FERG · Ferguson Enterprises, Inc.
Executive Thesis
Ferguson Enterprises, rated Hold with a 12-month target of $265.0, currently offers limited upside as its valuation at ~24.6× trailing EPS is largely in line with peers, reflecting moderate multiple tension amid mid-cycle growth. The company’s scale advantage and strong presence in non-residential and waterworks markets underpin steady organic sales growth and margin expansion. Despite solid free cash flow and disciplined capital returns, net debt/EBITDA remains around 1.0×, and aggressive share repurchases could constrain financial flexibility. We recommend a cautious accumulate stance, balancing stable fundamentals against valuation and capital allocation risks.
Audited Fundamentals
Frequently Asked Questions: FERG
What is L2 Capital's investment rating and price target for FERG?
L2 Capital currently maintains an institutional rating of HOLD on Ferguson Enterprises, Inc. (FERG) with a 12-month target price of $265.00, backed by Moderate conviction.
What is the core investment thesis for FERG?
Ferguson Enterprises, rated Hold with a 12-month target of $265.0, currently offers limited upside as its valuation at ~24.6× trailing EPS is largely in line with peers, reflecting moderate multiple tension amid mid-cycle growth. The company’s scale advantage and strong presence in non-residential and waterworks markets underpin steady organic sales growth and margin expansion. Despite solid free cash flow and disciplined capital returns, net debt/EBITDA remains around 1.0×, and aggressive share repurchases could constrain financial flexibility. We recommend a cautious accumulate stance, balancing stable fundamentals against valuation and capital allocation risks.
What are FERG's latest audited financial fundamentals?
According to audited SEC EDGAR filings, Ferguson Enterprises, Inc. reported total revenue of $29.73B (+4.1% YoY), Gross Margin of 30.4%, Free Cash Flow of N/A, and Net Debt of $3.72B.