FERGUSON ENTERPRISES INC (FERG) Stock Fundamental Analysis
NYSE:FERG - New York Stock Exchange, Inc. - US31488V1070 - Common Stock - Currency: USD
Overall FERG gets a fundamental rating of 5 out of 10. We evaluated FERG against 48 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 valied quite expensively at the moment, while it does show a decent 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.
FERG had positive earnings in each of the past 5 years.
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 10.00%, FERG belongs to the top of the industry, outperforming 80.85% of the companies in the same industry.
FERG has a better Return On Equity (29.81%) than 91.49% of its industry peers.
FERG has a better Return On Invested Capital (17.05%) than 89.36% 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 9.52%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10% | ||
| ROE | 29.81% | ||
| ROIC | 17.05% |
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
FERG has a Profit Margin (5.68%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of FERG has grown nicely.
FERG has a Operating Margin (8.68%) which is in line with its industry peers.
FERG's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 30.51%, FERG perfoms like the industry average, outperforming 51.06% of the companies in the same industry.
FERG's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.68% | ||
| PM (TTM) | 5.68% | ||
| GM | 30.51% |
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
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 worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 1903.83 indicates that FERG is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 1903.83, FERG belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
The Debt to FCF ratio of FERG is 3.07, which is a good value as it means it would take FERG, 3.07 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.07, FERG is in the better half of the industry, outperforming 68.09% of the companies in the same industry.
A Debt/Equity ratio of 0.61 indicates that FERG is somewhat dependend on debt financing.
FERG has a Debt to Equity ratio (0.61) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 3.07 | ||
| Altman-Z | 1903.83 |
ROIC/WACC1.58
WACC10.79%
2.3 Liquidity
A Current Ratio of 1.68 indicates that FERG should not have too much problems paying its short term obligations.
With a Current ratio value of 1.68, FERG perfoms like the industry average, outperforming 40.43% of the companies in the same industry.
A Quick Ratio of 0.91 indicates that FERG may have some problems paying its short term obligations.
FERG's Quick ratio of 0.91 is on the low side compared to the rest of the industry. FERG is outperformed by 70.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.68 | ||
| Quick Ratio | 0.91 |
3. Growth
3.1 Past
FERG shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -0.42%.
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.
FERG shows a small growth in Revenue. In the last year, the Revenue has grown by 0.64%.
FERG shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.13% yearly.
EPS 1Y (TTM)-0.42%
EPS 3Y12.31%
EPS 5Y14.56%
EPS Q2Q%-7.55%
Revenue 1Y (TTM)0.64%
Revenue growth 3Y9.15%
Revenue growth 5Y6.13%
Sales Q2Q%0.83%
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 8.20% on average per year.
The Revenue is expected to grow by 7.54% on average over the next years.
EPS Next Y-0.54%
EPS Next 2Y5.31%
EPS Next 3Y7.29%
EPS Next 5Y8.2%
Revenue Next Year1.9%
Revenue Next 2Y3.83%
Revenue Next 3Y4.83%
Revenue Next 5Y7.54%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
FERG is valuated rather expensively with a Price/Earnings ratio of 18.39.
Compared to the rest of the industry, the Price/Earnings ratio of FERG is on the same level as its industry peers.
FERG is valuated rather cheaply when we compare the Price/Earnings ratio to 29.98, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 16.24, the valuation of FERG can be described as correct.
The rest of the industry has a similar Price/Forward Earnings ratio as FERG.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.66, FERG is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.39 | ||
| Fwd PE | 16.24 |
4.2 Price Multiples
FERG's Enterprise Value to EBITDA ratio is rather expensive when compared to the industry. FERG is more expensive than 87.23% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, FERG is valued a bit more expensive than 63.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26783.78 | ||
| EV/EBITDA | 12143.18 |
4.3 Compensation for Growth
FERG has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.26
EPS Next 2Y5.31%
EPS Next 3Y7.29%
5. Dividend
5.1 Amount
FERG has a Yearly Dividend Yield of 1.89%.
Compared to an average industry Dividend Yield of 1.98, FERG pays a better dividend. On top of this FERG pays more dividend than 82.98% of the companies listed in the same industry.
FERG's Dividend Yield is comparable with the S&P500 average which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.89% |
5.2 History
On average, the dividend of FERG grows each year by 14.98%, which is quite nice.
FERG has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)14.98%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
37.49% 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.
DP37.49%
EPS Next 2Y5.31%
EPS Next 3Y7.29%
NYSE:FERG (3/3/2025, 1:58:57 PM)
174.54
-2.96 (-1.67%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners91.55%
Inst Owner Change15.93%
Ins Owners2.44%
Ins Owner Change10.1%
Market Cap34.90B
Analysts80.83
Price Target219.14 (25.55%)
Short Float %1.38%
Short Ratio1.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.89% |
Yearly Dividend3.87
Dividend Growth(5Y)14.98%
DP37.49%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-3.04%
Min EPS beat(2)-8.26%
Max EPS beat(2)2.17%
EPS beat(4)1
Avg EPS beat(4)-3.83%
Min EPS beat(4)-8.26%
Max EPS beat(4)2.17%
EPS beat(8)2
Avg EPS beat(8)-1.72%
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-2.69%
Min Revenue beat(2)-2.7%
Max Revenue beat(2)-2.68%
Revenue beat(4)0
Avg Revenue beat(4)-2.81%
Min Revenue beat(4)-3.26%
Max Revenue beat(4)-2.57%
Revenue beat(8)1
Avg Revenue beat(8)-14.07%
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-0.78%
PT rev (3m)-5.84%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-9.15%
EPS NY rev (1m)0.08%
EPS NY rev (3m)-3.24%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.98%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)-0.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.39 | ||
| Fwd PE | 16.24 | ||
| P/S | 1175.1 | ||
| P/FCF | 26783.78 | ||
| P/OCF | 21010.99 | ||
| P/B | 6171.4 | ||
| P/tB | 13568.94 | ||
| EV/EBITDA | 12143.18 |
EPS(TTM)9.49
EY5.44%
EPS(NY)10.75
Fwd EY6.16%
FCF(TTM)0.01
FCFY0%
OCF(TTM)0.01
OCFY0%
SpS0.15
BVpS0.03
TBVpS0.01
PEG (NY)N/A
PEG (5Y)1.26
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10% | ||
| ROE | 29.81% | ||
| ROCE | 23.19% | ||
| ROIC | 17.05% | ||
| ROICexc | 18.02% | ||
| ROICexgc | 25.5% | ||
| OM | 8.68% | ||
| PM (TTM) | 5.68% | ||
| GM | 30.51% | ||
| FCFM | 4.39% |
ROA(3y)11.94%
ROA(5y)10.74%
ROE(3y)37.96%
ROE(5y)33.06%
ROIC(3y)19.52%
ROIC(5y)17.16%
ROICexc(3y)20.83%
ROICexc(5y)19.21%
ROICexgc(3y)29.84%
ROICexgc(5y)27.75%
ROCE(3y)26.54%
ROCE(5y)23.43%
ROICexcg growth 3Y-2.31%
ROICexcg growth 5Y-1.42%
ROICexc growth 3Y-1.25%
ROICexc growth 5Y0.09%
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%
F-Score5
Asset Turnover1.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 3.07 | ||
| Debt/EBITDA | 1.18 | ||
| Cap/Depr | 103.77% | ||
| Cap/Sales | 1.21% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 56.83% | ||
| Profit Quality | 77.28% | ||
| Current Ratio | 1.68 | ||
| Quick Ratio | 0.91 | ||
| Altman-Z | 1903.83 |
F-Score5
WACC10.79%
ROIC/WACC1.58
Cap/Depr(3y)114.92%
Cap/Depr(5y)105.2%
Cap/Sales(3y)1.25%
Cap/Sales(5y)1.25%
Profit Quality(3y)82.6%
Profit Quality(5y)91.33%
High Growth Momentum
Growth
EPS 1Y (TTM)-0.42%
EPS 3Y12.31%
EPS 5Y14.56%
EPS Q2Q%-7.55%
EPS Next Y-0.54%
EPS Next 2Y5.31%
EPS Next 3Y7.29%
EPS Next 5Y8.2%
Revenue 1Y (TTM)0.64%
Revenue growth 3Y9.15%
Revenue growth 5Y6.13%
Sales Q2Q%0.83%
Revenue Next Year1.9%
Revenue Next 2Y3.83%
Revenue Next 3Y4.83%
Revenue Next 5Y7.54%
EBIT growth 1Y-4.23%
EBIT growth 3Y10.79%
EBIT growth 5Y12.13%
EBIT Next Year7.73%
EBIT Next 3Y8.6%
EBIT Next 5Y8.15%
FCF growth 1Y-1.73%
FCF growth 3Y9.57%
FCF growth 5Y11.47%
OCF growth 1Y0.06%
OCF growth 3Y10.66%
OCF growth 5Y7.74%