How 15 Percent Non-Residential Growth and Acquisitions at Ferguson (FERG) Have Changed Its Investment Story

• Ferguson Enterprises Inc. recently presented at the CSCMP EDGE 2025 Conference, sharing updates that included a 15% year-over-year revenue increase in non-residential markets and the completion of four acquisitions during the fiscal fourth quarter.
• Growth was largely driven by heightened demand in waterworks projects and commercial infrastructure, highlighting the company's expanding presence in key non-residential sectors.
• We'll examine how Ferguson's strong non-residential revenue growth and recent acquisitions shape the company's long-term investment narrative.

Find companies with promising cash flow potential yet trading below their fair value.

Ferguson Enterprises Investment Narrative Recap

To be a shareholder in Ferguson Enterprises, you need to believe in its ability to capture growth in non-residential infrastructure, while managing risks tied to demand shifts and industry competition. The recent 15% year-over-year rise in non-residential revenue and successful acquisitions reinforce the growth narrative, but do not materially change the importance of residential demand as a short-term catalyst or address margin compression as the primary risk right now. One of the most relevant announcements is Ferguson’s completion of four acquisitions in the fiscal fourth quarter, which contributed about 1% to U.S. business sales. While the direct revenue impact is limited, these moves support Ferguson’s strategy to expand its presence and scale in key segments, a factor that could mitigate some competitive and margin pressures over time. However, investors should also keep in mind the ongoing risk of margin pressure due to commodity price trends and...

Read the full narrative on Ferguson Enterprises (it's free!)

Ferguson Enterprises' narrative projects $36.5 billion in revenue and $2.4 billion in earnings by 2028. This requires 6.5% yearly revenue growth and a $0.8 billion earnings increase from $1.6 billion currently.

Uncover how Ferguson Enterprises' forecasts yield a $249.89 fair value, a 6% upside to its current price.

Exploring Other Perspectives

Four Simply Wall St Community fair value estimates for Ferguson Enterprises range from US$224.90 to US$276.66, reflecting broad differences in private investor outlooks. While many see upside, ongoing concerns about shrinking margins remain critical for future performance, so review these community perspectives alongside changing fundamentals.

Explore 4 other fair value estimates on Ferguson Enterprises - why the stock might be worth just $224.90!

Build Your Own Ferguson Enterprises Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Ferguson Enterprises research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Ferguson Enterprises research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Ferguson Enterprises' overall financial health at a glance.

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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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