Ferguson Plc EBITDA surged on 19.8% and EBITDA Margin increased slightly on 1.6 pp from 7.7% to 9.3%29 Sep 2020
• About Ferguson Plc ($FERG
) • By InTwits
Ferguson Plc reported FY2020 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Ferguson Plc has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.3%. At the same time it's a lot of higher than industry average of 1.0%.
- CAPEX is quite volatile: £6m in FY2020, £8m in FY2019, £1m in FY2018, £1m in FY2017, £1m in FY2016
- The company has highly profitable business model: ROIC is 17.8%
- It operates with medium-size leverage: Net Debt/EBITDA is 1.2x while industry average is 1.2x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue decreased slightly on 0.87%. During FY2016-FY2020 Revenue growth topped in FY2018 at 7.6% and was decelerating since that time. Revenue decline happened at the same time with EBITDA margin expansion. EBITDA Margin increased slightly on 1.6 pp from 7.7% to 9.3% in FY2020.
Gross Margin showed almost no change in FY2020. Gross Margin stuck to a growing trend at 0.20 pp per annum in FY2016-FY2020.
Net Income margin decreased slightly on 0.63 pp from 5.0% to 4.4% in FY2020.
Investments (CAPEX, working capital and M&A)
In FY2020 the company had CAPEX/Revenue of 0.99%. The company's CAPEX/Revenue showed almost no change from FY2017 to FY2020. It's average level of CAPEX/Revenue for the last three years was 1.3%.
Return on investment
The company operates at high and attractive ROE (22.0%) while ROIC is a bit lower (17.8%). ROIC decreased on 3.5 pp from 21.3% to 17.8% in FY2020. ROE decreased on 4.3 pp from 26.4% to 22.0% in FY2020.
Company's Net Debt / EBITDA is 1.2x and Debt / EBITDA is 2.2x. Net Debt / EBITDA surged on 0.5x from 0.7x to 1.2x in FY2020. Debt jumped on 92.4% while cash jumped on 86.7%. During FY2016-FY2020 Net Debt/EBITDA bottomed in FY2017 at 0.4x and was growing since that time.
Ferguson Plc has no short term refinancing risk: cash is higher than short term debt (260.5%).
The company's CEO is Kevin Murphy. Kevin Murphy has 1 year tenure with the company. The company's CFO is Mike Powell. Mike Powell has 1 year tenure at the company.
Financial and operational resultsFerguson Plc ($FERG) key annual financial indicators
|Short Term Debt||933||2,154||386||54||812||1,403.7%|
|Long Term Debt||1,590||1,103||1,525||2,296||3,709||61.5%|
|Net Income Margin||5.3%||4.8%||6.1%||5.0%||4.4%||-0.6%|
|CAPEX, % of revenue||1.5%||1.0%||1.3%||1.7%||1.0%||-0.8%|
Peers in Trading Companies & Distributo
Below we provide Ferguson Plc benchmarking against other companies in Trading Companies & Distributo industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.