FASTENAL CO (FAST) Stock Fundamental Analysis
NASDAQ:FAST - Nasdaq - US3119001044 - Common Stock - Currency: USD
FAST gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 48 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. While showing a medium growth rate, FAST is valued expensive at the moment. 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 (23.64%) than 100.00% of its industry peers.
The Return On Equity of FAST (31.21%) is better than 95.83% of its industry peers.
Looking at the Return On Invested Capital, with a value of 28.19%, FAST belongs to the top of the industry, outperforming 97.92% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for FAST is significantly above the industry average of 9.25%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 23.64% | ||
| ROE | 31.21% | ||
| ROIC | 28.19% |
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
The Profit Margin of FAST (15.13%) is better than 87.50% of its industry peers.
FAST's Profit Margin has been stable in the last couple of years.
FAST has a Operating Margin of 19.89%. This is amongst the best in the industry. FAST outperforms 85.42% of its industry peers.
FAST's Operating Margin has been stable in the last couple of years.
The Gross Margin of FAST (44.99%) is better than 79.17% of its industry peers.
FAST's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.89% | ||
| PM (TTM) | 15.13% | ||
| GM | 44.99% |
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.
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 28.05 indicates that FAST is not in any danger for bankruptcy at the moment.
FAST has a Altman-Z score of 28.05. This is amongst the best in the industry. FAST outperforms 100.00% of its industry peers.
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's Debt to FCF ratio of 0.23 is amongst the best of the industry. FAST outperforms 91.67% 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 Debt to Equity ratio of 0.03. This is amongst the best in the industry. FAST outperforms 87.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.23 | ||
| Altman-Z | 28.05 |
ROIC/WACC2.85
WACC9.88%
2.3 Liquidity
A Current Ratio of 4.28 indicates that FAST has no problem at all paying its short term obligations.
With an excellent Current ratio value of 4.28, FAST belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
FAST has a Quick Ratio of 2.14. This indicates that FAST is financially healthy and has no problem in meeting its short term obligations.
FAST's Quick ratio of 2.14 is amongst the best of the industry. FAST outperforms 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.28 | ||
| Quick Ratio | 2.14 |
3. Growth
3.1 Past
FAST shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -0.50%.
Measured over the past 5 years, FAST shows a small growth in Earnings Per Share. The EPS has been growing by 7.81% on average per year.
FAST shows a small growth in Revenue. In the last year, the Revenue has grown by 3.08%.
The Revenue has been growing slightly by 7.19% on average over the past years.
EPS 1Y (TTM)-0.5%
EPS 3Y7.68%
EPS 5Y7.81%
EPS Q2Q%0%
Revenue 1Y (TTM)3.08%
Revenue growth 3Y7.88%
Revenue growth 5Y7.19%
Sales Q2Q%3.39%
3.2 Future
Based on estimates for the next years, FAST will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.73% on average per year.
FAST is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.48% yearly.
EPS Next Y9.49%
EPS Next 2Y9.31%
EPS Next 3Y9.11%
EPS Next 5Y10.73%
Revenue Next Year6.51%
Revenue Next 2Y7.27%
Revenue Next 3Y7.24%
Revenue Next 5Y8.48%
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 40.59, which means the current valuation is very expensive for FAST.
Based on the Price/Earnings ratio, FAST is valued a bit more expensive than 66.67% 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 28.29.
Based on the Price/Forward Earnings ratio of 33.97, the valuation of FAST can be described as expensive.
Based on the Price/Forward Earnings ratio, FAST is valued a bit more expensive than 68.75% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.08. FAST is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.59 | ||
| Fwd PE | 33.97 |
4.2 Price Multiples
81.25% of the companies in the same industry are cheaper than FAST, based on the Enterprise Value to EBITDA ratio.
FAST's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 54.09 | ||
| EV/EBITDA | 27.65 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
FAST has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)4.28
PEG (5Y)5.2
EPS Next 2Y9.31%
EPS Next 3Y9.11%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.16%, FAST has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.26, FAST pays a better dividend. On top of this FAST pays more dividend than 85.42% of the companies listed in the same industry.
FAST's Dividend Yield is comparable with the S&P500 average which is at 2.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.16% |
5.2 History
The dividend of FAST is nicely growing with an annual growth rate of 12.38%!
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
79.61% of the earnings are spent on dividend by FAST. This is not a sustainable payout ratio.
FAST's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP79.61%
EPS Next 2Y9.31%
EPS Next 3Y9.11%
81.58
+1.13 (+1.4%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners86.2%
Inst Owner Change0.02%
Ins Owners0.09%
Ins Owner Change-0.06%
Market Cap46.80B
Analysts57.14
Price Target75.33 (-7.66%)
Short Float %2.39%
Short Ratio4.2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.16% |
Yearly Dividend1.56
Dividend Growth(5Y)12.38%
DP79.61%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-3.81%
Min EPS beat(2)-5.73%
Max EPS beat(2)-1.9%
EPS beat(4)0
Avg EPS beat(4)-2.54%
Min EPS beat(4)-5.73%
Max EPS beat(4)-0.7%
EPS beat(8)1
Avg EPS beat(8)-1.96%
EPS beat(12)3
Avg EPS beat(12)-1.22%
EPS beat(16)6
Avg EPS beat(16)-0.5%
Revenue beat(2)0
Avg Revenue beat(2)-2.22%
Min Revenue beat(2)-2.95%
Max Revenue beat(2)-1.49%
Revenue beat(4)0
Avg Revenue beat(4)-1.99%
Min Revenue beat(4)-2.95%
Max Revenue beat(4)-1.49%
Revenue beat(8)0
Avg Revenue beat(8)-2.12%
Revenue beat(12)0
Avg Revenue beat(12)-1.99%
Revenue beat(16)0
Avg Revenue beat(16)-1.76%
PT rev (1m)-0.74%
PT rev (3m)-0.14%
EPS NQ rev (1m)0.74%
EPS NQ rev (3m)-1.58%
EPS NY rev (1m)0.21%
EPS NY rev (3m)-1.35%
Revenue NQ rev (1m)0.2%
Revenue NQ rev (3m)-1.29%
Revenue NY rev (1m)0.15%
Revenue NY rev (3m)-0.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.59 | ||
| Fwd PE | 33.97 | ||
| P/S | 6.15 | ||
| P/FCF | 54.09 | ||
| P/OCF | 42.67 | ||
| P/B | 12.68 | ||
| P/tB | 12.68 | ||
| EV/EBITDA | 27.65 |
EPS(TTM)2.01
EY2.46%
EPS(NY)2.4
Fwd EY2.94%
FCF(TTM)1.51
FCFY1.85%
OCF(TTM)1.91
OCFY2.34%
SpS13.27
BVpS6.44
TBVpS6.44
PEG (NY)4.28
PEG (5Y)5.2
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 23.64% | ||
| ROE | 31.21% | ||
| ROCE | 37.05% | ||
| ROIC | 28.19% | ||
| ROICexc | 29.89% | ||
| ROICexgc | 29.89% | ||
| OM | 19.89% | ||
| PM (TTM) | 15.13% | ||
| GM | 44.99% | ||
| FCFM | 11.36% |
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 Turnover1.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.23 | ||
| Debt/EBITDA | 0.07 | ||
| Cap/Depr | 130.59% | ||
| Cap/Sales | 3.04% | ||
| Interest Coverage | 219.38 | ||
| Cash Conversion | 64.84% | ||
| Profit Quality | 75.1% | ||
| Current Ratio | 4.28 | ||
| Quick Ratio | 2.14 | ||
| Altman-Z | 28.05 |
F-Score3
WACC9.88%
ROIC/WACC2.85
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 Y9.49%
EPS Next 2Y9.31%
EPS Next 3Y9.11%
EPS Next 5Y10.73%
Revenue 1Y (TTM)3.08%
Revenue growth 3Y7.88%
Revenue growth 5Y7.19%
Sales Q2Q%3.39%
Revenue Next Year6.51%
Revenue Next 2Y7.27%
Revenue Next 3Y7.24%
Revenue Next 5Y8.48%
EBIT growth 1Y-0.78%
EBIT growth 3Y7.44%
EBIT growth 5Y7.41%
EBIT Next Year18.99%
EBIT Next 3Y11.93%
EBIT Next 5Y11.85%
FCF growth 1Y-6.75%
FCF growth 3Y15.56%
FCF growth 5Y9.69%
OCF growth 1Y-0.29%
OCF growth 3Y15.07%
OCF growth 5Y6.84%