Ferguson EnterprisesFERG +1.12%88 ROA % is 9.33% as of Mar. 2026, which is 13% below its 10-year median of 10.74. 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 94.27% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Ferguson Enterprises's annualizedNet Income for the quarter that ended in Mar. 2026 was $1,656 Mil.
Ferguson Enterprises's average Total Assets over the quarter that ended in Mar. 2026 was $17,742 Mil. Therefore, Ferguson Enterprises's annualized ROA % for the quarter that ended in Mar. 2026 was 9.33%.
The historical rank and industry rank for Ferguson Enterprises's ROA % or its related term are showing as below:
FERG'
s ROA % Range Over the Past 10 Years
Min: 7.74 Med: 10.74 Max: 14.45
Current: 11.88
During the past 13 years, Ferguson Enterprises's highest ROA % was 14.45%. The lowest was 7.74%. And the median was 10.74%.
FERG's ROA % is ranked better than 94.27% of 157
companies
in the Industrial Distribution industry
Industry Median: 3.76
vs FERG: 11.88
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data.
* 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % 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 ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
* 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 ROA %, along with its competitors' market caps and ROA % 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 ROA % vs Industrial Distribution Industry
For the Industrial Distribution industry and Industrials sector, Ferguson Enterprises's ROA % distribution charts can be found below:
* The bar in red indicates where Ferguson Enterprises's ROA % 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 ROA %, the net income of the last fiscal year and the average total 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.
ROA % is displayed in the 30-year financial page.
Ferguson Enterprises (FERG) has a ROA % of 9.33% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Ferguson Enterprises and its competitors. This is 13% below median its historical median of 10.74. Over the past decade, Ferguson Enterprises' ROA % has ranged from 7.74 to 14.45. According to the industry distribution chart, Ferguson Enterprises ranks #9 out of 157 companies in the Industrial Distribution industry, placing it in the top 5.7%.
Is Ferguson Enterprises' ROA % too high?
Ferguson Enterprises' current ROA % of 9.33% is 13% below median its 10-year median of 10.74. Over the past 10 years, this metric has ranged from a low of 7.74 to a high of 14.45. The Industrial Distribution industry median ROA % is 3.76. Ferguson Enterprises' value of 9.33% is 148.1% above this industry median. Based on the distribution chart, Ferguson Enterprises ranks #9 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' ROA % compare to FAST and GWW?
According to the Industrial Distribution industry distribution chart, Ferguson Enterprises ranks #9 out of 157 companies for ROA %. This places Ferguson Enterprises in the top 6% of its industry — outperforming the majority of peers. The industry median ROA % is 3.76. Ferguson Enterprises' value of 9.33% is 148.1% above this benchmark. Historically, Ferguson Enterprises' own ROA % has ranged from 7.74 to 14.45 over the past decade. While the company's 10-year median is 10.74 vs. the industry median of 3.76, 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 ROA % for an Industrial Distribution company?
The median ROA % among Industrial Distribution companies is 3.76, based on 157 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Ferguson Enterprises's current ROA % of 9.33% is 148.1% 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Ferguson Enterprises and its competitors. For the Industrial Distribution industry, the median ROA % is 3.76 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ferguson Enterprises's current ROA % is 9.33%, which is 13% below median its own 10-year median of 10.74. 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 ROA % is 9.33%, which is 13% below median its 10-year median of 10.74 and 148.1% above the Industrial Distribution industry median of 3.76. 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 ROA % calculated?
ROA % is calculated from a company's financial statements. For Ferguson Enterprises (FERG), the current ROA % is 9.33% 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:
ROA %: 9.33% (13% below median its 10-year median of 10.74)
GF Value™: $229.79 vs. price of $236.68 (3% above fair value)
Industry Position: 148.1% above the Industrial Distribution median (#9 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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