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FERGUSON ENTERPRISES INC (FERG) Stock Fundamental Analysis

USA - NYSE:FERG - US31488V1070 - Common Stock

224.48 USD
-7.06 (-3.05%)
Last: 9/17/2025, 8:04:01 PM
225.77 USD
+1.29 (+0.57%)
After Hours: 9/17/2025, 8:04:01 PM
Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to FERG. FERG was compared to 50 industry peers in the Trading Companies & Distributors industry. While FERG has a great profitability rating, there are some minor concerns on its financial health. While showing a medium growth rate, FERG is valued expensive at the moment.


Dividend Valuation Growth Profitability Health

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7

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 4 of the past 5 years.
FERG had a positive operating cash flow in 4 of the past 5 years.
FERG Yearly Net Income VS EBIT VS OCF VS FCFFERG Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B 2.5B

1.2 Ratios

The Return On Assets of FERG (9.31%) is better than 78.00% of its industry peers.
FERG has a Return On Equity of 29.05%. This is amongst the best in the industry. FERG outperforms 88.00% of its industry peers.
The Return On Invested Capital of FERG (16.68%) is better than 94.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FERG is significantly above the industry average of 10.24%.
Industry RankSector Rank
ROA 9.31%
ROE 29.05%
ROIC 16.68%
ROA(3y)11.94%
ROA(5y)10.74%
ROE(3y)37.96%
ROE(5y)33.06%
ROIC(3y)19.52%
ROIC(5y)17.16%
FERG Yearly ROA, ROE, ROICFERG Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30 40

1.3 Margins

FERG has a better Profit Margin (5.32%) than 64.00% of its industry peers.
FERG's Profit Margin has improved in the last couple of years.
FERG's Operating Margin of 8.48% is in line compared to the rest of the industry. FERG outperforms 58.00% of its industry peers.
FERG's Operating Margin has improved in the last couple of years.
FERG has a Gross Margin (30.46%) which is in line with its industry peers.
FERG's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 8.48%
PM (TTM) 5.32%
GM 30.46%
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%
FERG Yearly Profit, Operating, Gross MarginsFERG Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30

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5

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), FERG is creating value.
FERG has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
FERG Yearly Shares OutstandingFERG Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M 200M
FERG Yearly Total Debt VS Total AssetsFERG Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B

2.2 Solvency

FERG has an Altman-Z score of 5.34. This indicates that FERG is financially healthy and has little risk of bankruptcy at the moment.
FERG has a better Altman-Z score (5.34) than 84.00% of its industry peers.
FERG has a debt to FCF ratio of 2.95. This is a good value and a sign of high solvency as FERG would need 2.95 years to pay back of all of its debts.
The Debt to FCF ratio of FERG (2.95) is better than 70.00% of its industry peers.
A Debt/Equity ratio of 0.67 indicates that FERG is somewhat dependend on debt financing.
The Debt to Equity ratio of FERG (0.67) is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.67
Debt/FCF 2.95
Altman-Z 5.34
ROIC/WACC1.77
WACC9.41%
FERG Yearly LT Debt VS Equity VS FCFFERG Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B 5B

2.3 Liquidity

FERG has a Current Ratio of 1.64. 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 (1.64) is comparable to the rest of the industry.
A Quick Ratio of 0.88 indicates that FERG may have some problems paying its short term obligations.
The Quick ratio of FERG (0.88) is worse than 68.00% of its industry peers.
Industry RankSector Rank
Current Ratio 1.64
Quick Ratio 0.88
FERG Yearly Current Assets VS Current LiabilitesFERG Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B

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4

3. Growth

3.1 Past

The Earnings Per Share has been growing slightly by 2.68% 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.
EPS 1Y (TTM)2.68%
EPS 3YN/A
EPS 5Y14.44%
EPS Q2Q%16.78%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%6.93%

3.2 Future

FERG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.10% yearly.
FERG is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.99% yearly.
EPS Next Y7.7%
EPS Next 2Y9.57%
EPS Next 3Y10.1%
EPS Next 5YN/A
Revenue Next Year5.47%
Revenue Next 2Y5.67%
Revenue Next 3Y8.99%
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.
FERG Yearly Revenue VS EstimatesFERG Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 10B 20B 30B 40B
FERG Yearly EPS VS EstimatesFERG Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2 4 6 8 10

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3

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 22.56 indicates a rather expensive 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.
Compared to an average S&P500 Price/Earnings ratio of 27.20, FERG is valued at the same level.
A Price/Forward Earnings ratio of 20.95 indicates a rather expensive valuation of FERG.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FERG is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of FERG to the average of the S&P500 Index (22.70), we can say FERG is valued inline with the index average.
Industry RankSector Rank
PE 22.56
Fwd PE 20.95
FERG Price Earnings VS Forward Price EarningsFERG Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

FERG's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, FERG is valued a bit cheaper than the industry average as 62.00% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 31.87
EV/EBITDA 16.83
FERG Per share dataFERG EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 50 100 150

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 decent profitability rating of FERG may justify a higher PE ratio.
PEG (NY)2.93
PEG (5Y)1.56
EPS Next 2Y9.57%
EPS Next 3Y10.1%

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4

5. Dividend

5.1 Amount

FERG has a Yearly Dividend Yield of 1.55%.
Compared to an average industry Dividend Yield of 2.75, FERG pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.38, FERG is paying slightly less dividend.
Industry RankSector Rank
Dividend Yield 1.55%

5.2 History

On average, the dividend of FERG grows each year by 14.94%, 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)14.94%
Div Incr Years1
Div Non Decr Years1
FERG Yearly Dividends per shareFERG Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1 2 3 4

5.3 Sustainability

FERG pays out 40.01% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of FERG is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP40.01%
EPS Next 2Y9.57%
EPS Next 3Y10.1%
FERG Yearly Income VS Free CF VS DividendFERG Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B
FERG Dividend Payout.FERG Dividend Payout, showing the Payout Ratio.FERG Dividend Payout.PayoutRetained Earnings

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FERGUSON ENTERPRISES INC

NYSE:FERG (9/17/2025, 8:04:01 PM)

After market: 225.77 +1.29 (+0.57%)

224.48

-7.06 (-3.05%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)09-16 2025-09-16/bmo
Earnings (Next)12-08 2025-12-08
Inst Owners95.98%
Inst Owner Change-0.56%
Ins Owners2.47%
Ins Owner Change0.02%
Market Cap44.26B
Analysts78.67
Price Target246.34 (9.74%)
Short Float %1.24%
Short Ratio1.66
Dividend
Industry RankSector Rank
Dividend Yield 1.55%
Yearly Dividend3.87
Dividend Growth(5Y)14.94%
DP40.01%
Div Incr Years1
Div Non Decr Years1
Ex-Date09-26 2025-09-26 (0.83)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)7.23%
Min EPS beat(2)-6.84%
Max EPS beat(2)21.31%
EPS beat(4)2
Avg EPS beat(4)2.1%
Min EPS beat(4)-8.26%
Max EPS beat(4)21.31%
EPS beat(8)3
Avg EPS beat(8)1.01%
EPS beat(12)5
Avg EPS beat(12)0.4%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)0.17%
Min Revenue beat(2)-0.33%
Max Revenue beat(2)0.67%
Revenue beat(4)1
Avg Revenue beat(4)-1.26%
Min Revenue beat(4)-2.7%
Max Revenue beat(4)0.67%
Revenue beat(8)2
Avg Revenue beat(8)-1.37%
Revenue beat(12)3
Avg Revenue beat(12)-1.22%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)2.24%
PT rev (3m)24.38%
EPS NQ rev (1m)-0.12%
EPS NQ rev (3m)-3.18%
EPS NY rev (1m)0.29%
EPS NY rev (3m)6.63%
Revenue NQ rev (1m)1%
Revenue NQ rev (3m)0.56%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)1.52%
Valuation
Industry RankSector Rank
PE 22.56
Fwd PE 20.95
P/S 1.47
P/FCF 31.87
P/OCF 25.54
P/B 8
P/tB 18.8
EV/EBITDA 16.83
EPS(TTM)9.95
EY4.43%
EPS(NY)10.72
Fwd EY4.77%
FCF(TTM)7.04
FCFY3.14%
OCF(TTM)8.79
OCFY3.92%
SpS153.22
BVpS28.05
TBVpS11.94
PEG (NY)2.93
PEG (5Y)1.56
Profitability
Industry RankSector Rank
ROA 9.31%
ROE 29.05%
ROCE 22.68%
ROIC 16.68%
ROICexc 17.49%
ROICexgc 24.8%
OM 8.48%
PM (TTM) 5.32%
GM 30.46%
FCFM 4.6%
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-Score4
Asset Turnover1.75
Health
Industry RankSector Rank
Debt/Equity 0.67
Debt/FCF 2.95
Debt/EBITDA 1.27
Cap/Depr 94.77%
Cap/Sales 1.14%
Interest Coverage 13.01
Cash Conversion 59.25%
Profit Quality 86.43%
Current Ratio 1.64
Quick Ratio 0.88
Altman-Z 5.34
F-Score4
WACC9.41%
ROIC/WACC1.77
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)2.68%
EPS 3YN/A
EPS 5Y14.44%
EPS Q2Q%16.78%
EPS Next Y7.7%
EPS Next 2Y9.57%
EPS Next 3Y10.1%
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%6.93%
Revenue Next Year5.47%
Revenue Next 2Y5.67%
Revenue Next 3Y8.99%
Revenue Next 5YN/A
EBIT growth 1Y-2.25%
EBIT growth 3Y10.79%
EBIT growth 5Y12.13%
EBIT Next Year6.2%
EBIT Next 3Y8.08%
EBIT Next 5Y8.15%
FCF growth 1Y-23.43%
FCF growth 3Y9.57%
FCF growth 5Y11.47%
OCF growth 1Y-23.66%
OCF growth 3Y10.66%
OCF growth 5Y7.74%