Ferguson EnterprisesFERG +1.26%89 ROC (Joel Greenblatt) % is 29.45% as of Mar. 2026, which is 25% below its 10-year median of 39.02. GuruFocus rates FERG with a GF Score™ of 89/100 and a GF Value™ of $231.02 (Fairly Valued). The stock has 1 warning sign investors should review. Among 157 Industrial Distribution companies, Ferguson Enterprises ranks better than 84.08% on this metric.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits). He defines ROC (Joel Greenblatt) % as EBIT divided by the total of Property, Plant and Equipment and net working capital. Ferguson Enterprises's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 29.45%.
The historical rank and industry rank for Ferguson Enterprises's ROC (Joel Greenblatt) % or its related term are showing as below:
FERG'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 26.65 Med: 39.02 Max: 51.94
Current: 36.15
During the past 13 years, Ferguson Enterprises's highest ROC (Joel Greenblatt) % was 51.94%. The lowest was 26.65%. And the median was 39.02%.
FERG's ROC (Joel Greenblatt) % is ranked better than 84.08% of 157
companies
in the Industrial Distribution industry
Industry Median: 14.41
vs FERG: 36.15
Ferguson Enterprises's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was -2.30% per year.
The way Joel Greenblatt defines Return on Capital is a more accurate measure of how efficiently the company generates returns onthe capital actually invested in the business. EBIT is used instead of net income because the tax and interest payment may be affected by factors other than the core business operation. Intangible assets are not included in the calculation because they don't need to be replaced.
Ferguson Enterprises ROC (Joel Greenblatt) % Related Terms
Ferguson Enterprises ROC (Joel Greenblatt) % Historical Data
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The historical data trend for Ferguson Enterprises's ROC (Joel Greenblatt) % 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: ROC (Joel Greenblatt) % Comparison
For the Industrial Distribution subindustry, Ferguson Enterprises's ROC (Joel Greenblatt) %, along with its competitors' market caps and ROC (Joel Greenblatt) % 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 ROC (Joel Greenblatt) % vs Industrial Distribution Industry
For the Industrial Distribution industry and Industrials sector, Ferguson Enterprises's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Ferguson Enterprises's ROC (Joel Greenblatt) % falls into.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits) . He defines Return on Capital as follows:
EBIT stands for Earnings Before Interest and Taxes.
Fixed Assets are also known as non-current assets. They include the Property, Plant and Equipment that the firm needs in its operation.
GuruFocus calculates net working capital as: (Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Deferred Revenue + Other Current Liabilities). We're trying to account for OPERATING assets and liabilities (part of daily business) when calculating working capital. Cash and marketable securities are considered NON-OPERATING assets and are not included in calculation. We will also back out all interest bearing debt, short term debt and the portion of long term debt that is due in the current period from the current liabilities. This debt will be considered when computing cost of capital and it would be inappropriate to count it twice.
Note:
The EBIT data used here is four times the quarterly (Mar. 2026) EBIT 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.
What does a ROC (Joel Greenblatt) % of 29.45% mean?
Ferguson Enterprises (FERG) has a ROC (Joel Greenblatt) % of 29.45% as of Mar. 2026. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Ferguson Enterprises and its competitors. This is 25% below median its historical median of 39.02. Over the past decade, Ferguson Enterprises' ROC (Joel Greenblatt) % has ranged from 26.65 to 51.94. According to the industry distribution chart, Ferguson Enterprises ranks #25 out of 157 companies in the Industrial Distribution industry, placing it in the top 15.9%.
Is Ferguson Enterprises' ROC (Joel Greenblatt) % too high?
Ferguson Enterprises' current ROC (Joel Greenblatt) % of 29.45% is 25% below median its 10-year median of 39.02. Over the past 10 years, this metric has ranged from a low of 26.65 to a high of 51.94. The Industrial Distribution industry median ROC (Joel Greenblatt) % is 14.41. Ferguson Enterprises' value of 29.45% is 104.4% above this industry median. Based on the distribution chart, Ferguson Enterprises ranks #25 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 89/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Ferguson Enterprises' ROC (Joel Greenblatt) % compare to FAST and GWW?
According to the Industrial Distribution industry distribution chart, Ferguson Enterprises ranks #25 out of 157 companies for ROC (Joel Greenblatt) %. This places Ferguson Enterprises in the top 16% of its industry — outperforming the majority of peers. The industry median ROC (Joel Greenblatt) % is 14.41. Ferguson Enterprises' value of 29.45% is 104.4% above this benchmark. Historically, Ferguson Enterprises' own ROC (Joel Greenblatt) % has ranged from 26.65 to 51.94 over the past decade. While the company's 10-year median is 39.02 vs. the industry median of 14.41, 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 ROC (Joel Greenblatt) % for an Industrial Distribution company?
The median ROC (Joel Greenblatt) % among Industrial Distribution companies is 14.41, based on 157 companies in the industry. Companies in the top quartile (top 25%) have a ROC (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, ROC (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Ferguson Enterprises's current ROC (Joel Greenblatt) % of 29.45% is 104.4% 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 ROC (Joel Greenblatt) % mean?
A high ROC (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Ferguson Enterprises and its competitors. For the Industrial Distribution industry, the median ROC (Joel Greenblatt) % is 14.41 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ferguson Enterprises's current ROC (Joel Greenblatt) % is 29.45%, which is 25% below median its own 10-year median of 39.02. 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 $231.02, compared to a current price of $227.46 — trading 1.5% below its estimated fair value. The current ROC (Joel Greenblatt) % is 29.45%, which is 25% below median its 10-year median of 39.02 and 104.4% above the Industrial Distribution industry median of 14.41. 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 ROC (Joel Greenblatt) % calculated?
ROC (Joel Greenblatt) % is calculated from a company's financial statements. For Ferguson Enterprises (FERG), the current ROC (Joel Greenblatt) % is 29.45% 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 $227.46 is trading 1.5% below its estimated GF Value™ of $231.02.
GuruFocus considers Ferguson Enterprises to be Fairly Valued.
Key valuation signals for FERG:
ROC (Joel Greenblatt) %: 29.45% (25% below median its 10-year median of 39.02)
GF Value™: $231.02 vs. price of $227.46 (1.5% below fair value)
Industry Position: 104.4% above the Industrial Distribution median (#25 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.
89GF Score
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