📊 FERG Key Takeaways
Is FERG a Good Investment? Thesis Analysis
Ferguson Enterprises demonstrates solid operational performance with healthy gross margins (30.7%) and positive free cash flow generation ($312M), but fundamentals reveal moderately weak returns on equity (9.4%) and return on assets (3.2%) typical of capital-intensive wholesale distribution. The company maintains adequate financial leverage (0.68x Debt/Equity) and liquidity (1.88x current ratio), though growth indicators and profitability expansion potential remain unclear without year-over-year comparisons.
Why Buy FERG? Key Strengths
- Strong gross margin of 30.7% indicates pricing power and cost management in wholesale distribution
- Positive free cash flow of $312M with 3.8% FCF margin demonstrates cash generation capability
- Healthy balance sheet with moderate leverage (0.68x D/E ratio) and adequate liquidity (1.88x current ratio)
- Diversified revenue base of $8.2B in essential building supplies and HVAC distribution
FERG Investment Risks to Consider
- Weak return metrics (ROE 9.4%, ROA 3.2%) suggest suboptimal capital deployment efficiency
- Absence of YoY growth data prevents assessment of revenue and earnings momentum trends
- Capital-intensive business model requires sustained capex ($118M annually) to maintain competitive position
- Quick ratio of 1.01x indicates limited working capital cushion and potential liquidity pressure
Key Metrics to Watch
- Year-over-year revenue and net income growth rates
- Return on Equity trend and capital allocation decisions
- Operating cash flow consistency and free cash flow sustainability
- Working capital management and quick ratio improvement
- Debt service capacity via interest coverage ratio
FERG Financial Metrics
💡 AI Analyst Insight
The relatively thin 3.8% FCF margin may limit capital allocation flexibility.
FERG Profitability Ratios
FERG vs Default Sector
How Ferguson Enterprises Inc. /DE/ compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is FERG Overvalued or Undervalued?
Based on fundamental analysis, Ferguson Enterprises Inc. /DE/ shows some fundamental concerns relative to the Default sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
FERG Balance Sheet & Liquidity
FERG 5-Year Financial Trend & Growth Analysis
5-Year Trend Summary: Ferguson Enterprises Inc. /DE/'s revenue has shown modest growth of 3% over the 5-year period. The most recent EPS of $9.12 reflects profitable operations.
FERG Growth Metrics (YoY)
FERG Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $7.8B | $470.0M | $2.34 |
| Q3 2025 | $7.3B | $410.0M | $2.07 |
| Q2 2025 | $6.7B | $276.0M | $1.38 |
| Q1 2025 | $7.7B | $470.0M | $2.34 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
FERG Capital Allocation
FERG SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for Ferguson Enterprises Inc. /DE/ (CIK: 0002011641)
📋 Recent SEC Filings
❓ Frequently Asked Questions about FERG
What is the AI rating for FERG?
Ferguson Enterprises Inc. /DE/ (FERG) has an AI rating of HOLD with 62% confidence, based on fundamental analysis of SEC EDGAR filings.
What are FERG's key strengths?
Claude: Strong gross margin of 30.7% indicates pricing power and cost management in wholesale distribution. Positive free cash flow of $312M with 3.8% FCF margin demonstrates cash generation capability.
What are the risks of investing in FERG?
Claude: Weak return metrics (ROE 9.4%, ROA 3.2%) suggest suboptimal capital deployment efficiency. Absence of YoY growth data prevents assessment of revenue and earnings momentum trends.
What is FERG's revenue and growth?
Ferguson Enterprises Inc. /DE/ reported revenue of $8.2B.
Does FERG pay dividends?
Ferguson Enterprises Inc. /DE/ pays dividends, with $164.0M distributed to shareholders in the trailing twelve months.
Where can I find FERG SEC filings?
Official SEC filings for Ferguson Enterprises Inc. /DE/ (CIK: 0002011641) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is FERG's EPS?
Ferguson Enterprises Inc. /DE/ has a diluted EPS of $2.90.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is FERG a good stock to buy right now?
Based on our AI fundamental analysis in March 2026, Ferguson Enterprises Inc. /DE/ has a HOLD rating with 62% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is FERG stock overvalued or undervalued?
Valuation metrics for FERG: ROE of 9.4% (sector avg: 15%), net margin of 7.0% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy FERG stock in 2026?
Our dual AI analysis gives Ferguson Enterprises Inc. /DE/ a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is FERG's free cash flow?
Ferguson Enterprises Inc. /DE/'s operating cash flow is $430.0M, with capital expenditures of $118.0M. FCF margin is 3.8%.
How does FERG compare to other Default stocks?
Vs Default sector averages: Net margin 7.0% (avg: 12%), ROE 9.4% (avg: 15%), current ratio 1.88 (avg: 1.8).