Ferguson plc (FERG)
For informational purposes only. Not financial advice. Analysis by Sedat ANAK, Founder & Editor-in-Chief | AI-powered analysis. Data sourced from SEC filings and institutional-grade financial providers. Editorially reviewed. Not financial advice.
Ferguson plc (FERG) trades at $227.21 with AI Score 50/100 (Grade B). Ferguson plc is a leading distributor of plumbing and heating products in North America. Market cap: $44.06B, Sector: Industrials.
Price live · AI analysis from May 10, 2026FERG stock analysis for 2026: Analysts have set a consensus price target of $279.20 for Ferguson plc, suggesting 22.9% upside from the current price of $227.21. The AI MoonshotScore is 50/100, indicating a neutral outlook. Key factors: analyst coverage, AI-driven quantitative scoring.
FERG: the 1 perspectives are evenly split.
How is this calculated? →Ferguson plc (FERG) Industrial Operations Profile
Ferguson plc, with a $44.06B market cap, is a major distributor of plumbing and heating solutions in the US and Canada. Founded in 1887, the company leverages its extensive network of 1,679 branches and 11 distribution centers to serve diverse end markets, including residential, commercial, and industrial sectors.
What Is the Investment Thesis for FERG?
Ferguson plc presents a notable research candidate based on its market-leading position, diversified end markets, and strategic growth initiatives. With a market capitalization of $44.06B and a P/E ratio of 22.0, the company demonstrates financial stability and growth potential. Key value drivers include the company's ability to capitalize on the growing demand for plumbing and heating products in the residential and commercial construction sectors. Catalysts include ongoing investments in digital transformation and supply chain optimization, which are expected to drive efficiency and enhance customer experience. Potential risks include fluctuations in commodity prices and economic downturns that could impact construction activity. The company's dividend yield of 1.43% provides an additional incentive for investors.
Based on FMP financials and quantitative analysis
FERG Key Highlights
- Market Cap of $44.06B reflects Ferguson's strong market position and investor confidence.
- P/E ratio of 22.0 indicates a reasonable valuation relative to earnings.
- Gross Margin of 30.7% demonstrates efficient cost management and pricing strategies.
- Dividend Yield of 1.43% provides a steady income stream for investors.
- Beta of 1.18 suggests moderate volatility compared to the overall market.
Who Are FERG's Competitors?
FERG is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.
| Company | Price | Change | Market Cap | AI Score |
|---|---|---|---|---|
| GWW W.W. Grainger, Inc. | $1354.31 | +0.84% | $63.94B | 94 |
| LHX L3Harris Technologies, Inc. | $301.66 | -0.14% | $56.20B | 59 |
| CARR Carrier Global Corporation | $69.57 | -0.71% | $57.78B | 55 |
| AME AMETEK, Inc. | $237.03 | +1.03% | $54.33B | 80 |
| FAST Fastenal Company | $48.13 | -0.96% | $55.26B | 97 |
| QXO QXO, Inc. | $15.85 | -2.25% | $11.49B | 64 |
| HGRVF Hargreaves Services Plc | $6.27 | -14.46% | $192.52M | 54 |
| HDIUF ADENTRA Inc. | $27.25 | +0.00% | $660.69M | 54 |
AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance
What Are FERG's Key Strengths?
- Leading market position in North America.
- Diversified end markets and product portfolio.
- Extensive distribution network.
- Strong brand reputation.
What Are FERG's Weaknesses?
- Exposure to cyclical construction markets.
- Dependence on commodity prices.
- Potential for supply chain disruptions.
- Intense competition in the distribution market.
What Could Drive FERG Stock Higher?
- Investments in digital transformation to enhance customer experience and streamline operations.
- Expansion in high-growth markets such as the Sun Belt region.
- Potential acquisitions to broaden product offerings and geographic reach.
- Government infrastructure spending creating demand for plumbing and piping products.
- Focus on value-added services such as project management and online tools.
What Are the Key Risks for FERG?
- Economic downturns and recessions impacting construction activity.
- Rising interest rates and inflation increasing costs and reducing demand.
- Changes in government regulations affecting the construction and distribution industries.
- Intense competition in the distribution market.
- Supply chain disruptions impacting product availability and costs.
What Are the Growth Opportunities for FERG?
- Expansion in the Residential Market: Ferguson can capitalize on the growing demand for home improvement and new construction by expanding its product offerings and services tailored to residential customers. The residential market is driven by factors such as population growth, urbanization, and rising disposable incomes. By leveraging its branch network and online channels, Ferguson can effectively reach homeowners and contractors, capturing a larger share of this market. Timeline: Ongoing.
- Growth in Commercial Construction: Ferguson can further penetrate the commercial construction market by providing comprehensive solutions for plumbing, HVAC, and fire protection systems. The commercial construction market is driven by factors such as economic growth, infrastructure investments, and regulatory requirements. By offering project management, design assistance, and jobsite delivery services, Ferguson can become a trusted partner for contractors and developers. Timeline: Ongoing.
- Digital Transformation: Ferguson can enhance its customer experience and operational efficiency by investing in digital technologies such as e-commerce platforms, mobile apps, and data analytics. Digital transformation enables the company to streamline processes, personalize customer interactions, and optimize inventory management. By leveraging data insights, Ferguson can identify new growth opportunities and improve decision-making. Timeline: Ongoing.
- Strategic Acquisitions: Ferguson can accelerate its growth and expand its geographic reach by acquiring complementary businesses in the distribution market. Strategic acquisitions enable the company to enter new markets, broaden its product portfolio, and gain access to new technologies and capabilities. By carefully selecting acquisition targets and integrating them effectively, Ferguson can create synergies and enhance its competitive position. Timeline: Ongoing.
- Infrastructure Investments: Ferguson can benefit from increased government spending on infrastructure projects such as water and wastewater treatment facilities, transportation networks, and energy infrastructure. These projects require a wide range of plumbing, piping, and HVAC products, creating significant opportunities for Ferguson to supply materials and services. By actively participating in infrastructure projects, Ferguson can contribute to economic development and generate sustainable growth. Timeline: Ongoing.
What Opportunities Does FERG Have?
- Expansion in high-growth markets.
- Strategic acquisitions to broaden product offerings.
- Digital transformation to enhance customer experience.
- Increased infrastructure spending.
What Threats Does FERG Face?
- Economic downturns and recessions.
- Rising interest rates and inflation.
- Changes in government regulations.
- Emergence of new competitors and technologies.
What Are FERG's Competitive Advantages?
- Extensive distribution network with 1,679 branches and 11 distribution centers.
- Broad product portfolio catering to diverse end markets.
- Strong relationships with suppliers and customers.
- Value-added services such as project management and online tools.
- Established brand reputation and market leadership.
What Does FERG Do?
Founded in 1887, Ferguson plc has evolved into a leading distributor of plumbing and heating products and solutions, primarily serving the United States and Canada. Originally established as a local iron and hardware merchant, the company expanded its product offerings and geographic reach through strategic acquisitions and organic growth. Today, Ferguson operates a vast network of 1,679 branches and 11 distribution centers, providing a comprehensive range of products, including pipes, valves, fittings, plumbing supplies, water heaters, kitchen and bathroom fixtures, and HVAC equipment. Ferguson caters to a diverse customer base across residential, commercial, civil/infrastructure, and industrial end markets. The company differentiates itself through its extensive product portfolio, value-added services such as project management and online tools, and a commitment to customer service. Ferguson's strategic focus on expanding its digital capabilities and supply chain efficiency positions it for continued growth in the fragmented distribution market.
What Products and Services Does FERG Offer?
- Distributes plumbing and heating products.
- Provides solutions for residential, commercial, civil/infrastructure, and industrial markets.
- Offers pipes, valves, fittings, and plumbing supplies.
- Supplies water heaters, kitchen and bathroom fixtures, and appliances.
- Distributes HVAC and refrigeration products.
- Provides fire sprinkler systems, hangers, struts, and fasteners.
- Offers water meters, automation, irrigation, and drainage products.
- Provides consultation, advice, and project management services.
How Does FERG Make Money?
- Distributes products through a network of branches and distribution centers.
- Sells products through online channels.
- Provides value-added services such as project management and delivery.
- Generates revenue through product sales and service fees.
What Industry Does FERG Operate In?
Ferguson plc operates in the industrial distribution sector, which is characterized by a fragmented competitive landscape and cyclical demand patterns. The market is influenced by factors such as construction spending, housing starts, and infrastructure investments. The industry is experiencing a shift towards digital channels and value-added services, driven by customer expectations for convenience and efficiency. Ferguson competes with other large distributors such as W.W. Grainger, Inc. (GWW) and Fastenal Company (FAST), as well as smaller regional players. The company's scale, product breadth, and service capabilities provide a competitive advantage in this dynamic market.
Who Are FERG's Key Customers?
- Residential contractors and plumbers
- Commercial construction companies
- Civil engineering firms
- Industrial facilities and manufacturers
- Government agencies and municipalities
Net buyingInsider Activity
Over the past six months, Ferguson plc insiders filed 30 SEC Form 4 transactions — 2 sales and 28 purchases. On net that is roughly 7K shares acquired (about $21K) — insiders putting money in tends to read as conviction.
FY2026 estForward Outlook
Wall Street analysts project Ferguson plc revenue of about $32.70B for fiscal 2026, with EPS near $11.30. The estimate reflects 17 contributing analysts.
F-Score 7/9Financial Health
Ferguson plc's Piotroski F-Score is 7/9, a 9-point checklist of profitability, leverage and efficiency — signaling solid underlying fundamentals. Its Altman Z-Score of 5.46 places it in the safe zone, indicating low near-term bankruptcy risk.
ROE 35%Key Financial Metrics
Return on equity for Ferguson plc stands at 35.1%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 11.7%, showing how much profit it generates from its asset base. FERG trades at a trailing price-to-earnings ratio of 21.97, below the Industrials sector average of ~30x. Its free cash flow yield is 2.2%, a gauge of the cash the business throws off relative to its market value. A current ratio of 1.78 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 4.5%, the inverse of the P/E and a quick read on earnings relative to price.
Ferguson plc (FERG) Valuation Context
Valued at $44.06B, FERG is classified as a large-cap stock. Relative to its peer group, FERG's quantitative score of 50/100 is below the peer average of 77/100.
Company Profile
Ferguson plc operates in the Industrial - Distribution industry within the Industrials sector. It is headquartered in Newport News, GB. The company is led by CEO Kevin Murphy. FERG has traded publicly since 2010.
FERG Financials
Fundamental Snapshot
Based on FMP financials and quantitative analysis · FY 2025
Bull Case vs Bear Case
Bull Case
- Ferguson recently reported strong quarterly earnings, reflecting robust demand in the plumbing and heating sectors, which has boosted investor confidence.
- Insider buying activity has increased, suggesting that executives believe in the company's future prospects and are aligning their interests with shareholders.
- Community sentiment has shifted positively, with many traders expressing optimism about Ferguson's growth in the North American market, particularly in residential construction.
- The company is benefiting from ongoing infrastructure investments, positioning it well to capitalize on long-term trends in construction and renovation.
Bear Case
- Concerns over rising interest rates could dampen housing market activity, potentially impacting Ferguson's sales in the residential sector.
- There has been a notable increase in bearish sentiment within trading forums, with some investors worried about potential supply chain disruptions affecting the company's operations.
- Ferguson's high dependence on the U.S. market raises concerns about economic fluctuations, especially with recent economic indicators suggesting a slowdown.
- Recent regulatory changes in the construction industry may pose challenges, leading to uncertainty about future profitability and operational efficiency.
AI-generated arguments based on insider flow, news sentiment and technicals — not financial advice · March 2026
FERG Latest News
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Gov. Bob Ferguson taps Amazon, Microsoft and others as concerns over Washington economy grow
geekwire.com · Jun 29, 2026
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FERG Fairly Valued by DCF at $220
gurufocus.com · Jun 26, 2026
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Why Ferguson Enterprises (FERG) Is Leveraged to the Waterworks and Mechanical Backbone of AI Data Centers
Yahoo! Finance: FERG News · Jun 19, 2026
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Ferguson Enterprises Inc.: Notice of Dividend Currency Exchange Rate
businesswire.com · Jun 19, 2026
FERG Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for FERG.
Price Targets
Consensus target: $279.20
FERG MoonshotScore
What does this score mean?
The MoonshotScore rates FERG's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Latest News
Gov. Bob Ferguson taps Amazon, Microsoft and others as concerns over Washington economy grow
FERG Fairly Valued by DCF at $220
Why Ferguson Enterprises (FERG) Is Leveraged to the Waterworks and Mechanical Backbone of AI Data Centers
Ferguson Enterprises Inc.: Notice of Dividend Currency Exchange Rate
Latest Ferguson plc Analysis
Leadership: Kevin Murphy
CEO
Kevin Murphy is the Chief Executive Officer of Ferguson plc. He has extensive experience in the distribution industry, having held various leadership positions within the company. He has a strong background in sales, marketing, and operations, and has played a key role in driving Ferguson's growth and profitability. Murphy is known for his strategic vision, customer focus, and commitment to innovation. He is a graduate of a leading business school and holds a degree in business administration.
Track Record: Under Kevin Murphy's leadership, Ferguson plc has achieved significant milestones, including expanding its market share, enhancing its digital capabilities, and improving its operational efficiency. He has overseen several strategic acquisitions that have broadened the company's product portfolio and geographic reach. Murphy has also been instrumental in fostering a culture of innovation and customer service within the organization.
Common Questions About FERG (Industrials)
What does Ferguson plc do?
Ferguson plc is a leading distributor of plumbing and heating products and solutions in North America, primarily serving the United States and Canada. The company operates through a vast network of branches and distribution centers, providing a comprehensive range of products, including pipes, valves, fittings, plumbing supplies, water heaters, kitchen and bathroom fixtures, and HVAC equipment. Ferguson caters to a diverse customer base across residential, commercial, civil/infrastructure, and industrial end markets, offering value-added services such as project management and online tools.
What do analysts say about FERG stock?
Analyst consensus on Ferguson plc (FERG) generally reflects a positive outlook, driven by the company's strong market position, diversified end markets, and strategic growth initiatives. Key valuation metrics such as P/E ratio and dividend yield are closely monitored. Growth considerations include the company's ability to capitalize on the growing demand for plumbing and heating products in the residential and commercial construction sectors, as well as its investments in digital transformation and supply chain optimization. However, analysts also acknowledge potential risks such as economic downturns and commodity price fluctuations.
What are the main risks for FERG?
The main risks for Ferguson plc include exposure to cyclical construction markets, which can be impacted by economic downturns and recessions. Rising interest rates and inflation can increase costs and reduce demand for construction projects. Changes in government regulations affecting the construction and distribution industries can also pose challenges. Intense competition in the distribution market requires Ferguson to continuously innovate and differentiate itself. Supply chain disruptions can impact product availability and costs, affecting the company's profitability.
What are the key factors to evaluate for FERG?
Ferguson plc (FERG) holds an AI score of 50/100 (moderate). P/E: 22.0x vs the S&P 500's ~20-25x. Analysts target $279.20 (+23%). Not financial advice.
How frequently does FERG data refresh on this page?
FERG prices update in real time during U.S. market hours. Fundamentals refresh after quarterly filings; analyst ratings and AI insights update daily; news is aggregated continuously.
What has driven FERG's recent stock price performance?
Ferguson plc (FERG) moves on earnings results, analyst revisions, sector rotation, and market sentiment. Notable catalyst: Leading market position in North America. See the News tab for the latest drivers. Past performance does not predict future results.
Should investors consider FERG overvalued or undervalued right now?
Ferguson plc (FERG) trades at 22.0x earnings. Analysts target $279.20 (+23%) — upside seen. Compare P/E, P/S, and EV/EBITDA against sector peers for a full view.
What research should beginners do before buying FERG?
Before investing in Ferguson plc (FERG), research these four areas: (1) the company's revenue model and competitive position (see Company Overview), (2) financial health through revenue growth, margins, and cash flow (see MoonshotScore), (3) what Wall Street analysts recommend and their price targets (see Analyst tab), and (4) specific risk factors that could impact the stock (see Risk Factors section).
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Official Resources
Data provided for informational purposes only.
- Information is based on available data and may be subject to change.
- Financial metrics are as of the latest reporting period.