Ferguson shares fell by -1.7% during the day's morning session, and are now trading at a price of $211.0. Is it time to buy the dip? To better answer that question, it's essential to check if the market is valuing the company's shares fairly in terms of its earnings and equity levels.
Forward Earnings Expected to Increase but Trading Above Its Fair Price:
Ferguson Enterprises Inc. distributes plumbing and heating products in the United States and Canada. The company belongs to the Industrials sector, which has an average price to earnings (P/E) ratio of 24.03 and an average price to book (P/B) ratio of 2.89. In contrast, Ferguson has a trailing 12 month P/E ratio of 26.3 and a P/B ratio of 7.53.
Ferguson has moved 5.5% over the last year compared to 11.9% for the S&P 500 — a difference of -6.5%. Ferguson has a 52 week high of $225.63 and a 52 week low of $146.0.
Stagnant Revenue Growth With No Capital Eexpenditures:
| 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|
| Revenue (M) | $19,940 | $22,792 | $28,566 | $29,734 | $21,927 |
| Net Margins | 5% | 6% | 7% | 6% | 6% |
| Net Income (M) | $961 | $1,472 | $2,122 | $1,889 | $1,216 |
| Net Interest Expense (M) | -$93 | -$98 | -$1 | -$11 | $118 |
| Diluted Shares (M) | 227 | 225 | 219 | 205 | 201 |
| Earnings Per Share | $4.24 | $6.55 | $9.69 | $9.12 | $5.99 |
| EPS Growth | n/a | 54.48% | 47.94% | -5.88% | -34.32% |
| Total Debt (M) | n/a | $2,512 | $3,929 | $3,766 | $4,500 |
