📊 FERG Key Takeaways
Is Ferguson Enterprises Inc. /DE/ (FERG) a Good Investment?
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.
Ferguson shows solid core fundamentals with strong gross and operating margins for a distributor, healthy liquidity, and positive free cash flow generation. The balance sheet appears manageable, but free cash flow conversion is only moderate relative to revenue and the lack of year-over-year trend data limits visibility into growth durability.
Why Buy Ferguson Enterprises Inc. /DE/ Stock? 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
- Strong gross margin (30.7%) and operating margin (9.4%) indicate good pricing discipline and operating efficiency
- Healthy liquidity with a 1.88x current ratio and 1.01x quick ratio supports near-term financial flexibility
- Positive operating cash flow and free cash flow demonstrate the business is generating cash after capital investment
FERG Stock Risks: Ferguson Enterprises Inc. /DE/ Investment Risks
- 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
- Free cash flow margin of 3.8% is modest, leaving less cushion if demand weakens or working capital needs rise
- Long-term debt of $4.12B and debt/equity of 0.68x add balance-sheet risk if earnings soften
- Missing year-over-year revenue and earnings trends makes it harder to judge growth quality and earnings momentum
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
- Free cash flow conversion relative to net income and operating income
- Revenue growth and operating margin trend over the next few reporting periods
Ferguson Enterprises Inc. /DE/ (FERG) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 3.8% FCF margin may limit capital allocation flexibility.
FERG Profit Margin, ROE & Profitability Analysis
FERG vs Consumer Sector: How Ferguson Enterprises Inc. /DE/ Compares
How Ferguson Enterprises Inc. /DE/ compares to Consumer sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Ferguson Enterprises Inc. /DE/ Stock Overvalued? FERG Valuation Analysis 2026
Based on fundamental analysis, Ferguson Enterprises Inc. /DE/ has mixed fundamental signals relative to the Consumer 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.
Ferguson Enterprises Inc. /DE/ Balance Sheet: FERG Debt, Cash & Liquidity
FERG Revenue & Earnings Growth: 5-Year Financial Trend
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 Revenue Growth, EPS Growth & YoY Performance
FERG Quarterly Earnings & 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.
Ferguson Enterprises Inc. /DE/ Dividends, Buybacks & Capital Allocation
FERG SEC Filings: Latest 10-K & 10-Q 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 a Combined AI Rating of BUY from Claude (HOLD) and ChatGPT (BUY) with 67% combined 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. ChatGPT: Strong gross margin (30.7%) and operating margin (9.4%) indicate good pricing discipline and operating efficiency. Healthy liquidity with a 1.88x current ratio and 1.01x quick ratio supports near-term financial flexibility.
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. ChatGPT: Free cash flow margin of 3.8% is modest, leaving less cushion if demand weakens or working capital needs rise. Long-term debt of $4.12B and debt/equity of 0.68x add balance-sheet risk if earnings soften.
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 April 2026, Ferguson Enterprises Inc. /DE/ has a BUY rating with 67% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is FERG stock overvalued or undervalued?
Valuation metrics for FERG: ROE of 9.4% (sector avg: 18%), net margin of 7.0% (sector avg: 8%). 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 BUY 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 Consumer stocks?
Vs Consumer sector averages: Net margin 7.0% (avg: 8%), ROE 9.4% (avg: 18%), current ratio 1.88 (avg: 1.5).