| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 21 | 64.7x | 17.8x | Bottom tier | |
Growth | 35 | — | 7.1% | Bottom tier | |
Quality | 25 | — | 4.5% | Bottom tier | |
Safety | 40 | 7.2x | 2.6x | Bottom tier | |
Capital Return | 34 | — | 2.12% | Bottom tier | |
Momentum | 49 | 11.0% | 2.9% | Around median | |
Sentiment | 63 | 17 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Ferguson plc operates as a specialist distributor serving water, air, and infrastructure professionals in North America, generating revenue from the sale of plumbing, heating, ventilation and air conditioning products, waterworks, commercial mechanical systems, fire protection equipment, valves, and flow-control solutions. Its model relies on an extensive supply network, value-added services, and relationships with owners, engineers, contractors, and specialist customers, with a balanced mix across residential, non-residential, and industrial markets.
In Q2 of fiscal 2026, sales increased 4.6% year over year to $8.8 billion, supported by organic growth of 3.8% and acquisition growth of 1%. Gross profit according to EDGAR filings was approximately $2.7 billion, net income was $666 million, and earnings per share were $3.43, while adjusted metrics presented on the call showed a gross margin of 31%, an operating margin of 10.7%, and operating profit of $932 million.
Non-residential activity led operating performance in Q2 of fiscal 2026; U.S. non-residential activity grew 8%, the commercial mechanical group grew 15%, and the industrial group grew 18%, while HVAC grew 11% and Waterworks grew 3%. In contrast, Ferguson Home declined 1%, residential trade plumbing remained broadly flat, and fire and fabrication activity declined 13%, illustrating uneven performance within the revenue mix.
The average analyst price target is $285.75, with a wide range of $256 to $325 and a consensus rating of “Buy.” The average is approximately 5% above the 52-week range high of $271.64, while the highest target exceeds that high by approximately 20% and the lowest target falls within the 52-week range of $207.64–$271.64; the available data do not include a valid earnings multiple that could be used as an additional valuation anchor.
Figures in the text are as of 2026-08-27; the live price is shown at the top of the page.
Ferguson’s sales increased 4.6% to $8.8 billion, including organic growth of 3.8% and an acquisition contribution of 1%. Net income according to EDGAR was approximately $666 million, and earnings per share were $3.43. U.S. non-residential activity led growth at 8%, with commercial mechanical up 15% and industrial up 18%.
FloWorks has an enterprise value of approximately $1.6 billion, and Ferguson expects the transaction to close in Q3 of fiscal 2026. FloWorks generated approximately $1 billion in revenue in 2025 and has more than 60 locations, 25 service and repair centers, and a portfolio of 15 brands. Ferguson expects the transaction to expand its addressable market from $340 billion to $400 billion, generate approximately $45 million in synergies, and be immediately accretive to adjusted earnings per share.
Management expects mid-single-digit net sales growth, compared with prior expectations of low- to mid-single-digit growth. It expects an operating margin of 9.5%–9.8%, interest expense of approximately $200 million, and an effective tax rate of approximately 26%. It also set capital expenditures at $375–$425 million, and this guidance does not include the impact of FloWorks before the transaction closes.
Automated analysis for informational purposes only — not investment advice.
Data centers remain the strongest area for large capital projects, but management said demand also extends to power generation, water and wastewater, chemicals, food and beverage, general manufacturing, and mining. Commercial mechanical grew 15% and industrial grew 18% in Q2 of fiscal 2026, while open orders and backlogs continued to increase. However, the company did not observe significant improvement in traditional non-residential activities such as offices, warehouses, education, and hospitality.
Net debt to earnings before interest, taxes, depreciation, and amortization was 1.3 times at the end of Q2 of fiscal 2026. Management expects it to rise to approximately 1.8 times after the FloWorks transaction closes, while remaining within the target range of one to two times. Operating cash flow for the first half was $716 million and free cash flow was approximately $500 million, after the company invested $234 million in capital expenditures.
Residential activity continues to face pressure in new construction and repair and maintenance, despite 2% growth in the overall residential market in Q2 of fiscal 2026. Ferguson Home declined 1% and residential trade plumbing remained broadly flat, while the primary offset came from 11% growth in HVAC. Fire and fabrication activity also declined 13%, confirming that the improvement did not extend across all customer groups.
