Tag Archives: FERG

Ferguson (FERG), mcap=$26.6bn, price $126 vs $109

Retailer of plumbing, HVAC, and building supplies.
Cheap on current (10x) and normalized (13.5x) earnings.
Covid-driven housing boom beneficiary.
Low valuation due to fears about residential end markets – but the company is cheap even assuming margin compression.
Set to be added to S&P 500 with the expected increase in index ownership.
40% of businesses are tied to new construction and 60% are tied to RMI.
Long-term growth profile at high returns on capital.