FASTENAL CO (FAST) Stock Fundamental Analysis
USA - NASDAQ:FAST - US3119001044 - Common Stock
40.85 USD
+0.08 (+0.2%)
40.61 USD
-0.24 (-0.59%)
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 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.
In the past year FAST had a positive cash flow from operations.
FAST had positive earnings in each of the past 5 years.
Each year in the past 5 years FAST had a positive operating cash flow.
1.2 Ratios
FAST has a Return On Assets of 23.97%. This is amongst the best in the industry. FAST outperforms 100.00% of its industry peers.
The Return On Equity of FAST (31.50%) is better than 88.24% of its industry peers.
Looking at the Return On Invested Capital, with a value of 28.71%, FAST belongs to the top of the industry, outperforming 98.04% of the companies in the same industry.
FAST had an Average Return On Invested Capital over the past 3 years of 29.56%. This is significantly above the industry average of 10.13%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 23.97% | ||
| ROE | 31.5% | ||
| ROIC | 28.71% |
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
FAST has a better Profit Margin (15.34%) than 82.35% of its industry peers.
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 (20.21%) is better than 82.35% of its industry peers.
FAST's Operating Margin has been stable in the last couple of years.
FAST has a better Gross Margin (45.15%) than 82.35% 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 | 20.21% | ||
| PM (TTM) | 15.34% | ||
| GM | 45.15% |
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
The number of shares outstanding for FAST remains at a similar level compared to 5 years ago.
The debt/assets ratio for FAST has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 27.32 indicates that FAST is not in any danger for bankruptcy at the moment.
FAST's Altman-Z score of 27.32 is amongst the best of the industry. FAST outperforms 100.00% of its industry peers.
FAST has a debt to FCF ratio of 0.20. This is a very positive value and a sign of high solvency as it would only need 0.20 years to pay back of all of its debts.
FAST has a Debt to FCF ratio of 0.20. This is amongst the best in the industry. FAST outperforms 92.16% 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.
Looking at the Debt to Equity ratio, with a value of 0.03, FAST belongs to the top of the industry, outperforming 80.39% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.2 | ||
| Altman-Z | 27.32 |
ROIC/WACC3.08
WACC9.32%
2.3 Liquidity
A Current Ratio of 4.26 indicates that FAST has no problem at all paying its short term obligations.
FAST's Current ratio of 4.26 is amongst the best of the industry. FAST outperforms 92.16% of its industry peers.
A Quick Ratio of 2.19 indicates that FAST has no problem at all paying its short term obligations.
FAST's Quick ratio of 2.19 is amongst the best of the industry. FAST outperforms 80.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.26 | ||
| Quick Ratio | 2.19 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.47% over the past year.
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 6.92%.
The Revenue has been growing slightly by 7.19% on average over the past years.
EPS 1Y (TTM)6.47%
EPS 3Y7.68%
EPS 5Y7.81%
EPS Q2Q%11.54%
Revenue 1Y (TTM)6.92%
Revenue growth 3Y7.88%
Revenue growth 5Y7.19%
Sales Q2Q%11.68%
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 11.13% yearly.
The Revenue is expected to grow by 8.94% on average over the next years. This is quite good.
EPS Next Y11.58%
EPS Next 2Y11.03%
EPS Next 3Y10.19%
EPS Next 5Y11.13%
Revenue Next Year8.47%
Revenue Next 2Y8.7%
Revenue Next 3Y8.35%
Revenue Next 5Y8.94%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 38.18, the valuation of FAST can be described as expensive.
FAST's Price/Earnings ratio is a bit more expensive when compared to the industry. FAST is more expensive than 64.71% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.06, FAST is valued a bit more expensive.
With a Price/Forward Earnings ratio of 32.97, FAST can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, FAST is valued a bit more expensive than 62.75% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of FAST to the average of the S&P500 Index (32.73), we can say FAST is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.18 | ||
| Fwd PE | 32.97 |
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.
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 | 48.59 | ||
| EV/EBITDA | 26.07 |
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.
The excellent profitability rating of FAST may justify a higher PE ratio.
PEG (NY)3.3
PEG (5Y)4.89
EPS Next 2Y11.03%
EPS Next 3Y10.19%
5. Dividend
5.1 Amount
FAST has a Yearly Dividend Yield of 2.16%.
Compared to an average industry Dividend Yield of 2.23, FAST pays a better dividend. On top of this FAST pays more dividend than 88.24% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, FAST has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.16% |
5.2 History
The dividend of FAST decreases each year by -2.16%.
FAST has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-2.16%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
FAST pays out 79.49% of its income as dividend. This is not a sustainable payout ratio.
DP79.49%
EPS Next 2Y11.03%
EPS Next 3Y10.19%
40.85
+0.08 (+0.2%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners87.33%
Inst Owner Change0.61%
Ins Owners0.09%
Ins Owner Change0.02%
Market Cap46.90B
Revenue(TTM)8.00B
Net Income(TTM)1.23B
Analysts70
Price Target44.66 (9.33%)
Short Float %2.08%
Short Ratio3.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.16% |
Yearly Dividend0.78
Dividend Growth(5Y)-2.16%
DP79.49%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.42%
Min EPS beat(2)-3.93%
Max EPS beat(2)1.09%
EPS beat(4)1
Avg EPS beat(4)-2.62%
Min EPS beat(4)-5.73%
Max EPS beat(4)1.09%
EPS beat(8)1
Avg EPS beat(8)-2.06%
EPS beat(12)3
Avg EPS beat(12)-1.44%
EPS beat(16)6
Avg EPS beat(16)-0.63%
Revenue beat(2)0
Avg Revenue beat(2)-1.73%
Min Revenue beat(2)-1.78%
Max Revenue beat(2)-1.69%
Revenue beat(4)0
Avg Revenue beat(4)-1.98%
Min Revenue beat(4)-2.95%
Max Revenue beat(4)-1.49%
Revenue beat(8)0
Avg Revenue beat(8)-1.99%
Revenue beat(12)0
Avg Revenue beat(12)-1.96%
Revenue beat(16)0
Avg Revenue beat(16)-1.79%
PT rev (1m)-0.85%
PT rev (3m)6.56%
EPS NQ rev (1m)-3.68%
EPS NQ rev (3m)-3.94%
EPS NY rev (1m)-0.96%
EPS NY rev (3m)0.68%
Revenue NQ rev (1m)-0.24%
Revenue NQ rev (3m)-0.43%
Revenue NY rev (1m)-0.1%
Revenue NY rev (3m)-0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.18 | ||
| Fwd PE | 32.97 | ||
| P/S | 5.86 | ||
| P/FCF | 48.59 | ||
| P/OCF | 38.74 | ||
| P/B | 12.04 | ||
| P/tB | 12.04 | ||
| EV/EBITDA | 26.07 |
EPS(TTM)1.07
EY2.62%
EPS(NY)1.24
Fwd EY3.03%
FCF(TTM)0.84
FCFY2.06%
OCF(TTM)1.05
OCFY2.58%
SpS6.97
BVpS3.39
TBVpS3.39
PEG (NY)3.3
PEG (5Y)4.89
Graham Number9.04
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 23.97% | ||
| ROE | 31.5% | ||
| ROCE | 37.73% | ||
| ROIC | 28.71% | ||
| ROICexc | 30.78% | ||
| ROICexgc | 30.78% | ||
| OM | 20.21% | ||
| PM (TTM) | 15.34% | ||
| GM | 45.15% | ||
| FCFM | 12.07% |
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%
ROICexgc growth 3Y3.75%
ROICexgc 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 | 0.2 | ||
| Debt/EBITDA | 0.06 | ||
| Cap/Depr | 137.07% | ||
| Cap/Sales | 3.07% | ||
| Interest Coverage | 215.51 | ||
| Cash Conversion | 67.43% | ||
| Profit Quality | 78.68% | ||
| Current Ratio | 4.26 | ||
| Quick Ratio | 2.19 | ||
| Altman-Z | 27.32 |
F-Score3
WACC9.32%
ROIC/WACC3.08
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)6.47%
EPS 3Y7.68%
EPS 5Y7.81%
EPS Q2Q%11.54%
EPS Next Y11.58%
EPS Next 2Y11.03%
EPS Next 3Y10.19%
EPS Next 5Y11.13%
Revenue 1Y (TTM)6.92%
Revenue growth 3Y7.88%
Revenue growth 5Y7.19%
Sales Q2Q%11.68%
Revenue Next Year8.47%
Revenue Next 2Y8.7%
Revenue Next 3Y8.35%
Revenue Next 5Y8.94%
EBIT growth 1Y6.41%
EBIT growth 3Y7.44%
EBIT growth 5Y7.41%
EBIT Next Year21.94%
EBIT Next 3Y13.46%
EBIT Next 5Y12.31%
FCF growth 1Y-19.66%
FCF growth 3Y15.56%
FCF growth 5Y9.69%
OCF growth 1Y-12.31%
OCF growth 3Y15.07%
OCF growth 5Y6.84%
FASTENAL CO / FAST FAQ
What is the ChartMill fundamental rating of FASTENAL CO (FAST) stock?
ChartMill assigns a fundamental rating of 7 / 10 to FAST.
What is the valuation status for FAST stock?
ChartMill assigns a valuation rating of 2 / 10 to FASTENAL CO (FAST). This can be considered as Overvalued.
What is the profitability of FAST stock?
FASTENAL CO (FAST) has a profitability rating of 8 / 10.
Can you provide the financial health for FAST stock?
The financial health rating of FASTENAL CO (FAST) is 9 / 10.
What is the earnings growth outlook for FASTENAL CO?
The Earnings per Share (EPS) of FASTENAL CO (FAST) is expected to grow by 11.58% in the next year.