Ferguson EnterprisesFERG -0.89%88 Gross Margin % is 31.02% as of Mar. 2026, which is 3% above its 10-year median of 30.18. GuruFocus rates FERG with a GF Score™ of 88/100 and a GF Value™ of $229.93 (Fairly Valued). The stock has 3 warning signs investors should review. Among 154 Industrial Distribution companies, Ferguson Enterprises ranks better than 68.83% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Ferguson Enterprises had a gross margin of 31.02% for the quarter that ended in Mar. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Ferguson Enterprises Gross Margin % Related Terms
Ferguson Enterprises Gross Margin % Historical Data
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The historical data trend for Ferguson Enterprises's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Industrial Distribution subindustry, Ferguson Enterprises's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Ferguson Enterprises Gross Margin % vs Industrial Distribution Industry
For the Industrial Distribution industry and Industrials sector, Ferguson Enterprises's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Ferguson Enterprises's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Ferguson Enterprises (FERG) has a Gross Margin % of 31.02% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Ferguson Enterprises and its competitors. This is near median its historical median of 30.18. Over the past decade, Ferguson Enterprises' Gross Margin % has ranged from 28.62 to 31.10. According to the industry distribution chart, Ferguson Enterprises ranks #48 out of 154 companies in the Industrial Distribution industry, placing it in the top 31.2%.
Is Ferguson Enterprises' Gross Margin % too high?
Ferguson Enterprises' current Gross Margin % of 31.02% is near median its 10-year median of 30.18. Over the past 10 years, this metric has ranged from a low of 28.62 to a high of 31.10. The Industrial Distribution industry median Gross Margin % is 24.30. Ferguson Enterprises' value of 31.02% is 27.7% above this industry median. Based on the distribution chart, Ferguson Enterprises ranks #48 out of 154 companies in the Industrial Distribution industry, which is above the industry midpoint. Overall, Ferguson Enterprises has a GF Score™ of 88/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Ferguson Enterprises' Gross Margin % compare to FAST and GWW?
According to the Industrial Distribution industry distribution chart, Ferguson Enterprises ranks #48 out of 154 companies for Gross Margin %. This puts Ferguson Enterprises in the upper half of its industry. The industry median Gross Margin % is 24.30. Ferguson Enterprises' value of 31.02% is 27.7% above this benchmark. Historically, Ferguson Enterprises' own Gross Margin % has ranged from 28.62 to 31.10 over the past decade. While the company's 10-year median is 30.18 vs. the industry median of 24.30, Ferguson Enterprises has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for an Industrial Distribution company?
The median Gross Margin % among Industrial Distribution companies is 24.30, based on 154 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Ferguson Enterprises's current Gross Margin % of 31.02% is 27.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Ferguson Enterprises and its competitors. For the Industrial Distribution industry, the median Gross Margin % is 24.30 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ferguson Enterprises's current Gross Margin % is 31.02%, which is near median its own 10-year median of 30.18. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ferguson Enterprises stock overvalued right now?
Based on GuruFocus' analysis, Ferguson Enterprises (FERG) is currently considered Fairly Valued. The stock's GF Value™ is $229.93, compared to a current price of $238.61 — trading 3.8% above its estimated fair value. The current Gross Margin % is 31.02%, which is near median its 10-year median of 30.18 and 27.7% above the Industrial Distribution industry median of 24.30. Ferguson Enterprises' overall GF Score™ is 88/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Ferguson Enterprises (FERG), the current Gross Margin % is 31.02% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Ferguson Enterprises (FERG) Overvalued in 2026?
Based on GuruFocus' analysis, Ferguson Enterprises stock appears to be overvalued.
The current stock price of $238.61 is trading 3.8% above its estimated GF Value™ of $229.93.
GuruFocus considers Ferguson Enterprises to be Fairly Valued.
Key valuation signals for FERG:
Gross Margin %: 31.02% (near median its 10-year median of 30.18)
GF Value™: $229.93 vs. price of $238.61 (3.8% above fair value)
Industry Position: 27.7% above the Industrial Distribution median (#48 of 154)
No single metric tells the full story. See the FERG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ferguson distributes plumbing and HVAC products to North American repair, maintenance, and improvement, new construction, and civil infrastructure markets. It serves over 1 million customers and sources products from 37,000 suppliers. Ferguson engages customers through approximately 1,700 North American branches, over the phone, online, and in residential showrooms. The firm sold its UK business in 2021 and is now solely focused on the North American market.
88GF Score
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