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FMP

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Ferguson plc (NYSE:FERG) Financial Overview and Market Position

  • Earnings per share (EPS) of $2.45, missing the expected $2.62.
  • Revenue reported at approximately $7.77 billion, slightly below the anticipated $7.81 billion.
  • Financial ratios such as P/E, price-to-sales, and debt-to-equity provide insights into Ferguson's market valuation and financial health.

Ferguson plc (NYSE:FERG) is a leading distributor of plumbing and heating products, primarily operating in North America. The company serves a wide range of customers, including contractors and construction companies, and competes with major industry players like Home Depot and Lowe's.

On December 10, 2024, Ferguson reported an EPS of $2.45, which was below the expected $2.62. The company's revenue for the period was approximately $7.77 billion, slightly missing the anticipated $7.81 billion. This shortfall in earnings and revenue was discussed during the Q1 2025 earnings conference call, featuring key company figures like CEO Kevin Murphy and CFO Bill Brundage.

Ferguson's financial metrics offer a deeper understanding of its market position. The company's price-to-earnings (P/E) ratio is around 23.22, indicating the market's valuation of its earnings. A P/E ratio at this level suggests investor confidence in the company's future growth prospects.

The price-to-sales ratio of approximately 1.32 and an enterprise value to sales ratio of about 1.46 highlight the company's valuation relative to its sales. Furthermore, Ferguson's enterprise value to operating cash flow ratio is around 26.04, indicating the company's valuation in relation to its cash flow from operations.

Ferguson's financial health is further illustrated by its debt-to-equity ratio of approximately 0.83, showing a moderate level of leverage. The current ratio of about 1.68 suggests that Ferguson has a strong ability to cover its short-term liabilities with its short-term assets. These metrics, combined with an earnings yield of about 4.31%, provide insight into the company's financial stability and potential return on investment for shareholders.