FASTENAL CO (FAST) Stock Fundamental Analysis
NASDAQ:FAST - Nasdaq - US3119001044 - Common Stock
We assign a fundamental rating of 6 out of 10 to FAST. FAST was compared to 48 industry peers in the Trading Companies & Distributors industry. FAST gets an excellent profitability rating and is at the same time showing great financial health properties. FAST is valied quite expensively at the moment, while it does show a decent growth rate. With these ratings, FAST could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
In the past year FAST was profitable.
In the past year FAST had a positive cash flow from operations.
In the past 5 years FAST has always been profitable.
Each year in the past 5 years FAST had a positive operating cash flow.
1.2 Ratios
FAST has a Return On Assets of 24.49%. This is amongst the best in the industry. FAST outperforms 100.00% of its industry peers.
FAST has a Return On Equity of 31.82%. This is amongst the best in the industry. FAST outperforms 97.87% of its industry peers.
FAST's Return On Invested Capital of 28.65% is amongst the best of the industry. FAST outperforms 97.87% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FAST is significantly above the industry average of 9.69%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 24.49% | ||
| ROE | 31.82% | ||
| ROIC | 28.65% |
ROA(3y)24.76%
ROA(5y)23.49%
ROE(3y)33.56%
ROE(5y)32.5%
ROIC(3y)29.56%
ROIC(5y)28.03%
1.3 Margins
Looking at the Profit Margin, with a value of 15.25%, FAST belongs to the top of the industry, outperforming 87.23% of the companies in the same industry.
In the last couple of years the Profit Margin of FAST has remained more or less at the same level.
The Operating Margin of FAST (20.01%) is better than 76.60% of its industry peers.
FAST's Operating Margin has been stable in the last couple of years.
FAST has a Gross Margin of 45.08%. This is in the better half of the industry: FAST outperforms 74.47% of its industry peers.
In the last couple of years the Gross Margin of FAST has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.01% | ||
| PM (TTM) | 15.25% | ||
| GM | 45.08% |
OM growth 3Y-0.4%
OM growth 5Y0.21%
PM growth 3Y-0.31%
PM growth 5Y0.56%
GM growth 3Y-0.82%
GM growth 5Y-0.9%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so FAST is creating value.
FAST has more shares outstanding than it did 1 year ago.
FAST has about the same amout of shares outstanding than it did 5 years ago.
Compared to 1 year ago, FAST has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 28.57 indicates that FAST is not in any danger for bankruptcy at the moment.
The Altman-Z score of FAST (28.57) is better than 100.00% of its industry peers.
The Debt to FCF ratio of FAST is 0.21, which is an excellent value as it means it would take FAST, only 0.21 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of FAST (0.21) is better than 89.36% of its industry peers.
FAST has a Debt/Equity ratio of 0.03. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of FAST (0.03) is better than 85.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.21 | ||
| Altman-Z | 28.57 |
ROIC/WACC2.45
WACC11.71%
2.3 Liquidity
A Current Ratio of 4.67 indicates that FAST has no problem at all paying its short term obligations.
FAST has a better Current ratio (4.67) than 97.87% of its industry peers.
FAST has a Quick Ratio of 2.28. This indicates that FAST is financially healthy and has no problem in meeting its short term obligations.
FAST's Quick ratio of 2.28 is amongst the best of the industry. FAST outperforms 89.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.67 | ||
| Quick Ratio | 2.28 |
3. Growth
3.1 Past
The earnings per share for FAST have decreased by -0.50% in the last year.
FAST shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.81% yearly.
The Revenue has been growing slightly by 2.71% in the past year.
Measured over the past years, FAST shows a small growth in Revenue. The Revenue has been growing by 7.19% on average per year.
EPS 1Y (TTM)-0.5%
EPS 3Y7.68%
EPS 5Y7.81%
EPS Q2Q%0%
Revenue 1Y (TTM)2.71%
Revenue growth 3Y7.88%
Revenue growth 5Y7.19%
Sales Q2Q%3.75%
3.2 Future
The Earnings Per Share is expected to grow by 11.08% on average over the next years. This is quite good.
Based on estimates for the next years, FAST will show a quite strong growth in Revenue. The Revenue will grow by 9.14% on average per year.
EPS Next Y10.99%
EPS Next 2Y9.69%
EPS Next 3Y10.03%
EPS Next 5Y11.08%
Revenue Next Year6.74%
Revenue Next 2Y7.2%
Revenue Next 3Y7.4%
Revenue Next 5Y9.14%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
FAST is valuated quite expensively with a Price/Earnings ratio of 37.86.
Based on the Price/Earnings ratio, FAST is valued a bit more expensive than 72.34% of the companies in the same industry.
FAST is valuated rather expensively when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
FAST is valuated quite expensively with a Price/Forward Earnings ratio of 34.11.
Based on the Price/Forward Earnings ratio, FAST is valued a bit more expensive than the industry average as 72.34% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.44, FAST is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.86 | ||
| Fwd PE | 34.11 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FAST is valued more expensive than 80.85% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of FAST is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 46.04 | ||
| EV/EBITDA | 25.83 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of FAST may justify a higher PE ratio.
PEG (NY)3.44
PEG (5Y)4.85
EPS Next 2Y9.69%
EPS Next 3Y10.03%
5. Dividend
5.1 Amount
FAST has a Yearly Dividend Yield of 2.26%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.84, FAST pays a better dividend. On top of this FAST pays more dividend than 91.49% of the companies listed in the same industry.
FAST's Dividend Yield is comparable with the S&P500 average which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.26% |
5.2 History
On average, the dividend of FAST grows each year by 12.38%, which is quite nice.
FAST has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of FAST decreased in the last 3 years.
Dividend Growth(5Y)12.38%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
FAST pays out 77.64% of its income as dividend. This is not a sustainable payout ratio.
The dividend of FAST is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP77.64%
EPS Next 2Y9.69%
EPS Next 3Y10.03%
FASTENAL CO
NASDAQ:FAST (1/21/2025, 8:00:02 PM)
After market: 76.4196 +0.33 (+0.43%)76.09
+0.01 (+0.01%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners84.87%
Inst Owner Change-0.03%
Ins Owners0.18%
Ins Owner Change-0.06%
Market Cap43.59B
Analysts54.55
Price Target75.43 (-0.87%)
Short Float %2.11%
Short Ratio4.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.26% |
Yearly Dividend1.56
Dividend Growth(5Y)12.38%
DP77.64%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-3.52%
Min EPS beat(2)-6.33%
Max EPS beat(2)-0.7%
EPS beat(4)0
Avg EPS beat(4)-3.06%
Min EPS beat(4)-6.33%
Max EPS beat(4)-0.7%
EPS beat(8)2
Avg EPS beat(8)-1.61%
EPS beat(12)4
Avg EPS beat(12)-0.84%
EPS beat(16)6
Avg EPS beat(16)-0.45%
Revenue beat(2)0
Avg Revenue beat(2)-2.45%
Min Revenue beat(2)-3.26%
Max Revenue beat(2)-1.64%
Revenue beat(4)0
Avg Revenue beat(4)-2.41%
Min Revenue beat(4)-3.26%
Max Revenue beat(4)-1.64%
Revenue beat(8)0
Avg Revenue beat(8)-2.22%
Revenue beat(12)0
Avg Revenue beat(12)-1.97%
Revenue beat(16)0
Avg Revenue beat(16)-1.83%
PT rev (1m)2.23%
PT rev (3m)16.02%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-6.53%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.73%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.82%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.86 | ||
| Fwd PE | 34.11 | ||
| P/S | 5.78 | ||
| P/FCF | 46.04 | ||
| P/OCF | 37.15 | ||
| P/B | 12.05 | ||
| P/tB | 12.05 | ||
| EV/EBITDA | 25.83 |
EPS(TTM)2.01
EY2.64%
EPS(NY)2.23
Fwd EY2.93%
FCF(TTM)1.65
FCFY2.17%
OCF(TTM)2.05
OCFY2.69%
SpS13.17
BVpS6.31
TBVpS6.31
PEG (NY)3.44
PEG (5Y)4.85
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 24.49% | ||
| ROE | 31.82% | ||
| ROCE | 37.65% | ||
| ROIC | 28.65% | ||
| ROICexc | 30.6% | ||
| ROICexgc | 30.6% | ||
| OM | 20.01% | ||
| PM (TTM) | 15.25% | ||
| GM | 45.08% | ||
| FCFM | 12.55% |
ROA(3y)24.76%
ROA(5y)23.49%
ROE(3y)33.56%
ROE(5y)32.5%
ROIC(3y)29.56%
ROIC(5y)28.03%
ROICexc(3y)31.48%
ROICexc(5y)29.95%
ROICexgc(3y)31.48%
ROICexgc(5y)30.19%
ROCE(3y)38.84%
ROCE(5y)36.84%
ROICexcg growth 3Y3.75%
ROICexcg growth 5Y3.24%
ROICexc growth 3Y3.75%
ROICexc growth 5Y3.24%
OM growth 3Y-0.4%
OM growth 5Y0.21%
PM growth 3Y-0.31%
PM growth 5Y0.56%
GM growth 3Y-0.82%
GM growth 5Y-0.9%
F-Score5
Asset Turnover1.61
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.21 | ||
| Debt/EBITDA | 0.07 | ||
| Cap/Depr | 129.13% | ||
| Cap/Sales | 3% | ||
| Interest Coverage | 193.59 | ||
| Cash Conversion | 69.62% | ||
| Profit Quality | 82.29% | ||
| Current Ratio | 4.67 | ||
| Quick Ratio | 2.28 | ||
| Altman-Z | 28.57 |
F-Score5
WACC11.71%
ROIC/WACC2.45
Cap/Depr(3y)108.34%
Cap/Depr(5y)104.05%
Cap/Sales(3y)2.61%
Cap/Sales(5y)2.69%
Profit Quality(3y)87.32%
Profit Quality(5y)87.39%
High Growth Momentum
Growth
EPS 1Y (TTM)-0.5%
EPS 3Y7.68%
EPS 5Y7.81%
EPS Q2Q%0%
EPS Next Y10.99%
EPS Next 2Y9.69%
EPS Next 3Y10.03%
EPS Next 5Y11.08%
Revenue 1Y (TTM)2.71%
Revenue growth 3Y7.88%
Revenue growth 5Y7.19%
Sales Q2Q%3.75%
Revenue Next Year6.74%
Revenue Next 2Y7.2%
Revenue Next 3Y7.4%
Revenue Next 5Y9.14%
EBIT growth 1Y-1.22%
EBIT growth 3Y7.44%
EBIT growth 5Y7.41%
EBIT Next Year20.19%
EBIT Next 3Y12.55%
EBIT Next 5Y13.41%
FCF growth 1Y-24.85%
FCF growth 3Y15.56%
FCF growth 5Y9.69%
OCF growth 1Y-18.11%
OCF growth 3Y15.07%
OCF growth 5Y6.84%