Ferguson EnterprisesFERG +1.34%88 Interest Coverage is 13.64 as of Mar. 2026, which is 17% below its 10-year median of 16.50. GuruFocus rates FERG with a GF Score™ of 88/100 and a GF Value™ of $229.79 (Fairly Valued). The stock has 1 warning sign investors should review. Among 133 Industrial Distribution companies, Ferguson Enterprises ranks better than 71.43% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Ferguson Enterprises's
Operating Income
for the
three
months ended in Mar. 2026 was $614 Mil. Ferguson Enterprises's Interest Expense for the
three
months ended in Mar. 2026 was $-45 Mil.
Ferguson Enterprises's interest coverage for the quarter that ended in Mar. 2026 was 13.64.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Ferguson Enterprises's Interest Coverage or its related term are showing as below:
FERG'
s Interest Coverage Range Over the Past 10 Years
Min: 14.14 Med: 16.5 Max: 25.41
Current: 16.01
FERG's Interest Coverage is ranked better than 71.43% of 133
companies
in the Industrial Distribution industry
Industry Median: 6.22
vs FERG: 16.01
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Ferguson Enterprises Interest Coverage Related Terms
Ferguson Enterprises Interest Coverage Historical Data
* Premium members only.
The historical data trend for Ferguson Enterprises's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
FERG vs FAST, GWW, WCC: Interest Coverage Comparison
For the Industrial Distribution subindustry, Ferguson Enterprises's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Industrial Distribution Industry
For the Industrial Distribution industry and Industrials sector, Ferguson Enterprises's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Ferguson Enterprises's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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.
Ferguson Enterprises (FERG) has a Interest Coverage of 13.64 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Ferguson Enterprises and its competitors. This is 17% below median its historical median of 16.50. Over the past decade, Ferguson Enterprises' Interest Coverage has ranged from 14.14 to 25.41. According to the industry distribution chart, Ferguson Enterprises ranks #38 out of 133 companies in the Industrial Distribution industry, placing it in the top 28.6%.
Is Ferguson Enterprises' Interest Coverage too high?
Ferguson Enterprises' current Interest Coverage of 13.64 is 17% below median its 10-year median of 16.50. Over the past 10 years, this metric has ranged from a low of 14.14 to a high of 25.41. The Industrial Distribution industry median Interest Coverage is 6.22. Ferguson Enterprises' value of 13.64 is 119.3% above this industry median. Based on the distribution chart, Ferguson Enterprises ranks #38 out of 133 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' Interest Coverage compare to FAST and GWW?
According to the Industrial Distribution industry distribution chart, Ferguson Enterprises ranks #38 out of 133 companies for Interest Coverage. This puts Ferguson Enterprises in the upper half of its industry. The industry median Interest Coverage is 6.22. Ferguson Enterprises' value of 13.64 is 119.3% above this benchmark. Historically, Ferguson Enterprises' own Interest Coverage has ranged from 14.14 to 25.41 over the past decade. While the company's 10-year median is 16.50 vs. the industry median of 6.22, 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 Interest Coverage for an Industrial Distribution company?
The median Interest Coverage among Industrial Distribution companies is 6.22, based on 133 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Ferguson Enterprises's current Interest Coverage of 13.64 is 119.3% 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Ferguson Enterprises and its competitors. For the Industrial Distribution industry, the median Interest Coverage is 6.22 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ferguson Enterprises's current Interest Coverage is 13.64, which is 17% below median its own 10-year median of 16.50. 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 $229.79, compared to a current price of $237.19 — trading 3.2% above its estimated fair value. The current Interest Coverage is 13.64, which is 17% below median its 10-year median of 16.50 and 119.3% above the Industrial Distribution industry median of 6.22. Ferguson Enterprises' overall GF Score™ is 88/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Ferguson Enterprises (FERG), the current Interest Coverage is 13.64 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 $237.19 is trading 3.2% above its estimated GF Value™ of $229.79.
GuruFocus considers Ferguson Enterprises to be Fairly Valued.
Key valuation signals for FERG:
Interest Coverage: 13.64 (17% below median its 10-year median of 16.50)
GF Value™: $229.79 vs. price of $237.19 (3.2% above fair value)
Industry Position: 119.3% above the Industrial Distribution median (#38 of 133)
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
Get the complete analysis for FERG
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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