 is in line compared to the rest of the industry. FERG outperforms 46.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 2.5 | ||
| Altman-Z | 5.44 |
ROIC/WACC1.73
WACC9.58%
2.3 Liquidity
FERG has a Current Ratio of 1.88. 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 1.88. This is comparable to the rest of the industry: FERG outperforms 50.00% of its industry peers.
FERG has a Quick Ratio of 1.01. This is a normal value and indicates that FERG is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.01, FERG is doing worse than 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.88 | ||
| Quick Ratio | 1.01 |
3. Growth
3.1 Past
FERG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.96%, which is quite good.
FERG shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 14.44% yearly.
Looking at the last year, FERG shows a small growth in Revenue. The Revenue has grown by 4.92% in the last 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)8.96%
EPS 3Y-1.3%
EPS 5Y14.44%
EPS Q2Q%15.92%
Revenue 1Y (TTM)4.92%
Revenue growth 3Y2.5%
Revenue growth 5Y9.06%
Sales Q2Q%5.11%
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.
FERG is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.51% yearly.
EPS Next Y12.11%
EPS Next 2Y11.72%
EPS Next 3Y10.31%
EPS Next 5Y11.31%
Revenue Next Year5.78%
Revenue Next 2Y5.5%
Revenue Next 3Y5.81%
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.
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 21.53 indicates a rather expensive valuation of FERG.
FERG's Price/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/Earnings ratio to 26.51, which is the current average of the S&P500 Index.
FERG is valuated rather expensively with a Price/Forward Earnings ratio of 17.93.
FERG's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 23.13. FERG is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.53 | ||
| Fwd PE | 17.93 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as FERG.
Based on the Price/Free Cash Flow ratio, FERG is valued a bit cheaper than the industry average as 68.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.49 | ||
| EV/EBITDA | 15.1 |
4.3 Compensation for Growth
FERG's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of FERG may justify a higher PE ratio.
PEG (NY)1.78
PEG (5Y)1.49
EPS Next 2Y11.72%
EPS Next 3Y10.31%
5. Dividend
5.1 Amount
FERG has a Yearly Dividend Yield of 1.56%.
Compared to an average industry Dividend Yield of 0.98, FERG pays a better dividend. On top of this FERG pays more dividend than 82.00% of the companies listed in the same industry.
FERG's Dividend Yield is slightly below the S&P500 average, which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.56% |
5.2 History
On average, the dividend of FERG grows each year by 11.33%, which is quite nice.
FERG has paid a dividend for at least 10 years, which is a reliable track record.
FERG has decreased its dividend recently.
Dividend Growth(5Y)11.33%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
33.38% 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.
DP33.38%
EPS Next 2Y11.72%
EPS Next 3Y10.31%
222.63
-2.94 (-1.3%)
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 Change6.06%
Market Cap43.63B
Revenue(TTM)31.16B
Net Income(TTM)1.96B
Analysts81.29
Price Target263.68 (18.44%)
Short Float %1.17%
Short Ratio1.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.56% |
Yearly Dividend2.46
Dividend Growth(5Y)11.33%
DP33.38%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)11.29%
Min EPS beat(2)8.24%
Max EPS beat(2)14.35%
EPS beat(4)3
Avg EPS beat(4)9.26%
Min EPS beat(4)-6.84%
Max EPS beat(4)21.31%
EPS beat(8)4
Avg EPS beat(8)2.72%
EPS beat(12)5
Avg EPS beat(12)1.94%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-0.62%
Min Revenue beat(2)-0.98%
Max Revenue beat(2)-0.27%
Revenue beat(4)1
Avg Revenue beat(4)-0.23%
Min Revenue beat(4)-0.98%
Max Revenue beat(4)0.67%
Revenue beat(8)1
Avg Revenue beat(8)-1.52%
Revenue beat(12)2
Avg Revenue beat(12)-1.3%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)2.05%
PT rev (3m)7.04%
EPS NQ rev (1m)4.44%
EPS NQ rev (3m)43.8%
EPS NY rev (1m)0.56%
EPS NY rev (3m)0.92%
Revenue NQ rev (1m)7.29%
Revenue NQ rev (3m)13.04%
Revenue NY rev (1m)0.62%
Revenue NY rev (3m)0.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.53 | ||
| Fwd PE | 17.93 | ||
| P/S | 1.4 | ||
| P/FCF | 26.49 | ||
| P/OCF | 21.89 | ||
| P/B | 7.2 | ||
| P/tB | 15.11 | ||
| EV/EBITDA | 15.1 |
EPS(TTM)10.34
EY4.64%
EPS(NY)12.42
Fwd EY5.58%
FCF(TTM)8.4
FCFY3.77%
OCF(TTM)10.17
OCFY4.57%
SpS158.99
BVpS30.9
TBVpS14.74
PEG (NY)1.78
PEG (5Y)1.49
Graham Number84.79
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.05% | ||
| ROE | 32.3% | ||
| ROCE | 22.57% | ||
| ROIC | 16.59% | ||
| ROICexc | 17.33% | ||
| ROICexgc | 23.67% | ||
| OM | 8.95% | ||
| PM (TTM) | 6.28% | ||
| GM | 30.81% | ||
| FCFM | 5.29% |
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-Score7
Asset Turnover1.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 2.5 | ||
| Debt/EBITDA | 1.3 | ||
| Cap/Depr | 91.78% | ||
| Cap/Sales | 1.11% | ||
| Interest Coverage | 14.68 | ||
| Cash Conversion | 62.95% | ||
| Profit Quality | 84.2% | ||
| Current Ratio | 1.88 | ||
| Quick Ratio | 1.01 | ||
| Altman-Z | 5.44 |
F-Score7
WACC9.58%
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)8.96%
EPS 3Y-1.3%
EPS 5Y14.44%
EPS Q2Q%15.92%
EPS Next Y12.11%
EPS Next 2Y11.72%
EPS Next 3Y10.31%
EPS Next 5Y11.31%
Revenue 1Y (TTM)4.92%
Revenue growth 3Y2.5%
Revenue growth 5Y9.06%
Sales Q2Q%5.11%
Revenue Next Year5.78%
Revenue Next 2Y5.5%
Revenue Next 3Y5.81%
Revenue Next 5Y8.51%
EBIT growth 1Y8.18%
EBIT growth 3Y-1.78%
EBIT growth 5Y14.38%
EBIT Next Year23.29%
EBIT Next 3Y12.36%
EBIT Next 5Y11.75%
FCF growth 1Y-29.77%
FCF growth 3Y23.12%
FCF growth 5Y4.9%
OCF growth 1Y-28.36%
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.
Can you provide the valuation status for FERGUSON ENTERPRISES INC?
ChartMill assigns a valuation rating of 4 / 10 to FERGUSON ENTERPRISES INC (FERG). This can be considered as Fairly Valued.
Can you provide the profitability details for FERGUSON ENTERPRISES INC?
FERGUSON ENTERPRISES INC (FERG) has a profitability rating of 8 / 10.
What are the PE and PB ratios of FERGUSON ENTERPRISES INC (FERG) stock?
The Price/Earnings (PE) ratio for FERGUSON ENTERPRISES INC (FERG) is 21.53 and the Price/Book (PB) ratio is 7.2.
How financially healthy is FERGUSON ENTERPRISES INC?
The financial health rating of FERGUSON ENTERPRISES INC (FERG) is 6 / 10.