Ferguson Enterprises: Evaluating Valuation After Strong Non-Residential Growth and Acquisition-Fueled Expansion

Ferguson Enterprises has caught investor attention after announcing a 15% year-over-year revenue jump in its non-residential segment. This growth is largely thanks to active waterworks projects and strength in commercial and civil infrastructure.

See our latest analysis for Ferguson Enterprises.

Ferguson Enterprises has not only benefited from robust project demand and new acquisitions, but its share price has shown solid momentum, gaining over 33% year-to-date. Looking further out, total shareholder return has reached an impressive 128% over the past three years. This suggests the company’s proactive strategy is resonating with investors who see long-term value building.

If Ferguson’s surge in non-residential markets piqued your interest, now is a great moment to broaden your search and discover fast growing stocks with high insider ownership

With shares up more than 33% so far this year and the stock trading just under analyst price targets, investors now have to consider whether Ferguson Enterprises is still undervalued or if future growth is already reflected in the current price.

Most Popular Narrative: 7.6% Undervalued

With the narrative fair value at $249.89 and Ferguson's last close at $231.01, analysts see notable upside remaining. The market is acknowledging strong operating trends, yet the consensus suggests further room for gains.

The ongoing $1 billion increase in Ferguson's share repurchase authorization indicates confidence in the underlying business and shareholder value creation, suggesting potential improvements in earnings per share (EPS) as the share count decreases.

Read the complete narrative.

Curious what else drives this bullish stance? There is a bold profit growth forecast and a leap in expected margins shaping this target. Want to see which future milestones analysts expect Ferguson to achieve before pricing in a bigger move? Discover the numbers powering this valuation and why the market is not fully convinced yet.

Result: Fair Value of $249.89 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent commodity deflation or ongoing weakness in residential demand could quickly undermine current growth expectations for Ferguson Enterprises.

Find out about the key risks to this Ferguson Enterprises narrative.

Build Your Own Ferguson Enterprises Narrative

If you see Ferguson’s story differently, or want to dig into the numbers on your own terms, you can generate your own narrative in just a few minutes: Do it your way

A great starting point for your Ferguson Enterprises research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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