FERGUSON ENTERPRISES INC (FERG) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:FERG • US31488V1070
255.03 USD
+2.57 (+1.02%)
Last: Feb 2, 2026, 01:22 PM
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 quite expensive at the moment. It does show 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 (11.05%) than 92.00% of its industry peers.
- Looking at the Return On Equity, with a value of 32.30%, FERG belongs to the top of the industry, outperforming 92.00% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 16.59%, FERG belongs to the top of the industry, outperforming 94.00% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for FERG is significantly above the industry average of 9.64%.
| 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
- With a decent Profit Margin value of 6.28%, FERG is doing good in the industry, outperforming 66.00% of the companies in the same industry.
- FERG's Profit Margin has improved in the last couple of years.
- Looking at the Operating Margin, with a value of 8.95%, FERG is in the better half of the industry, outperforming 62.00% 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 30.81%. This is comparable to the rest of the industry: FERG outperforms 56.00% of its industry peers.
- 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
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), FERG is creating value.
- Compared to 1 year ago, FERG has less shares outstanding
- The number of shares outstanding for FERG has been reduced compared to 5 years ago.
- The debt/assets ratio for FERG has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 5.71 indicates that FERG is not in any danger for bankruptcy at the moment.
- FERG's Altman-Z score of 5.71 is amongst the best of the industry. FERG outperforms 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.
- With a decent Debt to FCF ratio value of 2.50, FERG is doing good in the industry, outperforming 76.00% of the companies in the same industry.
- FERG has a Debt/Equity ratio of 0.68. This is a neutral value indicating FERG is somewhat dependend on debt financing.
- With a Debt to Equity ratio value of 0.68, FERG perfoms like the industry average, outperforming 48.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 2.5 | ||
| Altman-Z | 5.71 |
ROIC/WACC1.7
WACC9.75%
2.3 Liquidity
- A Current Ratio of 1.88 indicates that FERG should not have too much problems paying its short term obligations.
- FERG has a Current ratio (1.88) which is comparable to the rest of the industry.
- A Quick Ratio of 1.01 indicates that FERG should not have too much problems paying its short term obligations.
- The Quick ratio of FERG (1.01) is worse than 62.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.88 | ||
| Quick Ratio | 1.01 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 8.96% over the past year.
- Measured over the past years, FERG shows a quite strong growth in Earnings Per Share. The EPS has been growing by 14.44% on average per year.
- FERG shows a small growth in Revenue. In the last year, the Revenue has grown by 4.92%.
- The Revenue has been growing by 9.06% on average over the past years. This is quite good.
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.
- The Revenue is expected to grow by 8.51% on average over the next years. This is quite good.
EPS Next Y11.07%
EPS Next 2Y11.56%
EPS Next 3Y10.1%
EPS Next 5Y11.31%
Revenue Next Year5.66%
Revenue Next 2Y5.52%
Revenue Next 3Y5.62%
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
- The Price/Earnings ratio is 24.66, which indicates a rather expensive current valuation of FERG.
- Compared to the rest of the industry, the Price/Earnings ratio of FERG is on the same level as its industry peers.
- The average S&P500 Price/Earnings ratio is at 28.32. FERG is around the same levels.
- FERG is valuated rather expensively with a Price/Forward Earnings ratio of 20.60.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of FERG is on the same level as its industry peers.
- FERG is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 25.57, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.66 | ||
| Fwd PE | 20.6 |
4.2 Price Multiples
- FERG's Enterprise Value to EBITDA ratio is in line with the industry average.
- 70.00% 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 | 30.35 | ||
| EV/EBITDA | 16.76 |
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)2.23
PEG (5Y)1.71
EPS Next 2Y11.56%
EPS Next 3Y10.1%
5. Dividend
5.1 Amount
- FERG has a Yearly Dividend Yield of 1.39%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 0.88, FERG pays a better dividend. On top of this FERG pays more dividend than 82.00% of the companies listed in the same industry.
- Compared to the average S&P500 Dividend Yield of 1.83, FERG is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.39% |
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.
- The dividend of FERG decreased 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 2Y11.56%
EPS Next 3Y10.1%
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 24.66 and the Price/Book (PB) ratio is 8.25.
How financially healthy is FERGUSON ENTERPRISES INC?
The financial health rating of FERGUSON ENTERPRISES INC (FERG) is 6 / 10.