FASTENAL CO (FAST) Stock Fundamental Analysis
NASDAQ:FAST - Nasdaq - US3119001044 - Common Stock - Currency: USD
Overall FAST gets a fundamental rating of 6 out of 10. We evaluated FAST against 48 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 valied quite expensively at the moment, while it does show a decent growth rate. With these ratings, FAST could be worth investigating further 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.
FAST had positive earnings in each of the past 5 years.
FAST had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
FAST has a Return On Assets of 23.71%. This is amongst the best in the industry. FAST outperforms 100.00% of its industry peers.
FAST's Return On Equity of 31.23% is amongst the best of the industry. FAST outperforms 89.58% 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 97.92% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for FAST is significantly above the industry average of 9.62%.
| 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
With an excellent Profit Margin value of 15.30%, FAST belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
In the last couple of years the Profit Margin of FAST has remained more or less at the same level.
Looking at the Operating Margin, with a value of 20.10%, FAST belongs to the top of the industry, outperforming 85.42% of the companies in the same industry.
FAST's Operating Margin has been stable in the last couple of years.
With an excellent Gross Margin value of 45.06%, FAST belongs to the best of the industry, outperforming 81.25% of the companies in the same industry.
In the last couple of years the Gross Margin of FAST has remained more or less at the same level.
| 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.
FAST has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, FAST has about the same amount of shares outstanding.
Compared to 1 year ago, FAST has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 31.27 indicates that FAST is not in any danger for bankruptcy at the moment.
FAST has a better Altman-Z score (31.27) than 97.92% of its industry peers.
The Debt to FCF ratio of FAST is 0.26, which is an excellent value as it means it would take FAST, only 0.26 years of fcf income to pay off 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 89.58% of the companies in the same industry.
FAST has a Debt/Equity ratio of 0.03. This is a healthy value indicating a solid balance between debt and equity.
FAST has a better Debt to Equity ratio (0.03) than 79.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.26 | ||
| Altman-Z | 31.27 |
ROIC/WACC2.75
WACC10.3%
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.
The Current ratio of FAST (4.22) is better than 91.67% of its industry peers.
A Quick Ratio of 2.12 indicates that FAST has no problem at all paying its short term obligations.
FAST has a Quick ratio of 2.12. This is in the better half of the industry: FAST outperforms 77.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.22 | ||
| Quick Ratio | 2.12 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.48% over the past year.
FAST shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.81% yearly.
The Revenue has been growing slightly by 4.84% in the past year.
The Revenue has been growing slightly by 7.19% on average over the past years.
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
The Earnings Per Share is expected to grow by 10.46% on average over the next years. This is quite good.
FAST is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.33% yearly.
EPS Next Y10.83%
EPS Next 2Y10.3%
EPS Next 3Y9.36%
EPS Next 5Y10.46%
Revenue Next Year7.45%
Revenue Next 2Y7.89%
Revenue Next 3Y7.48%
Revenue Next 5Y8.33%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
A Price/Earnings ratio of 46.09 indicates a quite expensive valuation of FAST.
FAST's Price/Earnings ratio is a bit more expensive when compared to the industry. FAST is more expensive than 66.67% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.35. FAST is valued rather expensively when compared to this.
With a Price/Forward Earnings ratio of 39.20, FAST can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, FAST is valued a bit more expensive than the industry average as 72.92% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Forward Earnings ratio of 37.54, FAST is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.09 | ||
| Fwd PE | 39.2 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FAST is valued a bit more expensive than 77.08% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of FAST is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 62.8 | ||
| EV/EBITDA | 31.25 |
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.
The excellent profitability rating of FAST may justify a higher PE ratio.
PEG (NY)4.26
PEG (5Y)5.9
EPS Next 2Y10.3%
EPS Next 3Y9.36%
5. Dividend
5.1 Amount
FAST has a Yearly Dividend Yield of 1.91%.
Compared to an average industry Dividend Yield of 2.91, FAST pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, FAST has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.91% |
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 2Y10.3%
EPS Next 3Y9.36%
47.93
+0.5 (+1.05%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners87.82%
Inst Owner Change1.25%
Ins Owners0.09%
Ins Owner Change0%
Market Cap55.01B
Analysts70
Price Target41.99 (-12.39%)
Short Float %2.43%
Short Ratio5.6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.91% |
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)16.23%
PT rev (3m)-44.26%
EPS NQ rev (1m)1.02%
EPS NQ rev (3m)-48.76%
EPS NY rev (1m)0.17%
EPS NY rev (3m)-49.67%
Revenue NQ rev (1m)0.42%
Revenue NQ rev (3m)1.52%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)0.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.09 | ||
| Fwd PE | 39.2 | ||
| P/S | 7.08 | ||
| P/FCF | 62.8 | ||
| P/OCF | 49.09 | ||
| P/B | 14.45 | ||
| P/tB | 14.45 | ||
| EV/EBITDA | 31.25 |
EPS(TTM)1.04
EY2.17%
EPS(NY)1.22
Fwd EY2.55%
FCF(TTM)0.76
FCFY1.59%
OCF(TTM)0.98
OCFY2.04%
SpS6.77
BVpS3.32
TBVpS3.32
PEG (NY)4.26
PEG (5Y)5.9
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 | 31.27 |
F-Score3
WACC10.3%
ROIC/WACC2.75
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 Y10.83%
EPS Next 2Y10.3%
EPS Next 3Y9.36%
EPS Next 5Y10.46%
Revenue 1Y (TTM)4.84%
Revenue growth 3Y7.88%
Revenue growth 5Y7.19%
Sales Q2Q%8.56%
Revenue Next Year7.45%
Revenue Next 2Y7.89%
Revenue Next 3Y7.48%
Revenue Next 5Y8.33%
EBIT growth 1Y2.98%
EBIT growth 3Y7.44%
EBIT growth 5Y7.41%
EBIT Next Year18.99%
EBIT Next 3Y11.89%
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%