Ferguson Enterprises (CHIX:FERGL) Financial Strength: 7 (As of Jun. 2026) — Near Median

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CHIX:FERGL Ferguson Enterprises Inc CHIX:FERGL
65 GF Score
Price £174.10
GF Value £182.08
Valuation Fairly Valued
! 1 Warning Sign
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What is Ferguson Enterprises Financial Strength?

Ferguson Enterprises CHIX:FERGL 65 Financial Strength is 7 as of Jun. 2026, which is at its 10-year median of 7.00. GuruFocus rates CHIX:FERGL with a GF Score™ of 65/100 and a GF Value™ of £182.08 (Fairly Valued). The stock has 1 warning sign investors should review.

Ferguson Enterprises has the Financial Strength Rank of 7.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.

A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Ferguson Enterprises's Interest Coverage for the quarter that ended in Jun. 2026 was 17.21. Ferguson Enterprises's debt to revenue ratio for the quarter that ended in Jun. 2026 was 0.20. As of today, Ferguson Enterprises's Altman Z-Score is 5.13.


Ferguson Enterprises  (CHIX:FERGl) Financial Strength Explanation

The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Ferguson Enterprises has the Financial Strength Rank of 7.


Ferguson Enterprises Financial Strength Related Terms


CHIX:FERGL vs FAST, GWW, WCC: Financial Strength Comparison

For the Industrial Distribution subindustry, Ferguson Enterprises's Financial Strength, along with its competitors' market caps and Financial Strength 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 Financial Strength vs Industrial Distribution Industry

For the Industrial Distribution industry and Industrials sector, Ferguson Enterprises's Financial Strength distribution charts can be found below:

* The bar in red indicates where Ferguson Enterprises's Financial Strength falls into.


CHIX:FERGL
65GF Score
Ferguson Enterprises Inc CHIX:FERGL
Financial Strength is just one metric. See GF Score™, valuation, warning signs, and more.
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Ferguson Enterprises Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

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:

Ferguson Enterprises's Interest Expense for the months ended in Jun. 2026 was £-39 Mil. Its Operating Income for the months ended in Jun. 2026 was £671 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2026 was £4,472 Mil.

Ferguson Enterprises's Interest Coverage for the quarter that ended in Jun. 2026 is

Interest Coverage=-1*Operating Income (Q: Jun. 2026 )/Interest Expense (Q: Jun. 2026 )
=-1*671.25/-39
=17.21

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Ferguson Enterprises's Debt to Revenue Ratio for the quarter that ended in Jun. 2026 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2026 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(693.75 + 4471.5) / 26253
=0.20

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Ferguson Enterprises has a Z-score of 5.13, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 5.13 is strong.

* 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.

Frequently Asked Questions Learn more about Financial Strength →
What does a Financial Strength of 7 mean?
Ferguson Enterprises (CHIX:FERGL) has a Financial Strength of 7 as of Jun. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Ferguson Enterprises and its competitors. This is near median its historical median of 7.00. Over the past decade, Ferguson Enterprises' Financial Strength has ranged from 6.00 to 8.00.
Is Ferguson Enterprises' Financial Strength too high?
Ferguson Enterprises' current Financial Strength of 7 is near median its 10-year median of 7.00. Over the past 10 years, this metric has ranged from a low of 6.00 to a high of 8.00. Overall, Ferguson Enterprises has a GF Score™ of 65/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Ferguson Enterprises' Financial Strength compare to FAST and GWW?
Ferguson Enterprises' Financial Strength of 7 can be compared against companies in the Industrial Distribution industry. Historically, Ferguson Enterprises' own Financial Strength has ranged from 6.00 to 8.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for an Industrial Distribution company?
A good Financial Strength depends on the Industrial Distribution industry context. However, Financial Strength should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Ferguson Enterprises and its competitors. Ferguson Enterprises's current Financial Strength is 7, which is near median its own 10-year median of 7.00. 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 (CHIX:FERGL) is currently considered Fairly Valued. The stock's GF Value™ is £182.08, compared to a current price of £174.10 — trading 4.4% below its estimated fair value. The current Financial Strength is 7, which is near median its 10-year median of 7.00. Ferguson Enterprises' overall GF Score™ is 65/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For Ferguson Enterprises (CHIX:FERGL), the current Financial Strength is 7 as of Jun. 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 (CHIX:FERGL) Overvalued in 2026?

Based on GuruFocus' analysis, Ferguson Enterprises stock appears to be undervalued. The current stock price of £174.10 is trading 4.4% below its estimated GF Value™ of £182.08. GuruFocus considers Ferguson Enterprises to be Fairly Valued.

Key valuation signals for CHIX:FERGL:

  • Financial Strength: 7 (near median its 10-year median of 7.00)
  • GF Value™: £182.08 vs. price of £174.10 (4.4% below fair value)
  • GF Score™: 65/100 with 1 warning sign

No single metric tells the full story. See the CHIX:FERGL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Ferguson Enterprises Business Description

Other Exchanges FERG:USAFERG:UKUH3:Germany
Address 751 Lakefront Commons, Newport News, VA, USA, 23606
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.
65GF Score

Get the complete analysis for CHIX:FERGL

Financial Strength is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

£174.10
Price
£182.08
GF Value