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Ferguson Enterprises Inc.
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$43.6B
Market Cap
24.0
P/E
2.62
PEG
18.2%
ROCE
32.4%
ROE
1.03
D/E
8.5%
OPM
-19.3%
% from 52W High
36
α RS
🔍 FERG is showing a high-conviction setup because it matches 5 of 39 tracked screener presets, Sector RRG has Industrials in the Improving quadrant with the trail still strengthening, and an ECS of 52.4 last quarter. Net: Broad signal stack, not a recommendation. ? Conviction RRG ECS
Sources
Conviction 5/39 · Industrials in Improving quadrant · ECS 52.4
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🌏 Global Investor Returns
Currency-adjusted total returns for FERG including FX impact
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📈 Price History
Ratio Health
Excellent
Good
Average
Poor
By Category
📊 Sector Averages
About

Ferguson Enterprises Inc. distributes essential water and air solutions to specialized professional in the United States and Canada. The company provides various products and services, including plumbing; pipe, valves, and fittings; heating, ventilation, and air conditioning; appliances; lighting; and water and wastewater solutions to residential and non-residential customers. It also supplies specialized water and wastewater treatment products to residential, commercial, and infrastructure contractors, as well as supplies pipe, valves, and fittings solutions to industrial customers. In addition, it offers customized solutions, such as virtual design, fabrication, valve actuation, pre-assembly, kitting, installation, and project management services, as well as after-sales support that comprises warranty, credit, project-based billing, returns and maintenance, and repair and operations support. The company sells its products through a network of distribution centers, branches, counter service and sales associates, showroom consultants, and e-commerce channels. Ferguson Enterprises Inc. was founded in 1953 and is headquartered in Newport News, Virginia.

Key Ratios Snapshot
📈 Growth Pattern
📊 Quick Scorecard
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⭐ Superinvestors Holding FERG
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Manager Shares Value % of Fund Period
Seth Klarman Baupost Group 1.44M $336.5M 6.58% Mar 2026
Steve Cohen Point72 Asset Management 202.3K $47.2M 0.06% Mar 2026
Jim Simons Renaissance Technologies LLC 7.5K $1.7M 0.00% Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

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Bear / Base / Bull projections · DCF fair value · Reverse-DCF
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🎙 Management Tone Confident Specific ↑ Improving 5 quarters Full tone analysis in Intelligence →
Good quarter Investor Presentation One-Pager? Q2 2026
Revenue
$8.8B
+4.6% YoY
Operating Income (adjusted)
$932M
+2.9% YoY
Operating Margin (adjusted)
10.7%
-0.1pp YoY
Diluted EPS (adjusted)
$3.39
+5.3% YoY
What Went Right
  • Non-residential revenue grew 8%, with commercial mechanical +15% and industrial +18% on strong large capital projects
  • Residential returned to growth at +2% despite housing headwinds, driven by HVAC +11%
  • Announced FloWorks acquisition (~$1.6B EV) expected to expand TAM from $340B to $400B
What to Watch
  • Gross margin down 20 bps to 31.0% due to timing of prior-year supplier price increases
  • H1 operating cash flow down ~$400M on working-capital investment and tax timing
  • Inflation low single-digit with continued PVC deflation; uncertainty in commodity prices
Management Guidance
  • FY2026 net sales growth raised to mid-single-digit (from low-to-mid single-digit)
  • Adjusted operating margin guidance raised to 9.5%-9.8% (lower end raised from 9.4%)
  • CapEx now $375-$425M; interest ~$200M; effective tax rate ~26% (excludes FloWorks)
Investor Lens
Thesis is stronger after this call: Ferguson delivered market outperformance with balanced end-market exposure, raised full-year guidance, and is investing aggressively in growth areas via M&A (FloWorks, HVAC, waterworks). The temporary cash-flow dip and gross-margin compression are manageable and mostly timing-related. The company is well-positioned to benefit from large capital projects and infrastructure tailwinds.
From investor presentation · AI-generated analysis · Not investment advice
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📈 STRONG Solid Q2 with 4.6% revenue growth, FY guidance raised
Revenue
Revenue reached $8.8B, up 4.6% YoY, driven by organic growth of 3.8% and acquisitions of 1.0%. US revenue grew 5%, with non-residential up 8% and residential up 2%.
Profitability
Adjusted operating profit increased 2.9% to $932M. Adjusted diluted EPS rose 5.3% to $3.39, helped by operating profit growth and share buybacks.
Margins
Gross margin was 31.0%, down 20 bps YoY, but within the expected 30%-31% range. Adjusted operating margin was 10.7%, down 10 bps, with 10 bps of operating leverage from productivity efforts.
Balance Sheet
Net debt-to-EBITDA was 1.3x. H1 free cash flow was ~$500M, with operating cash flow of $716M and CapEx of $234M. The balance sheet remains strong and supports the FloWorks acquisition.
Key Risks
Management flagged gross margin headwinds from prior-year supplier price increases, PVC deflation, continued weakness in residential new construction and RMI, and a temporary cash-flow drag from working capital and tax timing.
Outlook
For FY2026, Ferguson now expects mid-single-digit revenue growth and adjusted operating margin of 9.5%-9.8%. The FloWorks acquisition is expected to close in Q3, after which guidance will be updated.
Generated by AI · Q2 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q2 2026 Q2 2026 2026-08-10
Q2 sales rose 4.6% to $8.8B, with strong growth in non-residential, HVAC, and industrial segments. Eight acquisitions, including FloWorks, are set to expand the addressable market and drive synergies. Full-year guidance was raised for both sales and operating margin.
Q1 2026 Q1 2026 2026-05-05
Sales grew 3.6% to $7.5B with margin expansion and strong non-residential growth offsetting residential weakness. Guidance for 2026 is reaffirmed, with inflation and volume pressure expected to persist, but strategic investments and acquisitions support continued outperformance.
Q4 2025 Q4 2025 2025-09-16
Fourth quarter and full-year results showed strong growth in non-residential markets and solid execution in key growth areas, despite ongoing softness in residential construction. Operating profit, margins, and cash flow improved, with continued investment in acquisitions and shareholder returns.
Q3 2025 Q3 2025 2025-06-03
Third quarter sales grew 4.3% year-over-year to $7.6 billion, with gross margin up to 31% and operating profit rising 6.1%. Guidance was raised for both revenue and margin, reflecting strong performance in HVAC, Waterworks, and large capital projects, despite ongoing market uncertainty.
Q2 2025 Q2 2025 2025-03-11
Q2 sales rose 3% to $6.9B, with strong organic growth in HVAC and waterworks offsetting commodity deflation and margin pressure. Full-year guidance was revised for lower margins, with cost actions and investments in growth areas expected to support future performance.
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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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Information Sources:
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