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 49 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. 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.
FAST had a positive operating cash flow in the past year.
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
Looking at the Return On Assets, with a value of 23.71%, FAST belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
FAST has a better Return On Equity (31.23%) than 89.80% of its industry peers.
FAST has a Return On Invested Capital of 28.34%. This is amongst the best in the industry. FAST outperforms 97.96% of its industry peers.
FAST had an Average Return On Invested Capital over the past 3 years of 29.56%. This is significantly above the industry average of 9.94%.
| 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
Looking at the Profit Margin, with a value of 15.30%, FAST belongs to the top of the industry, outperforming 81.63% of the companies in the same industry.
FAST's Profit Margin has been stable in the last couple of years.
FAST has a Operating Margin of 20.10%. This is amongst the best in the industry. FAST outperforms 81.63% 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 has a Gross Margin of 45.06%. This is amongst the best in the industry. FAST outperforms 81.63% 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 | 20.1% | ||
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so FAST is creating value.
The number of shares outstanding for FAST has been increased compared to 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
FAST has an Altman-Z score of 32.10. This indicates that FAST is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 32.10, FAST belongs to the top of the industry, outperforming 97.96% of the companies in the same industry.
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.
With an excellent Debt to FCF ratio value of 0.26, FAST belongs to the best of the industry, outperforming 91.84% 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 in the better half of the industry: FAST outperforms 77.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.26 | ||
| Altman-Z | 32.1 |
ROIC/WACC2.8
WACC10.14%
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 89.80% of its industry peers.
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 has a better Quick ratio (2.12) than 77.55% 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.
FAST shows a small growth in Revenue. In the last year, the Revenue has grown by 4.84%.
FAST shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.19% yearly.
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.
The Revenue is expected to grow by 8.33% on average over the next years. This is quite good.
EPS Next Y10.83%
EPS Next 2Y10.3%
EPS Next 3Y9.36%
EPS Next 5Y10.46%
Revenue Next Year8.61%
Revenue Next 2Y8.9%
Revenue Next 3Y8.26%
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
Based on the Price/Earnings ratio of 47.00, the valuation of FAST can be described as expensive.
Based on the Price/Earnings ratio, FAST is valued a bit more expensive than the industry average as 67.35% of the companies are valued more cheaply.
FAST is valuated expensively when we compare the Price/Earnings ratio to 26.87, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 39.98 indicates a quite expensive valuation of FAST.
Based on the Price/Forward Earnings ratio, FAST is valued a bit more expensive than 73.47% of the companies in the same industry.
FAST is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 35.34, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47 | ||
| Fwd PE | 39.98 |
4.2 Price Multiples
75.51% of the companies in the same industry are cheaper than FAST, based on the Enterprise Value to EBITDA ratio.
FAST's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 64.04 | ||
| EV/EBITDA | 32.21 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of FAST may justify a higher PE ratio.
PEG (NY)4.34
PEG (5Y)6.02
EPS Next 2Y10.3%
EPS Next 3Y9.36%
5. Dividend
5.1 Amount
FAST has a Yearly Dividend Yield of 1.81%. 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 1.79. FAST pays more dividend than 85.71% of the companies in the same industry.
FAST's Dividend Yield is slightly below the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.81% |
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 79.54% of its income as dividend. This is not a sustainable payout ratio.
DP79.54%
EPS Next 2Y10.3%
EPS Next 3Y9.36%
48.88
+0.19 (+0.39%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners87.78%
Inst Owner Change93.51%
Ins Owners0.09%
Ins Owner Change0%
Market Cap56.10B
Analysts70
Price Target41.91 (-14.26%)
Short Float %2.21%
Short Ratio4.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.81% |
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)-0.19%
PT rev (3m)-44.23%
EPS NQ rev (1m)2.3%
EPS NQ rev (3m)-47.58%
EPS NY rev (1m)0%
EPS NY rev (3m)-49.78%
Revenue NQ rev (1m)1.49%
Revenue NQ rev (3m)3.03%
Revenue NY rev (1m)1.07%
Revenue NY rev (3m)1.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47 | ||
| Fwd PE | 39.98 | ||
| P/S | 7.22 | ||
| P/FCF | 64.04 | ||
| P/OCF | 50.06 | ||
| P/B | 14.73 | ||
| P/tB | 14.73 | ||
| EV/EBITDA | 32.21 |
EPS(TTM)1.04
EY2.13%
EPS(NY)1.22
Fwd EY2.5%
FCF(TTM)0.76
FCFY1.56%
OCF(TTM)0.98
OCFY2%
SpS6.77
BVpS3.32
TBVpS3.32
PEG (NY)4.34
PEG (5Y)6.02
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 | 32.1 |
F-Score3
WACC10.14%
ROIC/WACC2.8
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 Year8.61%
Revenue Next 2Y8.9%
Revenue Next 3Y8.26%
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%