FASTENAL CO (FAST) Stock Fundamental Analysis
USA - NASDAQ:FAST - US3119001044 - Common Stock
48.7 USD
+0.85 (+1.78%)
48.5 USD
-0.2 (-0.41%)
Overall FAST gets a fundamental rating of 6 out of 10. We evaluated FAST against 49 industry peers in the Trading Companies & Distributors industry. Both the health and profitability get an excellent rating, making FAST a very profitable company, without any liquidiy or solvency issues. FAST is quite expensive at the moment. It does show a decent growth rate. These ratings could make FAST a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
In the past year FAST was profitable.
In the past year FAST had a positive cash flow from operations.
Each year in the past 5 years FAST has been profitable.
In the past 5 years FAST always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of FAST (23.71%) is better than 100.00% of its industry peers.
FAST has a better Return On Equity (31.23%) than 87.76% of its industry peers.
Looking at the Return On Invested Capital, with a value of 28.34%, FAST belongs to the top of the industry, outperforming 95.92% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for FAST is significantly above the industry average of 10.06%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 23.71% | ||
| ROE | 31.23% | ||
| ROIC | 28.34% |
ROA(3y)24.76%
ROA(5y)23.49%
ROE(3y)33.56%
ROE(5y)32.5%
ROIC(3y)29.56%
ROIC(5y)28.03%
1.3 Margins
The Profit Margin of FAST (15.30%) is better than 81.63% of its industry peers.
FAST's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 20.10%, FAST belongs to the top of the industry, outperforming 81.63% of the companies in the same industry.
FAST's Operating Margin has been stable in the last couple of years.
The Gross Margin of FAST (45.06%) is better than 81.63% of its industry peers.
FAST's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.1% | ||
| PM (TTM) | 15.3% | ||
| GM | 45.06% |
OM growth 3Y-0.4%
OM growth 5Y0.21%
PM growth 3Y-0.31%
PM growth 5Y0.56%
GM growth 3Y-0.82%
GM growth 5Y-0.9%
2. Health
2.1 Basic Checks
FAST has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, FAST has more shares outstanding
The number of shares outstanding for FAST remains at a similar level compared to 5 years ago.
The debt/assets ratio for FAST has been reduced compared to a year ago.
2.2 Solvency
FAST has an Altman-Z score of 31.51. This indicates that FAST is financially healthy and has little risk of bankruptcy at the moment.
FAST's Altman-Z score of 31.51 is amongst the best of the industry. FAST outperforms 100.00% of its industry peers.
FAST has a debt to FCF ratio of 0.26. This is a very positive value and a sign of high solvency as it would only need 0.26 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.26, FAST belongs to the top of the industry, outperforming 89.80% of the companies in the same industry.
A Debt/Equity ratio of 0.03 indicates that FAST is not too dependend on debt financing.
The Debt to Equity ratio of FAST (0.03) is better than 81.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.26 | ||
| Altman-Z | 31.51 |
ROIC/WACC2.87
WACC9.88%
2.3 Liquidity
FAST has a Current Ratio of 4.22. This indicates that FAST is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 4.22, FAST belongs to the top of the industry, outperforming 91.84% of the companies in the same industry.
FAST has a Quick Ratio of 2.12. This indicates that FAST is financially healthy and has no problem in meeting its short term obligations.
FAST's Quick ratio of 2.12 is fine compared to the rest of the industry. FAST outperforms 75.51% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.22 | ||
| Quick Ratio | 2.12 |
3. Growth
3.1 Past
FAST shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.48%.
Measured over the past 5 years, FAST shows a small growth in Earnings Per Share. The EPS has been growing by 7.81% on average per year.
Looking at the last year, FAST shows a small growth in Revenue. The Revenue has grown by 4.84% in the last year.
Measured over the past years, FAST shows a small growth in Revenue. The Revenue has been growing by 7.19% on average per year.
EPS 1Y (TTM)3.48%
EPS 3Y7.68%
EPS 5Y7.81%
EPS Q2Q%13.73%
Revenue 1Y (TTM)4.84%
Revenue growth 3Y7.88%
Revenue growth 5Y7.19%
Sales Q2Q%8.56%
3.2 Future
Based on estimates for the next years, FAST will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.46% on average per year.
Based on estimates for the next years, FAST will show a quite strong growth in Revenue. The Revenue will grow by 8.33% on average per year.
EPS Next Y12.81%
EPS Next 2Y12.01%
EPS Next 3Y10.97%
EPS Next 5Y10.46%
Revenue Next Year8.57%
Revenue Next 2Y8.86%
Revenue Next 3Y8.45%
Revenue Next 5Y8.33%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 46.83, the valuation of FAST can be described as expensive.
FAST's Price/Earnings ratio is a bit more expensive when compared to the industry. FAST is more expensive than 63.27% of the companies in the same industry.
When comparing the Price/Earnings ratio of FAST to the average of the S&P500 Index (27.32), we can say FAST is valued expensively.
A Price/Forward Earnings ratio of 38.63 indicates a quite expensive valuation of FAST.
FAST's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. FAST is more expensive than 71.43% of the companies in the same industry.
FAST's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.89.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.83 | ||
| Fwd PE | 38.63 |
4.2 Price Multiples
FAST's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. FAST is more expensive than 73.47% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as FAST.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 63.81 | ||
| EV/EBITDA | 31.53 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates FAST does not grow enough to justify the current Price/Earnings ratio.
FAST has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.66
PEG (5Y)5.99
EPS Next 2Y12.01%
EPS Next 3Y10.97%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.84%, FAST has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.72, FAST pays a better dividend. On top of this FAST pays more dividend than 87.76% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.38, FAST is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.84% |
5.2 History
The dividend of FAST decreases each year by -2.16%.
FAST has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-2.16%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
79.54% of the earnings are spent on dividend by FAST. This is not a sustainable payout ratio.
DP79.54%
EPS Next 2Y12.01%
EPS Next 3Y10.97%
48.7
+0.85 (+1.78%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners87.33%
Inst Owner Change93.58%
Ins Owners0.09%
Ins Owner Change0%
Market Cap55.89B
Analysts71.3
Price Target45.04 (-7.52%)
Short Float %2.2%
Short Ratio3.97
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.84% |
Yearly Dividend0.78
Dividend Growth(5Y)-2.16%
DP79.54%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.41%
Min EPS beat(2)-1.9%
Max EPS beat(2)1.09%
EPS beat(4)1
Avg EPS beat(4)-1.81%
Min EPS beat(4)-5.73%
Max EPS beat(4)1.09%
EPS beat(8)2
Avg EPS beat(8)-1.4%
EPS beat(12)4
Avg EPS beat(12)-1%
EPS beat(16)6
Avg EPS beat(16)-0.44%
Revenue beat(2)0
Avg Revenue beat(2)-1.59%
Min Revenue beat(2)-1.69%
Max Revenue beat(2)-1.49%
Revenue beat(4)0
Avg Revenue beat(4)-1.94%
Min Revenue beat(4)-2.95%
Max Revenue beat(4)-1.49%
Revenue beat(8)0
Avg Revenue beat(8)-2.04%
Revenue beat(12)0
Avg Revenue beat(12)-1.93%
Revenue beat(16)0
Avg Revenue beat(16)-1.74%
PT rev (1m)7.47%
PT rev (3m)24.04%
EPS NQ rev (1m)-0.15%
EPS NQ rev (3m)3.19%
EPS NY rev (1m)0%
EPS NY rev (3m)1.96%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)1.83%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)1.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.83 | ||
| Fwd PE | 38.63 | ||
| P/S | 7.19 | ||
| P/FCF | 63.81 | ||
| P/OCF | 49.88 | ||
| P/B | 14.68 | ||
| P/tB | 14.68 | ||
| EV/EBITDA | 31.53 |
EPS(TTM)1.04
EY2.14%
EPS(NY)1.26
Fwd EY2.59%
FCF(TTM)0.76
FCFY1.57%
OCF(TTM)0.98
OCFY2%
SpS6.77
BVpS3.32
TBVpS3.32
PEG (NY)3.66
PEG (5Y)5.99
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 23.71% | ||
| ROE | 31.23% | ||
| ROCE | 37.25% | ||
| ROIC | 28.34% | ||
| ROICexc | 30.05% | ||
| ROICexgc | 30.05% | ||
| OM | 20.1% | ||
| PM (TTM) | 15.3% | ||
| GM | 45.06% | ||
| FCFM | 11.27% |
ROA(3y)24.76%
ROA(5y)23.49%
ROE(3y)33.56%
ROE(5y)32.5%
ROIC(3y)29.56%
ROIC(5y)28.03%
ROICexc(3y)31.48%
ROICexc(5y)29.95%
ROICexgc(3y)31.48%
ROICexgc(5y)30.19%
ROCE(3y)38.84%
ROCE(5y)36.84%
ROICexcg growth 3Y3.75%
ROICexcg growth 5Y3.24%
ROICexc growth 3Y3.75%
ROICexc growth 5Y3.24%
OM growth 3Y-0.4%
OM growth 5Y0.21%
PM growth 3Y-0.31%
PM growth 5Y0.56%
GM growth 3Y-0.82%
GM growth 5Y-0.9%
F-Score3
Asset Turnover1.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.26 | ||
| Debt/EBITDA | 0.06 | ||
| Cap/Depr | 136.95% | ||
| Cap/Sales | 3.15% | ||
| Interest Coverage | 200.37 | ||
| Cash Conversion | 64.34% | ||
| Profit Quality | 73.65% | ||
| Current Ratio | 4.22 | ||
| Quick Ratio | 2.12 | ||
| Altman-Z | 31.51 |
F-Score3
WACC9.88%
ROIC/WACC2.87
Cap/Depr(3y)108.34%
Cap/Depr(5y)104.05%
Cap/Sales(3y)2.61%
Cap/Sales(5y)2.69%
Profit Quality(3y)87.32%
Profit Quality(5y)87.39%
High Growth Momentum
Growth
EPS 1Y (TTM)3.48%
EPS 3Y7.68%
EPS 5Y7.81%
EPS Q2Q%13.73%
EPS Next Y12.81%
EPS Next 2Y12.01%
EPS Next 3Y10.97%
EPS Next 5Y10.46%
Revenue 1Y (TTM)4.84%
Revenue growth 3Y7.88%
Revenue growth 5Y7.19%
Sales Q2Q%8.56%
Revenue Next Year8.57%
Revenue Next 2Y8.86%
Revenue Next 3Y8.45%
Revenue Next 5Y8.33%
EBIT growth 1Y2.98%
EBIT growth 3Y7.44%
EBIT growth 5Y7.41%
EBIT Next Year21.94%
EBIT Next 3Y13.48%
EBIT Next 5Y11.68%
FCF growth 1Y-18.14%
FCF growth 3Y15.56%
FCF growth 5Y9.69%
OCF growth 1Y-10.39%
OCF growth 3Y15.07%
OCF growth 5Y6.84%