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Ferguson Enterprises Inc.
$45.8B
Market Cap
24.0
P/E
1.22
PEG
15.3%
ROCE
32.4%
ROE
0.95
D/E
8.5%
OPM
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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
Shareholding
About

Ferguson Enterprises Inc. distributes essential water and air solutions to specialized professional in the United States and Canada.

Key Ratios Snapshot
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📈 Growth Pattern
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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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3-Statement Financial Model
Bear / Base / Bull projections · DCF fair value · Reverse-DCF
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🎙 Management Tone Mixed → Stable 4 quarters Full tone analysis in Intelligence →
Good quarter Investor Presentation One-Pager? Q1 2026
Revenue
$7.5B
+3.6% YoY
Operating Income
$647M
+8.4% YoY
Operating Margin
8.7%
+0.4pp YoY
Net Income (Diluted EPS)
$2.28
+9.1% YoY
What Went Right
  • Non-residential revenue up 8% with strong large capital project activity.
  • Commercial mechanical grew 18% on top of a 9% prior year comparable.
  • Gross margin expanded 30 bps to 31% despite a challenging market.
What to Watch
  • Residential revenue declined 1%, with continued weakness in new construction and RMI.
  • Gross margin is expected to tick down in Q2 and Q3 due to seasonal mix shift.
  • Inflation uncertainty remains, with potential demand pressure on residential.
Management Guidance
  • Full year 2026: net sales growth in low to mid-single digits.
  • Full year operating margin range: 9.4% to 9.8%.
  • Full year CapEx: ~$350M-$400M, effective tax rate: ~26%, interest expense: ~$200M.
Investor Lens
The thesis is stronger after this call. Ferguson continues to outperform in non-residential and large capital project markets, driving solid revenue and profit growth. While residential headwinds persist, the balanced end-market exposure and scale deployed locally provide resilience. The reaffirmed guidance suggests confidence in navigating uncertainty.
From investor presentation · AI-generated analysis · Not investment advice
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📈 STRONG Solid execution drives revenue and margin expansion in a mixed market.
Revenue
Revenue was $7.5B, up 3.6% YoY, driven by organic growth of 2.8% and acquisition growth of 0.8%. U.S. revenue grew 3.5% (organic +2.9%), with non-residential up 8% and residential down 1%.
Profitability
Operating profit rose 8.4% to $647M, and diluted EPS increased 9.1% to $2.28. Net income was not explicitly stated but derived from these figures.
Margins
Gross margin expanded 30 bps to 31% due to solid execution and own brand growth. Operating margin improved 40 bps to 8.7%, reflecting cost discipline and productivity initiatives.
Balance Sheet
Free cash flow was $688M, with CapEx of $92M in the quarter. Net debt to EBITDA stood at 1.0x, and the company returned $410M to shareholders via dividends and buybacks. A new $2B share repurchase authorization was approved.
Key Risks
Residential markets remain weak and could see further volume pressure from mortgage rates and consumer uncertainty. Gross margin may decline in Q2/Q3 due to seasonal mix from HVAC and Waterworks. Inflation on commodities like PVC is uncertain and could affect demand.
Outlook
Full-year 2026 guidance was reaffirmed: net sales growth low to mid-single digits, operating margin 9.4%-9.8%, and markets broadly flat with residential down low to mid-single digits and non-residential up low to mid-single digits.
Generated by AI · Q1 2026 results · Not investment advice
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📊 Analysis Methodology

This comprehensive investment analysis was conducted using The Finmagine™ Stock Analysis & Ranking Methodology, a proprietary framework that systematically evaluates stocks across five critical dimensions: Financial Health, Growth Prospects, Competitive Positioning, Management Quality, and Valuation.

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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.

⚠️ Important Disclaimers — Please read without fail.

Investment Risk:
Investing in securities, including US equities and ETFs, involves inherent risks including the potential loss of principal. All investments are subject to market fluctuations, economic conditions, regulatory changes, and other factors that may affect their value. Past performance is not indicative of future results. This analysis is provided for informational and educational purposes only and should not be construed as investment advice under any circumstances.

No Investment Recommendation:
This analysis does not constitute, nor should it be interpreted as, an offer, solicitation, or recommendation to buy, sell, or hold any securities or financial products. Investors are strongly advised to conduct their own independent research and due diligence and to consult with a licensed financial advisor or an SEC-registered investment adviser before making any investment decisions, taking into account their individual financial situation, risk tolerance, and investment objectives.

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Conflict of Interest Disclosure:
The author and/or analyst may currently hold or have previously held positions in the securities discussed. Any such positions are not intended to influence the objectivity or independence of the analysis. This research is produced independently and is not sponsored, endorsed, or commissioned by any company or institution.

Information Sources:
The analysis is based on publicly available information including SEC filings (10-K, 10-Q), annual reports, management commentary, and publicly available financial data. Information is believed to be accurate as of the date of publication but may be subject to change without notice. Readers are encouraged to independently verify all information before acting upon it.

Forward-Looking Statements:
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