|Bid||5,918.00 x 0|
|Ask||5,920.00 x 0|
|Day's Range||5,908.00 - 6,070.00|
|52 Week Range||4,594.00 - 6,601.00|
|Beta (3Y Monthly)||0.94|
|PE Ratio (TTM)||9.81|
|Earnings Date||Oct 1, 2019|
|Forward Dividend & Yield||1.51 (2.50%)|
|1y Target Est||80.03|
Today we are going to look at Ferguson plc (LON:FERG) to see whether it might be an attractive investment prospect...
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(Bloomberg Opinion) -- Nelson Peltz’s latest investment target is a big, slow-moving target with a massive bullseye on its back. The renowned U.S. activist has zoned in on Ferguson Plc, a plumbers’ merchant formerly known as Wolseley. His gripe is that the company trades at a stubborn discount to American peers. The snag is that remedies aren’t easy to administer.Ferguson is among the handful of U.K.-domiciled, London-listed blue-chips that aren’t really British companies. Some – such as BTG Plc or Firstgroup Plc – have already attracted takeover or activist interest. North America generates 87% of Ferguson’s revenue; the company recently changed its name to that of its U.S. subsidiary; it reports in dollars.The one un-American characteristic is the valuation. Ferguson has traded at a consistent discount to U.S. peers such as Home Depot Inc. and Lowe’s Cos Inc. The obvious explanation is that the company is listed on the wrong exchange, which makes it harder to attract its natural investor base. But that’s not the only interpretation. The valuation may also reflect a lack of faith in Ferguson’s strategy or management, or some challenges unique to its business. Either way, the discount slightly narrowed on Thursday after the disclosure that various Peltz funds had amassed a 6% stake. This pushed the stock up 6%, valuing the group at 13 billion pounds ($16 billion).It is hard to know whether Ferguson would get a higher valuation if it just moved its listing. Markets may not be 100% efficient, but capital is global and location can’t be the only explanation for the lack of investor love here. True, some funds are restricted geographically in where they can put money but that’s unlikely to be a huge factor in holding back demand for Ferguson shares.Such restrictions on funds might, though, be an obstacle to engineering a move for Ferguson. Unilever Plc’s plan to simplify its Anglo-Dutch structure into a single Netherlands company would have seen it lose its spot on the FTSE 100. That irked index investors and those with mandates to hold U.K. stocks who would have been forced to sell their shares. The plan foundered.Unilever wasn’t a one-off. Re-domiciling headquarters or listings has long been controversial. The textbook case is the thwarted migration of car parts maker LucasVarity back in the late 1990s from the U.K. to the U.S. For these changes, existing investors generally demand a premium. The cleanest way to achieve a move is to take the company private, then relist it.More pertinent are worries about the company’s resilience in the face of a U.S. slowdown. U.S. organic growth is slowing from a recent high single-digit percentage clip, while margins have barely improved since 2015, UBS analysts point out. The share price seems to be assuming that Ferguson’s long-run sustainable operating margin is just 5%, according to independent research provider Willis Welby, which argues that this is overly pessimistic.Peltz’s pitch is that he likes to engage with the management of his portfolio companies. Ferguson has responded diplomatically that it looks forward to dialogue, as it does with all shareholders. The mere presence of such a big name has got people excited. The tougher job will be convincing investors that the company’s equity story – twinning organic growth with a strategy of acquiring competitors – is still a winner. That case has yet to be made.To contact the author of this story: Chris Hughes at firstname.lastname@example.orgTo contact the editor responsible for this story: James Boxell at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Chris Hughes is a Bloomberg Opinion columnist covering deals. He previously worked for Reuters Breakingviews, as well as the Financial Times and the Independent newspaper.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Activist fund Trian Fund Management LP said it has built up a 6% stake in Ferguson Plc, disclosing the investment days after the British plumbing products company reported disappointing results and slowing growth in its biggest market. Ferguson shares jumped 8.5% to an 8-month high on the news, topping London's FTSE 100 blue chip index. Owned by billionaire U.S. investor Nelson Peltz, Trian is among the best known U.S. activist hedge funds which take stakes in companies they view as undervalued and force major changes to generate returns for shareholders.
European markets were broadly higher as the U.S.-Mexico deal to avert tariffs fueled optimism around global trade. U.S. President Donald Trump announced Saturday on Twitter that tariffs on Mexico due to come into effect Monday were suspended after the two countries reached an agreement in talks. Mexico will intervene more strongly to prevent migrants from transiting through the country to seek asylum in the U.S.
(Reuters) - British plumbing products distributor Ferguson Plc on Wednesday appointed Geoff Drabble as chairman to succeed Gareth Davis, who has held the role for almost nine years. Drabble, who will assume ...
Europe's listed companies are expected to generate 1.2 trillion euros (£1.0 trillion) in revenue from the United States this year, highlighting what's at stake as global trade tensions grow and earnings and economic growth stall. Analysts and investors say that based on revenues, European companies are more vulnerable to a dispute than their competitors in the United States. U.S. President Donald Trump is due to decide by Saturday whether to impose duties on car imports, potentially posing another significant threat to global growth and denting Europe's prized auto sector.
Stock pickers are generally looking for stocks that will outperform the broader market. And the truth is, you can make significant gains if you buy good quality businesses at the right price. For example, the Ferguson plc (LO...
The FTSE 100 added 0.3 percent, lagging behind European peers as Brexit uncertainties kept a lid on gains, while the FTSE 250 firmed by 0.5 percent. After British lawmakers on Monday wrested control of the parliamentary agenda from the government for a day in the hope of breaking the Brexit deadlock, two eurosceptic MPs indicated they might support Prime Minister Theresa May's EU divorce deal rather than risk parliament cancelling the exit.
European shares rose on Tuesday, snapping a four-day losing streak, boosted by healthcare stocks and on indications that UK Prime Minister Theresa May's deal to exit the European Union could gain some support. The pan-region STOXX 600 index added to early gains and rose 0.8 percent, led by Switzerland and Paris's near 1 percent jump, followed by Frankfurt's 0.6 percent gain. Milan rose 0.4 percent, while London's FTSE closed 0.26 percent higher.