FASTENAL CO (FAST) Stock Fundamental Analysis
USA - NASDAQ:FAST - US3119001044 - Common Stock
47.12 USD
-0.13 (-0.28%)
46.52 USD
-0.6 (-1.27%)
Overall FAST gets a fundamental rating of 6 out of 10. We evaluated FAST against 50 industry peers in the Trading Companies & Distributors industry. Both the health and profitability get an excellent rating, making FAST a very profitable company, without any liquidiy or solvency issues. FAST is valied quite expensively at the moment, while it does show a decent growth rate. These ratings could make FAST a good candidate 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.
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 23.71%. This is amongst the best in the industry. FAST outperforms 100.00% of its industry peers.
FAST's Return On Equity of 31.23% is amongst the best of the industry. FAST outperforms 90.00% of its industry peers.
FAST's Return On Invested Capital of 28.34% is amongst the best of the industry. FAST outperforms 96.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for FAST is significantly above the industry average of 10.24%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 23.71% | ||
| ROE | 31.23% | ||
| ROIC | 28.34% |
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
With an excellent Profit Margin value of 15.30%, FAST belongs to the best of the industry, outperforming 82.00% of the companies in the same industry.
FAST's Profit Margin has been stable in the last couple of years.
The Operating Margin of FAST (20.10%) is better than 82.00% of its industry peers.
FAST's Operating Margin has been stable in the last couple of years.
FAST has a better Gross Margin (45.06%) than 82.00% of its industry peers.
FAST's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.1% | ||
| PM (TTM) | 15.3% | ||
| GM | 45.06% |
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.
FAST has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 31.10 indicates that FAST is not in any danger for bankruptcy at the moment.
FAST's Altman-Z score of 31.10 is amongst the best of the industry. FAST outperforms 100.00% of its industry peers.
FAST has a debt to FCF ratio of 0.26. This is a very positive value and a sign of high solvency as it would only need 0.26 years to pay back of all of its debts.
FAST has a Debt to FCF ratio of 0.26. This is amongst the best in the industry. FAST outperforms 90.00% of its industry peers.
A Debt/Equity ratio of 0.03 indicates that FAST is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.03, FAST is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.26 | ||
| Altman-Z | 31.1 |
ROIC/WACC2.97
WACC9.55%
2.3 Liquidity
A Current Ratio of 4.22 indicates that FAST has no problem at all paying its short term obligations.
FAST's Current ratio of 4.22 is amongst the best of the industry. FAST outperforms 92.00% of its industry peers.
A Quick Ratio of 2.12 indicates that FAST has no problem at all paying its short term obligations.
With a decent Quick ratio value of 2.12, FAST is doing good in the industry, outperforming 76.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.22 | ||
| Quick Ratio | 2.12 |
3. Growth
3.1 Past
FAST shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.48%.
FAST shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.81% yearly.
Looking at the last year, FAST shows a small growth in Revenue. The Revenue has grown by 4.84% in the last year.
The Revenue has been growing slightly by 7.19% on average over the past years.
EPS 1Y (TTM)3.48%
EPS 3Y7.68%
EPS 5Y7.81%
EPS Q2Q%13.73%
Revenue 1Y (TTM)4.84%
Revenue growth 3Y7.88%
Revenue growth 5Y7.19%
Sales Q2Q%8.56%
3.2 Future
FAST is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.46% yearly.
Based on estimates for the next years, FAST will show a quite strong growth in Revenue. The Revenue will grow by 8.33% on average per year.
EPS Next Y12.81%
EPS Next 2Y12.01%
EPS Next 3Y10.97%
EPS Next 5Y10.46%
Revenue Next Year8.57%
Revenue Next 2Y8.86%
Revenue Next 3Y8.45%
Revenue Next 5Y8.33%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 45.31, which means the current valuation is very expensive for FAST.
Based on the Price/Earnings ratio, FAST is valued a bit more expensive than the industry average as 64.00% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Earnings ratio of 27.20, FAST is valued quite expensively.
FAST is valuated quite expensively with a Price/Forward Earnings ratio of 37.37.
70.00% of the companies in the same industry are cheaper than FAST, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.70, FAST is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.31 | ||
| Fwd PE | 37.37 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FAST is valued a bit more expensive than the industry average as 74.00% of the companies are valued more cheaply.
The rest of the industry has a similar Price/Free Cash Flow ratio as FAST.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 61.74 | ||
| EV/EBITDA | 31.05 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates FAST does not grow enough to justify the current Price/Earnings ratio.
FAST has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.54
PEG (5Y)5.8
EPS Next 2Y12.01%
EPS Next 3Y10.97%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.86%, FAST has a reasonable but not impressive dividend return.
FAST's Dividend Yield is a higher than the industry average which is at 2.75.
FAST's Dividend Yield is slightly below the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.86% |
5.2 History
The dividend of FAST decreases each year by -2.16%.
FAST has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-2.16%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
FAST pays out 79.54% of its income as dividend. This is not a sustainable payout ratio.
DP79.54%
EPS Next 2Y12.01%
EPS Next 3Y10.97%
47.12
-0.13 (-0.28%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners87.78%
Inst Owner Change93.58%
Ins Owners0.09%
Ins Owner Change0%
Market Cap54.08B
Analysts71.3
Price Target45.04 (-4.41%)
Short Float %2.2%
Short Ratio3.97
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.86% |
Yearly Dividend0.78
Dividend Growth(5Y)-2.16%
DP79.54%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.41%
Min EPS beat(2)-1.9%
Max EPS beat(2)1.09%
EPS beat(4)1
Avg EPS beat(4)-1.81%
Min EPS beat(4)-5.73%
Max EPS beat(4)1.09%
EPS beat(8)2
Avg EPS beat(8)-1.4%
EPS beat(12)4
Avg EPS beat(12)-1%
EPS beat(16)6
Avg EPS beat(16)-0.44%
Revenue beat(2)0
Avg Revenue beat(2)-1.59%
Min Revenue beat(2)-1.69%
Max Revenue beat(2)-1.49%
Revenue beat(4)0
Avg Revenue beat(4)-1.94%
Min Revenue beat(4)-2.95%
Max Revenue beat(4)-1.49%
Revenue beat(8)0
Avg Revenue beat(8)-2.04%
Revenue beat(12)0
Avg Revenue beat(12)-1.93%
Revenue beat(16)0
Avg Revenue beat(16)-1.74%
PT rev (1m)7.47%
PT rev (3m)24.67%
EPS NQ rev (1m)-0.15%
EPS NQ rev (3m)3.19%
EPS NY rev (1m)1.79%
EPS NY rev (3m)2.08%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)1.83%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)1.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.31 | ||
| Fwd PE | 37.37 | ||
| P/S | 6.96 | ||
| P/FCF | 61.74 | ||
| P/OCF | 48.26 | ||
| P/B | 14.2 | ||
| P/tB | 14.2 | ||
| EV/EBITDA | 31.05 |
EPS(TTM)1.04
EY2.21%
EPS(NY)1.26
Fwd EY2.68%
FCF(TTM)0.76
FCFY1.62%
OCF(TTM)0.98
OCFY2.07%
SpS6.77
BVpS3.32
TBVpS3.32
PEG (NY)3.54
PEG (5Y)5.8
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 23.71% | ||
| ROE | 31.23% | ||
| ROCE | 37.25% | ||
| ROIC | 28.34% | ||
| ROICexc | 30.05% | ||
| ROICexgc | 30.05% | ||
| OM | 20.1% | ||
| PM (TTM) | 15.3% | ||
| GM | 45.06% | ||
| FCFM | 11.27% |
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-Score3
Asset Turnover1.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.26 | ||
| Debt/EBITDA | 0.06 | ||
| Cap/Depr | 136.95% | ||
| Cap/Sales | 3.15% | ||
| Interest Coverage | 200.37 | ||
| Cash Conversion | 64.34% | ||
| Profit Quality | 73.65% | ||
| Current Ratio | 4.22 | ||
| Quick Ratio | 2.12 | ||
| Altman-Z | 31.1 |
F-Score3
WACC9.55%
ROIC/WACC2.97
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)3.48%
EPS 3Y7.68%
EPS 5Y7.81%
EPS Q2Q%13.73%
EPS Next Y12.81%
EPS Next 2Y12.01%
EPS Next 3Y10.97%
EPS Next 5Y10.46%
Revenue 1Y (TTM)4.84%
Revenue growth 3Y7.88%
Revenue growth 5Y7.19%
Sales Q2Q%8.56%
Revenue Next Year8.57%
Revenue Next 2Y8.86%
Revenue Next 3Y8.45%
Revenue Next 5Y8.33%
EBIT growth 1Y2.98%
EBIT growth 3Y7.44%
EBIT growth 5Y7.41%
EBIT Next Year21.94%
EBIT Next 3Y13.48%
EBIT Next 5Y11.68%
FCF growth 1Y-18.14%
FCF growth 3Y15.56%
FCF growth 5Y9.69%
OCF growth 1Y-10.39%
OCF growth 3Y15.07%
OCF growth 5Y6.84%