Company Reports

Since opening its first fasteners store in 1967, Fastenal has built one of the largest industrial distribution businesses in the United States. For many years, Fastenal’s growth story was driven by its traditional branch distribution system. While this expansive footprint is still an important component of Fastenal’s business model, other strategies—including expanding its product portfolio, its vending and inventory management services, and, most recently, its on-site program—have become increasingly important growth drivers.

Fastenal reported second-quarter sales growth of 14.7% year over year, outpacing its selling, general, and administrative expense growth, resulting in nearly 16% year-over-year growth in net income per share.

Fastenal reported 12.4% year-over-year organic sales growth for the first quarter on April 13. Results were led by strength in the heavy manufacturing and nonresidential construction businesses.

Fastenal reported fourth-quarter year-over-year organic sales growth of 11.1% the morning of Jan. 20. The firm grew its top and bottom lines nearly 9% over the full year, but shares sold off slightly.

Since opening its first fasteners store in 1967, Fastenal has built one of the largest industrial distribution businesses in the United States. For many years, Fastenal’s growth story was driven by its traditional branch distribution system. While this expansive footprint is still an important component of Fastenal’s business model, other strategies—including expanding its product portfolio, its vending and inventory management services, and, most recently, its on-site program—have become increasingly important growth drivers.

Since opening its first fasteners store in 1967, Fastenal has built one of the largest industrial distribution businesses in the United States. For many years, Fastenal’s growth story was driven by its traditional branch distribution system. While this expansive footprint is still an important component of Fastenal’s business model, other strategies—including expanding its product portfolio, its vending and inventory management services, and, most recently, its on-site program—have become increasingly important growth drivers.

Fastenal reported third-quarter year-over-year organic sales growth of 12%. Coupled with 40 basis points of operating margin expansion, EPS grew 12%.

Fastenal reported 8.6% sales growth year over year despite slowing global industrial production. Modest operating margin expansion resulted in 12.8% earnings per share growth, and shares traded up over 6% on the morning of July 14.

Since opening its first fasteners store in 1967, Fastenal has built one of the largest industrial distribution businesses in the United States. For many years, Fastenal’s growth story was driven by its traditional branch distribution system. While this expansive footprint is still an important component of Fastenal’s business model, other strategies—including expanding its product portfolio, its vending and inventory management services, and, most recently, its on-site program—have become increasingly important growth drivers.

We're transferring coverage of Fastenal, one of the largest global distributors of maintenance, repair, and operations supplies to industrial businesses.

Since opening its first fasteners store in 1967, Fastenal has built one of the largest industrial distribution businesses in the United States. For many years, Fastenal’s growth story was driven by its traditional branch distribution system. While this expansive footprint is still an important component of Fastenal’s business model, other strategies—including expanding its product portfolio, its vending and inventory management services, and, most recently, its on-site program—have become increasingly important growth drivers.

Fastenal's first-quarter daily sales increased 5% from the prior year after adjusting for the impact of selling days, while earnings per share was flat year over year at $0.52. Both measures were roughly in line with our expectations and reflect continued weakness in industrial activity.

Fastenal's investor day reiterated the company's focus on growth in national accounts and introduced new initiatives to better leverage its data-rich managed inventory business. Management emphasized its goal to evolve from an industrial vending company to a comprehensive supply chain partner.

Fourth-quarter daily sales, which adjusts for the number of business days across reporting periods, increased 2.1% year over year as Fastenal continues to navigate through soft end market demand. Operating margin slipped 120 basis points to 18.9%, below our 19.5% projection for the quarter.

Since opening its first fasteners store in 1967, Fastenal has built one of the largest industrial distribution businesses in the United States. For many years, Fastenal’s growth story was driven by its traditional branch count, which now stands at roughly 1,600 locations. While this expansive footprint is still an important component of Fastenal’s business model, other strategies—including expanding its product portfolio, its vending and inventory management services, and, most recently, its on-site program—have become increasingly important growth drivers.

Fastenal's third-quarter daily and total sales grew 1.9% and 3.5% as greater penetration of onsite locations and inventory-management solutions supported top-line growth. EPS of $0.52 fell $0.01 shy of our forecast as sales mix and lower supplier rebates (due to less volume) weighed on gross margin.

We’ve maintained our $51 fair value estimate for Fastenal following the wide-moat industrial distributor’s second-quarter earnings release. The company's daily sales growth rate has been on a downward trend since 2022, with 18.0% in the second quarter of 2022, 5.9% in the second quarter of 2023, and just 1.8% in the second quarter of 2024. Nevertheless, Fastenal’s ability to deliver positive sales growth in a challenging demand environment is a testament to the ongoing success of its growth initiatives, in our view.

Since opening its first fasteners store in 1967, Fastenal has built one of the largest industrial distribution businesses in the United States. For many years, Fastenal’s growth story was driven by its branch count, which now stands at roughly 1,600 locations. While this expansive footprint is still an important component of Fastenal’s business model, other strategies—including expanding its product portfolio, its vending and inventory management services, and, most recently, its on-site program—have become increasingly important growth drivers.

Since opening its first fasteners store in 1967, Fastenal has built one of the largest industrial distribution businesses in the United States. For many years, Fastenal’s growth story was driven by its branch count, which now stands at roughly 1,600 locations. While this expansive footprint is still an important component of Fastenal’s business model, other strategies--including expanding its product portfolio, its vending and inventory management services, and, most recently, its on-site program--have become increasingly important growth drivers.

Fastenal reported first-quarter earnings largely in line with our expectations, leading us to maintain our $50 fair value estimate. The time value of money would’ve added $1 to our fair value estimate, but this was offset by us lowering our 2024 sales estimate.