FASTENAL CO (FAST) Stock Fundamental Analysis
NASDAQ:FAST - Nasdaq - US3119001044 - Common Stock - Currency: USD
Overall FAST gets a fundamental rating of 6 out of 10. We evaluated FAST against 49 industry peers in the Trading Companies & Distributors industry. FAST scores excellent points on both the profitability and health parts. This is a solid base for a good stock. 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
FAST had positive earnings in the past year.
FAST had a positive operating cash flow in the past year.
In the past 5 years FAST has always been profitable.
FAST had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
FAST's Return On Assets of 24.49% is amongst the best of the industry. FAST outperforms 100.00% of its industry peers.
FAST has a better Return On Equity (31.82%) than 97.92% of its industry peers.
Looking at the Return On Invested Capital, with a value of 28.65%, 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 9.86%.
| 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
The Profit Margin of FAST (15.25%) is better than 89.58% of its industry peers.
FAST's Profit Margin has been stable in the last couple of years.
FAST has a Operating Margin of 20.01%. This is in the better half of the industry: FAST outperforms 77.08% of its industry peers.
In the last couple of years the Operating Margin of FAST has remained more or less at the same level.
Looking at the Gross Margin, with a value of 45.08%, FAST is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
FAST's Gross Margin has been stable in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), FAST is creating value.
FAST has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, FAST has about the same amount of shares outstanding.
FAST has a better debt/assets ratio than last year.
2.2 Solvency
FAST has an Altman-Z score of 28.29. This indicates that FAST is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of FAST (28.29) is better than 100.00% of its industry peers.
FAST has a debt to FCF ratio of 0.21. This is a very positive value and a sign of high solvency as it would only need 0.21 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.21, FAST belongs to the top of the industry, outperforming 89.58% of the companies in the same industry.
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 belongs to the top of the industry, outperforming 85.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.21 | ||
| Altman-Z | 28.29 |
ROIC/WACC2.65
WACC10.82%
2.3 Liquidity
A Current Ratio of 4.67 indicates that FAST has no problem at all paying its short term obligations.
The Current ratio of FAST (4.67) is better than 95.83% 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.
Looking at the Quick ratio, with a value of 2.28, FAST belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
| 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.
The Earnings Per Share has been growing slightly by 7.81% on average over the past years.
FAST shows a small growth in Revenue. In the last year, the Revenue has grown by 2.71%.
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
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.
Based on estimates for the next years, FAST will show a quite strong growth in Revenue. The Revenue will grow by 8.45% on average per year.
EPS Next Y9.23%
EPS Next 2Y9.1%
EPS Next 3Y9%
EPS Next 5Y10.73%
Revenue Next Year6.46%
Revenue Next 2Y7.16%
Revenue Next 3Y7.32%
Revenue Next 5Y8.45%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
FAST is valuated quite expensively with a Price/Earnings ratio of 37.20.
Based on the Price/Earnings ratio, FAST is valued a bit more expensive than the industry average as 68.75% of the companies are valued more cheaply.
FAST is valuated rather expensively when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 34.06, which means the current valuation is very expensive for FAST.
Based on the Price/Forward Earnings ratio, FAST is valued a bit more expensive than 75.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.68. FAST is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.2 | ||
| Fwd PE | 34.06 |
4.2 Price Multiples
77.08% 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 is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45.29 | ||
| EV/EBITDA | 25.53 |
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)4.03
PEG (5Y)4.76
EPS Next 2Y9.1%
EPS Next 3Y9%
5. Dividend
5.1 Amount
FAST has a Yearly Dividend Yield of 2.29%.
FAST's Dividend Yield is rather good when compared to the industry average which is at 1.87. FAST pays more dividend than 91.67% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.29, FAST has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.29% |
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.
FAST's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP77.64%
EPS Next 2Y9.1%
EPS Next 3Y9%
74.78
-0.36 (-0.48%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners86.2%
Inst Owner Change2.13%
Ins Owners0.09%
Ins Owner Change-0.06%
Market Cap42.88B
Analysts55.45
Price Target75.89 (1.48%)
Short Float %2.3%
Short Ratio4.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.29% |
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)-3.22%
Min EPS beat(2)-5.73%
Max EPS beat(2)-0.7%
EPS beat(4)0
Avg EPS beat(4)-2.91%
Min EPS beat(4)-5.73%
Max EPS beat(4)-0.7%
EPS beat(8)2
Avg EPS beat(8)-1.53%
EPS beat(12)4
Avg EPS beat(12)-0.79%
EPS beat(16)6
Avg EPS beat(16)-0.41%
Revenue beat(2)0
Avg Revenue beat(2)-2.29%
Min Revenue beat(2)-2.95%
Max Revenue beat(2)-1.64%
Revenue beat(4)0
Avg Revenue beat(4)-2.33%
Min Revenue beat(4)-2.95%
Max Revenue beat(4)-1.64%
Revenue beat(8)0
Avg Revenue beat(8)-2.18%
Revenue beat(12)0
Avg Revenue beat(12)-1.95%
Revenue beat(16)0
Avg Revenue beat(16)-1.81%
PT rev (1m)0.61%
PT rev (3m)4.74%
EPS NQ rev (1m)-2.59%
EPS NQ rev (3m)-8.57%
EPS NY rev (1m)-1.58%
EPS NY rev (3m)-1.55%
Revenue NQ rev (1m)-1.74%
Revenue NQ rev (3m)-4.53%
Revenue NY rev (1m)-0.67%
Revenue NY rev (3m)-0.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.2 | ||
| Fwd PE | 34.06 | ||
| P/S | 5.68 | ||
| P/FCF | 45.29 | ||
| P/OCF | 36.55 | ||
| P/B | 11.86 | ||
| P/tB | 11.86 | ||
| EV/EBITDA | 25.53 |
EPS(TTM)2.01
EY2.69%
EPS(NY)2.2
Fwd EY2.94%
FCF(TTM)1.65
FCFY2.21%
OCF(TTM)2.05
OCFY2.74%
SpS13.16
BVpS6.31
TBVpS6.31
PEG (NY)4.03
PEG (5Y)4.76
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 | 28.29 |
F-Score5
WACC10.82%
ROIC/WACC2.65
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 Y9.23%
EPS Next 2Y9.1%
EPS Next 3Y9%
EPS Next 5Y10.73%
Revenue 1Y (TTM)2.71%
Revenue growth 3Y7.88%
Revenue growth 5Y7.19%
Sales Q2Q%3.75%
Revenue Next Year6.46%
Revenue Next 2Y7.16%
Revenue Next 3Y7.32%
Revenue Next 5Y8.45%
EBIT growth 1Y-1.22%
EBIT growth 3Y7.44%
EBIT growth 5Y7.41%
EBIT Next Year18.47%
EBIT Next 3Y12.01%
EBIT Next 5Y12.03%
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%