FERGUSON ENTERPRISES INC (FERG) Stock Fundamental Analysis
USA - NYSE:FERG - US31488V1070 - Common Stock
249.66 USD
+3.56 (+1.45%)
249.66 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to FERG. FERG was compared to 51 industry peers in the Trading Companies & Distributors industry. While FERG has a great profitability rating, 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
In the past year FERG was profitable.
In the past year FERG had a positive cash flow from operations.
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 has a better Return On Assets (10.47%) than 80.39% of its industry peers.
FERG has a better Return On Equity (31.82%) than 90.20% of its industry peers.
FERG's Return On Invested Capital of 16.85% is amongst the best of the industry. FERG outperforms 94.12% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FERG is significantly above the industry average of 10.20%.
| 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 has a better Profit Margin (6.03%) than 66.67% of its industry peers.
FERG's Profit Margin has improved in the last couple of years.
FERG has a better Operating Margin (8.72%) 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 (30.67%) which is comparable to the rest of the 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 | 8.72% | ||
| 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
FERG has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
FERG has less shares outstanding than it did 1 year ago.
FERG has less shares outstanding than it did 5 years ago.
FERG has a better debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of FERG is 2.34, which is a good value as it means it would take FERG, 2.34 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.34, FERG is in the better half of the industry, outperforming 76.47% 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.
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/WACC1.82
WACC9.24%
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's Current ratio of 1.68 is in line compared 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.
The Quick ratio of FERG (0.94) is worse than 62.75% 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.
The Earnings Per Share has been growing by 14.44% on average over the past years. This is quite good.
The Revenue has been growing slightly by 3.80% in the past year.
The Revenue has been growing by 9.06% on average over the past years. This is quite good.
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 10.24% on average per year.
Based on estimates for the next years, FERG will show a small growth in Revenue. The Revenue will grow by 5.63% on average per year.
EPS Next Y11.3%
EPS Next 2Y10.47%
EPS Next 3Y10.24%
EPS Next 5YN/A
Revenue Next Year4.98%
Revenue Next 2Y5.42%
Revenue Next 3Y5.63%
Revenue Next 5YN/A
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 25.09, FERG can be considered very expensive at the moment.
FERG's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 25.83. FERG is around the same levels.
FERG is valuated rather expensively with a Price/Forward Earnings ratio of 22.54.
FERG's Price/Forward Earnings is on the same level as the industry average.
FERG is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 32.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.09 | ||
| Fwd PE | 22.54 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as FERG.
60.78% 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 | 30.52 | ||
| EV/EBITDA | 16.79 |
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)2.22
PEG (5Y)1.74
EPS Next 2Y10.47%
EPS Next 3Y10.24%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.35%, FERG has a reasonable but not impressive dividend return.
FERG's Dividend Yield is a higher than the industry average which is at 2.20.
Compared to an average S&P500 Dividend Yield of 2.39, FERG's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.35% |
5.2 History
The dividend of FERG is nicely growing with an annual growth rate of 11.29%!
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)11.29%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
FERG pays out 26.35% of its income as dividend. This is a 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 2Y10.47%
EPS Next 3Y10.24%
249.66
+3.56 (+1.45%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners96.02%
Inst Owner Change-0.89%
Ins Owners2.47%
Ins Owner Change5.39%
Market Cap48.93B
Revenue(TTM)30.76B
Net Income(TTM)1.86B
Analysts79.33
Price Target258.39 (3.5%)
Short Float %1.2%
Short Ratio1.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.35% |
Yearly Dividend2.45
Dividend Growth(5Y)11.29%
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)4.89%
PT rev (3m)9.21%
EPS NQ rev (1m)-0.72%
EPS NQ rev (3m)-5.56%
EPS NY rev (1m)0.19%
EPS NY rev (3m)3.22%
Revenue NQ rev (1m)1.12%
Revenue NQ rev (3m)-1.57%
Revenue NY rev (1m)-0.15%
Revenue NY rev (3m)-0.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.09 | ||
| Fwd PE | 22.54 | ||
| P/S | 1.59 | ||
| P/FCF | 30.52 | ||
| P/OCF | 25.64 | ||
| P/B | 8.39 | ||
| P/tB | 14.53 | ||
| EV/EBITDA | 16.79 |
EPS(TTM)9.95
EY3.99%
EPS(NY)11.07
Fwd EY4.44%
FCF(TTM)8.18
FCFY3.28%
OCF(TTM)9.74
OCFY3.9%
SpS156.96
BVpS29.76
TBVpS17.19
PEG (NY)2.22
PEG (5Y)1.74
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
WACC9.24%
ROIC/WACC1.82
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 Y11.3%
EPS Next 2Y10.47%
EPS Next 3Y10.24%
EPS Next 5YN/A
Revenue 1Y (TTM)3.8%
Revenue growth 3Y2.5%
Revenue growth 5Y9.06%
Sales Q2Q%6.93%
Revenue Next Year4.98%
Revenue Next 2Y5.42%
Revenue Next 3Y5.63%
Revenue Next 5YN/A
EBIT growth 1Y1.17%
EBIT growth 3Y-1.78%
EBIT growth 5Y14.38%
EBIT Next Year21.21%
EBIT Next 3Y12.25%
EBIT Next 5YN/A
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 25.09 and the Price/Book (PB) ratio is 8.39.
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%.