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Should you consider NASDAQ:FAST for quality investing?

By Mill Chart

Last update: Nov 6, 2023

In this article we will dive into FASTENAL CO (NASDAQ:FAST) as a possible candidate for quality investing. Investors should always do their own research, but we noticed FASTENAL CO showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

Key Considerations for Quality Investors.

  • FASTENAL CO has demonstrated significant revenue growth over the past 5 years, with a 9.72% increase. This underscores the company's ability to adapt to market dynamics and capitalize on growth opportunities.
  • FASTENAL CO demonstrates impressive performance in terms of ROIC excluding cash and goodwill, with a 31.57% ratio. This highlights the company's efficient utilization of capital and its focus on maximizing returns for investors.
  • FASTENAL CO demonstrates a well-balanced Debt/Free Cash Flow Ratio of 0.22, indicating effective debt management and strong cash flow generation. This ratio suggests the company has a sustainable financial position and the capacity to allocate capital efficiently.
  • 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.

Zooming in on the fundamentals.

ChartMill utilizes a proprietary algorithm to assign a Fundamental Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of fundamental indicators and properties.

FAST gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 52 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. FAST is quite expensive at the moment. It does show a decent growth rate.

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

Our Caviar Cruise screen will find you more ideas suited for quality investing.

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.

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FASTENAL CO

NASDAQ:FAST (2/21/2024, 3:42:57 PM)

After market: 70.33 0 (0%)

70.33

+0.25 (+0.36%)

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