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Ferguson PLC FERG

Morningstar Rating
$207.56 +0.32 (0.15%)
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Company Report

Ferguson's Growth Strategy Should Result in Meaningful Market Outperformance in Fiscal 2024

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%.

Price vs Fair Value

FERG is trading at a 38% premium.
Price
$207.56
Fair Value
$828.00
Uncertainty
Medium
1-Star Price
$812.30
5-Star Price
$648.00
Economic Moat
Rmswwl
Capital Allocation
Wmnzjxgvt

Bulls Say, Bears Say

Bulls

Ferguson’s roll-up strategy in the U.S. should lead to market share gains, boosting revenue growth in excess of the market average.

Bears

Ferguson’s exposure to new construction markets can pressure revenue and margin growth during cyclical downturns.

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News

Trading Information

Previous Close Price
$207.24
Day Range
$205.48208.28
52-Week Range
$123.17208.28
Bid/Ask
$206.53 / $208.01
Market Cap
$42.11 Bil
Volume/Avg
1.1 Mil / 1.0 Mil

Key Statistics

Price/Earnings (Normalized)
19.90
Price/Sales
1.35
Dividend Yield (Trailing)
1.46%
Dividend Yield (Forward)
1.52%
Total Yield
2.97%

Company Profile

Ferguson distributes plumbing and HVAC products primarily to repair, maintenance and improvement, new construction, and civil infrastructure markets. It serves over 1 million customers and sources products from 37,000 suppliers. Ferguson engages customers through approximately 1,700 North American branches, over the phone, online, and in residential showrooms. In fiscal 2023, Ferguson derived 95% of its nearly $30 billion of sales in the U.S. According to Modern Distribution Management, Ferguson is the largest industrial and construction distributor in North America. The firm sold its U.K. business in 2021 and is now solely focused on the North American market.
Sector
Industrials
Industry
Industrial Distribution
Stock Style Box
Mid Core
Total Number of Employees
35,000

Competitors

Valuation

Metric
FERG
GWW
WSO
Price/Earnings (Normalized)
19.9026.6027.80
Price/Book Value
7.3614.896.85
Price/Sales
1.352.872.10
Price/Cash Flow
17.1820.7022.41
Price/Earnings
FERG
GWW
WSO

Financial Strength

Metric
FERG
GWW
WSO
Quick Ratio
0.781.561.42
Current Ratio
1.712.883.36
Interest Coverage
13.5727.88161.55
Quick Ratio
FERG
GWW
WSO

Profitability

Metric
FERG
GWW
WSO
Return on Assets (Normalized)
12.49%23.29%17.17%
Return on Equity (Normalized)
38.98%64.65%31.92%
Return on Invested Capital (Normalized)
20.61%32.58%22.35%
Return on Assets
FERG
GWW
WSO
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