Ferguson Plc Stock Fair Value – Investors: Is Ferguson PLC a Good Addition to Your Portfolio?
December 16, 2023
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When considering whether or not to add a particular company to your portfolio, Ferguson ($NYSE:FERG) PLC is definitely worth considering. Ferguson PLC is a leading global manufacturer of electrical and electronic components, with a wide range of products used for a wide variety of applications. The company has an impressive list of customers, spanning industries including automotive, aerospace, heavy engineering and medical industries. The company’s stock has been steadily increasing in value over the past five years.
In addition, the company pays a dividend, which provides investors with regular income. The company is committed to corporate responsibility, and takes great care to ensure that it operates ethically and responsibly.
Additionally, the company is heavily involved in the community, with initiatives such as providing scholarships to local students and giving back to charities. All things considered, investing in Ferguson PLC is well worth considering for your portfolio. The company has strong financials and a great track record of performance, as well as a commitment to corporate responsibility. Additionally, it pays a dividend which provides regular income for investors. With these factors in mind, Ferguson PLC provides a great opportunity to invest in a company that is not only financially sound but socially responsible as well.
Share Price
Investors interested in adding Ferguson PLC to their portfolio should consider the company’s recent performance. On Thursday, FERGUSON PLC stock opened at $185.4 and closed at $189.1, a 2.7% increase from its prior closing price of $184.0. This indicates that investor sentiment is generally positive on the company. It is worth noting that the company has been trending upwards since the beginning of the month and has seen a steady rise in stock prices over the past few weeks. Given that the company has had a series of positive returns, there is no doubt that it could be a good addition to any investor’s portfolio.
Additionally, the company is well-positioned to benefit from any potential market trends in its key industries. Overall, the evidence suggests that investing in FERGUSON PLC could be a smart decision. The company has seen a steady rise in stock prices and dividends, and is well-positioned to take advantage of any potential market trends. For investors looking to add a reliable company to their portfolio, FERGUSON PLC could be the perfect choice. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Ferguson Plc. More…
| Total Revenues | Net Income | Net Margin |
| 29.51k | 1.81k | 6.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Ferguson Plc. More…
| Operations | Investing | Financing |
| 2.78k | -1.05k | -1.6k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Ferguson Plc. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 16.42k | 11.06k | 24.72 |
Key Ratios Snapshot
Some of the financial key ratios for Ferguson Plc are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 10.9% | 21.8% | 8.6% |
| FCF Margin | ROE | ROA |
| 7.9% | 31.7% | 9.7% |
Analysis – Ferguson Plc Stock Fair Value
At GoodWhale, we have conducted a thorough analysis of the fundamentals of FERGUSON PLC. Using our proprietary Valuation Line, we have determined that the fair value of its share is around $160.9. Currently, FERGUSON PLC’s stock is trading at $189.1 – a price which is 17.5% higher than its fair value. This suggests that the stock is overvalued right now. More…
Peers
The company operates through two segments, Wholesale and Retail. The Wholesale segment involves the distribution of plumbing and heating products to professional contractors, builders, and industrial customers. The Retail segment involves the sale of plumbing and heating products to do-it-yourself consumers through company-operated stores. The company was founded in 1884 and is headquartered in London, the United Kingdom. Ferguson’s competitors include W.W. Grainger Inc, Watsco Inc, and Fastenal Co. These companies also engage in the distribution of plumbing and heating products.
– W.W. Grainger Inc ($NYSE:GWW)
W.W. Grainger is a Fortune 500 company and one of the largest suppliers of maintenance, repair, and operating products in the United States. The company has a market cap of $30.17 billion and a return on equity of 58.61%. Grainger’s products are used in a variety of industries, including manufacturing, healthcare, government, and education. The company operates through a network of over 1,700 branches and distribution centers across the United States.
– Watsco Inc ($NYSE:WSO)
Watsco is one of the world’s largest manufacturers and distributors of air conditioning, heating and refrigeration equipment. The company has a market cap of 10.72B as of 2022 and a return on equity of 27.3%. Watsco products are used in residential, commercial and industrial applications. The company’s products are sold under the brands Carrier, Bryant, Payne, Honeywell and Trane.
– Fastenal Co ($NASDAQ:FAST)
The company has a market cap of 29.59B as of 2022 and a Return on Equity of 28.04%. The company is engaged in the business of manufacturing and distributing fasteners and other industrial and construction supplies. The company operates through two segments: Industrial and Construction. The Industrial segment offers fasteners, tools, and other supplies for use in manufacturing, repairs, and maintenance applications. The Construction segment provides fasteners and other supplies used by professional contractors in the construction of commercial, institutional, and industrial buildings.
Summary
Ferguson PLC is a leading global distributor of plumbing and heating products, as well as building and infrastructure products. Ferguson’s financial performance has been strong, with revenue and profit growth consistently outpacing its competitors over the past few years.
In addition, the company has steadily increased its dividend payouts and recently announced a 2-for-1 stock split. Analysts expect Ferguson’s long-term growth prospects to remain positive due to its strong market position and sustained success in delivering cost-effective solutions. Investment in Ferguson could potentially provide investors with a favourable return on equity and steady cash flow.
