Under The Bonnet, Ferguson Enterprises' (NYSE:FERG) Returns Look Impressive

Simply Wall St.10-26

What trends should we look for it we want to identify stocks that can multiply in value over the long term? In a perfect world, we'd like to see a company investing more capital into its business and ...

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In a perfect world, we'd like to see a company investing more capital into its business and ...</p>\n\n<a href=\"https://finance.yahoo.com/news/under-bonnet-ferguson-enterprises-nyse-131035666.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Under The Bonnet, Ferguson Enterprises' (NYSE:FERG) Returns Look Impressive</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nUnder The Bonnet, Ferguson Enterprises' (NYSE:FERG) Returns Look Impressive\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-10-26 21:10 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/under-bonnet-ferguson-enterprises-nyse-131035666.html><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>What trends should we look for it we want to identify stocks that can multiply in value over the long term? In a perfect world, we'd like to see a company investing more capital into its business and ...</p>\n\n<a href=\"https://finance.yahoo.com/news/under-bonnet-ferguson-enterprises-nyse-131035666.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU1923621640.USD","symbol_name":"Natixis Thematics Water R/A USD","start_time":0,"source_url":"https://finance.yahoo.com/news/under-bonnet-ferguson-enterprises-nyse-131035666.html","article_id":"2478869922","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/ZGEeCFy6R_x33CuSSs1QVg--~B/aD00MzI7dz0xMTk0O2FwcGlkPXl0YWNoeW9u/https://media.zenfs.com/en/simply_wall_st__316/67199089f87ca6ea8b33765175d6b1ff"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2478869922","pubTimestamp":1729948235,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"What trends should we look for it we want to identify stocks that can multiply in value over the long term?In a perfect world, we'd like to see a company investing more capital into its business and ideally the returns earned from that capital are also increasing. This shows us that it's a compounding machine, able to continually reinvest its earnings back into the business and generate higher returns. With that in mind, the ROCE of Ferguson Enterprises  looks great, so lets see what the trend can tell us.Just to clarify if you're unsure, ROCE is a metric for evaluating how much pre-tax income  a company earns on the capital invested in its business. To calculate this metric for Ferguson Enterprises, this is the formula:. Return on Capital Employed = Earnings Before Interest and Tax  ÷ . Therefore, Ferguson Enterprises has an ROCE of 23%. In absolute terms that's a great return and it's even better than the Trade Distributors industry average of 12%.Check out our latest analysis for Fe","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU1923621640.USD":"Natixis Thematics Water R/A USD","LU2125910179.SGD":"Natixis Thematics Water H-R/A SGD","LU1165135440.EUR":"BNP Paribas Aqua Classic Cap EUR","EBIT":"Harbor AlphaEdge Small Cap Earners ETF","LU1721427968.SGD":"BNP PARIBAS AQUA \"CRH\" (SGDHDG) INC","FERG":"Ferguson Plc.","LU1543694498.USD":"法巴水资源基金RH MD Dis","BK4104":"贸易公司与经销商","LU2125910336.SGD":"Natixis Thematics Water R/A SGD","NYSE":"纽交所"},"translate_title":"弗格森企业（纽约证券交易所股票代码：FERG）的回报看起来令人印象深刻","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"EBIT":1,"FERG":1,"NYSE":1},"content_text":"What trends should we look for it we want to identify stocks that can multiply in value over the long term? In a perfect world, we'd like to see a company investing more capital into its business and ideally the returns earned from that capital are also increasing. This shows us that it's a compounding machine, able to continually reinvest its earnings back into the business and generate higher returns. With that in mind, the ROCE of Ferguson Enterprises (NYSE:FERG) looks great, so lets see what the trend can tell us. \n Understanding Return On Capital Employed (ROCE) \n Just to clarify if you're unsure, ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business. To calculate this metric for Ferguson Enterprises, this is the formula: \n Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) \n0.23 = US$2.6b ÷ (US$17b - US$5.2b) (Based on the trailing twelve months to July 2024).\n Therefore, Ferguson Enterprises has an ROCE of 23%. In absolute terms that's a great return and it's even better than the Trade Distributors industry average of 12%. \n Check out our latest analysis for Ferguson Enterprises \n\n\n\n  NYSE:FERG Return on Capital Employed October 26th 2024\n \n\n Above you can see how the current ROCE for Ferguson Enterprises compares to its prior returns on capital, but there's only so much you can tell from the past. If you'd like, you can check out the forecasts from the analysts covering Ferguson Enterprises  for free. \n What Does the ROCE Trend For Ferguson Enterprises Tell Us? \n Ferguson Enterprises is displaying some positive trends. The data shows that returns on capital have increased substantially over the last five years to 23%. Basically the business is earning more per dollar of capital invested and in addition to that, 58% more capital is being employed now too. So we're very much inspired by what we're seeing at Ferguson Enterprises thanks to its ability to profitably reinvest capital. \n Our Take On Ferguson Enterprises' ROCE \n A company that is growing its returns on capital and can consistently reinvest in itself is a highly sought after trait, and that's what Ferguson Enterprises has. Since the stock has returned a staggering 153% to shareholders over the last five years, it looks like investors are recognizing these changes. Therefore, we think it would be worth your time to check if these trends are going to continue. \n If you want to continue researching Ferguson Enterprises, you might be interested to know about the 3 warning signs that our analysis has discovered. \n If you want to search for more stocks that have been earning high returns, check out this free list of stocks with solid balance sheets that are also earning high returns on equity. \nHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.1","shortVersion":"4.29.1","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2478869922"}