Ferguson EnterprisesFERG +0.45%89 Return-on-Tangible-Equity is 58.85% as of Mar. 2026, which is 7% above its 10-year median of 54.96. GuruFocus rates FERG with a GF Score™ of 89/100 and a GF Value™ of $230.51 (Fairly Valued). The stock has 1 warning sign investors should review. Among 153 Industrial Distribution companies, Ferguson Enterprises ranks better than 86.93% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Ferguson Enterprises's annualized net income for the quarter that ended in Mar. 2026 was $1,656 Mil. Ferguson Enterprises's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $2,814 Mil. Therefore, Ferguson Enterprises's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 58.85%.
The historical rank and industry rank for Ferguson Enterprises's Return-on-Tangible-Equity or its related term are showing as below:
FERG'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 33.41 Med: 54.96 Max: 98.18
Current: 78.84
During the past 13 years, Ferguson Enterprises's highest Return-on-Tangible-Equity was 98.18%. The lowest was 33.41%. And the median was 54.96%.
FERG's Return-on-Tangible-Equity is ranked better than 86.93% of 153
companies
in the Industrial Distribution industry
Industry Median: 9.08
vs FERG: 78.84
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Ferguson Enterprises Return-on-Tangible-Equity Related Terms
Ferguson Enterprises Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Ferguson Enterprises's Return-on-Tangible-Equity 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-Equity Comparison
For the Industrial Distribution subindustry, Ferguson Enterprises's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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-Equity vs Industrial Distribution Industry
For the Industrial Distribution industry and Industrials sector, Ferguson Enterprises's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Ferguson Enterprises's Return-on-Tangible-Equity 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-Equity, the net income of the last fiscal year and the average total shareholder tangible equity 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.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 58.85% mean?
Ferguson Enterprises (FERG) has a Return-on-Tangible-Equity of 58.85% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Ferguson Enterprises and its competitors. This is near median its historical median of 54.96. Over the past decade, Ferguson Enterprises' Return-on-Tangible-Equity has ranged from 33.41 to 98.18. According to the industry distribution chart, Ferguson Enterprises ranks #20 out of 153 companies in the Industrial Distribution industry, placing it in the top 13.1%.
Is Ferguson Enterprises' Return-on-Tangible-Equity too high?
Ferguson Enterprises' current Return-on-Tangible-Equity of 58.85% is near median its 10-year median of 54.96. Over the past 10 years, this metric has ranged from a low of 33.41 to a high of 98.18. The Industrial Distribution industry median Return-on-Tangible-Equity is 9.08. Ferguson Enterprises' value of 58.85% is 548.1% above this industry median. Based on the distribution chart, Ferguson Enterprises ranks #20 out of 153 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-Equity compare to FAST and GWW?
According to the Industrial Distribution industry distribution chart, Ferguson Enterprises ranks #20 out of 153 companies for Return-on-Tangible-Equity. This places Ferguson Enterprises in the top 13% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 9.08. Ferguson Enterprises' value of 58.85% is 548.1% above this benchmark. Historically, Ferguson Enterprises' own Return-on-Tangible-Equity has ranged from 33.41 to 98.18 over the past decade. While the company's 10-year median is 54.96 vs. the industry median of 9.08, 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-Equity for an Industrial Distribution company?
The median Return-on-Tangible-Equity among Industrial Distribution companies is 9.08, based on 153 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Ferguson Enterprises's current Return-on-Tangible-Equity of 58.85% is 548.1% 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-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Ferguson Enterprises and its competitors. For the Industrial Distribution industry, the median Return-on-Tangible-Equity is 9.08 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ferguson Enterprises's current Return-on-Tangible-Equity is 58.85%, which is near median its own 10-year median of 54.96. 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 $230.51, compared to a current price of $230.24 — trading 0.1% below its estimated fair value. The current Return-on-Tangible-Equity is 58.85%, which is near median its 10-year median of 54.96 and 548.1% above the Industrial Distribution industry median of 9.08. 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-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Ferguson Enterprises (FERG), the current Return-on-Tangible-Equity is 58.85% 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 undervalued.
The current stock price of $230.24 is trading 0.1% below its estimated GF Value™ of $230.51.
GuruFocus considers Ferguson Enterprises to be Fairly Valued.
Key valuation signals for FERG:
Return-on-Tangible-Equity: 58.85% (near median its 10-year median of 54.96)
GF Value™: $230.51 vs. price of $230.24 (0.1% below fair value)
Industry Position: 548.1% above the Industrial Distribution median (#20 of 153)
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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