Analyzing the Quality Characteristics of FASTENAL CO (NASDAQ:FAST).

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.

Exploring Why FAST Holds Appeal for Quality Investors.

• FAST has shown strong performance in revenue growth over the past 5 years, with a 7.19% increase. This indicates the company's ability to generate consistent revenue growth and reflects its potential for long-term success.
• With a robust ROIC excluding cash and goodwill at 29.89%, FAST 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.
• With a favorable Debt/Free Cash Flow Ratio of 0.23, FAST showcases its sound financial discipline and cash flow management. This ratio indicates the company's ability to service its debt obligations while maintaining sufficient free cash flow for future investments or operational needs.
• With a robust Profit Quality (5-year) ratio of 87.39%, FAST highlights its ability to consistently generate high-quality profits. This metric reflects the company's effective management and operational excellence in delivering reliable earnings over the long term.
• FAST has experienced impressive EBIT growth over the past 5 years, with 7.41% increase. This reflects the company's effective operational performance and highlights its potential for long-term financial success.
• FAST 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 Observations

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 6 out of 10. We evaluated FAST against 50 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!

Check the latest full fundamental report of FAST for a complete fundamental analysis.

More quality stocks can be found in our Caviar Cruise screen.

Disclaimer

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.