Ferguson PLC (FERG) AI Stock Analysis

• Market Cap: $48.12B
• Dividend Yield: 1.35%
• Average Volume (3M): 2.16M
• Price to Earnings (P/E): 24.9
• 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: 1.12
• Enterprise Value/Revenue: 1.73
• Enterprise Value/Gross Profit: 5.60
• Enterprise Value/Ebitda: 17.07
• 1Y Price Target: $263.29
• Price Target Upside: 8.31% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 16
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: $273.00 ▲(12.30% Upside)

The score is primarily driven by strong underlying financial performance (healthy margins, solid cash conversion, and strong ROE) and a generally positive price trend. Offsetting factors include mixed momentum indicators (negative MACD and elevated stochastic) and a somewhat expensive valuation (P/E 24.14 with a modest 1.40% yield).

Positive Factors

Profitability Margins

Consistently healthy gross and operating margins indicate durable pricing power and efficient cost control across Ferguson’s distribution model. Sustained margins support cash generation, reinvestment in branches and services, and resilience to supply-cost pressures over the medium term.

High Return on Equity

A high ROE reflects effective use of shareholder capital and operational efficiency in converting equity into profits. Over time this suggests disciplined capital allocation and ability to generate attractive returns, supporting reinvestment or shareholder distributions if maintained.

Distribution Network & Value-added Services

An extensive branch and distribution footprint plus value-added services (technical support, training, logistics) creates sticky customer relationships and logistical advantages. These structural strengths support repeat business and competitive moat in wholesale construction supply markets.

Negative Factors

Moderate Leverage

Debt-to-equity around 1.0 represents meaningful leverage that can constrain flexibility. In a prolonged downturn or rising rates, interest and refinancing needs could pressure cash flow and limit strategic options like M&A or increased shareholder returns, raising long-term risk.

Sluggish Revenue Growth

Near‑flat TTM revenue growth implies limited top-line expansion absent acquisitions or market share gains. Over months this limits operating leverage benefits and puts pressure on return expectations unless management accelerates organic growth or enhances cross-sell and e-commerce penetration.

Exposure to Construction Cyclicality

Heavy exposure to residential and commercial construction makes earnings and volumes sensitive to macro and housing cycles. Distribution fixed costs and inventory requirements can amplify downturn impacts, creating more volatile cash flow and capital demands across cycles.

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: Positive
• Last Price: 243.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 243.1 is above the 20-day moving average (MA) of 229.18, above the 50-day MA of 236.86, and above the 200-day MA of 215.78, indicating a bullish trend. The MACD of 1.40 indicates Negative momentum. The RSI at 65.51 is Neutral, neither overbought nor oversold. The STOCH value of 97.45 is Negative, 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
FERG	76 Outperform	$48.12B	24.87	32.90%	1.35%	4.92%	18.72%
WCC	75 Outperform	$13.46B	21.70	13.06%	0.72%	5.28%	1.97%
GWW	73 Outperform	$50.08B	29.40	48.98%	0.86%	4.83%	-3.60%
FAST	72 Outperform	$48.70B	39.77	32.74%	2.10%	6.92%	5.98%
WSO	71 Outperform	$15.11B	29.06	17.61%	3.38%	-0.71%	-0.17%
CNM	71 Outperform	$11.04B	24.78	23.85%	―	8.09%	6.33%
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.

The most recent analyst rating on (FERG) stock is a Buy with a $280.00 price target. To see the full list of analyst forecasts on Ferguson PLC stock, see the FERG Stock Forecast page.