Fastenal (NasdaqGS:FAST) - Share price, News & Analysis

FAST fundamental analysis
Snowflake Score
Valuation	0/6
Future Growth	2/6
Past Performance	5/6
Financial Health	6/6
Dividends	4/6

FAST Stock Overview

Rewards

Earnings are forecast to grow 8.43% per year

Earnings have grown 11.2% per year over the past 5 years

Risk Analysis

Dividend of 2.35% is not well covered by earnings

Fastenal Competitors

W.W. Grainger

NYSE:GWW

US$24.4b

United Rentals

NYSE:URI

US$20.7b

Watsco

NYSE:WSO

US$9.2b

WESCO International

NYSE:WCC

US$6.3b

Price History & Performance

Summary of all time highs, changes and price drops for Fastenal
Historical stock prices
Current Share Price	US$52.71
52 Week High	US$64.75
52 Week Low	US$48.84
Beta	1.27
1 Month Change	-5.89%
3 Month Change	1.04%
1 Year Change	-1.79%
3 Year Change	64.46%
5 Year Change	137.59%
Change since IPO	5,385.26%

Recent News & Updates

May 12

A Look At The Intrinsic Value Of Fastenal Company (NASDAQ:FAST)

In this article we are going to estimate the intrinsic value of Fastenal Company ( NASDAQ:FAST ) by taking the forecast...

Apr 30

Fastenal (NASDAQ:FAST) Looks To Prolong Its Impressive Returns

To find a multi-bagger stock, what are the underlying trends we should look for in a business? One common approach is...

Apr 26

Fastenal: Not A Buy Despite Good Growth Prospects

Accelerating onsite openings and inventory management offerings should help the company’s growth. Operating margin should remain steady despite gross margin pressure. The stock looks pricey.

Shareholder Returns

	FAST	US Trade Distributors	US Market
7D	-0.7%	-0.1%	0.7%
1Y	-1.8%	-5.9%	-10.8%

Return vs Industry: FAST exceeded the US Trade Distributors industry which returned -5.8% over the past year.

Return vs Market: FAST exceeded the US Market which returned -10.4% over the past year.

Price Volatility

Is FAST's price volatile compared to industry and market?
FAST volatility
FAST Average Weekly Movement	4.2%
Trade Distributors Industry Average Movement	7.2%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.8%
10% least volatile stocks in US Market	2.9%

Stable Share Price: FAST is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: FAST's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1967	18,958	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

How do Fastenal's earnings and revenue compare to its market cap?
FAST fundamental statistics
Market Cap	US$30.33b
Earnings (TTM)	US$984.00m
Revenue (TTM)	US$6.30b

30.8x

P/E Ratio

4.8x

P/S Ratio

Is FAST overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
FAST income statement (TTM)
Revenue	US$6.30b
Cost of Revenue	US$3.37b
Gross Profit	US$2.93b
Other Expenses	US$1.94b
Earnings	US$984.00m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Jul 13, 2022

Earnings per share (EPS)	1.71
Gross Margin	46.48%
Net Profit Margin	15.62%
Debt/Equity Ratio	11.6%

How did FAST perform over the long term?

See historical performance and comparison

Dividends

2.4%

Current Dividend Yield

67%

Payout Ratio

Valuation

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

Valuation Score

0/6

Valuation Score 0/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

30.83x

Price to Earnings (PE) ratio

Share Price vs. Fair Value

Below Fair Value: FAST ($52.71) is trading above our estimate of fair value ($47.86)

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 (30.8x) compared to the US Trade Distributors industry average (13.4x).

PE vs Market: FAST is poor value based on its PE Ratio (30.8x) compared to the US market (15.5x).

Price to Earnings Growth Ratio

PEG Ratio: FAST is poor value based on its PEG Ratio (3.7x)

Price to Book Ratio

PB vs Industry: FAST is overvalued based on its PB Ratio (9.7x) 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 15 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

8.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: FAST's forecast earnings growth (8.4% per year) is above the savings rate (1.9%).

Earnings vs Market: FAST's earnings (8.4% per year) are forecast to grow slower than the US market (12.6% per year).

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

Revenue vs Market: FAST's revenue (7.8% per year) is forecast to grow slower than the US market (8% per year).

High Growth Revenue: FAST's revenue (7.8% 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 (31.7%)

Past Performance

How has Fastenal performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

11.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: FAST has high quality earnings.

Growing Profit Margin: FAST's current net profit margins (15.6%) are higher than last year (15.2%).

Past Earnings Growth Analysis

Earnings Trend: FAST's earnings have grown by 11.2% per year over the past 5 years.

Accelerating Growth: FAST's earnings growth over the past year (13.5%) exceeds its 5-year average (11.2% per year).

Earnings vs Industry: FAST earnings growth over the past year (13.5%) underperformed the Trade Distributors industry 92.2%.

Return on Equity

High ROE: FAST's Return on Equity (31.3%) is considered high.

Financial Health

How is Fastenal's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: FAST's short term assets ($3.0B) exceed its short term liabilities ($745.5M).

Long Term Liabilities: FAST's short term assets ($3.0B) exceed its long term liabilities ($579.2M).

Debt to Equity History and Analysis

Debt Level: FAST's net debt to equity ratio (4.2%) is considered satisfactory.

Reducing Debt: FAST's debt to equity ratio has reduced from 18.5% to 11.6% over the past 5 years.

Debt Coverage: FAST's debt is well covered by operating cash flow (198.7%).

Interest Coverage: FAST's interest payments on its debt are well covered by EBIT (136.3x coverage).

Balance Sheet

Dividend

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

Dividend Score

5/6

Dividend Score 5/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

2.35%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: FAST's dividend (2.35%) is higher than the bottom 25% of dividend payers in the US market (1.54%).

High Dividend: FAST's dividend (2.35%) is low compared to the top 25% of dividend payers in the US market (4.05%).

Stability and Growth of Payments

Stable Dividend: FAST's dividends per share have been stable in the past 10 years.

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

Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (67.2%), FAST's dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (126.1%), FAST's dividend payments are not well covered by cash flows.

Next Steps

Explore strong dividend paying companies in the Capital Goods industry.

Management

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

7.3yrs

Average management tenure

CEO

Dan Florness (58 yo)

6.33yrs

Tenure

US$2,423,614

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 ($USD2.42M) is below average for companies of similar size in the US market ($USD13.26M).

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

Leadership Team

Experienced Management: FAST's management team is seasoned and experienced (7.3 years average tenure).

Board Members

Experienced Board: FAST's board of directors are considered experienced (6.6 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.

Data	Last Updated (UTC time)
Company Analysis	2022/05/16 00:00
End of Day Share Price	2022/05/16 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31