📊 FERG Key Takeaways
Is Ferguson Enterprises Inc. /DE/ (FERG) a Good Investment?
Ferguson Enterprises demonstrates solid financial health with exceptional free cash flow generation ($680M, 9.1% FCF margin) and moderate leverage (0.68x debt/equity). However, returns on capital are modest (ROE 7.0%, ROA 2.3%), and absent YoY growth metrics obscure the trajectory; the wholesale distribution business faces structural margin pressures.
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.
Ferguson Enterprises Inc. /DE/ Key Strengths (FERG)
- Exceptional free cash flow generation at $680M with 9.1% FCF margin demonstrates operational efficiency
- Solid liquidity position with 1.78x current ratio and manageable 0.68x debt-to-equity ratio
- Large diversified revenue base of $7.5B in stable wholesale distribution sector provides scale and resilience
- 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
- Low returns on capital (ROE 7.0%, ROA 2.3%) suggest inefficient capital deployment or intense competitive pressure
- Quick ratio of 0.96x indicates working capital constraints and potential inventory management pressure
- Missing year-over-year growth comparisons prevent assessment of revenue and earnings trajectory in competitive wholesale market
- 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
- Free cash flow trend and sustainability relative to capital allocation needs
- Year-over-year revenue and net income growth rates
- Debt-to-equity ratio changes and interest coverage ratio trends
- 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
Ferguson Enterprises Inc. /DE/ presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
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 | $7.2B | $345.0M | $1.73 |
| 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
| Date | Form | Document | Action |
|---|---|---|---|
| Jun 1, 2026 | 4 | xslF345X06/wk-form4_1780346317.xml | View → |
| Jun 1, 2026 | 4 | xslF345X06/wk-form4_1780346285.xml | View → |
| Jun 1, 2026 | 4 | xslF345X06/wk-form4_1780346238.xml | View → |
| Jun 1, 2026 | 4 | xslF345X06/wk-form4_1780346193.xml | View → |
| Jun 1, 2026 | 4 | xslF345X06/wk-form4_1780346143.xml | View → |
❓ Frequently Asked Questions about FERG
What is the AI rating for FERG?
Ferguson Enterprises Inc. /DE/ (FERG) has a Combined AI Grade of A from Claude (B) and ChatGPT (A) with 72% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are FERG's key strengths?
Claude: Exceptional free cash flow generation at $680M with 9.1% FCF margin demonstrates operational efficiency. Solid liquidity position with 1.78x current ratio and manageable 0.68x debt-to-equity ratio. 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: Low returns on capital (ROE 7.0%, ROA 2.3%) suggest inefficient capital deployment or intense competitive pressure. Quick ratio of 0.96x indicates working capital constraints and potential inventory management pressure. 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 $7.5B.
Does FERG pay dividends?
Ferguson Enterprises Inc. /DE/ pays dividends, with $174.0M 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 $2.13.
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 grade reflects both perspectives for balanced insights.
What is FERG's fundamental grade?
Based on our AI fundamental analysis in June 2026, Ferguson Enterprises Inc. /DE/ has a A grade with 72% 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 7.0% (sector avg: 18%), net margin of 5.5% (sector avg: 8%). Compare these metrics with sector averages to assess valuation.
What is FERG's AI grade for 2026?
Our dual AI analysis gives Ferguson Enterprises Inc. /DE/ a combined A grade 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 $772.0M, with capital expenditures of $92.0M. FCF margin is 9.1%.
How does FERG compare to other Consumer stocks?
Vs Consumer sector averages: Net margin 5.5% (avg: 8%), ROE 7.0% (avg: 18%), current ratio 1.78 (avg: 1.5).