FAST

FastenalNasdaqGS:FAST Stock Report

Market Cap

US$30.3b

7D

-0.7%

1Y

17.6%

Updated

22 Sep, 2021

Data

Company Financials +
FAST fundamental analysis
Snowflake Score
Valuation0/6
Future Growth2/6
Past Performance4/6
Financial Health6/6
Dividends4/6

FAST Overview

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

Fastenal Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Fastenal
Historical stock prices
Current Share PriceUS$52.67
52 Week HighUS$42.57
52 Week LowUS$56.39
Beta1.26
1 Month Change-5.05%
3 Month Change2.09%
1 Year Change17.59%
3 Year Change81.65%
5 Year Change160.81%
Change since IPO5,381.10%

Recent News & Updates

Sep 17

Fastenal's DCF: New Years Of Business Growth Loading

Fastenal runs in-market locations offering supply chain solutions, custom inventory, and dedicated sales teams. I see two beneficial factors. First, I would expect that the company will be able to find old locations, which usually generate an existing customer base. The management will work smartly by closing locations that are not performing. Notice that the company is opening and closing stores every year. It appears very clear that management is bringing significant dynamism to the business model. I believe that the most likely scenario stands close to the base case scenario, in which the implied price is $67-$79. I don’t think that my assumptions are far from that of other analysts.

Aug 03
Is Fastenal (NASDAQ:FAST) Using Too Much Debt?

Is Fastenal (NASDAQ:FAST) Using Too Much Debt?

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Shareholder Returns

FASTUS Trade DistributorsUS Market
7D-0.7%-0.8%-1.8%
1Y17.6%47.4%31.5%

Return vs Industry: FAST underperformed the US Trade Distributors industry which returned 50% over the past year.

Return vs Market: FAST underperformed the US Market which returned 33% over the past year.

Price Volatility

Is FAST's price volatile compared to industry and market?
FAST volatility
FAST Beta1.26
Industry Beta1.57
Market Beta1

Stable Share Price: FAST is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: FAST's weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
196718,253Dan Flornesshttps://www.fastenal.com

Fastenal Company, together with its subsidiaries, engages in the wholesale distribution of industrial and construction supplies in the United States, Canada, Mexico, North America, and internationally. It offers fasteners, and related industrial and construction supplies under the Fastenal name. The company’s fastener products include threaded fasteners, bolts, nuts, screws, studs, and related washers, which are used in manufactured products and construction projects, as well as in the maintenance and repair of machines.

Fastenal Fundamentals Summary

How do Fastenal's earnings and revenue compare to its market cap?
FAST fundamental statistics
Market CapUS$30.27b
Earnings (TTM)US$867.90m
Revenue (TTM)US$5.70b

34.9x

P/E Ratio

5.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
FAST income statement (TTM)
RevenueUS$5.70b
Cost of RevenueUS$3.09b
Gross ProfitUS$2.60b
ExpensesUS$1.74b
EarningsUS$867.90m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Oct 12, 2021

Earnings per share (EPS)1.51
Gross Margin45.71%
Net Profit Margin15.24%
Debt/Equity Ratio14.1%

How did FAST perform over the long term?

See historical performance and comparison

Dividends

2.1%

Current Dividend Yield

70%

Payout Ratio

Valuation

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

34.88x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: FAST ($52.67) is trading above our estimate of fair value ($27.65)

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 (34.9x) compared to the US Trade Distributors industry average (21.6x).

PE vs Market: FAST is poor value based on its PE Ratio (34.9x) compared to the US market (17.5x).


Price to Earnings Growth Ratio

PEG Ratio: FAST is poor value based on its PEG Ratio (4x)


Price to Book Ratio

PB vs Industry: FAST is overvalued based on its PB Ratio (10.5x) compared to the US Trade Distributors industry average (2.2x).


Future Growth

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

8.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FAST's forecast earnings growth (8.7% per year) is above the savings rate (2%).

Earnings vs Market: FAST's earnings (8.7% per year) are forecast to grow slower than the US market (14.9% per year).

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

Revenue vs Market: FAST's revenue (8.5% per year) is forecast to grow slower than the US market (9.8% per year).

High Growth Revenue: FAST's revenue (8.5% 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 (32.4%)


Past Performance

How has Fastenal performed over the past 5 years?

12.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FAST has high quality earnings.

Growing Profit Margin: FAST's current net profit margins (15.2%) are higher than last year (15.1%).


Past Earnings Growth Analysis

Earnings Trend: FAST's earnings have grown by 12.6% per year over the past 5 years.

Accelerating Growth: FAST's earnings growth over the past year (4.1%) is below its 5-year average (12.6% per year).

Earnings vs Industry: FAST earnings growth over the past year (4.1%) underperformed the Trade Distributors industry 49.2%.


Return on Equity

High ROE: FAST's Return on Equity (30.1%) is considered high.


Financial Health

How is Fastenal's financial position?


Financial Position Analysis

Short Term Liabilities: FAST's short term assets ($2.7B) exceed its short term liabilities ($650.2M).

Long Term Liabilities: FAST's short term assets ($2.7B) exceed its long term liabilities ($635.6M).


Debt to Equity History and Analysis

Debt Level: FAST's debt to equity ratio (14.1%) is considered satisfactory.

Reducing Debt: FAST's debt to equity ratio has reduced from 23% to 14.1% over the past 5 years.

Debt Coverage: FAST's debt is well covered by operating cash flow (260.8%).

Interest Coverage: FAST's interest payments on its debt are well covered by EBIT (118.7x coverage).


Balance Sheet


Dividend

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

2.13%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: FAST's dividend (2.13%) is higher than the bottom 25% of dividend payers in the US market (1.35%).

High Dividend: FAST's dividend (2.13%) is low compared to the top 25% of dividend payers in the US market (3.65%).


Stability and Growth of Payments

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 (70.1%), 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 (69% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.6yrs

Average management tenure


CEO

Dan Florness (58 yo)

5.67yrs

Tenure

US$2,539,150

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 ($USD2.54M) is below average for companies of similar size in the US market ($USD11.33M).

Compensation vs Earnings: Dan's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: FAST's management team is seasoned and experienced (6.6 years average tenure).


Board Members

Experienced Board: FAST's board of directors are considered experienced (5.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Fastenal Company's 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$30.272b
  • Shares outstanding: 574.74m
  • Website: https://www.fastenal.com

Number of Employees


Location

  • Fastenal Company
  • 2001 Theurer Boulevard
  • Winona
  • Minnesota
  • 55987-1500
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/22 00:11
End of Day Share Price2021/09/21 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.