NasdaqGS:FAST

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

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. More Details


Snowflake Analysis

Flawless balance sheet with solid 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

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.


Market Performance


7 Day Return

-1.3%

FAST

-1.2%

US Trade Distributors

0.7%

US Market


1 Year Return

35.7%

FAST

20.4%

US Trade Distributors

22.2%

US Market

Return vs Industry: FAST exceeded the US Trade Distributors industry which returned 22.4% over the past year.

Return vs Market: FAST exceeded the US Market which returned 22.7% over the past year.


Shareholder returns

FASTIndustryMarket
7 Day-1.3%-1.2%0.7%
30 Day6.9%15.2%11.8%
90 Day1.2%16.3%8.6%
1 Year40.3%35.7%23.0%20.4%25.0%22.2%
3 Year94.5%78.1%35.0%28.3%49.4%39.5%
5 Year173.5%136.6%97.6%82.7%100.2%78.1%

Long-Term 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?

32.43x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: FAST ($47.58) is trading above our estimate of fair value ($24.56)

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 (32.4x) compared to the US Trade Distributors industry average (21.9x).

PE vs Market: FAST is poor value based on its PE Ratio (32.4x) compared to the US market (19.4x).


Price to Earnings Growth Ratio

PEG Ratio: FAST is poor value based on its PEG Ratio (3.9x)


Price to Book Ratio

PB vs Industry: FAST is overvalued based on its PB Ratio (9.5x) 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 17 analysts?

8.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FAST's forecast earnings growth (8.2% per year) is above the savings rate (2.2%).

Earnings vs Market: FAST's earnings (8.2% per year) are forecast to grow slower than the US market (21.8% per year).

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

Revenue vs Market: FAST's revenue (7.3% per year) is forecast to grow slower than the US market (10.2% per year).

High Growth Revenue: FAST's revenue (7.3% 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 (29.9%)


Next Steps

Past Performance

How has Fastenal performed over the past 5 years?

12.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FAST has high quality earnings.

Growing Profit Margin: FAST's current net profit margins (15.1%) are higher than last year (14.8%).


Past Earnings Growth Analysis

Earnings Trend: FAST's earnings have grown by 12.5% per year over the past 5 years.

Accelerating Growth: FAST's earnings growth over the past year (7.8%) is below its 5-year average (12.5% per year).

Earnings vs Industry: FAST earnings growth over the past year (7.8%) exceeded the Trade Distributors industry -6.9%.


Return on Equity

High ROE: FAST's Return on Equity (29.2%) is considered high.


Next Steps

Financial Health

How is Fastenal's financial position?


Financial Position Analysis

Short Term Liabilities: FAST's short term assets ($2.6B) exceed its short term liabilities ($603.0M).

Long Term Liabilities: FAST's short term assets ($2.6B) exceed its long term liabilities ($620.0M).


Debt to Equity History and Analysis

Debt Level: FAST's debt to equity ratio (14%) is considered satisfactory.

Reducing Debt: FAST's debt to equity ratio has reduced from 17.7% to 14% over the past 5 years.

Debt Coverage: FAST's debt is well covered by operating cash flow (255.1%).

Interest Coverage: FAST's interest payments on its debt are well covered by EBIT (118.6x coverage).


Balance Sheet


Next Steps

Dividend

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

2.10%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: FAST's dividend (2.1%) is higher than the bottom 25% of dividend payers in the US market (1.48%).

High Dividend: FAST's dividend (2.1%) is low compared to the top 25% of dividend payers in the US market (4.14%).


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 (66.1%), 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 (64% payout ratio).


Next Steps

Management

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

5.8yrs

Average management tenure


CEO

Dan Florness (57 yo)

4.92yrs

Tenure

US$1,759,943

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 ($USD1.76M) is below average for companies of similar size in the US market ($USD10.98M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Daniel Florness
President4.92yrsUS$1.76m0.040%
$ 10.9m
Holden Lewis
Executive VP & CFO4.33yrsUS$958.77k0.0015%
$ 407.0k
Reyne Wisecup
Senior EVP of Human Resources & Director20.5yrsUS$912.59k0.0035%
$ 950.5k
Terry Owen
Senior Executive Vice President of Sales Operations6.58yrsUS$1.06m0.0015%
$ 407.0k
Charles Miller
Senior Executive Vice President of Sales5.08yrsUS$925.35k0.0034%
$ 923.2k
Sheryl Lisowski
Controller7.17yrsUS$230.84k0.00042%
$ 114.7k
John Milek
VP & General Counselno datano datano data
Ellen Stolts
Financial Reporting & Regulatory Compliance Managerno datano datano data
Leland Hein
Senior Executive Vice President of Sales4.92yrsUS$977.99k0.0036%
$ 986.0k
James Jansen
Executive Vice President of Manufacturing13.08yrsUS$1.26m0.0075%
$ 2.0m
John Soderberg
Executive Vice President of Information Technology6.58yrsno data0.0025%
$ 680.1k
William Drazkowski
Executive Vice President of Sales4yrsno data0.0020%
$ 546.3k

5.8yrs

Average Tenure

51.5yo

Average Age

Experienced Management: FAST's management team is seasoned and experienced (5.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Daniel Florness
President4.92yrsUS$1.76m0.040%
$ 10.9m
Reyne Wisecup
Senior EVP of Human Resources & Director20.5yrsUS$912.59k0.0035%
$ 950.5k
Willard Oberton
Independent Chairman of the Board6.67yrsUS$385.00k0.16%
$ 44.1m
Nicholas Lundquist
Director1.17yrsUS$10.63k0.087%
$ 23.8m
Michael Dolan
Independent Director20.5yrsUS$197.00k0.0017%
$ 475.3k
Scott Satterlee
Independent Director11.92yrsUS$129.00k0.0043%
$ 1.2m
Rita Heise
Independent Director8.42yrsUS$125.00k0.0035%
$ 950.5k
Daniel Johnson
Independent Director4.58yrsUS$141.00k0.0013%
$ 349.6k
Michael Ancius
Independent Director11.92yrsUS$143.00k0.0042%
$ 1.1m
Stephen Eastman
Independent Director5.5yrsUS$145.00k0.0012%
$ 333.2k
Hsenghung Hsu
Director0.33yrno data0.00035%
$ 95.6k

6.7yrs

Average Tenure

57yo

Average Age

Experienced Board: FAST's board of directors are considered experienced (6.7 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 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$27.313b
  • Shares outstanding: 574.05m
  • Website: https://www.fastenal.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FASTNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDAug 1987
0IKWLSE (London Stock Exchange)YesCommon StockGBUSDAug 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, Mexico, North America, and internationally. It ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/02 23:17
End of Day Share Price2020/12/02 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.