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Should you consider NASDAQ:FAST for quality investing?

By Mill Chart

Last update: Feb 8, 2024

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.

Why NASDAQ:FAST may be interesting for quality investors.

  • FASTENAL CO has shown strong performance in revenue growth over the past 5 years, with a 8.15% increase. This indicates the company's ability to generate consistent revenue growth and reflects its potential for long-term success.
  • FASTENAL CO exhibits a strong ROIC excluding cash and goodwill, indicating efficient capital utilization and profitable operations. The 32.31% reflects the company's ability to generate returns on invested capital and underscores its commitment to delivering value to shareholders.
  • FASTENAL CO demonstrates a well-balanced Debt/Free Cash Flow Ratio of 0.21, 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 86.01%, 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.
  • FASTENAL CO has demonstrated consistent growth in EBIT over the past 5 years, with a strong 8.89%. This signifies the company's ability to generate sustainable earnings and reflects its positive financial trajectory.
  • With EBIT 5-year growth outpacing its Revenue 5-year growth, FASTENAL CO showcases its effective cost management and enhanced operational performance. This suggests the company's ability to generate higher earnings from its revenue streams.

What else is there to say on the fundamentals of NASDAQ:FAST?

Every day ChartMill assigns a Fundamental Rating to every stock. The score ranges from 0 to 10 and is determined by evaluating multiple fundamental indicators and properties.

Overall FAST gets a fundamental rating of 7 out of 10. We evaluated FAST against 52 industry peers in the Trading Companies & Distributors industry. FAST scores excellent points on both the profitability and health parts. This is a solid base for a good stock. FAST is valied quite expensively at the moment, while it does show a decent growth rate. These ratings would make FAST suitable for quality investing!

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.

Keep in mind

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.



NASDAQ:FAST (4/19/2024, 3:30:02 PM)

After market: 67.57 0 (0%)


+0.07 (+0.1%)


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