LSE:FERG

Stock Analysis Report

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Executive Summary

Ferguson plc distributes plumbing and heating products in the United States, the United Kingdom, Canada, and Central Europe.


Snowflake Analysis

Solid track record with adequate balance sheet.


Similar Companies

Share Price & News

How has Ferguson's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: FERG has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.5%

FERG

2.3%

GB Trade Distributors

1.1%

GB Market


1 Year Return

17.2%

FERG

11.2%

GB Trade Distributors

-11.5%

GB Market

Return vs Industry: FERG exceeded the UK Trade Distributors industry which returned 9.6% over the past year.

Return vs Market: FERG exceeded the UK Market which returned -12.4% over the past year.


Shareholder returns

FERGIndustryMarket
7 Day0.5%2.3%1.1%
30 Day6.8%4.2%0.6%
90 Day18.2%17.3%3.6%
1 Year19.3%17.2%12.9%11.2%-7.9%-11.5%
3 Year62.9%44.3%31.0%21.3%-5.1%-16.5%
5 Year83.8%55.4%58.7%39.9%14.8%-10.6%

Price Volatility Vs. Market

How volatile is Ferguson's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

16.27x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: FERG (£70.52) is trading above our estimate of fair value (£47.66)

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


Price To Earnings Ratio

PE vs Industry: FERG's PE Ratio (16.3x) is in line with the GB Trade Distributors industry average.

PE vs Market: FERG is poor value based on its PE Ratio (16.3x) compared to the UK market (15.9x).


Price to Earnings Growth Ratio

PEG Ratio: FERG is poor value based on its PEG Ratio (8.4x)


Price to Book Ratio

PB vs Industry: FERG is overvalued based on its PB Ratio (3.9x) compared to the GB Trade Distributors industry average (1.3x).


Next Steps

Future Growth

How is Ferguson forecast to perform in the next 1 to 3 years based on estimates from 22 analysts?

1.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FERG's forecast earnings growth (1.9% per year) is above the savings rate (1.2%).

Earnings vs Market: FERG's earnings (1.9% per year) are forecast to grow slower than the UK market (23% per year).

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

Revenue vs Market: FERG's revenue (1.7% per year) is forecast to grow slower than the UK market (4.8% per year).

High Growth Revenue: FERG's revenue (1.7% 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 (21.1%)


Next Steps

Past Performance

How has Ferguson performed over the past 5 years?

13.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FERG has high quality earnings.

Growing Profit Margin: FERG's current net profit margins (4.5%) are higher than last year (4.4%).


Past Earnings Growth Analysis

Earnings Trend: FERG's earnings have grown by 13% per year over the past 5 years.

Accelerating Growth: FERG's earnings growth over the past year (5%) is below its 5-year average (13% per year).

Earnings vs Industry: FERG earnings growth over the past year (5%) exceeded the Trade Distributors industry -7.2%.


Return on Equity

High ROE: FERG's Return on Equity (24.1%) is considered high.


Next Steps

Financial Health

How is Ferguson's financial position?


Financial Position Analysis

Short Term Liabilities: FERG's short term assets ($6.8B) exceed its short term liabilities ($4.4B).

Long Term Liabilities: FERG's short term assets ($6.8B) exceed its long term liabilities ($4.0B).


Debt to Equity History and Analysis

Debt Level: FERG's debt to equity ratio (66.8%) is considered high.

Reducing Debt: FERG's debt to equity ratio has increased from 62.3% to 66.8% over the past 5 years.

Debt Coverage: FERG's debt is well covered by operating cash flow (57%).

Interest Coverage: FERG's interest payments on its debt are well covered by EBIT (13x coverage).


Balance Sheet


Next Steps

Dividend

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

2.31%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate FERG's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate FERG's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if FERG's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if FERG's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: FERG is not paying a notable dividend for the UK market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of FERG's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

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

2.6yrs

Average management tenure


CEO

Kevin Murphy

0.75

Tenure

US$2,285,000

Compensation

Mr. Kevin Murphy has been the 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, 2 ...


CEO Compensation Analysis

Compensation vs Market: Kevin's total compensation ($USD2.29M) is below average for companies of similar size in the UK market ($USD4.85M).

Compensation vs Earnings: Kevin's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Kevin Murphy
CEO & Executive Director0.75yrUS$2.29m0.031%
$ 4.9m
Marie Wall
Group Director of Corporate Financeno datano datano data
Mike Sajor
Group Chief Information Officer2.58yrsno datano data
Mark Fearon
Director of Corporate Communications & Investor Relationsno datano datano data
Ian Graham
Group General Counsel1.25yrsno datano data
Michael Ward
Head of Corporate Communicationsno datano datano data
Samantha Long
Chief Human Resources Officer3.58yrsno datano data
John Wilcox
Senior Vice President of Alignment and Coordination - Wolseley North Americano datano datano data
Al Byrd
Senior Vice President of Supply Chain - Wolseley North Americano datano datano data
Mike Brooks
Chief Marketing Officer of USA4.42yrsno datano data
Alex Hutcherson
Chief Operating Officer of USA3yrsno datano data
Julia Mattison
Head of Group Financial Reporting2.58yrsno datano data

2.6yrs

Average Tenure

Experienced Management: FERG's management team is considered experienced (2.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Kevin Murphy
CEO & Executive Director0.75yrUS$2.29m0.031%
$ 4.9m
Alan Murray
Senior Independent Non Executive Director6.83yrsUS$95.80kno data
Nadia Shouraboura
Independent Non-Executive Director3.08yrsUS$78.50kno data
Geoffrey Drabble
Independent Non Executive Chairman0.75yrUS$18.30kno data
Thomas Schmitt
Independent Non Executive Director1.5yrsUS$42.20kno data
Jacqueline Simmonds
Independent Non-Executive Director6.25yrsUS$93.50kno data
Catherine Halligan
Independent Non-Executive Director1.58yrsUS$50.00kno data

3.0yrs

Average Tenure

57yo

Average Age

Experienced Board: FERG's board of directors are considered experienced (3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

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


Top Shareholders

Company Information

Ferguson plc's company bio, 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£15.766b
  • Shares outstanding: 223.57m
  • Website: https://www.fergusonplc.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FERGLBATS-CHIXE (BATS 'Chi-X Europe')Old Ordinary SharesGBGBPJan 1992
FERGLSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 1992
WOSC.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
24W5BST (Boerse-Stuttgart)YesOrdinary SharesDEEURJan 1992
FERG.YOTCPK (Pink Sheets LLC)SPONSRD ADS NEWUSUSDMay 2001
FERGLSE (London Stock Exchange)ORD GBP0.11403197GBGBPJun 2018

Biography

Ferguson plc distributes plumbing and heating products in the United States, the United Kingdom, Canada, and Central Europe. It offers plumbing and heating solutions to customers in the residential, munici ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/10 21:30
End of Day Share Price2020/08/10 00:00
Earnings2020/01/31
Annual Earnings2019/07/31


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.