Hold Recommendation for Ferguson plc Maintained by Brokerages in 2023
March 15, 2023
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Brokerages have maintained their hold recommendation for Ferguson ($NYSE:FERG) plc in 2023. According to a consensus rating from brokerages, Ferguson plc merits a “Hold” rating. This is based on a variety of factors that have been scrutinized by the brokerages. The long term outlook for the company is expected to remain positive, although near-term performance may remain volatile due to headwinds in the sector. As well, the potential for growth in the industry has been taken into consideration.
Factors such as competitive landscape and the impact of global economic trends have been considered to reach the consensus recommendation of “Hold”. Ferguson plc looks to be a stable investment opportunity with a current valuation that is fair and in line with peers in the industry. As a result, brokerages have maintained their hold recommendation on Ferguson plc, suggesting that investors should maintain their current holdings in the company.
Market Price
Despite closing at $134.3, down 0.5% from the previous closing price of 135.0, brokerages are still hopeful for the company’s future prospects. Although the stock has been relatively stable, the company needs to continue to focus on making profits in order to increase investor confidence. Looking forward, Ferguson plc needs to continue to demonstrate growth in sales and profits in order to maintain the hold recommendation given by brokerages. 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 |
| 30.01k | 2.1k | 7.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Ferguson Plc. More…
| Operations | Investing | Financing |
| 2.09k | -1k | -1.28k |
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 |
| 15.22k | 10.49k | 24.79 |
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 |
| 10.7% | 26.3% | 9.7% |
| FCF Margin | ROE | ROA |
| 5.6% | 35.4% | 11.9% |
Analysis
At GoodWhale, we have conducted an analysis of FERGUSON PLC‘s fundamentals and have provided a Risk Rating for this company. We have determined that FERGUSON PLC is a medium risk investment in terms of its financial and business aspects. In order to get a better idea of the risks associated with investing in FERGUSON PLC, we have detected two risk warnings in their income sheet and balance sheet. If you are interested in learning more, please register with us and we will provide you with all the necessary information. 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 British multinational company that specializes in the manufacturing and distribution of plumbing and heating products. Analysts suggest that investors should consider holding the stock as it provides a steady source of income due to its diverse product portfolio and a strong international presence. Furthermore, its strong presence in the U.S. market, coupled with an increasing focus on emerging markets, make it a compelling long-term investment. Finally, the company has strong fundamentals and is expected to continue delivering solid financial performance in the years to come.
