GuruFocus·Jun 26, 2026
FERG Fairly Valued by DCF at $220On June 26, 2026, we present a DCF analysis for Ferguson Enterprises Inc (FERG), a company that has shown a solid price performance with a year-to-date increase
Ferguson plc(FERG)Earnings, Financials & Key Ratios
FERG•NYSE
$223.18
23.9× P/E·Price updated Jul 7, 2026
SectorIndustrialsIndustryIndustrial DistributionSub-IndustryConstruction and Building Products Distribution
AboutFerguson 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. In addition, it distributes water meters and automation products, irrigation and drainage products, geosynthetics, and stormwater management products; flanges, general industrial maintenance repair and operations products, high density polyethylene products, and fabrication products; water and wastewater treatment products; and PVF solutions. Further, the company offers services, including consultation, advice and project management, pro pick-up, and delivery services; online tools; quotation, jobsite delivery and logistics, project management, and fabrication services; digitally enhanced estimation, and design services; advanced metering infrastructure services; and supply chain and equipment rental services. The company also sells its products through online channels. It operates a network of 1,679 branches and 11 distribution centers. Ferguson plc was founded in 1887 and is headquartered in Wokingham, the United Kingdom.Show more
- Revenue$30.76B+3.8%
- EBITDA$2.98B-0.3%
- Net Income$1.86B+7.0%
- EPS (Diluted)9.32+9.3%
- Gross Margin30.67%+0.4%
- EBITDA Margin9.68%-3.9%
- Operating Margin8.47%-5.3%
- Net Margin6.03%+3.1%
- ROE32.42%-0.5%
FERG Price & Volume
Ferguson plc (FERG) stock price & volume — 10-year historical chart
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Cyclical Revenue Contraction Challenges Operating Margin Resilience
Investment Thesis • Updated 2026Q3
VerdictNeutral
Growth:Mixed
Profitability:Moderate
Financial:Healthy
Cash Flow:Mixed
Primary Risk:Cyclical construction demand sensitivity
Key Thesis Takeaways
- Ferguson faces a complex transition as its reliance on US construction markets results in a 2.0% revenue decline in 2026Q3, signaling potential exhaustion of its bolt-on acquisition growth strategy.
- While the company maintains a stable debt-to-equity ratio of 1.04, investors should monitor the volatility in operating margins, which have compressed from 10.9% in 2025Q4 to 8.2% in 2026Q3.
- The firm's aggressive capital return policy, evidenced by $350 million in buybacks during 2026Q2, warrants caution given the current sensitivity of free cash flow to inventory-driven working capital swings.
Verdict Logic
while the company maintains a healthy debt-to-equity ratio of 1.04, the recent 2.0% revenue contraction and the high P/FCF multiple of 29.00 suggest that the stock may be overvalued relative to its current cyclical growth trajectory.
FERG Growth Metrics
Ferguson plc (FERG) revenue, earnings & EPS growth — 3, 5 & 10-year CAGR
Revenue CAGR
10 Years3.99%
5 Years9.06%
3 Years2.5%
TTM4.71%
Profit CAGR
10 Years18.77%
5 Years14.07%
3 Years-4.37%
TTM29%
EPS CAGR
10 Years21.31%
5 Years17.06%
3 Years-1.29%
TTM31.84%
Return on Capital
10 Years22.54%
5 Years24.97%
3 Years24.28%
Last Year22.6%
FERG Recent Earnings
Ferguson plc (FERG) EPS & revenue vs analyst estimates — last 4 quarters
●Beat EPS 7/12 qtrs (58%)●Beat Revenue 7/12 qtrs (58%)
Q2 2026Latest
May 5, 2026Metric
Actual
Est
EPS
$2.28+5.6%
$2.16
Rev
$7.5B+0.8%
$7.4B
Q1 2026
Feb 24, 2026Metric
Actual
Est
EPS
$3.48+0.0%
$3.48
Rev
$8.5B+0.0%
$8.5B
Q4 2025
Dec 9, 2025Metric
Actual
Est
EPS
$2.84+2.5%
$2.77
Rev
$7.5B+0.8%
$7.4B
Q4 2025
Sep 16, 2025Metric
Actual
Est
EPS
$3.48+15.6%
$3.01
Rev
$8.5B+1.2%
$8.4B
| Quarter | Date | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|---|
| Q2 2026Latest | May 5, 2026 | $2.28vs $2.16+5.6% | $7.5Bvs $7.4B+0.8% |
| Q1 2026 | Feb 24, 2026 | $3.48vs $3.48+0.0% | $8.5Bvs $8.5B+0.0% |
| Q4 2025 | Dec 9, 2025 | $2.84vs $2.77+2.5% | $7.5Bvs $7.4B+0.8% |
| Q4 2025 | Sep 16, 2025 | $3.48vs $3.01+15.6% | $8.5Bvs $8.4B+1.2% |
Based on last 12 quarters of dataView full earnings history →
Latest FERG News
Recent stock market news and headlines for Ferguson plc (FERG)
Business Wire·Jun 19, 2026
Ferguson Enterprises Inc.: Notice of Dividend Currency Exchange RateNEWPORT NEWS, Va.--(BUSINESS WIRE)--On April 30, 2026, Ferguson Enterprises Inc. (NYSE: FERG; LSE: FERG) announced its intention to pay a dividend of $0.89 per share. The dividend will be paid on July 8, 2026, to stockholders of record as of the close of business on May 15, 2026. Holders of Depositary Interests, being participants within CREST, will receive pounds sterling (“GBP”) as the default currency unless an election is made for payment in an alternative currency. Further details can be f.
Business Wire·Jun 16, 2026
Ferguson Announces Intention to Cancel Secondary Listing on London Stock ExchangeNEWPORT NEWS, Va.--(BUSINESS WIRE)--Ferguson Enterprises Inc. (“Ferguson” or the “Company”) (NYSE: FERG; LSE: FERG) today announced its intention to cancel: (i) the secondary listing of the Company's common stock (“Common Stock”) on the Equity Shares (international commercial companies secondary listing) category of the Official List (the “Official List”) of the U.K. Financial Conduct Authority (“FCA”); and (ii) the admission to trading of its Common Stock on the London Stock Exchange's (“LSE”).
Peers Comparison
Key metrics vs top competitors for Ferguson plc (FERG)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $223.18 | $43.48B | 23.95 | 3.8% | 6.03% | 32.42% | 1.1% | |
| $1356.43 | $64.04B | 38.32 | 4.51% | 9.7% | 43.13% | — | |
| $120.07 | $6.71B | 33.63 | -1.35% | 5.9% | 16.51% | — | |
| $47.11 | $54.08B | 43.22 | 8.67% | 15.39% | 33.25% | — | |
| $209.62 | $7.69B | 19.32 | -0.41% | 7.58% | 32.17% | — | |
| $389.44 | $15.83B | 31.79 | -4.98% | 6.85% | 15.31% | — |
Compare FERG vs Peers
Ferguson plc (FERG) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
FERG SEC Filings & Documents
Ferguson plc (FERG) SEC filings — annual & quarterly reports (10-K, 10-Q)
8-K Announcements
6Material company update
May 5, 2026·SEC
Material company update
May 4, 2026·SEC
Material company update
Feb 24, 2026·SEC
10-K Annual Reports
210-Q Quarterly Reports
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FERG Frequently Asked Questions
Ferguson plc (FERG) stock FAQ — growth, dividends, profitability & financials explained
Growth & Financials
What is Ferguson plc's revenue?
Ferguson plc (FERG) reported $31.63B in revenue for fiscal year 2025. This represents a 371% increase from $6.72B in 1996.
How fast is Ferguson plc growing?
Ferguson plc (FERG) grew revenue by 3.8% over the past year. Growth has been modest.
Is FERG profitable?
Yes, Ferguson plc (FERG) is profitable, generating $2.07B in net income for fiscal year 2025 (6.0% net margin).
Dividend & Returns
Does FERG pay dividends?
Yes, Ferguson plc (FERG) pays a dividend with a yield of 1.10%. This makes it attractive for income-focused investors.
What is FERG's return on equity?
Ferguson plc (FERG) has a return on equity (ROE) of 32.4%. This is excellent, indicating efficient use of shareholder capital.
What is Ferguson plc's free cash flow?
Ferguson plc (FERG) generated $1.01B in free cash flow for fiscal year 2025. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.