Ferguson plc cash flow to debt ratio of 32.00% indicates that the company generates enough cash to cover its debts. This level indicates strong financial health.

Ferguson plc's free cash flow has increased 6.80% from $1.50B last year to $1.60B, signaling increasing performance

Ferguson plc's debt to equity ratio is 0.96, which means that the company's assets are unhealthy financed, signaling financial risk.

Ferguson plc's debt has decreased relative to shareholder equity from 1.02 last year to 0.96 today, signaling strengthened financials

Ferguson plc has a net debt to EBITDA ratio of 6.15x, which exceeds the 3.00x threshold, indicating high leverage and potential financial risk

Ferguson plc's interest coverage ratio of 15.04 indicates that earnings with good margin can cover interest payments on company debt

Ferguson plc's profit margin has increased (5.98%) in the last year from 6.03% to 6.39%, signaling increasing performance

Ferguson plc's short-term assets of $11.03B exceed its short-term liabilities of $6.38B

Ferguson plc's return on assets of 10.56% is higher than the 5.00% threshold, indicating efficient asset utilization

Ferguson plc's return on equity of 34.00%, is higher than 15.00%, indicating good performance

Ferguson plc's operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation

Ferguson plc had positive net income in 5 out of 5 years, indicating stable and consistent earnings

Ferguson plc has positive free cash flow, indicating the company generates cash after capital expenditures

Ferguson plc has a free cash flow yield of 3.13%, which is above the 2.00% threshold, indicating strong cash generation relative to market value

Ferguson plc's yearly earnings has decreased 64.12% since last year from $1.86B to $666.00M, signaling decreasing performance

Ferguson plc's yearly revenue has decreased 71.55% since last year from $30.76B to $8.75B, signaling decreasing performance

ROIC 16.51% (Source: FMP key-metrics). At or above the 10% threshold. Score: 2 of 2. The company is generating returns above the upper end of the typical US weighted-average cost of capital range under this definition of invested capital.

Ferguson plc's 3-year revenue CAGR of -33.48% is negative, indicating declining revenue over the past 3 years

Ferguson plc had revenue growth in 3 out of 5 years, indicating consistent revenue performance

Ferguson plc had positive ROE in 5 out of 5 years, indicating consistent and reliable returns on equity

Ferguson plc is overvalued relative to its fair value price of 91.54 based on Discounted Cash Flow model

Ferguson plc has an earnings yield of 3.99%, which is below the 4.00% threshold, indicating the stock may be expensive relative to its earnings

Ferguson plc is overvalued relative to its fair value price of 82.93 based on EBITDA multiple model

Ferguson plc has an EV/EBITDA ratio of 63.12x, which exceeds the 20.00x threshold, indicating the stock may be overvalued relative to its operating earnings

Ferguson plc is overvalued relative to its fair value price of 26.89 based on Earnings Fair Value model

Ferguson plc's earnings growth over the measurement period is negative; the PEG ratio is not meaningful and the check fails.

Ferguson plc has a price-to-book ratio of 8.24x, which exceeds the 5.00x threshold, indicating the stock may be overvalued relative to its book value

Ferguson plc has a price-to-sales ratio of 1.60x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue