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Ferguson Enterprises (FRA:UH3) Altman Z-Score : 4.71 (As of Dec. 12, 2024)


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What is Ferguson Enterprises Altman Z-Score?

The Altman Z-Score is a model designed to predict the likelihood of a company going bankrupt within the next two years. Created by American finance professor Edward Altman in 1968, the model is specifically designed for publicly traded manufacturing companies with assets greater than $1 million.

Good Sign:

Altman Z-score of 4.62 is strong.

Ferguson Enterprises has a Altman Z-Score of 4.71, indicating it is in Safe Zones. This implies the Altman Z-Score is strong.

The zones of discrimination were as such:

When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.

The historical rank and industry rank for Ferguson Enterprises's Altman Z-Score or its related term are showing as below:

FRA:UH3' s Altman Z-Score Range Over the Past 10 Years
Min: 2.88   Med: 4.81   Max: 5.88
Current: 4.62

During the past 13 years, Ferguson Enterprises's highest Altman Z-Score was 5.88. The lowest was 2.88. And the median was 4.81.


Ferguson Enterprises Altman Z-Score Historical Data

The historical data trend for Ferguson Enterprises's Altman Z-Score 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.

* Premium members only.

Ferguson Enterprises Altman Z-Score Chart

Ferguson Enterprises Annual Data
Trend Jul15 Jul16 Jul17 Jul18 Jul19 Jul20 Jul21 Jul22 Jul23 Jul24
Altman Z-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.04 5.20 4.84 5.23 5.88

Ferguson Enterprises Quarterly Data
Jul19 Jan20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24
Altman Z-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.01 5.72 5.71 5.88 4.66

Competitive Comparison of Ferguson Enterprises's Altman Z-Score

For the Industrial Distribution subindustry, Ferguson Enterprises's Altman Z-Score, along with its competitors' market caps and Altman Z-Score 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's Altman Z-Score Distribution in the Industrial Distribution Industry

For the Industrial Distribution industry and Industrials sector, Ferguson Enterprises's Altman Z-Score distribution charts can be found below:

* The bar in red indicates where Ferguson Enterprises's Altman Z-Score falls into.



Ferguson Enterprises Altman Z-Score Calculation

Altman Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

Ferguson Enterprises's Altman Z-Score for today is calculated with this formula:

Z=1.2*X1+1.4*X2+3.3*X3+0.6*X4+1.0*X5
=1.2*0.2305+1.4*0+3.3*0.1536+0.6*3.5886+1.0*1.7704
=4.71

* 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. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.

Trailing Twelve Months (TTM) ended in Oct. 2024:
Total Assets was €15,476 Mil.
Total Current Assets was €8,836 Mil.
Total Current Liabilities was €5,268 Mil.
Retained Earnings was €0 Mil.
Pre-Tax Income was 572.832 + 699.798 + 541.492 + 397.494 = €2,212 Mil.
Interest Expense was -42.228 + -43.334 + -40.076 + -40.392 = €-166 Mil.
Revenue was 7134.696 + 7326.212 + 6811.056 + 6125.814 = €27,398 Mil.
Market Cap (Today) was €36,906 Mil.
Total Liabilities was €10,284 Mil.

* Note that for stock reported semi-annually or annually, GuruFocus uses latest annual data as the TTM data.

X1=Working Capital/Total Assets
=(Total Current Assets - Total Current Liabilities)/Total Assets
=(8835.75 - 5268.402)/15475.644
=0.2305

X2=Retained Earnings/Total Assets
=0/15475.644
=0

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(2211.616 - -166.03)/15475.644
=0.1536

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=36906.463/10284.354
=3.5886

X5=Revenue/Total Assets
=27397.778/15475.644
=1.7704

The zones of discrimination were as such:

Distress Zones - 1.81 < Grey Zones < 2.99 - Safe Zones

Ferguson Enterprises has a Altman Z-Score of 4.71 indicating it is in Safe Zones.

Study by Altman found that companies that are in Distress Zone have more than 80% of chances of bankruptcy in two years.


Ferguson Enterprises  (FRA:UH3) Altman Z-Score Explanation

X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.

X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.

X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.

X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.

X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.

Read more about Altman Z-Score and the original research.


Be Aware

Altman Z-Score does not apply to financial companies.


Ferguson Enterprises Altman Z-Score Related Terms

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Ferguson Enterprises Business Description

Traded in Other Exchanges
Address
751 Lakefront Commons, Newport News, VA, USA, 23606
Ferguson distributes plumbing and HVAC products primarily to 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. In fiscal 2023, Ferguson derived 95% of its nearly $30 billion of sales in the United States According to Modern Distribution Management, Ferguson is the largest industrial and construction distributor in North America. The firm sold its UK business in 2021 and is now solely focused on the North American market.

Ferguson Enterprises Headlines

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