FASTENAL CO (FAST) Stock Fundamental Analysis
USA - NASDAQ:FAST - US3119001044 - Common Stock
40.85 USD
+0.08 (+0.2%)
40.61 USD
-0.24 (-0.59%)
FAST gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 51 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!
1. Profitability
1.1 Basic Checks
FAST had positive earnings in the past year.
FAST had a positive operating cash flow in the past year.
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
The Return On Assets of FAST (23.97%) is better than 100.00% of its industry peers.
FAST has a Return On Equity of 31.50%. This is amongst the best in the industry. FAST outperforms 88.24% of its industry peers.
Looking at the Return On Invested Capital, with a value of 28.71%, FAST belongs to the top of the industry, outperforming 98.04% of the companies in the same industry.
FAST had an Average Return On Invested Capital over the past 3 years of 29.56%. This is significantly above the industry average of 10.20%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 23.97% | ||
| ROE | 31.5% | ||
| ROIC | 28.71% |
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 15.34%, FAST belongs to the best of the industry, outperforming 82.35% of the companies in the same industry.
FAST's Profit Margin has been stable in the last couple of years.
With an excellent Operating Margin value of 20.21%, FAST belongs to the best of the industry, outperforming 82.35% 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.
Looking at the Gross Margin, with a value of 45.15%, FAST belongs to the top of the industry, outperforming 82.35% 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 | 20.21% | ||
| PM (TTM) | 15.34% | ||
| GM | 45.15% |
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so FAST is creating value.
FAST has more shares outstanding than it did 1 year ago.
The number of shares outstanding for FAST remains at a similar level compared to 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 27.27. This indicates that FAST is financially healthy and has little risk of bankruptcy at the moment.
FAST has a better Altman-Z score (27.27) than 100.00% of its industry peers.
FAST has a debt to FCF ratio of 0.20. This is a very positive value and a sign of high solvency as it would only need 0.20 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 0.20, FAST belongs to the best of the industry, outperforming 92.16% 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 Debt to Equity ratio of 0.03. This is amongst the best in the industry. FAST outperforms 80.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.2 | ||
| Altman-Z | 27.27 |
ROIC/WACC3.07
WACC9.35%
2.3 Liquidity
FAST has a Current Ratio of 4.26. This indicates that FAST is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 4.26, FAST belongs to the best of the industry, outperforming 92.16% of the companies in the same industry.
A Quick Ratio of 2.19 indicates that FAST has no problem at all paying its short term obligations.
The Quick ratio of FAST (2.19) is better than 80.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.26 | ||
| Quick Ratio | 2.19 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.47% over the past year.
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 6.92% in the last year.
The Revenue has been growing slightly by 7.19% on average over the past years.
EPS 1Y (TTM)6.47%
EPS 3Y7.68%
EPS 5Y7.81%
EPS Q2Q%11.54%
Revenue 1Y (TTM)6.92%
Revenue growth 3Y7.88%
Revenue growth 5Y7.19%
Sales Q2Q%11.68%
3.2 Future
The Earnings Per Share is expected to grow by 10.46% on average over the next years. This is quite good.
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 Y11.58%
EPS Next 2Y11.03%
EPS Next 3Y10.19%
EPS Next 5Y10.46%
Revenue Next Year8.45%
Revenue Next 2Y8.68%
Revenue Next 3Y8.32%
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 38.18, the valuation of FAST can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of FAST indicates a slightly more expensive valuation: FAST is more expensive than 64.71% of the companies listed in the same industry.
FAST's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 25.83.
The Price/Forward Earnings ratio is 32.97, which means the current valuation is very expensive for FAST.
Based on the Price/Forward Earnings ratio, FAST is valued a bit more expensive than the industry average as 66.67% of the companies are valued more cheaply.
The average S&P500 Price/Forward Earnings ratio is at 32.68. FAST is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.18 | ||
| Fwd PE | 32.97 |
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 72.55% 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 | 48.59 | ||
| EV/EBITDA | 26.02 |
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)3.3
PEG (5Y)4.89
EPS Next 2Y11.03%
EPS Next 3Y10.19%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.16%, FAST has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.20, FAST pays a better dividend. On top of this FAST pays more dividend than 88.24% of the companies listed in the same industry.
FAST's Dividend Yield is comparable with the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.16% |
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
FAST pays out 79.49% of its income as dividend. This is not a sustainable payout ratio.
DP79.49%
EPS Next 2Y11.03%
EPS Next 3Y10.19%
40.85
+0.08 (+0.2%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners87.33%
Inst Owner Change0.23%
Ins Owners0.09%
Ins Owner Change0.01%
Market Cap46.90B
Revenue(TTM)8.00B
Net Income(TTM)1.23B
Analysts70
Price Target44.66 (9.33%)
Short Float %2.08%
Short Ratio3.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.16% |
Yearly Dividend0.78
Dividend Growth(5Y)-2.16%
DP79.49%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.42%
Min EPS beat(2)-3.93%
Max EPS beat(2)1.09%
EPS beat(4)1
Avg EPS beat(4)-2.62%
Min EPS beat(4)-5.73%
Max EPS beat(4)1.09%
EPS beat(8)1
Avg EPS beat(8)-2.06%
EPS beat(12)3
Avg EPS beat(12)-1.44%
EPS beat(16)6
Avg EPS beat(16)-0.63%
Revenue beat(2)0
Avg Revenue beat(2)-1.73%
Min Revenue beat(2)-1.78%
Max Revenue beat(2)-1.69%
Revenue beat(4)0
Avg Revenue beat(4)-1.98%
Min Revenue beat(4)-2.95%
Max Revenue beat(4)-1.49%
Revenue beat(8)0
Avg Revenue beat(8)-1.99%
Revenue beat(12)0
Avg Revenue beat(12)-1.96%
Revenue beat(16)0
Avg Revenue beat(16)-1.79%
PT rev (1m)-0.85%
PT rev (3m)6.36%
EPS NQ rev (1m)-3.15%
EPS NQ rev (3m)-3.41%
EPS NY rev (1m)-0.96%
EPS NY rev (3m)0.68%
Revenue NQ rev (1m)-0.1%
Revenue NQ rev (3m)-0.29%
Revenue NY rev (1m)-0.11%
Revenue NY rev (3m)-0.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.18 | ||
| Fwd PE | 32.97 | ||
| P/S | 5.86 | ||
| P/FCF | 48.59 | ||
| P/OCF | 38.74 | ||
| P/B | 12.04 | ||
| P/tB | 12.04 | ||
| EV/EBITDA | 26.02 |
EPS(TTM)1.07
EY2.62%
EPS(NY)1.24
Fwd EY3.03%
FCF(TTM)0.84
FCFY2.06%
OCF(TTM)1.05
OCFY2.58%
SpS6.97
BVpS3.39
TBVpS3.39
PEG (NY)3.3
PEG (5Y)4.89
Graham Number9.04
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 23.97% | ||
| ROE | 31.5% | ||
| ROCE | 37.73% | ||
| ROIC | 28.71% | ||
| ROICexc | 30.78% | ||
| ROICexgc | 30.78% | ||
| OM | 20.21% | ||
| PM (TTM) | 15.34% | ||
| GM | 45.15% | ||
| FCFM | 12.07% |
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%
ROICexgc growth 3Y3.75%
ROICexgc 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 Turnover1.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.2 | ||
| Debt/EBITDA | 0.06 | ||
| Cap/Depr | 137.07% | ||
| Cap/Sales | 3.07% | ||
| Interest Coverage | 215.51 | ||
| Cash Conversion | 67.43% | ||
| Profit Quality | 78.68% | ||
| Current Ratio | 4.26 | ||
| Quick Ratio | 2.19 | ||
| Altman-Z | 27.27 |
F-Score3
WACC9.35%
ROIC/WACC3.07
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)6.47%
EPS 3Y7.68%
EPS 5Y7.81%
EPS Q2Q%11.54%
EPS Next Y11.58%
EPS Next 2Y11.03%
EPS Next 3Y10.19%
EPS Next 5Y10.46%
Revenue 1Y (TTM)6.92%
Revenue growth 3Y7.88%
Revenue growth 5Y7.19%
Sales Q2Q%11.68%
Revenue Next Year8.45%
Revenue Next 2Y8.68%
Revenue Next 3Y8.32%
Revenue Next 5Y8.33%
EBIT growth 1Y6.41%
EBIT growth 3Y7.44%
EBIT growth 5Y7.41%
EBIT Next Year21.94%
EBIT Next 3Y13.46%
EBIT Next 5Y11.68%
FCF growth 1Y-19.66%
FCF growth 3Y15.56%
FCF growth 5Y9.69%
OCF growth 1Y-12.31%
OCF growth 3Y15.07%
OCF growth 5Y6.84%
FASTENAL CO / FAST FAQ
What is the ChartMill fundamental rating of FASTENAL CO (FAST) stock?
ChartMill assigns a fundamental rating of 7 / 10 to FAST.
What is the valuation status for FAST stock?
ChartMill assigns a valuation rating of 2 / 10 to FASTENAL CO (FAST). This can be considered as Overvalued.
What is the profitability of FAST stock?
FASTENAL CO (FAST) has a profitability rating of 8 / 10.
Can you provide the financial health for FAST stock?
The financial health rating of FASTENAL CO (FAST) is 9 / 10.
What is the earnings growth outlook for FASTENAL CO?
The Earnings per Share (EPS) of FASTENAL CO (FAST) is expected to grow by 11.58% in the next year.