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FERG

FergusonLSE:FERG Stock Report

Market Cap

UK£25.3b

7D

-4.5%

1Y

38.0%

Updated

26 Nov, 2021

Data

Company Financials +
FERG fundamental analysis
Snowflake Score
Valuation1/6
Future Growth2/6
Past Performance6/6
Financial Health6/6
Dividends4/6

FERG Stock Overview

Ferguson plc distributes plumbing and heating products in the United States and Canada.

Ferguson Competitors

Travis Perkins

LSE:TPK

UK£3.2b

Grafton Group

LSE:GFTU

UK£2.8b

SIG

LSE:SHI

UK£590.7m

BASF

XTRA:BAS

€56.6b

Price History & Performance

Summary of all time highs, changes and price drops for Ferguson
Historical stock prices
Current Share PriceUK£114.85
52 Week HighUK£121.85
52 Week LowUK£81.02
Beta0.98
1 Month Change4.55%
3 Month Change12.32%
1 Year Change37.97%
3 Year Change128.79%
5 Year Change132.54%
Change since IPO444.42%

Recent News & Updates

Shareholder Returns

FERGGB Trade DistributorsGB Market
7D-4.5%-3.6%-3.0%
1Y38.0%48.4%11.7%

Return vs Industry: FERG underperformed the UK Trade Distributors industry which returned 52.3% over the past year.

Return vs Market: FERG exceeded the UK Market which returned 17.9% over the past year.

Price Volatility

Is FERG's price volatile compared to industry and market?
FERG volatility
FERG Average Weekly Movement2.5%
Trade Distributors Industry Average Movement3.8%
Market Average Movement4.8%
10% most volatile stocks in GB Market9.7%
10% least volatile stocks in GB Market2.5%

Stable Share Price: FERG is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: FERG's weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
188731,000Kevin Murphyhttps://www.fergusonplc.com

Ferguson plc distributes plumbing and heating products in the United States and Canada. It offers plumbing and heating solutions to customers in the residential, commercial, civil/infrastructure, and industrial end markets. The company also distributes pipes, valves, fittings, plumbing supplies, water heaters, kitchen and bathroom fixtures, and appliances; heating, ventilation, air conditioning, and refrigeration products and supplies; and plumbing parts and supplies, fire sprinkler systems, hangers, struts, and fasteners.

Ferguson Fundamentals Summary

How do Ferguson's earnings and revenue compare to its market cap?
FERG fundamental statistics
Market CapUS$33.72b
Earnings (TTM)US$1.65b
Revenue (TTM)US$22.79b

20.4x

P/E Ratio

1.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
FERG income statement (TTM)
RevenueUS$22.79b
Cost of RevenueUS$15.81b
Gross ProfitUS$6.98b
ExpensesUS$5.33b
EarningsUS$1.65b

Last Reported Earnings

Jul 31, 2021

Next Earnings Date

Dec 07, 2021

Earnings per share (EPS)7.48
Gross Margin30.62%
Net Profit Margin7.24%
Debt/Equity Ratio56.4%

How did FERG perform over the long term?

See historical performance and comparison

Dividends

1.6%

Current Dividend Yield

32%

Payout Ratio

Valuation

Is Ferguson undervalued compared to its fair value and its price relative to the market?

20.44x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: FERG (£114.85) is trading above our estimate of fair value (£107.57)

Significantly Below Fair Value: FERG is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: FERG is good value based on its PE Ratio (20.4x) compared to the UK Trade Distributors industry average (24.6x).

PE vs Market: FERG is poor value based on its PE Ratio (20.4x) compared to the UK market (19.8x).


Price to Earnings Growth Ratio

PEG Ratio: FERG is poor value based on its PEG Ratio (7.3x)


Price to Book Ratio

PB vs Industry: FERG is overvalued based on its PB Ratio (7x) compared to the GB Trade Distributors industry average (2x).


Future Growth

How is Ferguson forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?

2.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FERG's forecast earnings growth (2.8% per year) is above the savings rate (0.9%).

Earnings vs Market: FERG's earnings (2.8% per year) are forecast to grow slower than the UK market (11.5% per year).

High Growth Earnings: FERG's earnings are forecast to grow, but not significantly.

Revenue vs Market: FERG's revenue (5.4% per year) is forecast to grow slower than the UK market (5.7% per year).

High Growth Revenue: FERG's revenue (5.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FERG's Return on Equity is forecast to be high in 3 years time (26.9%)


Past Performance

How has Ferguson performed over the past 5 years?

11.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FERG has high quality earnings.

Growing Profit Margin: FERG's current net profit margins (7.2%) are higher than last year (4.9%).


Past Earnings Growth Analysis

Earnings Trend: FERG's earnings have grown by 11.6% per year over the past 5 years.

Accelerating Growth: FERG's earnings growth over the past year (69.2%) exceeds its 5-year average (11.6% per year).

Earnings vs Industry: FERG earnings growth over the past year (69.2%) exceeded the Trade Distributors industry 42.3%.


Return on Equity

High ROE: FERG's Return on Equity (34.3%) is considered high.


Financial Health

How is Ferguson's financial position?


Financial Position Analysis

Short Term Liabilities: FERG's short term assets ($8.1B) exceed its short term liabilities ($4.8B).

Long Term Liabilities: FERG's short term assets ($8.1B) exceed its long term liabilities ($3.8B).


Debt to Equity History and Analysis

Debt Level: FERG's net debt to equity ratio (28.6%) is considered satisfactory.

Reducing Debt: FERG's debt to equity ratio has reduced from 64.7% to 56.4% over the past 5 years.

Debt Coverage: FERG's debt is well covered by operating cash flow (56.8%).

Interest Coverage: FERG's interest payments on its debt are well covered by EBIT (14.1x coverage).


Balance Sheet


Dividend

What is Ferguson current dividend yield, its reliability and sustainability?

1.57%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: FERG's dividend (1.57%) is higher than the bottom 25% of dividend payers in the UK market (1.35%).

High Dividend: FERG's dividend (1.57%) is low compared to the top 25% of dividend payers in the UK market (4.03%).


Stability and Growth of Payments

Stable Dividend: FERG's dividend payments have been volatile in the past 10 years.

Growing Dividend: FERG's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (32.4%), FERG's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: FERG's dividends in 3 years are forecast to be well covered by earnings (36.8% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.6yrs

Average management tenure


CEO

Kevin Murphy

2yrs

Tenure

US$10,328,500

Compensation

Mr. Kevin Murphy has been Chief Executive Officer and Director of Ferguson Enterprises, Inc since August 01, 2017. Mr. Murphy served as Chief Executive Officer of USA at Ferguson plc since August 01, 2017...


CEO Compensation Analysis

Compensation vs Market: Kevin's total compensation ($USD10.33M) is above average for companies of similar size in the UK market ($USD3.65M).

Compensation vs Earnings: Kevin's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: FERG's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Members

Experienced Board: FERG's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: FERG insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Ferguson plc's employee growth, exchange listings and data sources


Key Information

  • Name: Ferguson plc
  • Ticker: FERG
  • Exchange: LSE
  • Founded: 1887
  • Industry: Trading Companies and Distributors
  • Sector: Capital Goods
  • Market Cap: UK£25.319b
  • Shares outstanding: 220.46m
  • Website: https://www.fergusonplc.com

Number of Employees


Location

  • Ferguson plc
  • 1020 Eskdale Road
  • Winnersh Triangle
  • Wokingham
  • Berkshire
  • RG41 5TS
  • United Kingdom

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/11/26 21:17
End of Day Share Price2021/11/26 00:00
Earnings2021/07/31
Annual Earnings2021/07/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.