📊 AI Stock Rating — Summary

Ferguson PLC reported revenue of $8.17 billion with a net income of $570 million, resulting in an EPS of $2.91 for the quarter ending October 31, 2025. The company demonstrated strong financial management with an operating cash flow of $430 million and free cash flow of $312 million after capital expenditures of $118 million. With a net margin of approximately 6.98%, Ferguson showcases a stable profitability profile. Year-on-year growth metrics are not provided, but balance sheet strength is evident with total assets valued at $17.69 billion and a healthy equity base of $6.06 billion. The company has maintained its dividend policy, distributing $0.89 in January 2026, signaling confidence in stable cash flows. Analyst targets range from $220 to $291.99, suggesting potential further upside. However, the specific year-over-year price change is not mentioned, which is crucial for a comprehensive assessment of shareholder returns.

AI Score Breakdown

Revenue Growth — Score: 7/10

The company's sizeable revenue of $8.17 billion showcases solid market demand. However, without year-over-year data, growth rates are unclear. Stability in revenue reflects consistent performance.

Profitability — Score: 8/10

Strong net income of $570 million and an EPS of $2.91 indicate efficient operations with a reasonable net margin of approximately 6.98%. Profitability remains robust, supporting positive earnings trends.

Cash Flow Quality — Score: 7/10

Free cash flow of $312 million and operating cash flow of $430 million underscore a solid cash generation capability. Dividends were maintained, reflecting strategic cash allocation.

Leverage & Balance Sheet — Score: 6/10

The balance sheet reflects a net debt of $5.49 billion, with a debt-to-equity ratio roughly near 0.91, indicating moderate leverage. The overall position is stable but suggests room for reducing leverage.

Shareholder Returns — Score: 5/10

Consistent dividends were paid throughout the year, enhancing investor returns. The lack of share repurchases and the absence of specific price performance data limit the evaluation of this category.

Analyst Sentiment & Valuation — Score: 7/10

Analyst price targets up to $291.99 suggest potential upside. The lack of detailed valuation metrics makes it challenging to assess relative valuation comprehensively.

⚠ AI-generated — informational only, not financial advice.