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Ferguson Enterprises
(NYSE:FERG)
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Rating:60Neutral
Price Target:
$239.00
▼(-2.24% Downside)
Action:Reiterated
Date:10/23/26
The score is primarily driven by fundamentals: strong historical profitability and generally supportive cash generation, offset by a sharp deterioration in 2026 results that raises near-term risk. Technicals are neutral (short-term improving but still below longer-term averages), while valuation is moderate with a modest dividend. Recent financing tied to strategic actions is a mild positive, but it reinforces the need for continued cash-flow resilience.
Positive Factors
Durable Profitability
Ferguson has demonstrated a durable profitability profile for an industrial distributor, supported by stable gross margins and healthy operating and net margins across several years. This indicates meaningful pricing, distribution, and service economics that can support reinvestment and resilience through normal market cycles.
Negative Factors
2026 Revenue and Earnings Contraction
The sharp 2026 decline in revenue and earnings materially weakens Ferguson’s growth and stability profile after several years of stronger performance. If the contraction persists, lower operating scale could reduce fixed-cost absorption, constrain investment capacity, and make profitability more sensitive to construction and infrastructure demand.
Read all positive and negative factors
Positive Factors
Negative Factors
Durable Profitability
Ferguson has demonstrated a durable profitability profile for an industrial distributor, supported by stable gross margins and healthy operating and net margins across several years. This indicates meaningful pricing, distribution, and service economics that can support reinvestment and resilience through normal market cycles.
Read all positive factors
Ferguson Enterprises (FERG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$44.40B
Dividend Yield1.55%
Average Volume (3M)1.45M
Price to Earnings (P/E)21.9
Beta (1Y)0.95
Revenue Growth8.17%
EPS Growth37.33%
CountryUS
Employees35,000
SectorIndustrials
Sector Strength72
IndustryIndustrial - Distribution
Share Statistics
EPS (TTM)14.01
Shares Outstanding193,452,710
10 Day Avg. Volume1,395,282
30 Day Avg. Volume1,453,895
Financial Highlights & Ratios
PEG Ratio-1.09
Price to Book (P/B)7.41
Price to Sales (P/S)5.25
P/FCF Ratio95.38
Enterprise Value/Market Cap1.18
Enterprise Value/Revenue1.30
Enterprise Value/Gross Profit4.22
Enterprise Value/Ebitda12.15
Forecast
1Y Price Target
$286.47Price Target Upside17.18% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering18
EPS Forecast (FY)11.36
Revenue Forecast (FY)$33.05B
Ferguson Enterprises Business Overview & Revenue Model
Company Description
Ferguson plc operates as a major supplier of plumbing, heating, and related industrial products throughout the United States and Canada. The company serves a diverse client base, providing essential solutions for residential, commercial, civil/inf...
How the Company Makes Money
Ferguson primarily makes money by selling building and infrastructure-related products it sources from manufacturers and resells to customers at a markup through its distribution network. Key revenue streams include: (1) Product distribution sales...
Ferguson Enterprises Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
70
Positive
Cash Flow
58
Neutral
| Breakdown | Jun 2026 | Jul 2025 | Jul 2024 | Jul 2023 | Jul 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 8.75B | 30.76B | 29.64B | 29.73B | 28.57B |
| Gross Profit | 2.71B | 9.44B | 9.05B | 9.03B | 8.76B |
| EBITDA | 1.09B | 3.06B | 2.98B | 2.97B | 3.12B |
| Net Income | 666.00M | 1.86B | 1.74B | 1.89B | 2.12B |
Balance Sheet | |||||
| Total Assets | 19.30B | 17.73B | 16.57B | 15.99B | 15.66B |
| Cash, Cash Equivalents and Short-Term Investments | 437.00M | 674.00M | 571.00M | 669.00M | 771.00M |
| Total Debt | 6.41B | 5.97B | 5.52B | 5.26B | 5.13B |
| Total Liabilities | 13.10B | 11.90B | 10.96B | 10.96B | 11.00B |
| Stockholders Equity | 6.20B | 5.83B | 5.62B | 5.04B | 4.67B |
Cash Flow | |||||
| Free Cash Flow | 482.00M | 1.60B | 1.50B | 2.28B | 859.00M |
| Operating Cash Flow | 716.00M | 1.91B | 1.87B | 2.72B | 1.15B |
| Investing Cash Flow | -800.00M | -543.00M | -601.00M | -1.05B | -922.00M |
| Financing Cash Flow | -17.00M | -1.29B | -1.31B | -1.81B | -744.00M |
Ferguson Enterprises Technical Analysis
Positive
244.47
Price Trends
225.54
Positive
230.09
Negative
236.34
Negative
Market Momentum
1.18
Negative
57.53
Neutral
59.97
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FERG, the sentiment is Positive. The current price of 244.47 is above the 20-day moving average (MA) of 224.06, above the 50-day MA of 225.54, and above the 200-day MA of 236.34, indicating a neutral trend. The MACD of 1.18 indicates Negative momentum. The RSI at 57.53 is Neutral, neither overbought nor oversold. The STOCH value of 59.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FERG.
Ferguson Enterprises Risk Analysis
Ferguson Enterprises disclosed 36 risk factors in its most recent earnings report. Ferguson Enterprises reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Ferguson Enterprises Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $60.20B | 42.31 | 35.13% | 1.83% | 13.53% | 15.58% | |
78 Outperform | $63.94B | 34.60 | 48.70% | 0.70% | 7.80% | -0.65% | |
74 Outperform | $12.73B | 26.37 | 16.76% | 4.22% | -2.98% | -12.07% | |
67 Neutral | $16.06B | 22.49 | 14.06% | 0.59% | 12.51% | 13.23% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | $8.07B | 17.37 | 22.82% | ― | -0.54% | 7.59% | |
60 Neutral | $44.40B | 21.92 | 34.00% | 1.55% | 8.17% | 37.33% |
* Industrials Sector Average
FERG
Ferguson Enterprises
229.52
-13.92
-5.72%
FAST
Fastenal Company
52.47
11.51
28.11%
GWW
WW Grainger
1,357.60
402.02
42.07%
WSO
Watsco
305.33
-40.55
-11.72%
WCC
Wesco International
329.50
110.16
50.22%
CNM
Core & Main
42.38
-10.07
-19.20%
Ferguson Enterprises Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Ferguson PLC Completes $1.2 Billion Senior Notes Offering
Positive
Aug 14, 2026
On August 14, 2025, Ferguson Enterprises Inc. completed a public offering of $1.2 billion in senior notes, split between $700 million of 4.800% notes due 2029 and $500 million of 5.600% notes due 2036, fully and unconditionally guaranteed by Fergu...
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
Ferguson PLC Secures Loans to Support FloWorks Acquisition
Positive
Aug 11, 2026
As of August 11, 2026, Ferguson Enterprises entered into a $700 million unsecured bridge term loan and a separate $900 million unsecured term loan facility with JPMorgan Chase Bank and other lenders to help finance its previously announced acquisi...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.