Ferguson EnterprisesFERG +1.12%88 ROE % is 27.76% as of Mar. 2026, which is 9% below its 10-year median of 30.44. 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 156 Industrial Distribution companies, Ferguson Enterprises ranks better than 96.15% on this metric.
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
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. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.
* 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 ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Industrial Distribution Industry
For the Industrial Distribution industry and Industrials sector, Ferguson Enterprises's ROE % distribution charts can be found below:
* The bar in red indicates where Ferguson Enterprises's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder 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.
ROE % is displayed in the 30-year financial page.
Ferguson Enterprises (FERG) has a ROE % of 27.76% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Ferguson Enterprises and its competitors. This is near median its historical median of 30.44. Over the past decade, Ferguson Enterprises' ROE % has ranged from 21.96 to 43.90. According to the industry distribution chart, Ferguson Enterprises ranks #6 out of 156 companies in the Industrial Distribution industry, placing it in the top 3.8%.
Is Ferguson Enterprises' ROE % too high?
Ferguson Enterprises' current ROE % of 27.76% is near median its 10-year median of 30.44. Over the past 10 years, this metric has ranged from a low of 21.96 to a high of 43.90. The Industrial Distribution industry median ROE % is 7.24. Ferguson Enterprises' value of 27.76% is 283.7% above this industry median. Based on the distribution chart, Ferguson Enterprises ranks #6 out of 156 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' ROE % compare to FAST and GWW?
According to the Industrial Distribution industry distribution chart, Ferguson Enterprises ranks #6 out of 156 companies for ROE %. This places Ferguson Enterprises in the top 4% of its industry — outperforming the majority of peers. The industry median ROE % is 7.24. Ferguson Enterprises' value of 27.76% is 283.7% above this benchmark. Historically, Ferguson Enterprises' own ROE % has ranged from 21.96 to 43.90 over the past decade. While the company's 10-year median is 30.44 vs. the industry median of 7.24, 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 ROE % for an Industrial Distribution company?
The median ROE % among Industrial Distribution companies is 7.24, based on 156 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Ferguson Enterprises's current ROE % of 27.76% is 283.7% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Ferguson Enterprises and its competitors. For the Industrial Distribution industry, the median ROE % is 7.24 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ferguson Enterprises's current ROE % is 27.76%, which is near median its own 10-year median of 30.44. 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 ROE % is 27.76%, which is near median its 10-year median of 30.44 and 283.7% above the Industrial Distribution industry median of 7.24. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For Ferguson Enterprises (FERG), the current ROE % is 27.76% 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:
ROE %: 27.76% (near median its 10-year median of 30.44)
GF Value™: $229.79 vs. price of $236.68 (3% above fair value)
Industry Position: 283.7% above the Industrial Distribution median (#6 of 156)
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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