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Ferguson EnterprisesFERG -0.89%89 Return-on-Tangible-Asset is 11.35% as of Mar. 2026, which is 13% below its 10-year median of 13.00. GuruFocus rates FERG with a GF Score™ of 89/100 and a GF Value™ of $231.45 (Fairly Valued). The stock has 1 warning sign investors should review. Among 158 Industrial Distribution companies, Ferguson Enterprises ranks better than 93.04% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Ferguson Enterprises's annualizedNet Income for the quarter that ended in Mar. 2026 was $1,656 Mil. Ferguson Enterprises's average total tangible assets for the quarter that ended in Mar. 2026 was $14,591 Mil. Therefore, Ferguson Enterprises's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was 11.35%.
The historical rank and industry rank for Ferguson Enterprises's Return-on-Tangible-Asset or its related term are showing as below:
FERG'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 8.97 Med: 13 Max: 17.56
Current: 14.49
During the past 13 years, Ferguson Enterprises's highest Return-on-Tangible-Asset was 17.56%. The lowest was 8.97%. And the median was 13.00%.
FERG's Return-on-Tangible-Asset is ranked better than 93.04% of 158
companies
in the Industrial Distribution industry
Industry Median: 4.2
vs FERG: 14.49
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Ferguson Enterprises Return-on-Tangible-Asset Related Terms
Ferguson Enterprises Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Ferguson Enterprises's Return-on-Tangible-Asset 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: Return-on-Tangible-Asset Comparison
For the Industrial Distribution subindustry, Ferguson Enterprises's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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 Return-on-Tangible-Asset vs Industrial Distribution Industry
For the Industrial Distribution industry and Industrials sector, Ferguson Enterprises's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Ferguson Enterprises's Return-on-Tangible-Asset 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.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
What does a Return-on-Tangible-Asset of 11.35% mean?
Ferguson Enterprises (FERG) has a Return-on-Tangible-Asset of 11.35% as of Mar. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Ferguson Enterprises and its competitors. This is 13% below median its historical median of 13.00. Over the past decade, Ferguson Enterprises' Return-on-Tangible-Asset has ranged from 8.97 to 17.56. According to the industry distribution chart, Ferguson Enterprises ranks #11 out of 158 companies in the Industrial Distribution industry, placing it in the top 7%.
Is Ferguson Enterprises' Return-on-Tangible-Asset too high?
Ferguson Enterprises' current Return-on-Tangible-Asset of 11.35% is 13% below median its 10-year median of 13.00. Over the past 10 years, this metric has ranged from a low of 8.97 to a high of 17.56. The Industrial Distribution industry median Return-on-Tangible-Asset is 4.20. Ferguson Enterprises' value of 11.35% is 170.2% above this industry median. Based on the distribution chart, Ferguson Enterprises ranks #11 out of 158 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 89/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Ferguson Enterprises' Return-on-Tangible-Asset compare to FAST and GWW?
According to the Industrial Distribution industry distribution chart, Ferguson Enterprises ranks #11 out of 158 companies for Return-on-Tangible-Asset. This places Ferguson Enterprises in the top 7% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 4.20. Ferguson Enterprises' value of 11.35% is 170.2% above this benchmark. Historically, Ferguson Enterprises' own Return-on-Tangible-Asset has ranged from 8.97 to 17.56 over the past decade. While the company's 10-year median is 13.00 vs. the industry median of 4.20, 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 Return-on-Tangible-Asset for an Industrial Distribution company?
The median Return-on-Tangible-Asset among Industrial Distribution companies is 4.20, based on 158 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Ferguson Enterprises's current Return-on-Tangible-Asset of 11.35% is 170.2% 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Ferguson Enterprises and its competitors. For the Industrial Distribution industry, the median Return-on-Tangible-Asset is 4.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ferguson Enterprises's current Return-on-Tangible-Asset is 11.35%, which is 13% below median its own 10-year median of 13.00. 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 (FERG) is currently considered Fairly Valued. The stock's GF Value™ is $231.45, compared to a current price of $232.02 — trading 0.2% above its estimated fair value. The current Return-on-Tangible-Asset is 11.35%, which is 13% below median its 10-year median of 13.00 and 170.2% above the Industrial Distribution industry median of 4.20. Ferguson Enterprises' overall GF Score™ is 89/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Ferguson Enterprises (FERG), the current Return-on-Tangible-Asset is 11.35% 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 $232.02 is trading 0.2% above its estimated GF Value™ of $231.45.
GuruFocus considers Ferguson Enterprises to be Fairly Valued.
Key valuation signals for FERG:
Return-on-Tangible-Asset: 11.35% (13% below median its 10-year median of 13.00)
GF Value™: $231.45 vs. price of $232.02 (0.2% above fair value)
Industry Position: 170.2% above the Industrial Distribution median (#11 of 158)
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.
89GF Score
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Return-on-Tangible-Asset is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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