Morningstar

Ferguson Enterprises Inc FERG

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Stock XNYS Rating as of
$232.02 −2.08 (0.89%)
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As of Delayed Price Closed

Company Report

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Ferguson's Scale Advantage Should Strengthen Over Time; Reducing Fair Value Estimates

Suryansh Sharma

Ferguson serves three major end markets: repair, maintenance, and improvement, or RMI, new construction, and civil infrastructure. Within these end markets, the firm is particularly strong in plumbing, water infrastructure, and HVAC. Its strategy is to focus on selective product lines to primarily serve professional contractors and institutional consumers with specialized products, reliable delivery, value-added services, and technical expertise.

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Price vs Fair Value

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FERG is trading at a LOCK|YX&? premium.
Price
$232.02
Fair Value
LOCK|&%
Uncertainty
LOCK|^LcTQ
1-Star Price
LOCK|>.J&
5-Star Price
LOCK|f.gS
Economic Moat
LOCK|XDs%F
Capital Allocation
LOCK|ct!&vR

Bulls Say, Bears Say

Bulls

Ferguson’s competitive advantage and bolt-on acquisition strategy in the US should drive consistent market share gains, boosting revenue growth in excess of the market average.

Bears

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

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Trading Information

Previous Close Price
$234.10
Day Range
$230.61–236.37
52-Week Range
$207.64–271.64
Bid/Ask
$217.00 / $267.00
Shares Outstanding
193.94M
Market Cap
$45.00B
Volume/Avg
1M / 1M

Key Statistics

Price/Earnings (Normalized)
22.44
Price/Sales
1.46
Dividend Yield (Trailing)
1.51%
Dividend Yield (Forward)
1.53%
Total Yield
3.51%

Company Profile

Ferguson distributes plumbing and HVAC products to North American 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. 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
Website
https://www.ferguson.com

Competitors

Valuation

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Metric
FERG
LOW
HD
Price/Earnings (Normalized)
 22.4416.7623.26
Price/Book Value
 7.67—24.33
Price/Sales
 1.461.322.02
Price/Cash Flow
 18.9211.4517.71
Price/Earnings
FERG
LOW
HD

Financial Strength

Metric
FERG
LOW
HD
Quick Ratio
 0.790.100.23
Current Ratio
 1.781.091.04
Interest Coverage
 —6.498.61
Quick Ratio
FERG
LOW
HD

Profitability

Metric
FERG
LOW
HD
Return on Assets (Normalized)
 —13.43%13.90%
Return on Equity (Normalized)
 ——125.51%
Return on Invested Capital (Normalized)
 —25.53%21.61%
Return on Assets
FERG
LOW
HD

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