Ferguson PLC (FERG) AI Stock Analysis

• Market Cap: £45.24B
• Dividend Yield: 1.41%
• Average Volume (3M): 1.90M
• Price to Earnings (P/E): 24.6
• Beta (1Y): 1.00
• Revenue Growth: 3.80%
• EPS Growth: 9.26%
• Country: US
• Employees: 35,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Distribution
• EPS (TTM): 3.48
• Shares Outstanding: 197,181,030
• 10 Day Avg. Volume: 3,206,887
• 30 Day Avg. Volume: 1,898,881
• PEG Ratio: 2.62
• Price to Book (P/B): 7.62
• Price to Sales (P/S): 1.44
• P/FCF Ratio: 27.71
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £252.53
• Price Target Upside: 8.37% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 15

• Rating: 69 Neutral
• Price Target: $255.00 ▲(9.43% Upside)

Ferguson PLC's overall stock score is driven by strong financial performance and positive earnings call highlights, particularly in nonresidential markets and strategic growth areas. Technical analysis supports a positive trend, though valuation concerns due to a high P/E ratio and modest dividend yield temper the outlook. Challenges in the residential market and operational efficiency also weigh on the score.

Positive Factors

Negative Factors

Ferguson PLC Business Overview & Revenue Model

Company Description

Ferguson 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.

How the Company Makes Money

Ferguson PLC generates revenue primarily through the sale of plumbing and heating products to professional contractors, builders, and consumers. The company's revenue streams include direct sales through its branches, online sales via its e-commerce platform, and value-added services such as inventory management and logistics support. Ferguson benefits from economies of scale due to its extensive distribution network and strategic partnerships with manufacturers, which allow it to offer a broad product range and competitive pricing. The company's earnings are also supported by its focus on customer service and its ability to provide customized solutions tailored to the needs of various market segments.

Ferguson PLC Financial Statement Overview

Summary

Ferguson PLC shows a solid financial position with consistent revenue growth and strong gross profit margins. The balance sheet reflects improved leverage with a lower debt-to-equity ratio, while the cash flow statement indicates positive free cash flow growth. However, there are areas for improvement in operational efficiency and liquidity management.

Income Statement

Ferguson PLC demonstrates stable revenue growth with a slight increase of 1.82% in the latest year. The gross profit margin remains strong at approximately 30.67%, indicating efficient cost management. However, the net profit margin has slightly decreased to 6.03%, suggesting some pressure on net income. The EBIT and EBITDA margins are relatively low, indicating potential challenges in operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.88, reflecting a better balance between debt and equity financing. Return on equity is robust at 31.82%, showcasing strong profitability relative to shareholder investments. However, the equity ratio is not explicitly provided, which limits a full assessment of asset financing stability.

Cash Flow

Ferguson PLC's free cash flow growth is positive at 14.37%, indicating improved cash generation. The operating cash flow to net income ratio is moderate at 0.32, suggesting a decent conversion of net income into cash. The free cash flow to net income ratio is strong at 0.84, highlighting effective cash management. However, the operating cash flow coverage ratio has decreased compared to previous years, indicating potential liquidity concerns.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	30.21B	30.76B	29.64B	29.73B	28.57B	22.79B
Gross Profit	9.20B	9.44B	9.05B	9.03B	8.76B	6.98B
EBITDA	2.86B	3.06B	2.98B	2.97B	3.12B	2.26B
Net Income	1.61B	1.86B	1.74B	1.89B	2.12B	1.47B
Balance Sheet
Total Assets	17.27B	17.73B	16.57B	15.99B	15.66B	13.71B
Cash, Cash Equivalents and Short-Term Investments	556.00M	674.00M	571.00M	669.00M	771.00M	1.33B
Total Debt	5.83B	5.12B	5.52B	5.26B	5.13B	3.60B
Total Liabilities	11.73B	11.90B	10.96B	10.96B	11.00B	8.71B
Stockholders Equity	5.53B	5.83B	5.62B	5.04B	4.67B	5.00B
Cash Flow
Free Cash Flow	1.40B	1.60B	1.50B	2.28B	859.00M	1.14B
Operating Cash Flow	1.75B	1.91B	1.87B	2.72B	1.15B	1.38B
Investing Cash Flow	-651.73M	-543.00M	-601.00M	-1.05B	-922.00M	-125.00M
Financing Cash Flow	-1.30B	-1.29B	-1.31B	-1.81B	-744.00M	-2.05B

Ferguson PLC Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 233.03
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 233.03 is above the 20-day moving average (MA) of 229.63, above the 50-day MA of 227.00, and above the 200-day MA of 192.94, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 54.64 is Neutral, neither overbought nor oversold. The STOCH value of 77.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FERG.

Ferguson PLC Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WCC	78 Outperform	10.28B	16.35	13.91%	0.84%	1.30%	-1.09%
FAST	73 Outperform	54.08B	45.98	39.08%	1.80%	4.84%	2.98%
GWW	70 Outperform	46.84B	24.92	52.31%	0.88%	4.35%	7.84%
WSO	69 Neutral	15.96B	29.85	19.26%	2.91%	0.98%	0.80%
FERG	69 Neutral	£45.24B	24.61	32.29%	1.41%	3.80%	9.26%
CNM	61 Neutral	9.97B	22.58	22.85%	―	11.02%	7.08%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Ferguson PLC Corporate Events

Ferguson PLC Secures New $1.5 Billion Credit Facility

On April 2, 2025, Ferguson Enterprises Inc. entered into a new revolving credit agreement with Ferguson UK Holdings Limited and other parties, establishing a $1.5 billion unsecured credit facility maturing in 2030. This agreement allows for potential increases up to an additional $500 million depending on lender commitments and includes various interest rate options and covenants. Concurrently, Ferguson terminated its previous $1.35 billion multicurrency revolving facility, with no outstanding borrowings at the time of termination.