One-glance verdict
Overvalued
$119.70 our estimate vs market $226.36
Wall Street consensus: $279.42 (133.4% higher than our fair-value estimate)
89% above our estimate, beyond the bull case
Fundamentals snapshot
Ferguson Enterprises Inc.
FERG · NYQ · Industrials · Industrial Distribution
Current price
$226.36
52-week range
$207.64 - $271.64
Market cap
$43.90B
Balance sheet
Watch
14.14x Strong cushion
Net debt $5.26B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 128.8% last year.
- Reward Free cash flow was positive in 4/10 years.
- Risk Net debt grew 21.5% over 3 years.
- Risk Operating margin compressed from 9.9% to 8.1% over 3 years.
What this company does
Ferguson Enterprises Inc.
Ferguson is a large wholesale distributor that sells essential plumbing, heating, and air conditioning (HVAC) parts to professional contractors. The company acts as a critical middleman in the construction supply chain (the network that gets a product from the factory to the customer), connecting manufacturers with the plumbers and technicians who do repairs and new installations. Because its products are necessary for both building new homes and maintaining existing ones, its business is closely tied to the overall health of the construction and home renovation markets.
How the company got here
Founded in 1953 by three entrepreneurs, Ferguson started as a local distributor for plumbing contractors. A major turning point was its acquisition in 1982 by Wolseley, a UK-based company, which provided the financial backing for significant expansion across the United States. Over the years, it grew by acquiring other companies and expanding its product lines beyond just plumbing. To better reflect its focus on the North American market, the parent company eventually changed its name to Ferguson plc and in 2022, moved its primary stock listing to the New York Stock Exchange.
What it actually does
Think of Ferguson as a giant specialty store for professional contractors, the people who build and maintain buildings. Instead of selling directly to the general public in big retail stores, it supplies all the essential behind-the-scenes products needed for construction, renovation, and maintenance projects. This includes everything from pipes and valves to heating and air conditioning (HVAC) units, large appliances, and lighting fixtures. They operate a huge network of warehouses, showrooms, and smaller branches to get these products to plumbers, builders, and other trade professionals when and where they need them.
United States
This is by far the largest part of Ferguson's business, making up about 95% of its sales. Operating under the Ferguson brand, this segment sells a vast range of products for both residential and commercial projects to specialized contractors. Whether it's for a new home, a large office building, or a municipal water system, this division provides everything from basic plumbing supplies and HVAC equipment to fire suppression systems and water treatment products. Customers are typically professional contractors in fields like plumbing, construction, and facilities management.
Canada
Constituting a smaller portion of the company's revenue, about 5%, the Canadian business operates mostly under the Wolseley brand. It serves a similar customer base of professional contractors as the U.S. segment. This division supplies plumbing, HVAC, and refrigeration products for residential and commercial projects. It also provides specialized products for water and wastewater treatment and industrial pipe and valve solutions.
What management is betting on now
Ferguson's current strategy focuses on continuing to grow by acquiring smaller, independent distributors to expand its local market presence. The company is also investing in its supply chain (the network for getting products from suppliers to customers) to improve efficiency and service. Management sees significant opportunities in large-scale projects like data centers and manufacturing plants, as well as in updating the country's water infrastructure. They are also focused on providing more value-added services, such as project management and product fabrication, to become a more essential partner to their professional customers.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q2
$573.00M
FY2024 Q3
$-6.00M
FY2024 Q4
$268.00M
FY2025 Q1
$259.00M
FY2025 Q2
$605.00M
FY2025 Q3
$-216.00M
FY2025 Q4
$312.00M
FY2026 Q1
$680.00M
Revenue
$7.47B
Net income
$414.00M
Diluted EPS
2.13
Operating cash flow
$772.00M
Free cash flow
$680.00M
Fetching…
Sources
Revenue
$8.17B
Net income
$570.00M
Diluted EPS
2.90
Operating cash flow
$430.00M
Free cash flow
$312.00M
Fetching…
Sources
Revenue
$9.06B
Net income
$825.00M
Diluted EPS
4.14
Operating cash flow
$12.00M
Free cash flow
$-216.00M
Fetching…
Sources
Revenue
$7.62B
Net income
$410.00M
Diluted EPS
2.07
Operating cash flow
$682.00M
Free cash flow
$605.00M
Fetching…
Sources
Revenue
$6.87B
Net income
$276.00M
Diluted EPS
1.38
Operating cash flow
$340.00M
Free cash flow
$259.00M
Fetching…
Sources
Revenue
$7.77B
Net income
$470.00M
Diluted EPS
2.34
Operating cash flow
$345.00M
Free cash flow
$268.00M
Fetching…
Sources
Revenue
$7.95B
Net income
$451.00M
Diluted EPS
2.23
Operating cash flow
$366.00M
Free cash flow
$-6.00M
Fetching…
Sources
Revenue
$7.31B
Net income
$443.00M
Diluted EPS
2.18
Operating cash flow
$644.00M
Free cash flow
$573.00M
Fetching…
Sources
Is it cheap or expensive?
Fair value $119.70 vs current price $226.36
Wall Street consensus is the average analyst price target: $279.42 (133.4% higher than our fair-value estimate).
Our most-likely fair value is $119.70 a share — about 47.1% below today's price of $226.36, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Watch
Net debt $5.3B. Interest coverage 14.1x.
Net debt
$5.26B
Interest coverage
14.14x
Ferguson Enterprises Inc.'s profit covers its interest bill about 14.1 times over. which is stronger than most peers shown here.
Watch
Worse cushion
Baseline
Better cushion
FERG
BASELINE
Ferguson Enterprises Inc.
Total debt $6.08B Interest coverage 14.14x This is the baseline the peer rows are being compared against.
Total debt $2.78B Interest coverage 30.80x +118% vs FERG Carries about 2.2x more debt cushion than FERG.
Total debt $441.50M Interest coverage 267.05x +1,789% vs FERG Carries about 18.9x more debt cushion than FERG.
Total debt $526.20M Interest coverage 140.77x +896% vs FERG Carries about 10.0x more debt cushion than FERG.
Total debt $2.45B Interest coverage 6.02x -57% vs FERG Carries about 2.3x less debt cushion than FERG.
Total debt $2.96B Interest coverage 5.39x -62% vs FERG Carries about 2.6x less debt cushion than FERG.
What you should know
The case for and against FERG
3 Rewards
2 Risks
Rewards
-
Revenue grew 128.8% last year.
-
Free cash flow was positive in 4/10 years.
-
Trades at 22.3x P/E vs peer median 25.5x (12.6% cheaper).
Risks
-
Net debt grew 21.5% over 3 years.
-
Operating margin compressed from 9.9% to 8.1% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
22.28x
Forward P/E
18.02x
P/B
7.48x
P/S
1.41x
EV/EBITDA
16.16x
PEG ratio
1.46x
Profitability
How much profit each dollar creates
Gross margin
30.7%
Operating margin
8.1%
Net margin
6.3%
ROE
—
ROA
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Health
Liquidity and balance-sheet strength
Debt / equity
1.04x
Current ratio
1.78x
Quick ratio
0.79x
Total debt
$6.08B
Total cash
$820.00M
Growth
How the business has been compounding
Revenue TTM
$29.36B
Revenue 5Y CAGR
-23.4%
EPS TTM
10.16
EPS 5Y CAGR
3.7%
Cash flow
How much cash the business throws off
Operating CF TTM
$1.64B
Free CF TTM
$674.00M
FCF margin
2.3%
Dividend
Shareholder payout
Yield
1.6%
Payout ratio
33.3%
Last ex-div date
2026-05-15