FASTENAL CO (FAST)
US3119001044 - Common Stock
FAST gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 52 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. While showing a medium growth rate, FAST is valued expensive at the moment. This makes FAST very considerable 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
With an excellent Return On Assets value of 25.54%, FAST belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
With an excellent Return On Equity value of 33.76%, FAST belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 29.65%, FAST belongs to the top of the industry, outperforming 98.08% 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 11.83%.
The last Return On Invested Capital (29.65%) for FAST is above the 3 year average (28.39%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 25.54% | ||
| ROE | 33.76% | ||
| ROIC | 29.65% |
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
FAST has a Profit Margin of 15.68%. This is in the better half of the industry: FAST outperforms 78.85% of its industry peers.
In the last couple of years the Profit Margin of FAST has remained more or less at the same level.
With a decent Operating Margin value of 20.66%, FAST is doing good in the industry, outperforming 76.92% of the companies in the same industry.
In the last couple of years the Operating Margin of FAST has remained more or less at the same level.
FAST has a Gross Margin of 45.59%. This is in the better half of the industry: FAST outperforms 76.92% of its industry peers.
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 | 20.66% | ||
| PM (TTM) | 15.68% | ||
| GM | 45.59% |
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
FAST has about the same amout of shares outstanding than it did 5 years ago.
Compared to 1 year ago, FAST has an improved debt to assets ratio.
2.2 Solvency
FAST has an Altman-Z score of 25.67. This indicates that FAST is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of FAST (25.67) is better than 100.00% of its industry peers.
FAST has a debt to FCF ratio of 0.17. This is a very positive value and a sign of high solvency as it would only need 0.17 years to pay back of all of its debts.
The Debt to FCF ratio of FAST (0.17) is better than 90.38% of its industry peers.
FAST has a Debt/Equity ratio of 0.06. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.06, FAST is doing good in the industry, outperforming 76.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.17 | ||
| Altman-Z | 25.67 |
ROIC/WACC3.15
WACC9.4%
2.3 Liquidity
FAST has a Current Ratio of 4.83. 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 4.83, FAST belongs to the top of the industry, outperforming 96.15% of the companies in the same industry.
A Quick Ratio of 2.49 indicates that FAST has no problem at all paying its short term obligations.
FAST has a Quick ratio of 2.49. This is amongst the best in the industry. FAST outperforms 90.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.83 | ||
| Quick Ratio | 2.49 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.59% over the past year.
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.
Looking at the last year, FAST shows a small growth in Revenue. The Revenue has grown by 3.46% in the last year.
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)3.59%
EPS 3Y10.68%
EPS 5Y10.25%
EPS growth Q2Q0%
Revenue 1Y (TTM)3.46%
Revenue growth 3Y9.17%
Revenue growth 5Y8.15%
Revenue growth Q2Q1.94%
3.2 Future
The Earnings Per Share is expected to grow by 9.53% on average over the next years. This is quite good.
The Revenue is expected to grow by 7.60% on average over the next years.
EPS Next Y9.08%
EPS Next 2Y9.06%
EPS Next 3Y9.26%
EPS Next 5Y9.53%
Revenue Next Year6.82%
Revenue Next 2Y7.47%
Revenue Next 3Y7.69%
Revenue Next 5Y7.6%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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
Based on the Price/Earnings ratio of 33.75, the valuation of FAST can be described as expensive.
Based on the Price/Earnings ratio, FAST is valued a bit more expensive than 67.31% of the companies in the same industry.
FAST is valuated rather expensively when we compare the Price/Earnings ratio to 24.84, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 28.37 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 71.15% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.35, FAST is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.75 | ||
| Fwd PE | 28.37 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FAST is valued a bit more expensive than the industry average as 75.00% of the companies are valued more cheaply.
FAST's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.8 | ||
| EV/EBITDA | 22.92 |
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)3.72
PEG (5Y)3.29
EPS Next 2Y9.06%
EPS Next 3Y9.26%
5. Dividend
5.1 Amount
FAST has a Yearly Dividend Yield of 2.29%. Purely for dividend investing, there may be better candidates out there.
FAST's Dividend Yield is rather good when compared to the industry average which is at 1.74. FAST pays more dividend than 90.38% of the companies in the same industry.
FAST's Dividend Yield is comparable with the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.29% |
5.2 History
The dividend of FAST is nicely growing with an annual growth rate of 18.22%!
FAST has been paying a dividend for at least 10 years, so it has 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 89.86% of its income as dividend. This is not a sustainable payout ratio.
FAST's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP89.86%
EPS Next 2Y9.06%
EPS Next 3Y9.26%
FASTENAL CO
NASDAQ:FAST (4/26/2024, 7:00:02 PM)
Premarket: 68.38 +0.21 (+0.31%)68.17
+0.03 (+0.04%)
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 Cap39.03B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.29% |
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 | 33.75 | ||
| Fwd PE | 28.37 | ||
| 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)3.72
PEG (5Y)3.29
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 25.54% | ||
| ROE | 33.76% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 20.66% | ||
| PM (TTM) | 15.68% | ||
| GM | 45.59% | ||
| 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 Turnover1.63
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 4.83 | ||
| Quick Ratio | 2.49 | ||
| 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)
Growth
EPS 1Y (TTM)3.59%
EPS 3Y10.68%
EPS 5Y
EPS growth Q2Q
EPS Next Y9.08%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)3.46%
Revenue growth 3Y9.17%
Revenue growth 5Y
Revenue growth 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