Ferguson Enterprises Inc. Common Stock (FERG)

FairStock Score: 48/100 — MIXED

Key Financials

Strengths

• Altman Z-Score of 4.2 confirms minimal bankruptcy risk and strong solvency
• Established organization with 35,000 employees providing operational scale

Concerns

• Trades significantly above Graham Number ($83) with negative 219% margin of safety—limited downside protection
• Weak Piotroski F-Score of 3/9 suggests deteriorating financial quality across multiple dimensions

AI Analysis

Ferguson Enterprises Inc. Common Stock is a large-cap industrials company valued at $53.3 billion. The business generates $31.1 billion in annual revenue with a 1.3% net margin. From a quality standpoint, Ferguson shows weak Piotroski F-Score of 3/9 signaling deteriorating fundamentals and healthy Altman Z-Score of 4.2. On valuation, the stock is reasonably priced at 22.0x earnings, with trades far above its Graham Number ($83) with no margin of safety. Growth dynamics show revenue growing at 5.1% and profit growth of 21.3%. The 1.5% dividend yield adds an income component for patient holders. Our composite FairStock Score of 49/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. Operational leverage in the business model means incremental revenue growth could disproportionately boost bottom-line profitability.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the industrials space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer