US/Europe Event-Driven Analyst

John DeMasi

Event-Driven

<a href="https://www.smartkarma.com/entities/ferguson-plc" target="_blank" data-smartkarma-citation="entities:28304:1" rel="noopener">Ferguson PLC (FERG LN)</a> is a UK-listed, FTSE 100 distributor of plumbing and heating products in the USA, Canada, and the UK. In the latest fiscal year ended July 31, 2019, the UK accounted for only about 10.2% of revenues and about 4% of trading profits, with the balance coming mainly from the USA, and to a much smaller extent, from Canada.Despite the Company’s predominant focus in the USA, it has traditionally traded at the more modest multiples of British distributors. On June 13, 2019, U.S. activist investment firm Trian Fund Management announced it had acquired a 5.98% position in FERG LN though affiliates including T1F LN, then worth approximately £736 million.Trian stated it believes Ferguson is an attractive business that trades at a discount to comparable U.S. peers. It also said it looks forward to working with Ferguson’s management to explore and implement initiatives that it believes can create long-term shareholder value.This research piece looks, from an event-driven point of view, at Ferguson’s business, valuation and potential catalyst to address any undervaluation.

Ferguson PLC (FERG LN) is a UK-listed, FTSE 100 distributor of plumbing and heating products in the USA, Canada, and the UK. In the latest fiscal year ended July 31, 2019, the UK accounted for only about 10.2% of revenues and about 4% of trading profits, with the balance coming mainly from the USA, and to a much smaller extent, from Canada.Despite the Company’s predominant focus in the USA, it has traditionally traded at the more modest multiples of British distributors. On June 13, 2019, U.S. activist investment firm Trian Fund Management announced it had acquired a 5.98% position in FERG LN though affiliates including T1F LN, then worth approximately £736 million.Trian stated it believes Ferguson is an attractive business that trades at a discount to comparable U.S. peers. It also said it looks forward to working with Ferguson’s management to explore and implement initiatives that it believes can create long-term shareholder value.This research piece looks, from an event-driven point of view, at Ferguson’s business, valuation and potential catalyst to address any undervaluation.

Ferguson Plc (FERG LN) – Plumbing for Value

United Kingdom

SIG plc distributes specialty building products. The Company provides thermal insulation, exterior roofing products, ceilings, partitionings, dry lining, floor coverings, glass and specialist door systems, and a wide range of related products. SIG offers its products to the construction industry primarily in Europe.

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SIG PLC (SHI LN)

Ferguson Plc (FERG LN) – Plumbing for Value

Ferguson PLC (FERG LN) is a UK-listed, FTSE 100 distributor of plumbing and heating products in the USA, Canada, and the UK. In the latest fiscal...

John DeMasi

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