Should Quality-Oriented Investors Explore FASTENAL CO (NASDAQ:FAST)?

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.

A Deep Dive into FASTENAL CO's Quality Metrics.

• The 5-year revenue growth of FASTENAL CO has been remarkable, with 8.15% increase. This showcases the company's strong performance in driving revenue growth and indicates its competitiveness within the market.
• With a notable ROIC excluding cash and goodwill at 31.03%, FASTENAL CO demonstrates its commitment to generating sustainable returns for shareholders. This metric emphasizes the company's effective use of capital and its ability to deliver long-term value.
• With a Debt/Free Cash Flow Ratio of 0.23, FASTENAL CO exhibits solid financial health and responsible debt management practices. This ratio indicates the company's ability to generate ample free cash flow to meet its debt obligations and pursue growth opportunities.
• FASTENAL CO demonstrates consistent Profit Quality over the past 5 years, with a strong 86.01%. This indicates the company's ability to generate sustainable and reliable profits, showcasing its long-term profitability and financial stability.
• FASTENAL CO has experienced impressive EBIT growth over the past 5 years, with 8.89% increase. This reflects the company's effective operational performance and highlights its potential for long-term financial success.
• FASTENAL CO demonstrates a remarkable trend where its EBIT 5-year growth exceeds its Revenue 5-year growth. This indicates the company's ability to enhance its profitability through improved cost control and operational efficiency.

Fundamental analysis of NASDAQ:FAST

Every day, ChartMill assigns a Fundamental Rating to each stock, providing a score ranging from 0 to 10. This rating is determined by evaluating various 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 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. 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. 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.