Ferguson Enterprises Inc (FERG) stock analysis
Ferguson Enterprises Inc (FERG) clears 5 of this site's 8 mechanical value filters, 4 of 8 Buffett-style checks and 3 of 5 Lynch-style checks. At $227.31 it trades 40.5% above this site's neutral DCF value (a margin of safety of -40.5%). Its earnings quality rates Strong and it returns +3.2% to shareholders net of dilution. Figures are as of October 23, 2026, from SEC filings and market data refreshed weekly; this is educational analysis, not investment advice.
Data as of October 23, 2026. Refreshed weekly from SEC filings and market data.
What does Ferguson Enterprises do?
Ferguson Enterprises distributes plumbing, heating, cooling and waterworks products to contractors and builders, mainly in the United States.
What stands out about Ferguson Enterprises?
- The share price implies 16.6% yearly growth. At $227.31, FERG's free cash flow of $9.48 per share would have to grow 16.6% a year, fading to 2.5% by year 10, for this site's DCF (10% discount rate) to match the price. This site's baseline starts at 8%, so the price asks for more growth than the baseline. Change the assumptions.
- Misses 1 of the 8 value filters. It fails PEG Ratio < 1.5 (2.04); the other 5 pass and 2 were not evaluated. See every filter.
- Close to its 52-week low. At $227.31, FERG is 6.1% above its low of $214.26 and 15.1% below its high of $267.71. See the range.
- Strongest against peers: P/E ratio. At 18.0× (peer median 25.8×) it ranks 9th of 32 among industrials stocks this site tracks. See the ranking.
- Weakest against peers: net margin. At 7.6% (peer median 13.7%) it ranks 29th of 32 among industrials stocks this site tracks. See the ranking.
How has Ferguson Enterprises' share price moved?
The interactive price chart needs JavaScript.
Is Ferguson Enterprises undervalued? The value diligence check
Every value-investing signal this site computes for this stock, gathered in one place: the same real numbers from the tools below, not a new score.
- Margin of safety (DCF) -40.5%
- P/E vs. its own history 18.0x · the middle Real range: 13.0x–26.1x over 4 years (net income per diluted share from each fiscal year's 10-K, paired with the real closing price at that fiscal year-end).
- Wall St. analyst rating Buy · 3.97/5 30 analysts this month: 8 strong buy, 13 buy, 9 hold, 0 sell, 0 strong sell (Finnhub).
- Altman Z″-Score (bankruptcy risk) 4.27 · Safe zone
- Earnings quality (is the profit real?) Strong · all 5 checks clean Beneish M-score −2.42 · accruals −0.3% of assets · 119% of profit arrived as cash · stock comp 0.1% of revenue · share count −1.9% a year. From the latest 10-K (year to Jul 2025) - see the Earnings Quality Screener for how each check is scored.
- Shareholder yield (cash back to owners) +3.2% net Latest fiscal year (2025): dividends 1.1% + buybacks 2.2% − stock comp 0.1%, as a share of today's market cap. See Shareholder Yield Leaders.
- Capital needed to grow (See's test) n/a (too few years of filings)
- PEG (growth at a reasonable price) 2.04 · Well above fair P/E 18.0× ÷ 8.8% a year of growth behind it. 228th lowest of 447 stocks with a usable PEG. Lynch's fair value is a PEG of 1; a very high PEG usually means almost no growth, a very low one a profit spike. See PEG Ratio Ranking.
- Compounder lenses (4) 2 of 4 · misses capital-light (n/a), price Capital-light growth: cannot be measured (too few years of filings); Profit is real: cleared; Cash to owners: cleared; Fair price (PEG): not cleared (PEG 2.04, over 1.5). See Compounders at a Fair Price, which also lets you move the PEG bar.
- Value trap check Clear
- Munger's Inversion Check 0 flags
- Standing vs. sector peers 5 of 7 measures above the median Compared with the 31 other other industrials stocks this site tracks: 2 in the top third, 2 in the bottom third.
- Dividend payout sustainability 0/6 · clean
How does Ferguson Enterprises compare with its peers?
5 of 7 measures sit above the median of the 31 other industrials stocks tracked here, 2 in the top third and 2 in the bottom third.
- P/E ratiolower is cheaper · peer median 25.8× 18.0× ✓9th of 32
- Free-cash-flow yieldhigher is cheaper · peer median 4.1% 4.2% –15th of 32
- Return on equityhigher is better · peer median 34% 41% ✓11th of 32
- Net marginhigher is better · peer median 13.7% 7.6% ✕29th of 32
- Revenue growthhigher is better, year on year · peer median 6.8% 3.7% ✕22nd of 32
- Debt / equitylower is safer · peer median 0.87 0.79 –15th of 32
- Dividend yieldamong dividend payers · peer median 1.34% 1.54% –14th of 31
Peers are the stocks this site tracks in the same sector group, not every listed competitor. The bar runs from the weakest peer (left) to the strongest (right); the tick is the middle. Measures that don't apply to a sector (cash-flow yield for banks, debt for financials) are left out.
What would Buffett & Lynch say?
Buffett's checklist is built around durable, profitable businesses bought at sensible prices, and FERG doesn't clear enough of it yet. In its favor: FERG is currently earning a strong return on shareholders' equity, and has kept that profitability up over five years, not just this year, earns many times its interest expense, so debt service isn't a worry, and trades at a reasonable multiple of owner earnings, his own term for the real cash a business could pay out. Where it comes up short: FERG carries more debt relative to equity than he typically tolerates, runs thinner pretax margins than he'd like to see, hasn't grown earnings per share fast enough over five years to impress him, and is trading above what a conservative discounted-cash-flow estimate says it's worth right now.
- ROE (TTM) > 11% ✓
- ROE (5yr avg) > 11% ✓
- Debt/Equity < 0.5 ✕
- Pretax margin > 15% ✕
- EPS growth (5yr) > 7% ✕
- Interest coverage > 5x ✓
- Trading below intrinsic value (DCF) ✕
- Price vs. owner earnings < 25x ✓
- Bonus: returning capital via buybacks FY2025
Lynch looked for growth stories that weren't overpriced for that growth, and FERG falls short of his bar. In its favor: FERG is growing earnings 20-50% a year, his classic fast-grower zone, isn't asking too much even by a fast grower's usual richer multiple, and is generating real cash to back up a fast grower's higher price tag. Where it comes up short: FERG doesn't clear the tighter PEG bar a fast grower needs to justify its pace, and is leaning on more debt than he liked a growth story to carry.
- PEG < 1 (stricter for fast growers) ✕
- EPS growth 20%-50% ✓
- Debt/Equity < 0.5 ✕
- P/E < 40 ✓
- Price/FCF < 40 ✓
Quantitative approximations of each investor's documented approach, not endorsed by either investor or their estates - commentary, not this site's actual ranking criteria. Buffett never published a numeric checklist: only 2 of his 8 checks here trace to his own documented concepts ("owner earnings," from his 1986 shareholder letter, and "price is what you pay, value is what you get," his case against fixed P/E/P/B ceilings) - the other 6 (ROE, debt, margins, growth, interest coverage) use commonly-cited thresholds that are not numbers he himself published. The 8 hard filters below (plus the Munger check and Graham margin of safety) are this site's real, mechanical screen and are computed completely independently of the checklists above.
Berkshire Hathaway's own filing
Which of the 8 value filters does Ferguson Enterprises pass?
- Market Cap > $25B $43.8B
- Trailing P/E < 25 17.97
- PEG Ratio < 1.5 2.04
- Price/Book < 8 7.06
- Price/Sales < 7 1.37
- EPS Growth YoY > -5% -3.2%
- vs 50-day MA (±12%) Not evaluated †
- vs 200-day MA (±12%) Not evaluated †
What is Ferguson Enterprises' margin of safety?
History tracking starts this week - check back in a future week to see how this has moved.
Where is Ferguson Enterprises in its 52-week range?
What is the short interest in Ferguson Enterprises?
7,035,895 shares short as of 2026-09-30 (FINRA settlement date). Reported twice a month, so this only changes roughly every two weeks, not daily.
What could go wrong with Ferguson Enterprises? Munger's inversion check
"Invert, always invert." Instead of reasons to buy, these are reasons to hesitate, not a verdict, and not everything worth knowing about a business.
- Margin of safety, even in the bull case +17%
- Short interest under 5% of float 3.6%
- Passes most of the 6 fundamental filters 5/6 passed
- Price run-up backed by value, not just momentum +6% off 52wk low
- Debt/equity stable since 2023 0.75 → 0.71
Doesn't cover circle of competence, management quality, or accounting concerns: those need judgment, not data.
How much have Ferguson Enterprises shareholders gained per year?
Earnings growth per share plus dividend.
An earnings-based proxy, not a stock-price total return - it doesn't capture multiple expansion/contraction or reinvested dividends. EPS from FERG's own 10-K filings; dividend yield is the current trailing yield on today's price, from the same weekly fetch as the rest of this site.
What do Ferguson Enterprises' 10-year financials show?
From FERG's own 10-K filings (SEC EDGAR): up to the last 4 fiscal years. Press any year's bars for the exact figures.
Frequently asked questions about Ferguson Enterprises
What kind of company is Ferguson Enterprises?
Ferguson Enterprises distributes plumbing, heating, cooling and waterworks products to contractors and builders, mainly in the United States. This site groups it with Trading Companies & Distributors stocks.
Is Ferguson Enterprises trading above or below its DCF value?
At $227.31, FERG trades 40.5% above this site's neutral DCF value of $161.81 per share, a margin of safety of −40.5%. That DCF projects free cash flow for 10 years, with growth starting at 8% and fading to 2.5%, discounted at 10%; it is one set of assumptions, not a forecast. Test your own in the Intrinsic Value Calculator.
How many of this site's 8 value filters does Ferguson Enterprises pass?
FERG passes 5 of 8. It passes Market Cap > $25B ($43.8B), Trailing P/E < 25 (17.97), Price/Book < 8 (7.06), Price/Sales < 7 (1.37) and EPS Growth YoY > -5% (-3.2%). It misses PEG Ratio < 1.5 (2.04). vs 50-day MA (±12%) and vs 200-day MA (±12%) were not evaluated, because the moving-average checks only run on stocks that clear the fundamentals first. The 8-filter list shows every stock that passes all of them.
What growth is Ferguson Enterprises' share price pricing in?
At $227.31, FERG's free cash flow of $9.48 per share would have to grow 16.6% a year, fading to 2.5% by year 10, for this site's DCF (10% discount rate) to match the price. This site's baseline starts at 8%, so the price asks for more growth than the baseline. Change the assumptions.
Where is Ferguson Enterprises trading compared with its 52-week range?
At $227.31, FERG trades 5.8% above its 52-week low of $214.26 and 15.1% below its 52-week high of $267.71. The Near 52-Week Low list tracks stocks in that position.
When does Ferguson Enterprises report earnings next?
Ferguson Enterprises's next earnings report is expected on November 9, 2026, with analysts expecting earnings of $3.36 per share. Dates come from the Finnhub earnings calendar and can move. In its last 4 quarters it beat the estimate 4 times, by an average of +5.8%.
Where do these numbers come from?
- Financial statements: Ferguson Enterprises's 10-KT transition report for the year ended Dec 31, 2025, filed Feb 27, 2026 (filing index). Every earlier year in the 10-year financials comes from the company's older 10-K filings, all listed on SEC EDGAR.
- Prices and market data: quotes, P/E and analyst ratings from Finnhub; daily price history and the 52-week range from Twelve Data, both refreshed weekly. Short interest comes from FINRA, reported twice a month.
- How to check a figure: click any number in the card above to see its exact source, and read the Editorial Standards for every rule behind the checks.
About this Ferguson Enterprises Inc analysis
This page shows every value-investing check the site runs on Ferguson Enterprises Inc (FERG) in one place: the 8 mechanical filters, the Buffett and Lynch checklists, a margin of safety from a disclosed DCF, earnings quality, shareholder yield and how it ranks against its sector peers. The numbers come from SEC filings and public market data, refreshed weekly, and the same rules apply to every stock on the stock list. See Editorial Standards for the sources and the rules, or run your own filters in the stock screener.