FERG (Ferguson Enterprises) ROCE %: 19.80% (As of Mar. 2026)

What is Ferguson Enterprises ROCE %?

Ferguson Enterprises FERG +1.12% 88 ROCE % is 19.80% as of Mar. 2026. 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.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Ferguson Enterprises's annualized ROCE % for the quarter that ended in Mar. 2026 was 19.80%.

Ferguson Enterprises (NYSE:FERG) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Ferguson Enterprises ROCE % Related Terms

Ferguson Enterprises ROCE % Historical Data

* Premium members only.

The historical data trend for Ferguson Enterprises's ROCE % 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.

Ferguson Enterprises ROCE % Chart

Ferguson Enterprises Annual Data

Trend

Jul16

Jul17

Jul18

Jul19

Jul20

Jul21

Jul22

Jul23

Jul24

Jul25

ROCE %

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22.17

29.94

25.93

24.11

22.67

Ferguson Enterprises Quarterly Data
	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24	Apr24	Jul24	Oct24	Jan25	Apr25	Jul25	Oct25	Mar26
ROCE %	Get a 7-Day Free Trial															14.80	21.19	32.08	25.21	19.80

88GF Score

Ferguson Enterprises Inc FERG

ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.

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Ferguson Enterprises ROCE % Calculation

Ferguson Enterprises's annualized ROCE % for the fiscal year that ended in Jul. 2025 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Jul. 2025 )		(A: Jul. 2024 )		(A: Jul. 2025 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Jul. 2025 )		(A: Jul. 2024 )		(A: Jul. 2025 )
	=	2613	/	( ( (16572 - 5216)	+	(17729 - 6028) )	/ 2 )
	=	2613	/	( (11356	+	11701)	/ 2 )
	=	2613	/	11528.5
	=	22.67 %

Ferguson Enterprises's ROCE % of for the quarter that ended in Mar. 2026 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Mar. 2026 )		(Q: Oct. 2025 )		(Q: Mar. 2026 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Mar. 2026 )		(Q: Oct. 2025 )		(Q: Mar. 2026 )
	=	2420	/	( ( (17694 - 5339)	+	(17789 - 5698) )	/ 2 )
	=	2420	/	( ( 12355	+	12091 )	/ 2 )
	=	2420	/	12223
	=	19.80 %

(1) Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

Frequently Asked Questions Learn more about ROCE % →

What does a ROCE % of 19.80% mean?

Ferguson Enterprises (FERG) has a ROCE % of 19.80% as of Mar. 2026.

Is Ferguson Enterprises' ROCE % too high?

Ferguson Enterprises' current ROCE % is 19.80%. The Industrial Distribution industry median ROCE % is 9.60. Ferguson Enterprises' value of 19.80% is 106.3% above this industry median. 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' ROCE % compare to FAST and GWW?

Ferguson Enterprises' ROCE % of 19.80% can be compared against companies in the Industrial Distribution industry. The industry median ROCE % is 9.60. Ferguson Enterprises' value of 19.80% is 106.3% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.

What is a good ROCE % for an Industrial Distribution company?

The median ROCE % among Industrial Distribution companies is 9.60, based on 157 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Ferguson Enterprises's current ROCE % of 19.80% is 106.3% 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 ROCE % mean?

A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Industrial Distribution industry, the median ROCE % is 9.60 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ferguson Enterprises's current ROCE % is 19.80%. 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 ROCE % is 19.80% and 106.3% above the Industrial Distribution industry median of 9.60. 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 ROCE % calculated?

ROCE % is calculated from a company's financial statements. For Ferguson Enterprises (FERG), the current ROCE % is 19.80% 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:

ROCE %: 19.80%
GF Value™: $229.79 vs. price of $236.68 (3% above fair value)
GF Score™: 88/100 with 1 warning sign
Industry Position: 106.3% above the Industrial Distribution median

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 Enterprises Business Description

Industry Industrials Industrial Distribution

Comparable Companies FAST GWW WCC WSO QXO AIT CNM POOL MSM XMTR TSX:TIH LSE:DPLM TSX:FTT OSTO:ADDT B OSTO:INDT OSTO:BEIJ B ASX:REH SITE REZI LSE:RS1

Other Exchanges FERGl:UK FERG:UK UH3:Germany

Address 751 Lakefront Commons, Newport News, VA, USA, 23606

Website https://www.ferguson.com

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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$236.68

Price

$229.79

GF Value

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