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Ferguson PLC FERG

Morningstar Rating
$208.28 +0.85 (0.41%)
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Company Report

US R&R Spending Has Softened but Ferguson Poised for Above-Market Growth 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. Ferguson's exposure to the US RMI market (as a percentage of sales) increased from 31% in 2008 to 60% in 2023, while US new construction revenue exposure decreased from 58% to 40% over the same time period.

Price vs Fair Value

FERG is trading at a 865% premium.
Price
$208.28
Fair Value
$927.00
Uncertainty
Medium
1-Star Price
$446.26
5-Star Price
$997.70
Economic Moat
Cmwlhfv
Capital Allocation
Wlctdkz

Bulls Say, Bears Say

Bulls

Ferguson’s roll-up strategy in the US 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
$207.43
Day Range
$206.83209.50
52-Week Range
$143.39224.86
Bid/Ask
$207.45 / $209.18
Market Cap
$42.09 Bil
Volume/Avg
633,668 / 1.1 Mil

Key Statistics

Price/Earnings (Normalized)
21.81
Price/Sales
1.45
Dividend Yield (Trailing)
1.47%
Dividend Yield (Forward)
1.50%
Total Yield
2.82%

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 United States According to Modern Distribution Management, Ferguson is the largest industrial and construction distributor in North America. The firm sold its UK 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
LOW
HD
Price/Earnings (Normalized)
21.8116.6521.68
Price/Book Value
7.80184.13
Price/Sales
1.451.472.22
Price/Cash Flow
18.9012.5817.84
Price/Earnings
FERG
LOW
HD

Financial Strength

Metric
FERG
LOW
HD
Quick Ratio
0.780.060.34
Current Ratio
1.801.231.34
Interest Coverage
13.447.7910.86
Quick Ratio
FERG
LOW
HD

Profitability

Metric
FERG
LOW
HD
Return on Assets (Normalized)
12.20%18.05%19.73%
Return on Equity (Normalized)
37.79%1,265.26%
Return on Invested Capital (Normalized)
19.98%35.63%32.05%
Return on Assets
FERG
LOW
HD
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