Ferguson primarily serves three major end markets: repair and remodel (Ferguson refers to this market as repair, maintenance, and improvement), new construction, and civil infrastructure. Between 2008 and 2022, Ferguson's exposure to the U.S. RMI market (as a percentage of sales) increased from 31% to 60%, while U.S. new construction revenue exposure decreased from 58% to 40%.
Ferguson’s roll-up strategy in the U.S. 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
|
WSO
|
LOW
|
|---|---|---|---|
Price/Earnings (Normalized) | 22.18 | 32.25 | 17.63 |
Price/Book Value | 7.94 | 6.89 | — |
Price/Sales | 1.48 | 2.25 | 1.56 |
Price/Cash Flow | 19.23 | 24.98 | 12.97 |
|
Metric
|
FERG
|
WSO
|
LOW
|
|---|---|---|---|
Quick Ratio | 0.78 | 1.42 | 0.06 |
Current Ratio | 1.80 | 3.36 | 1.23 |
Interest Coverage | 13.44 | 161.55 | 7.79 |
|
Metric
|
FERG
|
WSO
|
LOW
|
|---|---|---|---|
Return on Assets (Normalized) | 12.20% | 17.17% | 18.05% |
Return on Equity (Normalized) | 37.79% | 31.92% | — |
Return on Invested Capital (Normalized) | 19.98% | 22.35% | 35.63% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|
GWW
| W.W. Grainger Inc | Hxxgrshy | Wppwzw | $47.1 Bil | |
FAST
| Fastenal Co | Flkswhbvm | Hgxt | $38.7 Bil | |
WSO
| Watsco Inc Class A | Lvgfjnxjsd | Qpcrbm | $17.4 Bil | |
WSO.B
| Watsco Inc Shs -B- Conv.at any time | — | Mzbtl | $16.4 Bil | |
POOL
| Pool Corp | — | Glsjtb | $14.5 Bil | |
CNM
| Core & Main Inc Class A | — | Rxydbsh | $10.8 Bil | |
IDDWF
| Indutrade AB | — | Gzbq | $9.1 Bil | |
WCC
| WESCO International Inc | Dsctrnx | Jldgnc | $8.1 Bil | |
MSM
| MSC Industrial Direct Co Inc Class A | Lfjpzvnvk | Snvsvby | $5.2 Bil |
