Ferguson EnterprisesFERG +1.12%88 Operating Margin % is 8.22% as of Mar. 2026, which is 1% above its 10-year median of 8.11. 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 76.43% on this metric.
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Ferguson Enterprises Operating Margin % Related Terms
Ferguson Enterprises Operating Margin % Historical Data
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The historical data trend for Ferguson Enterprises's Operating 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.
FERG vs FAST, GWW, WCC: Operating Margin % Comparison
For the Industrial Distribution subindustry, Ferguson Enterprises's Operating Margin %, along with its competitors' market caps and Operating 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 Operating Margin % vs Industrial Distribution Industry
For the Industrial Distribution industry and Industrials sector, Ferguson Enterprises's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Ferguson Enterprises's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Ferguson Enterprises's Operating Margin % for the fiscal year that ended in Jul. 2025 is calculated as
* 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 Operating Margin % of 8.22% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Ferguson Enterprises and its competitors. This is near median its historical median of 8.11. Over the past decade, Ferguson Enterprises' Operating Margin % has ranged from 6.44 to 9.87. According to the industry distribution chart, Ferguson Enterprises ranks #37 out of 157 companies in the Industrial Distribution industry, placing it in the top 23.6%.
Is Ferguson Enterprises' Operating Margin % too high?
Ferguson Enterprises' current Operating Margin % of 8.22% is near median its 10-year median of 8.11. Over the past 10 years, this metric has ranged from a low of 6.44 to a high of 9.87. The Industrial Distribution industry median Operating Margin % is 4.74. Ferguson Enterprises' value of 8.22% is 73.4% above this industry median. Based on the distribution chart, Ferguson Enterprises ranks #37 out of 157 companies in the Industrial Distribution industry, which is in the top quartile — a strong position relative to peers. 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' Operating Margin % compare to FAST and GWW?
According to the Industrial Distribution industry distribution chart, Ferguson Enterprises ranks #37 out of 157 companies for Operating Margin %. This places Ferguson Enterprises in the top 24% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 4.74. Ferguson Enterprises' value of 8.22% is 73.4% above this benchmark. Historically, Ferguson Enterprises' own Operating Margin % has ranged from 6.44 to 9.87 over the past decade. While the company's 10-year median is 8.11 vs. the industry median of 4.74, 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 Operating Margin % for an Industrial Distribution company?
The median Operating Margin % among Industrial Distribution companies is 4.74, based on 157 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Ferguson Enterprises's current Operating Margin % of 8.22% is 73.4% 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Ferguson Enterprises and its competitors. For the Industrial Distribution industry, the median Operating Margin % is 4.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ferguson Enterprises's current Operating Margin % is 8.22%, which is near median its own 10-year median of 8.11. 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 Operating Margin % is 8.22%, which is near median its 10-year median of 8.11 and 73.4% above the Industrial Distribution industry median of 4.74. 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 Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Ferguson Enterprises (FERG), the current Operating Margin % is 8.22% 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:
Operating Margin %: 8.22% (near median its 10-year median of 8.11)
GF Value™: $229.79 vs. price of $236.68 (3% above fair value)
Industry Position: 73.4% above the Industrial Distribution median (#37 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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