Ferguson’s fiscal fourth-quarter (ended July 31) financial performance was largely in line with our expectations. While reported revenue growth of 1.4% fell a bit shy of our projections, Ferguson’s profitability was better than we anticipated with adjusted operating margin expanding 40 basis points year over year to 10.8%.
Ferguson’s roll-up strategy in the US should lead to market share gains, boosting revenue growth in excess of the market average.
Ferguson’s exposure to new construction markets can pressure revenue and margin growth during cyclical downturns.
|
Metric
|
FERG
|
LOW
|
HD
|
|---|---|---|---|
Price/Earnings (Normalized) | 19.39 | 22.73 | 27.47 |
Price/Book Value | 6.87 | — | 92.39 |
Price/Sales | 1.29 | 1.86 | 2.69 |
Price/Cash Flow | 17.93 | 16.16 | 21.88 |
|
Metric
|
FERG
|
LOW
|
HD
|
|---|---|---|---|
Quick Ratio | 0.80 | 0.24 | 0.25 |
Current Ratio | 1.80 | 1.22 | 1.15 |
Interest Coverage | 14.77 | 7.05 | 10.28 |
|
Metric
|
FERG
|
LOW
|
HD
|
|---|---|---|---|
Return on Assets (Normalized) | 12.15% | 16.08% | 18.62% |
Return on Equity (Normalized) | 36.52% | — | 749.70% |
Return on Invested Capital (Normalized) | 19.61% | 31.58% | 29.73% |
|
1-Day Chart
|
Name
|
Price
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|---|
| W.W. Grainger Inc
GWW
| Kxkzhtx | Pgthk | $50.7 Bil | |||
| Fastenal Co
FAST
| Mxhdtccfzd | Qsst | $40.9 Bil | |||
| Ferguson Enterprises Inc
FERG
| Gbmbnbdxw | Qfrcvt | $39.3 Bil | |||
| Watsco Inc Shs -B- Conv.at any time
WSO.B
| — | Krtvb | $19.9 Bil | |||
| Watsco Inc Class A
WSO
| Gpbxgnbllh | Ygjync | $19.9 Bil | |||
| Pool Corp
POOL
| — | Msg | $14.3 Bil | |||
| Applied Industrial Technologies Inc
AIT
| — | Qmjtkj | $8.5 Bil | |||
| Core & Main Inc Class A
CNM
| — | Dbjgg | $8.4 Bil | |||
| WESCO International Inc
WCC
| Xhfflbr | Brwbnk | $8.2 Bil | |||
| MSC Industrial Direct Co Inc Class A
MSM
| Fgqcntkjq | Txctmf | $4.7 Bil |
United States