Ferguson Stock Discussion

The market's opinion of the business seems to have improved over the past five years, as the share price has grown faster than the EPS. The recent rise in total shareholder return could suggest the business is getting better over time.

Insiders selling below the current price could be seen negatively, suggesting they considered a lower price reasonable. Reasons for selling can vary and are not definitively known. The level of insider ownership suggests some alignment between management and smaller shareholders.

Ferguson stocks' high P/E ratio and slower anticipated growth pose potential risks to their price levels. Spurred by investor anticipation of a turnaround or reluctance to sell, caution is recommended.

Investor sentiment towards the company appears to have remained steady, and the share price seems to largely reflect the EPS growth.

Given the company's performance, the CEO's remuneration policy may not be the central focus for shareholders in the upcoming AGM. The total shareholder return of 64% over three years suggests some may believe the CEO should be paid more than is typical for similar-sized companies.

KEY TAKEAWAYS
1. Ferguson plc (FERG) reported strong FY2023 financial results with revenue up 4.1% YoY, solid gross margins and diligent cost management. FERG outperformed its residential and non-residential end markets and took share across both. FERG made more than 50 acquisitions over the past five years, bringing approximately $800 million of annualized revenue to the compan...