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FERG

NYSE
Favorable · 63/100

Ferguson Enterprises Inc

Industrials
Trading Companies & Distributors

$227.57

1.2%

Updated Today 12:11 PM ET

Report Card

FERG at a glance — five pillars scored 0–100 from real filed financials.

Value
0
Growth
0
Profitability
0
Health
0
Dividends
0

Overall: Favorable · 63/100. A wider, greener shape means more pillars look healthy. Dividends scores 0 when a company pays none — that is a choice, not a flaw.

Price — Past Year

▲ Up 1.7% over the last 12 months

Price 50-day average 200-day averageDCF fair value ±15%Source: Yahoo Finance · refreshed daily
Key Metrics

Market Cap

$44.65B

P/E

18.08x

Forward P/E (est.)

12.91x

ROE

41.8%

Revenue Growth

4.7%

EPS Growth

57.0%

Profit Margin

7.8%

FCF Yield

4.7%

Debt / Equity

0.7x

ROIC

20.0%

Interest Coverage

Current Ratio

1.78x

Dividend Yield

1.5%

Implied Growth (rev. DCF)

5.2%

Rating Score

63/100

Business Overview
Research

Ferguson Enterprises Inc (FERG) is a large-cap company in the Trading Companies & Distributors industry, part of the Industrials sector of the S&P 500, with a market value around $44.65B.

In its latest reported year it generated about $30.76B in revenue and $1.86B in net profit.

Our model rates FERG Favorable (63/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.

Technical Analysis (Educational)
Research

Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what FERG's chart says today, with each tool explained.

Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. FERG trades near $227.57, below its 50-day average ($237.11) and 200-day average ($240.28). Price below both averages is a downtrend — momentum is against buyers for now.

Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 47 it is in neutral territory — neither stretched nor washed out.

MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently negative — short-term momentum is fading.

Volatility — ATR. Average True Range is the typical daily move. FERG's is $6.95 (~3.1% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.

Support & resistance. Over the last month FERG found buyers near $222.41 (support) and sellers near $245.15 (resistance); its 52-week range is $207.64–$271.64. A decisive break beyond either edge often marks the next move.

Volume. The latest session traded 0.5× the 20-day average — lighter than usual, so the move carries less conviction. Rising volume on up-days suggests real buying; on down-days, real selling.

Educational information to help you read a chart — not a recommendation or a forecast. It updates daily as the price and indicators change.

Revenue Growth
Research

3Y CAGR

2.5%

3/4 checks passedRevenue growingRevenue growth beats sector midpointEPS growingEPS growing faster than revenue

Revenue moved from $28.57B in 2022 to $30.76B in 2025, a 2.5% compound annual growth rate. The most recent year was roughly flat (4.7%) year over year. Slower, mature growth is common for established businesses.

Profitability
Research
3/4 checks passedProfitableNet margin above sector midpointROE above 12%ROIC above 10%

Gross Margin

30.7%

Operating Margin

8.5%

Net Margin

6.0%

ROE

41.8%

Ferguson Enterprises Inc keeps about 7.8% of each sales dollar as net profit, with a 30.7% gross margin and 8.5% operating margin. Return on equity is 41.8% and return on invested capital about 20.0%. Margins are moderate — typical of a competitive but profitable business.

Debt Analysis
Research
3/3 checks passedDebt under 1× equityDebt under 2× equityShort-term bills covered

Total Debt

$4.17B

Net Debt

$3.35B

Net Debt / EBITDA

1.29x

Debt / Equity

0.7x

Leverage: debt-to-equity is 0.7x, with a current ratio of 1.8x. That is a moderate, manageable debt load for most businesses. It carries roughly $4.17B of total debt against $820.00M of cash.

Cash Flow Analysis
Research
3/3 checks passedPositive free cash flowFCF yield above 2%Market expects achievable growth (<8%)

Operating CF

$1.91B

Free Cash Flow

$1.60B

FCF Margin

5.2%

In the latest year Ferguson Enterprises Inc produced about $1.91B of operating cash flow and $1.60B of free cash flow after capital spending. That is a free-cash-flow yield of about 4.7% on today's price. Strong cash generation funds dividends, buybacks, and reinvestment.

Valuation Analysis
Research
3/4 checks passedPositive earnings (P/E meaningful)P/E below sector's upper bandForward P/E below trailing (earnings growing)Trading below DCF fair value

P/E

18.08x

P/S

1.43x

P/B

7.43x

EV / EBITDA

16.12x

FERG trades at 18.1x trailing earnings (about 12.9x on estimated forward earnings), 1.4x sales, and 7.4x book value. Reverse-engineering today's price implies the market expects roughly 5.2% long-term free-cash-flow growth. That is a fairly typical valuation for a profitable company.

DCF Fair Value (Educational)

A two-stage discounted cash flow on real SEC-filed free cash flow — the intrinsic-value anchor professional analysts triangulate from.

DCF fair value / share

$147.72

Current price

$227.57

-35% · Above fair-value estimate

Starting FCF (latest 10-K)

$1.60B

Growth, years 1–5

4.7%

Fade to terminal, years 6–10

2.5%

Discount rate

9.0%

PV of 10-yr free cash flow$12.78B
PV of terminal value$15.87B
Estimated equity value$28.65B
Shares outstanding194M

Cash flows grow at the stage-1 rate (trailing revenue growth, capped at 20%) for five years, fade to 2.5% by year 10, and continue at that rate forever (Gordon terminal value), all discounted at 9.0%. Small changes in assumptions move the result a lot — treat this as one reference point, not a target price. Educational only, not investment advice.

Metrics vs. Sector Range

Where FERG sits versus its Industrials sector peers in the S&P 500.

TTM P/E
18.1xCheap
Forward P/E
12.9xCheap
P/S ratio
1.4xCheap
Revenue growth
4.7%Average
EPS growth
57.0%Strong
Gross margin
30.7%Average
Net margin
7.8%Average
ROE
41.8%Strong

Bands show the middle half (25th–75th percentile) of the 87 Industrials companies in the S&P 500 — the peer-relative anchor professional comps analysis uses. Context only — not investment advice.

Sector Peer Comparison

How FERG stacks up against its Industrials peers — valuation, profitability, and growth versus the sector median.

In the Industrials sector (165 S&P 500 companies), FERG ranks #16 of 165 by our overall rating. It trades at a discount versus the sector on earnings (18.1x P/E vs. 32x median) with a higher return on equity (41.8% vs. 19.7%) and slower revenue growth (4.7% vs. 5.2%).

P/E vs sector

18.1x

median 32x

ROE vs sector

41.8%

median 19.7%

Growth vs sector

4.7%

median 5.2%

Sector rank

#16

of 165 by rating

CompanyP/ERev Gr.Rating
FERGThis stock18.1x4.7%Favorable· 63
FAST42.9x10.9%Favorable· 61
AER5.9x4.9%Favorable· 67
AIT30.2x7.5%Neutral· 50
DSGRNot rated
DXPENot rated
EQPTNot rated
MGRCNot rated
Industrials median32x5.2%21/100

Valuation vs. quality map

sector medianFASTAERAITFERGP/E — cheaper ←→ pricierROE — more profitable ↑

The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.

Compare side by side

Peers are the closest Industrials companies by sub-industry and size. Sector median is across all 165 S&P 500 names in the sector. Educational, not a recommendation.

5-Year Projection Model

Project revenue → earnings → price. Edit the assumptions to build your own case.

2030 price target (Base Case)

$0.00 $0.00

vs. $227.57 today · expected CAGR -10%-1%

Metric20262027202820292030
Revenue$32.30B$33.92B$35.61B$37.39B$39.26B
Net income$1.94B$2.03B$2.14B$2.24B$2.36B
EPS$9.99$10.49$11.02$11.57$12.15
Share price (low)$109.92$115.42$121.19$127.25$133.61
Share price (high)$179.87$188.87$198.31$208.23$218.64
CAGR (low–high)-52% / -21%-29% / -9%-19% / -4%-14% / -2%-10% / -1%

Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.

Bull Case

The case for FERG:

  • Strong return on equity (41.8%) shows capital is put to work well.
  • Healthy free-cash-flow yield (~4.7%) funds buybacks and dividends.
  • Our model's overall read is Favorable (63/100).
Bear Case

The case against FERG:

  • Like any single stock, it is exposed to competition, the economic cycle, and shifts in its end markets.
Key Risks
Research

Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.

Investment Thesis
Research

On balance, the fundamentals screen favourably: Ferguson Enterprises Inc is a large-cap industrials business growing at a mature pace, with modest profitability, and a heavier debt load to watch. It trades at 18.1x earnings, which our model scores Favorable (63/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.

FERG — frequently asked questions

Is FERG a good stock to buy?

We don't give buy or sell advice. Our model rates Ferguson Enterprises Inc Favorable (63/100) based on its growth, profitability, financial health, and valuation — use that as a research starting point and make your own decision.

What is FERG's rating on The Stocks School?

Ferguson Enterprises Inc currently scores 63/100 (Favorable) on our transparent model, which weighs real fundamentals: growth, margins, returns on capital, balance-sheet strength, and valuation.

How our ratings work
Where does FERG's data come from?

Live price data plus real fundamentals and 5-year financials pulled directly from Ferguson Enterprises Inc's SEC filings — refreshed automatically, not hand-entered.

How is the 5-year projection for FERG calculated?

It's a scenario model: it grows revenue at an assumed rate, applies a profit margin and a valuation multiple, and shows the resulting share-price range. The assumptions are yours to change — it's a tool for thinking, not a prediction.

Is this FERG analysis financial advice?

No. Everything on this page is educational research, not financial advice or a recommendation to buy or sell FERG. Always do your own research and consider a licensed professional.

Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.

Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.