Ferguson PLC (FERG) AI Stock Analysis

• Market Cap: $44.92B
• Dividend Yield: 1.35%
• Average Volume (3M): 2.16M
• Price to Earnings (P/E): 23.0
• Beta (1Y): 1.05
• Revenue Growth: 4.92%
• EPS Growth: 18.72%
• Country: US
• Employees: 35,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Distribution
• EPS (TTM): 2.90
• Shares Outstanding: 195,545,960
• 10 Day Avg. Volume: 1,449,887
• 30 Day Avg. Volume: 2,162,744
• 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: 1.20
• Enterprise Value/Revenue: 1.73
• Enterprise Value/Gross Profit: 5.60
• Enterprise Value/Ebitda: 17.07
• 1Y Price Target: $263.55
• Price Target Upside: 15.95% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 17
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: $243.00 ▲(6.91% Upside)

Ferguson PLC's overall stock score reflects strong financial performance and positive earnings call sentiment, offset by mixed technical indicators and a relatively high valuation. The company's strategic financial moves and resilience in key growth areas contribute positively, but challenges in the residential market and bearish technical signals weigh on the score.

Positive Factors

Non-Residential Market Growth

Strong growth in non-residential markets indicates robust demand and positions Ferguson well to capitalize on infrastructure and commercial projects.

Financial Flexibility

The successful notes offering enhances Ferguson's financial flexibility, allowing for strategic investments and resilience against market fluctuations.

Revenue Growth

Exceeding revenue expectations demonstrates Ferguson's effective market strategy and strengthens its competitive position in the industry.

Negative Factors

Residential Market Challenges

Flat residential revenue highlights ongoing challenges in this segment, potentially limiting overall growth if conditions persist.

HVAC Revenue Decline

Declining HVAC revenue due to market conditions and efficiency standards may impact Ferguson's growth in this key segment.

Operational Efficiency

Operational inefficiencies could hinder profitability and growth, requiring strategic adjustments to maintain competitive advantage.

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, heating, and related products to contractors and construction businesses in various sectors. The company's revenue model is centered around a mix of wholesale and retail sales, with a significant portion coming from its extensive inventory of plumbing and HVAC supplies. Key revenue streams include direct sales to contractors and builders, as well as e-commerce transactions through its online platform. Ferguson also benefits from strong supplier relationships, enabling them to offer competitive pricing and a wide product range. Additionally, the company's focus on providing value-added services such as technical support, training, and logistics solutions enhances its appeal to customers and contributes to customer loyalty and repeat business.

Ferguson PLC Financial Statement Overview

Summary

Ferguson PLC demonstrates strong financial performance with consistent revenue growth, solid profitability margins, and effective cash flow management. The company maintains a balanced capital structure with moderate leverage and strong returns on equity. Minor fluctuations in growth rates and leverage are noted but do not significantly impact the overall robust financial position.

Income Statement

Ferguson PLC demonstrates strong financial performance with consistent revenue growth and solid profitability margins. The TTM data shows a Gross Profit Margin of 30.67% and a Net Profit Margin of 6.03%, indicating efficient cost management and profitability. The Revenue Growth Rate of 1.29% in the TTM period suggests steady growth, although slightly lower than previous years. Overall, the company maintains a healthy EBIT Margin of 8.73% and EBITDA Margin of 9.94%, reflecting robust operational efficiency.

Balance Sheet

The balance sheet of Ferguson PLC shows a balanced financial structure with a Debt-to-Equity Ratio of 1.02, indicating moderate leverage. The Return on Equity (ROE) is strong at 32.99%, showcasing effective use of shareholder equity to generate profits. The Equity Ratio stands at 34.23%, suggesting a stable capital structure. While the company has managed its debt well, the leverage is slightly higher compared to earlier periods, which could pose a risk if not managed carefully.

Cash Flow

Ferguson PLC's cash flow performance is commendable with a Free Cash Flow Growth Rate of 2.72% in the TTM period, indicating positive cash generation. The Operating Cash Flow to Net Income Ratio of 0.32 and Free Cash Flow to Net Income Ratio of 0.84 highlight the company's ability to convert earnings into cash effectively. Despite fluctuations in free cash flow growth in previous years, the company has shown resilience and improved cash flow management.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	30.76B	29.64B	29.73B	28.57B	22.79B
Gross Profit	9.44B	9.05B	9.03B	8.76B	6.98B
EBITDA	3.06B	2.98B	2.97B	3.12B	2.26B
Net Income	1.86B	1.74B	1.89B	2.12B	1.47B
Balance Sheet
Total Assets	17.73B	16.57B	15.99B	15.66B	13.71B
Cash, Cash Equivalents and Short-Term Investments	674.00M	571.00M	669.00M	771.00M	1.33B
Total Debt	5.97B	5.52B	5.26B	5.13B	3.60B
Total Liabilities	11.90B	10.96B	10.96B	11.00B	8.71B
Stockholders Equity	5.83B	5.62B	5.04B	4.67B	5.00B
Cash Flow
Free Cash Flow	1.60B	1.50B	2.28B	859.00M	1.14B
Operating Cash Flow	1.91B	1.87B	2.72B	1.15B	1.38B
Investing Cash Flow	-543.00M	-601.00M	-1.05B	-922.00M	-125.00M
Financing Cash Flow	-1.29B	-1.31B	-1.81B	-744.00M	-2.05B

Ferguson PLC Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 227.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FERG, the sentiment is Negative. The current price of 227.3 is below the 20-day moving average (MA) of 237.49, below the 50-day MA of 241.34, and above the 200-day MA of 211.63, indicating a neutral trend. The MACD of -4.62 indicates Positive momentum. The RSI at 39.52 is Neutral, neither overbought nor oversold. The STOCH value of 52.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FERG.

Ferguson PLC Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WCC	75 Outperform	$12.38B	19.82	13.06%	0.72%	5.28%	1.97%
GWW	73 Outperform	$49.21B	28.58	48.98%	0.86%	4.83%	-3.60%
FAST	72 Outperform	$47.93B	39.11	32.74%	2.10%	6.92%	5.98%
WSO	71 Outperform	$14.13B	26.98	17.61%	3.38%	-0.71%	-0.17%
CNM	71 Outperform	$10.62B	23.59	23.85%	―	8.09%	6.33%
FERG	65 Neutral	$44.92B	22.97	32.90%	1.35%	4.92%	18.72%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Ferguson PLC Corporate Events

Ferguson PLC Holds Annual Stockholders Meeting

On December 3, 2025, Ferguson Enterprises Inc. held its annual meeting of stockholders, where several key decisions were made. Stockholders elected eleven directors to serve until the next annual meeting, ratified Deloitte & Touche LLP as the independent public accounting firm for the transition period from August 1, 2025, to December 31, 2025, and approved the fiscal 2025 compensation for the company’s named executive officers.

Ferguson PLC Completes $750M Senior Notes Offering

On September 22, 2025, Ferguson Enterprises Inc. successfully completed a public offering of $750 million in 4.350% Senior Notes due 2031, which are fully guaranteed by its subsidiary, Ferguson UK Holdings Limited. This strategic financial move, executed under an effective shelf registration statement, is supported by an underwriting agreement with major financial institutions and includes covenants that restrict certain debt activities and merger conditions, potentially strengthening the company’s financial position and flexibility.