| Snowflake Score | |
|---|---|
| Valuation | 0/6 |
| Future Growth | 2/6 |
| Past Performance | 4/6 |
| Financial Health | 6/6 |
| Dividends | 4/6 |
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
| Historical stock prices | |
|---|---|
| Current Share Price | US$54.10 |
| 52 Week High | US$42.57 |
| 52 Week Low | US$56.39 |
| Beta | 1.26 |
| 1 Month Change | -2.65% |
| 3 Month Change | 4.50% |
| 1 Year Change | 20.54% |
| 3 Year Change | 86.49% |
| 5 Year Change | 158.98% |
| Change since IPO | 5,529.92% |
Recent News & Updates
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.
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
| FAST | US Trade Distributors | US Market | |
|---|---|---|---|
| 7D | 2.2% | 3.2% | 0.1% |
| 1Y | 20.5% | 55.5% | 35.3% |
Return vs Industry: FAST underperformed the US Trade Distributors industry which returned 55.5% over the past year.
Return vs Market: FAST underperformed the US Market which returned 35.3% over the past year.
Price Volatility
| FAST volatility | |
|---|---|
| FAST Beta | 1.26 |
| Industry Beta | 1.58 |
| Market Beta | 1 |
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
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1967 | 18,253 | Dan Florness | https://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
| FAST fundamental statistics | |
|---|---|
| Market Cap | US$31.09b |
| Earnings (TTM) | US$867.90m |
| Revenue (TTM) | US$5.70b |
35.8x
P/E Ratio5.5x
P/S RatioIs FAST overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| FAST income statement (TTM) | |
|---|---|
| Revenue | US$5.70b |
| Cost of Revenue | US$3.09b |
| Gross Profit | US$2.60b |
| Expenses | US$1.74b |
| Earnings | US$867.90m |
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
Oct 12, 2021
| Earnings per share (EPS) | 1.51 |
| Gross Margin | 45.71% |
| Net Profit Margin | 15.24% |
| Debt/Equity Ratio | 14.1% |
How did FAST perform over the long term?
See historical performance and comparisonDividends
2.1%
Current Dividend Yield70%
Payout RatioValuation
Is Fastenal undervalued compared to its fair value and its price relative to the market?
35.83x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: FAST ($54.1) is trading above our estimate of fair value ($27.41)
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 (35.8x) compared to the US Trade Distributors industry average (22x).
PE vs Market: FAST is poor value based on its PE Ratio (35.8x) compared to the US market (17.9x).
Price to Earnings Growth Ratio
PEG Ratio: FAST is poor value based on its PEG Ratio (4.1x)
Price to Book Ratio
PB vs Industry: FAST is overvalued based on its PB Ratio (10.8x) compared to the US Trade Distributors industry average (2.4x).
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 (14.8% 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?
2.07%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: FAST's dividend (2.07%) is higher than the bottom 25% of dividend payers in the US market (1.33%).
High Dividend: FAST's dividend (2.07%) is low compared to the top 25% of dividend payers in the US market (3.6%).
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 ($USD11.36M).
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$31.093b
- 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/09/25 22:08 |
| End of Day Share Price | 2021/09/24 00:00 |
| Earnings | 2021/06/30 |
| Annual Earnings | 2020/12/31 |
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.