There were no surprises in Ferguson’s fiscal third-quarter results (ended April 30). While reported revenue growth of 2.4% came in a tad below our forecast of 3% growth, Ferguson’s 30.5% gross margin bested our forecast by 50 basis points. Stronger operating margin and lower interest expense led to Ferguson’s adjusted EPS of $2.32 beating our projection by approximately 6%.
Ferguson’s roll-up strategy in the US should lead to market share gains, boosting revenue growth in excess of the market average.
Ferguson’s exposure to new construction markets can pressure revenue and margin growth during cyclical downturns.
|
Metric
|
FERG
|
LOW
|
HD
|
|---|---|---|---|
Price/Earnings (Normalized) | 20.95 | 17.43 | 20.99 |
Price/Book Value | 7.33 | — | 178.25 |
Price/Sales | 1.38 | 1.47 | 2.15 |
Price/Cash Flow | 18.17 | 12.54 | 17.35 |
|
Metric
|
FERG
|
LOW
|
HD
|
|---|---|---|---|
Quick Ratio | 0.76 | 0.17 | 0.34 |
Current Ratio | 1.68 | 1.17 | 1.34 |
Interest Coverage | 14.53 | 7.32 | 10.86 |
|
Metric
|
FERG
|
LOW
|
HD
|
|---|---|---|---|
Return on Assets (Normalized) | 12.12% | 16.74% | 19.73% |
Return on Equity (Normalized) | 37.05% | — | 1,265.26% |
Return on Invested Capital (Normalized) | 19.85% | 33.07% | 32.05% |
|
1-Day Chart
|
Name
|
Price
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|---|
| W.W. Grainger Inc
GWW
| Hvydksdpr | Qcpcmg | $44.1 Bil | |||
| Fastenal Co
FAST
| Tlgpyqlps | Prp | $36.6 Bil | |||
| Watsco Inc Class A
WSO
| Hxstpzmk | Czgzmj | $18.6 Bil | |||
| Watsco Inc Shs -B- Conv.at any time
WSO.B
| — | Fnvxj | $18.5 Bil | |||
| Pool Corp
POOL
| — | Hxyqm | $13.1 Bil | |||
| Indutrade AB
IDDWF
| — | Jsjr | $9.6 Bil | |||
| Core & Main Inc Class A
CNM
| — | Yypxbqv | $9.2 Bil | |||
| WESCO International Inc
WCC
| Rvjbytz | Scxdnx | $9.1 Bil | |||
| MSC Industrial Direct Co Inc Class A
MSM
| Zkdgpcrx | Dcrlcj | $4.7 Bil |
