FERGUSON ENTERPRISES INC (FERG) Stock Fundamental Analysis
USA - NYSE:FERG - US31488V1070 - Common Stock
231.69 USD
-5.02 (-2.12%)
231.69 USD
0 (0%)
FERG gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 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 correct valuation and a medium growth rate.
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
Looking at the Return On Assets, with a value of 10.47%, FERG belongs to the top of the industry, outperforming 82.00% of the companies in the same industry.
FERG has a Return On Equity of 31.82%. This is amongst the best in the industry. FERG outperforms 92.00% of its industry peers.
FERG's Return On Invested Capital of 16.85% is amongst the best of the industry. FERG outperforms 96.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FERG is significantly above the industry average of 9.31%.
| 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
With a decent Profit Margin value of 6.03%, FERG is doing good in the industry, outperforming 68.00% 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 8.72%, FERG is in the better half of the industry, outperforming 62.00% of the companies in the same industry.
FERG's Operating Margin has improved in the last couple of years.
FERG has a Gross Margin of 30.67%. This is comparable to the rest of the industry: FERG outperforms 54.00% of its industry peers.
FERG's Gross Margin has been stable in the last couple of years.
| 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
Compared to 5 years ago, FERG has less shares outstanding
FERG has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.39 indicates that FERG is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.39, FERG belongs to the top of the industry, outperforming 86.00% of the companies in the same industry.
The Debt to FCF ratio of FERG is 2.59, which is a good value as it means it would take FERG, 2.59 years of fcf income to pay off all of its debts.
FERG has a Debt to FCF ratio of 2.59. This is in the better half of the industry: FERG outperforms 78.00% of its industry peers.
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 of 0.64. This is comparable to the rest of the industry: FERG outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 2.59 | ||
| Altman-Z | 5.39 |
ROIC/WACC2.02
WACC8.33%
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.
The Current ratio of FERG (1.68) is comparable to the rest of the industry.
FERG has a Quick Ratio of 1.68. This is a bad value and indicates that FERG is not financially healthy enough and could expect problems in meeting its short term obligations.
FERG has a Quick ratio of 0.94. This is in the lower half of the industry: FERG underperforms 60.00% 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.
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.
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 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
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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
Based on the Price/Earnings ratio of 23.29, the valuation of FERG can be described as rather expensive.
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 25.07. FERG is around the same levels.
A Price/Forward Earnings ratio of 20.89 indicates a rather expensive valuation of FERG.
The rest of the industry has a similar Price/Forward Earnings ratio as FERG.
The average S&P500 Price/Forward Earnings ratio is at 34.08. FERG is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.29 | ||
| Fwd PE | 20.89 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as FERG.
62.00% 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 | 28.33 | ||
| EV/EBITDA | 16.32 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates FERG does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of FERG may justify a higher PE ratio.
PEG (NY)2.03
PEG (5Y)1.61
EPS Next 2Y10.65%
EPS Next 3Y11.11%
5. Dividend
5.1 Amount
FERG has a Yearly Dividend Yield of 1.37%. Purely for dividend investing, there may be better candidates out there.
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 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.37% |
5.2 History
The dividend of FERG is nicely growing with an annual growth rate of 11.33%!
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%
231.69
-5.02 (-2.12%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners96.02%
Inst Owner Change-2.68%
Ins Owners2.47%
Ins Owner Change5.39%
Market Cap45.41B
Revenue(TTM)30.76B
Net Income(TTM)1.86B
Analysts79.33
Price Target258.39 (11.52%)
Short Float %1.49%
Short Ratio1.46
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)-0.95%
EPS NQ rev (3m)-6.41%
EPS NY rev (1m)0.36%
EPS NY rev (3m)3.4%
Revenue NQ rev (1m)-0.3%
Revenue NQ rev (3m)-2.04%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-0.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.29 | ||
| Fwd PE | 20.89 | ||
| P/S | 1.48 | ||
| P/FCF | 28.33 | ||
| P/OCF | 23.8 | ||
| P/B | 7.79 | ||
| P/tB | 17.19 | ||
| EV/EBITDA | 16.32 |
EPS(TTM)9.95
EY4.29%
EPS(NY)11.09
Fwd EY4.79%
FCF(TTM)8.18
FCFY3.53%
OCF(TTM)9.74
OCFY4.2%
SpS156.96
BVpS29.76
TBVpS13.48
PEG (NY)2.03
PEG (5Y)1.61
Graham Number81.62
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.47% | ||
| ROE | 31.82% | ||
| ROCE | 22.93% | ||
| ROIC | 16.85% | ||
| ROICexc | 17.89% | ||
| ROICexgc | 25.17% | ||
| 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)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-Score6
Asset Turnover1.74
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 2.59 | ||
| Debt/EBITDA | 1.23 | ||
| Cap/Depr | 81.77% | ||
| Cap/Sales | 0.99% | ||
| Interest Coverage | 14.2 | ||
| Cash Conversion | 62.43% | ||
| Profit Quality | 86.37% | ||
| Current Ratio | 1.68 | ||
| Quick Ratio | 0.94 | ||
| Altman-Z | 5.39 |
F-Score6
WACC8.33%
ROIC/WACC2.02
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 23.29 and the Price/Book (PB) ratio is 7.79.
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%.