3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
Ferguson Enterprises's 3-Year ROIIC % for the quarter that ended in Jul. 2025 was -5.85%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Ferguson Enterprises's 3-Year ROIIC % or its related term are showing as below:
FERG's 3-Year ROIIC % is ranked worse than 68.46% of 149
companies
in the Industrial Distribution industry
Industry Median: 4.02
vs FERG: -5.85
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Ferguson Enterprises 3-Year ROIIC % Related Terms
Ferguson Enterprises 3-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for Ferguson Enterprises's 3-Year ROIIC % 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.
For the Industrial Distribution subindustry, Ferguson Enterprises's 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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 3-Year ROIIC % vs Industrial Distribution Industry
For the Industrial Distribution industry and Industrials sector, Ferguson Enterprises's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Ferguson Enterprises's 3-Year ROIIC % falls into.
Ferguson Enterprises's 3-Year ROIIC % for the quarter that ended in Jul. 2025 is calculated as:
3-Year ROIIC %
=
3-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
3-Year Incremental Invested Capital**
=
( 2057.476 (Jul. 2025) - 2185.782 (Jul. 2022) )
/
( 13478 (Jul. 2025) - 11283 (Jul. 2022) )
=
-128.306
/
2195
=
-5.85%***
* 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.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Ferguson Enterprises (FERG) has a 3-Year ROIIC % of -5.85 as of Jul. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Ferguson Enterprises and its competitors. According to the industry distribution chart, Ferguson Enterprises ranks #102 out of 149 companies in the Industrial Distribution industry, placing it in the top 68.5%.
Is Ferguson Enterprises' 3-Year ROIIC % too high?
Ferguson Enterprises' current 3-Year ROIIC % is -5.85. Based on the distribution chart, Ferguson Enterprises ranks #102 out of 149 companies in the Industrial Distribution industry, which is below the industry midpoint. 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' 3-Year ROIIC % compare to FAST and GWW?
According to the Industrial Distribution industry distribution chart, Ferguson Enterprises ranks #102 out of 149 companies for 3-Year ROIIC %. This places Ferguson Enterprises in the lower half of its industry. The industry median 3-Year ROIIC % is 4.02. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year ROIIC % for an Industrial Distribution company?
The median 3-Year ROIIC % among Industrial Distribution companies is 4.02, based on 149 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Ferguson Enterprises and its competitors. For the Industrial Distribution industry, the median 3-Year ROIIC % is 4.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ferguson Enterprises's current 3-Year ROIIC % is -5.85. 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 3-Year ROIIC % is -5.85. 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 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For Ferguson Enterprises (FERG), the current 3-Year ROIIC % is -5.85 as of Jul. 2025. 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:
3-Year ROIIC %: -5.85
GF Value™: $231.02 vs. price of $227.46 (1.5% below fair value)
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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3-Year ROIIC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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