FASTENAL CO (FAST) Stock Fundamental Analysis
USA - NASDAQ:FAST - US3119001044 - Common Stock
42.46 USD
+0.5 (+1.19%)
42.52 USD
+0.06 (+0.14%)
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 scores excellent points on both the profitability and health parts. This is a solid base for a good stock. 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
In the past year FAST was profitable.
FAST had a positive operating cash flow in the past year.
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 23.97%. This is amongst the best in the industry. FAST outperforms 100.00% of its industry peers.
With an excellent Return On Equity value of 31.50%, FAST belongs to the best of the industry, outperforming 87.76% of the companies in the same industry.
With an excellent Return On Invested Capital value of 28.71%, FAST belongs to the best of the industry, outperforming 95.92% 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 10.04%.
| 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
The Profit Margin of FAST (15.34%) is better than 81.63% of its industry peers.
In the last couple of years the Profit Margin of FAST has remained more or less at the same level.
FAST has a better Operating Margin (20.21%) than 81.63% of its industry peers.
FAST's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 45.15%, FAST belongs to the top of the industry, outperforming 81.63% of the companies in the same industry.
FAST's Gross Margin has been stable in the last couple of years.
| 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.
Compared to 5 years ago, FAST has about the same amount of shares outstanding.
The debt/assets ratio for FAST has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 27.94 indicates that FAST is not in any danger for bankruptcy at the moment.
FAST has a better Altman-Z score (27.94) 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.
Looking at the Debt to FCF ratio, with a value of 0.20, FAST belongs to the top of the industry, outperforming 89.80% of the companies in the same industry.
A Debt/Equity ratio of 0.03 indicates that FAST is not too dependend on debt financing.
The Debt to Equity ratio of FAST (0.03) is better than 81.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.2 | ||
| Altman-Z | 27.94 |
ROIC/WACC3.05
WACC9.41%
2.3 Liquidity
A Current Ratio of 4.26 indicates that FAST has no problem at all paying its short term obligations.
FAST has a Current ratio of 4.26. This is amongst the best in the industry. FAST outperforms 91.84% of its industry peers.
A Quick Ratio of 2.19 indicates that FAST has no problem at all paying its short term obligations.
FAST has a better Quick ratio (2.19) than 79.59% 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.
FAST shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.19% yearly.
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.
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 Y12.66%
EPS Next 2Y11.83%
EPS Next 3Y10.81%
EPS Next 5Y10.46%
Revenue Next Year8.57%
Revenue Next 2Y8.86%
Revenue Next 3Y8.45%
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
The Price/Earnings ratio is 39.68, which means the current valuation is very expensive for FAST.
61.22% of the companies in the same industry are cheaper than FAST, based on the Price/Earnings ratio.
FAST's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.40.
FAST is valuated quite expensively with a Price/Forward Earnings ratio of 33.78.
Based on the Price/Forward Earnings ratio, FAST is valued a bit more expensive than 67.35% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.94, FAST is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.68 | ||
| Fwd PE | 33.78 |
4.2 Price Multiples
FAST's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. FAST is more expensive than 73.47% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as FAST.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 50.49 | ||
| EV/EBITDA | 26.77 |
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)3.13
PEG (5Y)5.08
EPS Next 2Y11.83%
EPS Next 3Y10.81%
5. Dividend
5.1 Amount
FAST has a Yearly Dividend Yield of 2.10%.
FAST's Dividend Yield is rather good when compared to the industry average which is at 2.15. FAST pays more dividend than 81.63% of the companies in the same industry.
FAST's Dividend Yield is comparable with the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.1% |
5.2 History
The dividend of FAST decreases each year by -2.16%.
FAST has paid a dividend for at least 10 years, which is 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 2Y11.83%
EPS Next 3Y10.81%
42.46
+0.5 (+1.19%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners87.33%
Inst Owner Change-0.06%
Ins Owners0.09%
Ins Owner Change0%
Market Cap48.73B
Analysts71.3
Price Target45.04 (6.08%)
Short Float %2.12%
Short Ratio4.14
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.1% |
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)-0.45%
PT rev (3m)24.04%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.15%
EPS NY rev (1m)-0.13%
EPS NY rev (3m)1.65%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.4%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.68 | ||
| Fwd PE | 33.78 | ||
| P/S | 6.09 | ||
| P/FCF | 50.49 | ||
| P/OCF | 40.25 | ||
| P/B | 12.51 | ||
| P/tB | 12.51 | ||
| EV/EBITDA | 26.77 |
EPS(TTM)1.07
EY2.52%
EPS(NY)1.26
Fwd EY2.96%
FCF(TTM)0.84
FCFY1.98%
OCF(TTM)1.05
OCFY2.48%
SpS6.97
BVpS3.39
TBVpS3.39
PEG (NY)3.13
PEG (5Y)5.08
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%
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 Turnover1.56
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 | 27.94 |
F-Score3
WACC9.41%
ROIC/WACC3.05
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 Y12.66%
EPS Next 2Y11.83%
EPS Next 3Y10.81%
EPS Next 5Y10.46%
Revenue 1Y (TTM)6.92%
Revenue growth 3Y7.88%
Revenue growth 5Y7.19%
Sales Q2Q%11.68%
Revenue Next Year8.57%
Revenue Next 2Y8.86%
Revenue Next 3Y8.45%
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%