FASTENAL CO (FAST)
US3119001044 - Common Stock
FAST gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 51 industry peers in the Trading Companies & Distributors industry. FAST has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. FAST is quite expensive at the moment. 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
FAST had positive earnings in the past year.
In the past year FAST had a positive cash flow from operations.
FAST had positive earnings in each of the past 5 years.
Each year in the past 5 years FAST had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 25.03%, FAST belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
FAST has a better Return On Equity (32.96%) than 84.31% of its industry peers.
The Return On Invested Capital of FAST (29.55%) is better than 98.04% of its industry peers.
FAST had an Average Return On Invested Capital over the past 3 years of 28.39%. This is significantly above the industry average of 11.08%.
The 3 year average ROIC (28.39%) for FAST is below the current ROIC(29.55%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 25.03% | ||
| ROE | 32.96% | ||
| ROIC | 29.55% |
ROA(3y)23.76%
ROA(5y)22.75%
ROE(3y)33.09%
ROE(5y)32.07%
ROIC(3y)28.39%
ROIC(5y)27.1%
1.3 Margins
Looking at the Profit Margin, with a value of 15.54%, FAST belongs to the top of the industry, outperforming 80.39% 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.
FAST has a Operating Margin of 20.46%. This is in the better half of the industry: FAST outperforms 76.47% of its industry peers.
In the last couple of years the Operating Margin of FAST has remained more or less at the same level.
FAST's Gross Margin of 45.47% is fine compared to the rest of the industry. FAST outperforms 74.51% of its industry peers.
FAST's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.46% | ||
| PM (TTM) | 15.54% | ||
| GM | 45.47% |
OM growth 3Y1%
OM growth 5Y0.68%
PM growth 3Y1.1%
PM growth 5Y0.75%
GM growth 3Y0.14%
GM growth 5Y-1.12%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), FAST is creating value.
Compared to 1 year ago, FAST has more shares outstanding
Compared to 5 years ago, FAST has about the same amount of shares outstanding.
FAST has a better debt/assets ratio than last year.
2.2 Solvency
FAST has an Altman-Z score of 25.81. This indicates that FAST is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of FAST (25.81) is better than 100.00% of its industry peers.
The Debt to FCF ratio of FAST is 0.21, which is an excellent value as it means it would take FAST, only 0.21 years of fcf income to pay off all of its debts.
FAST has a Debt to FCF ratio of 0.21. This is amongst the best in the industry. FAST outperforms 92.16% of its industry peers.
FAST has a Debt/Equity ratio of 0.04. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of FAST (0.04) is better than 78.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.21 | ||
| Altman-Z | 25.81 |
ROIC/WACC3.34
WACC8.84%
2.3 Liquidity
FAST has a Current Ratio of 4.39. This indicates that FAST is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 4.39, FAST belongs to the best of the industry, outperforming 96.08% of the companies in the same industry.
FAST has a Quick Ratio of 2.29. This indicates that FAST is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 2.29, FAST belongs to the best of the industry, outperforming 90.20% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.39 | ||
| Quick Ratio | 2.29 |
3. Growth
3.1 Past
FAST shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.03%.
Measured over the past years, FAST shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.25% on average per year.
FAST shows a small growth in Revenue. In the last year, the Revenue has grown by 2.43%.
FAST shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.15% yearly.
EPS 1Y (TTM)2.03%
EPS 3Y10.68%
EPS 5Y10.25%
EPS Q2Q%-1.92%
Revenue 1Y (TTM)2.43%
Revenue growth 3Y9.17%
Revenue growth 5Y8.15%
Sales Q2Q%1.76%
3.2 Future
The Earnings Per Share is expected to grow by 9.09% on average over the next years. This is quite good.
Based on estimates for the next years, FAST will show a small growth in Revenue. The Revenue will grow by 8.00% on average per year.
EPS Next Y5.02%
EPS Next 2Y7.11%
EPS Next 3Y8.08%
EPS Next 5Y9.09%
Revenue Next Year4.56%
Revenue Next 2Y6.24%
Revenue Next 3Y7.06%
Revenue Next 5Y8%
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 stable.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 35.01 indicates a quite expensive valuation of FAST.
Based on the Price/Earnings ratio, FAST is valued a bit more expensive than the industry average as 62.75% of the companies are valued more cheaply.
FAST's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 24.41.
The Price/Forward Earnings ratio is 30.36, which means the current valuation is very expensive for FAST.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FAST indicates a slightly more expensive valuation: FAST is more expensive than 68.63% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of FAST to the average of the S&P500 Index (20.59), we can say FAST is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.01 | ||
| Fwd PE | 30.36 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FAST indicates a slightly more expensive valuation: FAST is more expensive than 76.47% of the companies listed 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 | 35.17 | ||
| EV/EBITDA | 23.36 |
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)6.97
PEG (5Y)3.41
EPS Next 2Y7.11%
EPS Next 3Y8.08%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.27%, FAST has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.75, FAST pays a better dividend. On top of this FAST pays more dividend than 92.16% of the companies listed in the same industry.
FAST's Dividend Yield is comparable with the S&P500 average which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.27% |
5.2 History
On average, the dividend of FAST grows each year by 18.22%, which is quite nice.
FAST has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of FAST decreased in the last 3 years.
Dividend Growth(5Y)18.22%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
FAST pays out 92.30% of its income as dividend. This is not a sustainable payout ratio.
The dividend of FAST is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP92.3%
EPS Next 2Y7.11%
EPS Next 3Y8.08%
FASTENAL CO
NASDAQ:FAST (7/26/2024, 7:00:02 PM)
After market: 70.37 0 (0%)70.37
+1.31 (+1.9%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap40.30B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.27% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.01 | ||
| Fwd PE | 30.36 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)6.97
PEG (5Y)3.41
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 25.03% | ||
| ROE | 32.96% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 20.46% | ||
| PM (TTM) | 15.54% | ||
| GM | 45.47% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.61
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 4.39 | ||
| Quick Ratio | 2.29 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)2.03%
EPS 3Y10.68%
EPS 5Y
EPS Q2Q%
EPS Next Y5.02%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)2.43%
Revenue growth 3Y9.17%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y