FASTENAL CO (FAST)
US3119001044 - Common Stock
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 gets an excellent profitability rating and is at the same time showing great financial health properties. FAST is quite expensive at the moment. It does show a decent growth rate. This makes FAST very considerable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year FAST was profitable.
FAST had a positive operating cash flow in the past year.
Each year in the past 5 years FAST has been profitable.
In the past 5 years FAST always reported a positive cash flow from operatings.
1.2 Ratios
FAST has a better Return On Assets (24.37%) than 100.00% of its industry peers.
Looking at the Return On Equity, with a value of 32.10%, FAST belongs to the top of the industry, outperforming 98.04% of the companies in the same industry.
FAST's Return On Invested Capital of 28.76% is amongst the best of the industry. FAST outperforms 98.04% of its industry peers.
FAST had an Average Return On Invested Capital over the past 3 years of 28.39%. This is significantly above the industry average of 9.29%.
The 3 year average ROIC (28.39%) for FAST is below the current ROIC(28.76%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 24.37% | ||
| ROE | 32.1% | ||
| ROIC | 28.76% |
ROA(3y)23.76%
ROA(5y)22.75%
ROE(3y)33.09%
ROE(5y)32.07%
ROIC(3y)28.39%
ROIC(5y)27.1%
1.3 Margins
Looking at the Profit Margin, with a value of 15.44%, FAST belongs to the top of the industry, outperforming 88.24% of the companies in the same industry.
FAST's Profit Margin has been stable in the last couple of years.
With an excellent Operating Margin value of 20.31%, FAST belongs to the best of the industry, outperforming 86.27% of the companies in the same industry.
FAST's Operating Margin has been stable in the last couple of years.
FAST's Gross Margin of 45.23% is fine compared to the rest of the industry. FAST outperforms 74.51% 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 | 20.31% | ||
| PM (TTM) | 15.44% | ||
| GM | 45.23% |
OM growth 3Y1%
OM growth 5Y0.68%
PM growth 3Y1.1%
PM growth 5Y0.75%
GM growth 3Y0.14%
GM growth 5Y-1.12%
2. Health
2.1 Basic Checks
FAST has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, FAST has more shares outstanding
Compared to 5 years ago, FAST has about the same amount of shares outstanding.
Compared to 1 year ago, FAST has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 28.99 indicates that FAST is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 28.99, FAST belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
FAST has a debt to FCF ratio of 0.23. This is a very positive value and a sign of high solvency as it would only need 0.23 years to pay back of all of its debts.
FAST has a Debt to FCF ratio of 0.23. This is amongst the best in the industry. FAST outperforms 86.27% 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.
FAST has a better Debt to Equity ratio (0.03) than 78.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.23 | ||
| Altman-Z | 28.99 |
ROIC/WACC2.64
WACC10.9%
2.3 Liquidity
FAST has a Current Ratio of 4.40. This indicates that FAST is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 4.40, FAST belongs to the top of the industry, outperforming 92.16% of the companies in the same industry.
A Quick Ratio of 2.29 indicates that FAST has no problem at all paying its short term obligations.
The Quick ratio of FAST (2.29) is better than 86.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.4 | ||
| Quick Ratio | 2.29 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.01% over the past year.
Measured over the past years, FAST shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.25% on average per year.
FAST shows a small growth in Revenue. In the last year, the Revenue has grown by 2.70%.
Measured over the past years, FAST shows a quite strong growth in Revenue. The Revenue has been growing by 8.15% on average per year.
EPS 1Y (TTM)1.01%
EPS 3Y10.68%
EPS 5Y10.25%
EPS Q2Q%0%
Revenue 1Y (TTM)2.7%
Revenue growth 3Y9.17%
Revenue growth 5Y8.15%
Sales Q2Q%3.48%
3.2 Future
The Earnings Per Share is expected to grow by 9.09% on average over the next years. This is quite good.
Based on estimates for the next years, FAST will show a small growth in Revenue. The Revenue will grow by 8.00% on average per year.
EPS Next Y2.46%
EPS Next 2Y5.07%
EPS Next 3Y6.06%
EPS Next 5Y9.09%
Revenue Next Year3.04%
Revenue Next 2Y5.13%
Revenue Next 3Y5.96%
Revenue Next 5Y8%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 40.72 indicates a quite expensive valuation of FAST.
Based on the Price/Earnings ratio, FAST is valued a bit more expensive than 70.59% of the companies in the same industry.
FAST's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 28.53.
FAST is valuated quite expensively with a Price/Forward Earnings ratio of 36.70.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FAST indicates a slightly more expensive valuation: FAST is more expensive than 70.59% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.40. FAST is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.72 | ||
| Fwd PE | 36.7 |
4.2 Price Multiples
FAST's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. FAST is more expensive than 72.55% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as FAST.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45.01 | ||
| EV/EBITDA | 27.66 |
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)16.57
PEG (5Y)3.97
EPS Next 2Y5.07%
EPS Next 3Y6.06%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.90%, FAST has a reasonable but not impressive dividend return.
FAST's Dividend Yield is rather good when compared to the industry average which is at 1.74. FAST pays more dividend than 86.27% of the companies in the same industry.
FAST's Dividend Yield is comparable with the S&P500 average which is at 2.22.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.9% |
5.2 History
The dividend of FAST is nicely growing with an annual growth rate of 18.22%!
FAST has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of FAST decreased in the last 3 years.
Dividend Growth(5Y)18.22%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
94.14% of the earnings are spent on dividend by FAST. 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.
DP94.14%
EPS Next 2Y5.07%
EPS Next 3Y6.06%
FASTENAL CO
NASDAQ:FAST (11/15/2024, 8:06:33 PM)
After market: 81.85 0 (0%)81.85
-0.31 (-0.38%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap46.89B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.9% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.72 | ||
| Fwd PE | 36.7 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)16.57
PEG (5Y)3.97
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 24.37% | ||
| ROE | 32.1% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 20.31% | ||
| PM (TTM) | 15.44% | ||
| GM | 45.23% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 4.4 | ||
| Quick Ratio | 2.29 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)1.01%
EPS 3Y10.68%
EPS 5Y
EPS Q2Q%
EPS Next Y2.46%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)2.7%
Revenue growth 3Y9.17%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y