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.
Vending and on-site programs should provide a long growth runway for Fastenal.
Fastenal could continue to face gross margin headwinds as non-fastener sales, national accounts, and on-site programs become a larger part of its business. A continued mix shift toward non-fasteners could also dilute the firm’s differentiation.
|
Metric
|
FAST
|
MSM
|
WCC
|
|---|---|---|---|
Price/Earnings (Normalized) | 33.51 | 15.72 | 10.51 |
Price/Book Value | 11.27 | 3.71 | 1.55 |
Price/Sales | 5.24 | 1.30 | 0.36 |
Price/Cash Flow | 29.12 | 11.68 | 8.01 |
|
Metric
|
FAST
|
MSM
|
WCC
|
|---|---|---|---|
Quick Ratio | 1.98 | 0.72 | 1.36 |
Current Ratio | 4.57 | 2.01 | 2.48 |
Interest Coverage | 141.55 | 19.80 | 3.55 |
|
Metric
|
FAST
|
MSM
|
WCC
|
|---|---|---|---|
Return on Assets (Normalized) | 25.46% | 13.35% | 5.08% |
Return on Equity (Normalized) | 34.85% | 23.46% | 16.06% |
Return on Invested Capital (Normalized) | 29.44% | 17.42% | 9.88% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
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