Ferguson EnterprisesFERG +1.12%88 Net Margin % is 5.54% as of Mar. 2026, which is 7% below its 10-year median of 5.94. 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 157 Industrial Distribution companies, Ferguson Enterprises ranks better than 72.61% on this metric.
The historical rank and industry rank for Ferguson Enterprises's Net Margin % or its related term are showing as below:
FERG'
s Net Margin % Range Over the Past 10 Years
Min: 4.77 Med: 5.94 Max: 7.43
Current: 6.59
FERG's Net Margin % is ranked better than 72.61% of 157
companies
in the Industrial Distribution industry
Industry Median: 3.09
vs FERG: 6.59
Ferguson Enterprises (NYSE:FERG) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Ferguson Enterprises Net Margin % Related Terms
Ferguson Enterprises Net Margin % Historical Data
* Premium members only.
The historical data trend for Ferguson Enterprises's Net 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 Net Margin %, along with its competitors' market caps and Net 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 Net Margin % vs Industrial Distribution Industry
For the Industrial Distribution industry and Industrials sector, Ferguson Enterprises's Net Margin % distribution charts can be found below:
* The bar in red indicates where Ferguson Enterprises's Net 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.
Ferguson Enterprises (FERG) has a Net Margin % of 5.54% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on Ferguson Enterprises and its competitors. This is near median its historical median of 5.94. Over the past decade, Ferguson Enterprises' Net Margin % has ranged from 4.77 to 7.43. According to the industry distribution chart, Ferguson Enterprises ranks #43 out of 157 companies in the Industrial Distribution industry, placing it in the top 27.4%.
Is Ferguson Enterprises' Net Margin % too high?
Ferguson Enterprises' current Net Margin % of 5.54% is near median its 10-year median of 5.94. Over the past 10 years, this metric has ranged from a low of 4.77 to a high of 7.43. The Industrial Distribution industry median Net Margin % is 3.09. Ferguson Enterprises' value of 5.54% is 79.3% above this industry median. Based on the distribution chart, Ferguson Enterprises ranks #43 out of 157 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' Net Margin % compare to FAST and GWW?
According to the Industrial Distribution industry distribution chart, Ferguson Enterprises ranks #43 out of 157 companies for Net Margin %. This puts Ferguson Enterprises in the upper half of its industry. The industry median Net Margin % is 3.09. Ferguson Enterprises' value of 5.54% is 79.3% above this benchmark. Historically, Ferguson Enterprises' own Net Margin % has ranged from 4.77 to 7.43 over the past decade. While the company's 10-year median is 5.94 vs. the industry median of 3.09, 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 Net Margin % for an Industrial Distribution company?
The median Net Margin % among Industrial Distribution companies is 3.09, based on 157 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Ferguson Enterprises's current Net Margin % of 5.54% is 79.3% 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 Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Ferguson Enterprises and its competitors. For the Industrial Distribution industry, the median Net Margin % is 3.09 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ferguson Enterprises's current Net Margin % is 5.54%, which is near median its own 10-year median of 5.94. 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 $236.68 — trading 3% above its estimated fair value. The current Net Margin % is 5.54%, which is near median its 10-year median of 5.94 and 79.3% above the Industrial Distribution industry median of 3.09. 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 Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Ferguson Enterprises (FERG), the current Net Margin % is 5.54% 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 $236.68 is trading 3% above its estimated GF Value™ of $229.79.
GuruFocus considers Ferguson Enterprises to be Fairly Valued.
Key valuation signals for FERG:
Net Margin %: 5.54% (near median its 10-year median of 5.94)
GF Value™: $229.79 vs. price of $236.68 (3% above fair value)
Industry Position: 79.3% above the Industrial Distribution median (#43 of 157)
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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