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Is NASDAQ:FAST a Suitable Choice for Quality Investing?

By Mill Chart

Last update: Oct 16, 2023

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if FASTENAL CO (NASDAQ:FAST) is suited for quality investing. Investors should of course do their own research, but we spotted FASTENAL CO showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

Some of the quality metrics of NASDAQ:FAST highlighted

  • The 5-year revenue growth of FASTENAL CO has been remarkable, with 9.72% increase. This showcases the company's strong performance in driving revenue growth and indicates its competitiveness within the market.
  • With a robust ROIC excluding cash and goodwill at 31.57%, FASTENAL CO showcases its effective allocation of capital and operational excellence. This metric signifies the company's ability to generate attractive returns and supports its long-term financial performance.
  • The Debt/Free Cash Flow Ratio of FASTENAL CO stands at 0.22, reflecting the company's prudent capital structure and cash flow dynamics. This ratio highlights the company's ability to generate robust free cash flow relative to its debt obligations.
  • With a favorable Profit Quality (5-year) ratio of 77.44%, FASTENAL CO showcases its ability to consistently deliver high-quality profits. This metric signifies the company's financial strength and its capacity to generate sustainable earnings over an extended period.
  • The 5-year EBIT growth of FASTENAL CO has been remarkable, with 10.54% increase. This demonstrates the company's ability to improve its operational efficiency and indicates its competitiveness within the market.
  • FASTENAL CO has achieved impressive EBIT 5-year growth, surpassing its Revenue 5-year growth. This indicates the company's ability to improve its profitability and operational efficiency, highlighting its strong financial performance.

Fundamental Analysis Observations

ChartMill assigns a proprietary Fundamental Rating to each stock. The score is computed daily by evaluating various fundamental indicators and properties. The score ranges from 0 to 10.

We assign a fundamental rating of 7 out of 10 to FAST. FAST was compared to 53 industry peers in the Trading Companies & Distributors industry. FAST gets an excellent profitability rating and is at the same time showing great financial health properties. While showing a medium growth rate, FAST is valued expensive at the moment. These ratings could make FAST a good candidate for quality investing.

For an up to date full fundamental analysis you can check the fundamental report of FAST

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.

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FASTENAL CO

NASDAQ:FAST (2/26/2024, 7:00:02 PM)

After market: 73 0 (0%)

73

+0.82 (+1.14%)

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