NasdaqGS:FAST

Stock Analysis Report

Executive Summary

Fastenal Company, together with its subsidiaries, engages in the wholesale distribution of industrial and construction supplies in the United States, Canada, and internationally.

Snowflake

Fundamentals

Excellent balance sheet with proven track record and pays a dividend.


Similar Companies

Share Price & News

How has Fastenal's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

5.8%

FAST

4.1%

US Trade Distributors

0.4%

US Market


1 Year Return

54.8%

FAST

17.6%

US Trade Distributors

11.4%

US Market

Return vs Industry: FAST exceeded the US Trade Distributors industry which returned 15.3% over the past year.

Return vs Market: FAST exceeded the US Market which returned 8.9% over the past year.


Shareholder returns

FASTIndustryMarket
7 Day5.8%4.1%0.4%
30 Day16.7%6.7%0.3%
90 Day19.8%6.2%-1.2%
1 Year58.9%54.8%19.8%17.6%13.9%11.4%
3 Year109.6%93.0%49.8%43.3%47.2%37.6%
5 Year101.2%75.1%34.0%24.4%62.4%44.6%

Price Volatility Vs. Market

How volatile is Fastenal's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Fastenal undervalued compared to its fair value and its price relative to the market?

27.62x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: FAST ($37.66) is trading above our estimate of fair value ($26.62)

Significantly Below Fair Value: FAST is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: FAST is poor value based on its PE Ratio (27.6x) compared to the Trade Distributors industry average (16.9x).

PE vs Market: FAST is poor value based on its PE Ratio (27.6x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: FAST is poor value based on its PEG Ratio (3.6x)


Price to Book Ratio

PB vs Industry: FAST is overvalued based on its PB Ratio (8.4x) compared to the US Trade Distributors industry average (1.7x).


Next Steps

Future Growth

How is Fastenal forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

7.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FAST's forecast earnings growth (7.7% per year) is above the savings rate (2.7%).

Earnings vs Market: FAST's earnings (7.7% per year) are forecast to grow slower than the US market (14.5% per year).

High Growth Earnings: FAST's earnings are forecast to grow, but not significantly.

Revenue vs Market: FAST's revenue (7% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: FAST's revenue (7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FAST's Return on Equity is forecast to be high in 3 years time (34.7%)


Next Steps

Past Performance

How has Fastenal performed over the past 5 years?

10.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: FAST's earnings have grown by 10.7% per year over the past 5 years.

Accelerating Growth: FAST's earnings growth over the past year (6.2%) is below its 5-year average (10.7% per year).

Earnings vs Industry: FAST earnings growth over the past year (6.2%) exceeded the Trade Distributors industry 0.9%.


Return on Equity

High ROE: FAST's Return on Equity (30.2%) is considered high.


Return on Assets

ROA vs Industry: FAST has a higher Return on Assets than the Trade Distributors industry average last year.


Return on Capital Employed

ROCE Improving: FAST's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Fastenal's financial position?


Financial Position Analysis

Short Term Liabilities: FAST's short term assets ($2.5B) exceeds its short term liabilities ($555.1M)

Long Term Liabilities: FAST's short term assets (2.5B) exceeds its long term liabilities (673.4M)


Debt to Equity History and Analysis

Debt Level: FAST's debt to equity ratio (17.2%) is considered satisfactory

Reducing Debt: FAST's debt to equity ratio has increased from 5.5% to 17.2% over the past 5 years.

Debt Coverage: FAST's debt is well covered by operating cash flow (172.7%).

Interest Coverage: FAST's interest payments on its debt are well covered by EBIT (72x coverage).


Balance Sheet

Inventory Level: FAST has a high level of physical assets or inventory.

Debt Coverage by Assets: FAST's debt is covered by short term assets (assets are 5.6x debt).


Next Steps

Dividend

What is Fastenal's current dividend yield, its reliability and sustainability?

2.34%

Current Dividend Yield


Dividend Yield vs Market

company2.3%marketbottom25%1.4%markettop25%3.7%industryaverage2.6%forecastin3Years2.6%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: FAST's dividend (2.34%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: FAST's dividend (2.34%) is low compared to the top 25% of dividend payers in the US market (3.68%).

Stable Dividend: FAST's dividend payments have been volatile in the past 10 years.

Growing Dividend: FAST's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (62.3%), FAST's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: FAST's dividends in 3 years are forecast to be covered by earnings (67.9% payout ratio).


Next Steps

Management

What is the CEO of Fastenal's salary, the management and board of directors tenure and is there insider trading?

3.8yrs

Average management tenure


CEO

Dan Florness (56yo)

3.8yrs

Tenure

US$2,429,411

Compensation

Mr. Daniel L. Florness, also known as Dan, has been the Chief Executive Officer, President and Director at Fastenal Company since January 1, 2016. Mr. Florness served as the Chief Financial Officer of Fast ...


CEO Compensation Analysis

Compensation vs. Market: Dan's total compensation ($USD2.43M) is below average for companies of similar size in the US market ($USD11.18M).

Compensation vs Earnings: Dan's compensation has been consistent with company performance over the past year.


Management Age and Tenure

3.8yrs

Average Tenure

54yo

Average Age

Experienced Management: FAST's management team is considered experienced (3.8 years average tenure).


Board Age and Tenure

7.3yrs

Average Tenure

56yo

Average Age

Experienced Board: FAST's board of directors are considered experienced (7.3 years average tenure).


Insider Trading

Insider Buying: FAST insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$28,99006 Aug 19
Michael Ancius
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceUS$28.99
BuyUS$76,21802 Aug 19
Daniel Johnson
EntityIndividual
Shares2,500
Max PriceUS$30.49
BuyUS$33,26419 Jul 19
Michael Ancius
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,104
Max PriceUS$30.13
SellUS$302,55001 Feb 19
Nicholas Lundquist
EntityIndividual
Role
Member of the Board of Directors
Senior EVP of Operations & Director
Shares10,000
Max PriceUS$30.26
SellUS$150,00030 Jan 19
Michael Dolan
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,000
Max PriceUS$30.00
SellUS$300,00006 Dec 18
Michael Dolan
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,000
Max PriceUS$30.00

Ownership Breakdown


Management Team

  • Dan Florness (56yo)

    President

    • Tenure: 3.8yrs
    • Compensation: US$2.43m
  • Will Oberton (61yo)

    Independent Chairman of the Board

    • Tenure: 5.5yrs
    • Compensation: US$385.00k
  • Nicholas Lundquist (62yo)

    Senior EVP of Operations & Director

    • Tenure: 0yrs
    • Compensation: US$301.45k
  • Reyne Wisecup (56yo)

    Senior EVP of Human Resources & Director

    • Tenure: 19.3yrs
    • Compensation: US$1.29m
  • Holden Lewis (50yo)

    Executive VP & CFO

    • Tenure: 3.2yrs
    • Compensation: US$1.12m
  • Sheryl Lisowski (52yo)

    Controller

    • Tenure: 6yrs
    • Compensation: US$230.84k
  • Terry Owen (51yo)

    Senior Executive Vice President of Sales Operations

    • Tenure: 5.4yrs
    • Compensation: US$1.50m
  • Jeffery Watts (47yo)

    Executive Vice President of International Sales

    • Tenure: 2.8yrs
    • Compensation: US$1.43m
  • John Milek

    VP & General Counsel

    • Tenure: 0yrs
  • Ellen Stolts

    Financial Reporting & Regulatory Compliance Manager

    • Tenure: 0yrs

Board Members

  • Darren Jackson (54yo)

    Independent Director

    • Tenure: 7.3yrs
    • Compensation: US$133.00k
  • Dan Florness (56yo)

    President

    • Tenure: 3.8yrs
    • Compensation: US$2.43m
  • Will Oberton (61yo)

    Independent Chairman of the Board

    • Tenure: 5.5yrs
    • Compensation: US$385.00k
  • Nicholas Lundquist (62yo)

    Senior EVP of Operations & Director

    • Tenure: 0yrs
    • Compensation: US$301.45k
  • Reyne Wisecup (56yo)

    Senior EVP of Human Resources & Director

    • Tenure: 19.3yrs
    • Compensation: US$1.29m
  • Mike Dolan (71yo)

    Independent Director

    • Tenure: 19.3yrs
    • Compensation: US$196.00k
  • Scott Satterlee (50yo)

    Independent Director

    • Tenure: 10.8yrs
    • Compensation: US$129.00k
  • Rita Heise (62yo)

    Independent Director

    • Tenure: 7.3yrs
    • Compensation: US$129.00k
  • Michael Ancius (54yo)

    Independent Director

    • Tenure: 10.8yrs
    • Compensation: US$147.00k
  • Steve Eastman (54yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: US$141.00k

Company Information

Fastenal Company's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Fastenal Company
  • Ticker: FAST
  • Exchange: NasdaqGS
  • Founded: 1967
  • Industry: Trading Companies and Distributors
  • Sector: Capital Goods
  • Market Cap: US$21.599b
  • Shares outstanding: 573.53m
  • Website: https://www.fastenal.com

Number of Employees


Location

  • Fastenal Company
  • 2001 Theurer Boulevard
  • Winona
  • Minnesota
  • 55987
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FASTNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDAug 1987
FASDB (Deutsche Boerse AG)YesCommon StockDEEURAug 1987
FASTWBAG (Wiener Boerse AG)YesCommon StockATEURAug 1987
FAST *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNAug 1987
FASL34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REP 1 COM USD0.01BRBRLMay 2019

Biography

Fastenal Company, together with its subsidiaries, engages in the wholesale distribution of industrial and construction supplies in the United States, Canada, and internationally. It offers fasteners, and o ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 23:37
End of Day Share Price2019/10/23 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.