Is NASDAQ:FAST suited for quality investing?

In this article we will dive into FASTENAL CO (NASDAQ:FAST) as a possible candidate for quality investing. Investors should always do their own research, but we noticed FASTENAL CO showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

What matters for quality investors.

• FASTENAL CO has achieved substantial revenue growth over the past 5 years, with a 9.72% increase. This signifies the company's ability to successfully capture market opportunities and generate sustained revenue growth.
• FASTENAL CO exhibits a strong ROIC excluding cash and goodwill, indicating efficient capital utilization and profitable operations. The 31.57% reflects the company's ability to generate returns on invested capital and underscores its commitment to delivering value to shareholders.
• FASTENAL CO demonstrates a well-balanced Debt/Free Cash Flow Ratio of 0.22, indicating effective debt management and strong cash flow generation. This ratio suggests the company has a sustainable financial position and the capacity to allocate capital efficiently.
• With a robust Profit Quality (5-year) ratio of 77.44%, FASTENAL CO highlights its ability to consistently generate high-quality profits. This metric reflects the company's effective management and operational excellence in delivering reliable earnings over the long term.
• FASTENAL CO has consistently achieved strong EBIT growth over the past 5 years, with a 10.54% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
• FASTENAL CO has achieved impressive EBIT 5-year growth, surpassing its Revenue 5-year growth. This indicates the company's ability to improve its profitability and operational efficiency, highlighting its strong financial performance.

How does the complete fundamental picture look for NASDAQ:FAST?

As part of its analysis, ChartMill provides a comprehensive Fundamental Rating for each stock. This rating, ranging from 0 to 10, is updated on a daily basis and is based on the evaluation of various fundamental indicators and properties.

We assign a fundamental rating of 7 out of 10 to FAST. FAST was compared to 51 industry peers in the Trading Companies & Distributors industry. FAST has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. FAST is valied quite expensively at the moment, while it does show a decent growth rate.

For an up to date full fundamental analysis you can check the fundamental report of FAST

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.