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 48 industry peers in the Trading Companies & Distributors industry. Both the health and profitability get an excellent rating, making FAST a very profitable company, without any liquidiy or solvency issues. 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
FAST had positive earnings in the past year.
In the past year FAST had a positive cash flow from operations.
In the past 5 years FAST has always been profitable.
Each year in the past 5 years FAST had a positive operating cash flow.
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 89.58% of its industry peers.
The Return On Invested Capital of FAST (28.34%) is better than 97.92% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FAST is significantly above the industry average of 9.62%.
| 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
FAST has a better Profit Margin (15.30%) than 87.50% of its industry peers.
FAST's Profit Margin has been stable in the last couple of years.
FAST has a better Operating Margin (20.10%) than 85.42% 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 better Gross Margin (45.06%) than 81.25% 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
FAST has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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 31.56. 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 31.56, FAST belongs to the top of the industry, outperforming 97.92% 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.
FAST's Debt to FCF ratio of 0.26 is amongst the best of the industry. FAST outperforms 89.58% of its industry peers.
A Debt/Equity ratio of 0.03 indicates that FAST is not too dependend on debt financing.
FAST has a Debt to Equity ratio of 0.03. This is in the better half of the industry: FAST outperforms 79.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.26 | ||
| Altman-Z | 31.56 |
ROIC/WACC2.74
WACC10.33%
2.3 Liquidity
A Current Ratio of 4.22 indicates that FAST has no problem at all paying its short term obligations.
FAST has a better Current ratio (4.22) than 91.67% 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 Quick ratio of 2.12. This is in the better half of the industry: FAST outperforms 77.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.22 | ||
| Quick Ratio | 2.12 |
3. Growth
3.1 Past
FAST shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.48%.
The Earnings Per Share has been growing slightly by 7.81% on average over the past years.
The Revenue has been growing slightly by 4.84% in the past 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)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.
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 Y10.83%
EPS Next 2Y10.3%
EPS Next 3Y9.36%
EPS Next 5Y10.46%
Revenue Next Year7.45%
Revenue Next 2Y7.89%
Revenue Next 3Y7.48%
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
With a Price/Earnings ratio of 45.91, FAST can be considered very expensive at the moment.
66.67% of the companies in the same industry are cheaper than FAST, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 28.04, FAST is valued quite expensively.
The Price/Forward Earnings ratio is 39.05, which means the current valuation is very expensive for FAST.
FAST's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. FAST is more expensive than 72.92% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 37.64. FAST is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.91 | ||
| Fwd PE | 39.05 |
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 77.08% of the companies 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 | 62.56 | ||
| EV/EBITDA | 31.58 |
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)4.24
PEG (5Y)5.88
EPS Next 2Y10.3%
EPS Next 3Y9.36%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.91%, FAST has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.91, FAST pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.35, FAST has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.91% |
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%
47.75
-0.18 (-0.38%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners87.82%
Inst Owner Change1.25%
Ins Owners0.09%
Ins Owner Change0%
Market Cap54.80B
Analysts70
Price Target41.99 (-12.06%)
Short Float %2.43%
Short Ratio5.6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.91% |
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)16.23%
PT rev (3m)-44.26%
EPS NQ rev (1m)1.02%
EPS NQ rev (3m)-48.76%
EPS NY rev (1m)0.17%
EPS NY rev (3m)-49.67%
Revenue NQ rev (1m)0.42%
Revenue NQ rev (3m)1.52%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)0.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.91 | ||
| Fwd PE | 39.05 | ||
| P/S | 7.05 | ||
| P/FCF | 62.56 | ||
| P/OCF | 48.91 | ||
| P/B | 14.39 | ||
| P/tB | 14.39 | ||
| EV/EBITDA | 31.58 |
EPS(TTM)1.04
EY2.18%
EPS(NY)1.22
Fwd EY2.56%
FCF(TTM)0.76
FCFY1.6%
OCF(TTM)0.98
OCFY2.04%
SpS6.77
BVpS3.32
TBVpS3.32
PEG (NY)4.24
PEG (5Y)5.88
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 | 31.56 |
F-Score3
WACC10.33%
ROIC/WACC2.74
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 Year7.45%
Revenue Next 2Y7.89%
Revenue Next 3Y7.48%
Revenue Next 5Y8.33%
EBIT growth 1Y2.98%
EBIT growth 3Y7.44%
EBIT growth 5Y7.41%
EBIT Next Year18.99%
EBIT Next 3Y11.89%
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%