Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments.
Ferguson Enterprises's 3-Year RORE % for the quarter that ended in Mar. 2026 was 0.00%.
The industry rank for Ferguson Enterprises's 3-Year RORE % or its related term are showing as below:
FERG's 3-Year RORE % is not ranked *
in the Industrial Distribution industry.
Industry Median: 3.31 * Ranked among companies with meaningful 3-Year RORE % only.
Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.
There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 3-year period is chosen.
Be Aware
Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.
Ferguson Enterprises 3-Year RORE % Related Terms
Ferguson Enterprises 3-Year RORE % Historical Data
* Premium members only.
The historical data trend for Ferguson Enterprises's 3-Year RORE % 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 RORE %, along with its competitors' market caps and 3-Year RORE % 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 RORE % vs Industrial Distribution Industry
For the Industrial Distribution industry and Industrials sector, Ferguson Enterprises's 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where Ferguson Enterprises's 3-Year RORE % 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 3-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Mar. 2026 and 3-year before.
Ferguson Enterprises (FERG) has a 3-Year RORE % of 0.00 as of Mar. 2026. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Ferguson Enterprises and its competitors. According to the industry distribution chart, Ferguson Enterprises ranks #999999 out of 147 companies in the Industrial Distribution industry.
Is Ferguson Enterprises' 3-Year RORE % too high?
Ferguson Enterprises' current 3-Year RORE % is 0.00. Based on the distribution chart, Ferguson Enterprises ranks #999999 out of 147 companies in the Industrial Distribution industry, which is in the bottom quartile 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' 3-Year RORE % compare to FAST and GWW?
According to the Industrial Distribution industry distribution chart, Ferguson Enterprises ranks #999999 out of 147 companies for 3-Year RORE %. This places Ferguson Enterprises in the lower half of its industry. The industry median 3-Year RORE % is 3.31. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year RORE % for an Industrial Distribution company?
The median 3-Year RORE % among Industrial Distribution companies is 3.31, based on 147 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year RORE % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year RORE % 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 RORE % mean?
A high 3-Year RORE % can signal that a stock is expensive relative to its fundamentals. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Ferguson Enterprises and its competitors. For the Industrial Distribution industry, the median 3-Year RORE % is 3.31 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ferguson Enterprises's current 3-Year RORE % is 0.00. 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 $230.80, compared to a current price of $223.18 — trading 3.3% below its estimated fair value. The current 3-Year RORE % is 0.00. 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 RORE % calculated?
3-Year RORE % is calculated from a company's financial statements. For Ferguson Enterprises (FERG), the current 3-Year RORE % is 0.00 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 $223.18 is trading 3.3% below its estimated GF Value™ of $230.80.
GuruFocus considers Ferguson Enterprises to be Fairly Valued.
Key valuation signals for FERG:
3-Year RORE %: 0.00
GF Value™: $230.80 vs. price of $223.18 (3.3% 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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