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Fastenal Co FAST

Morningstar Rating
$72.18 +0.12 (0.17%)
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Company Report

We Expect Fastenal to Remain Resilient Despite a Moderated Demand Environment

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 around 1,600. 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.

Price vs Fair Value

FAST is trading at a 44% premium.
Price
$72.18
Fair Value
$69.00
Uncertainty
Medium
1-Star Price
$97.50
5-Star Price
$95.00
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Vending and on-site programs should provide a long growth runway for Fastenal.

Bears

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.

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News

Trading Information

Previous Close Price
$72.06
Day Range
$71.6172.60
52-Week Range
$50.3072.60
Bid/Ask
$71.68 / $72.48
Market Cap
$41.30 Bil
Volume/Avg
2.4 Mil / 3.6 Mil

Key Statistics

Price/Earnings (Normalized)
34.82
Price/Sales
5.47
Dividend Yield (Trailing)
1.99%
Dividend Yield (Forward)
2.16%
Total Yield
1.99%

Company Profile

Fastenal opened its first fastener store in 1967 in Winona, Minnesota. Since then, Fastenal has greatly expanded its footprint as well as its products and services. Today, Fastenal serves its 400,000 active customers through approximately 1,600 branches, over 1,700 on-site locations, and 14 distribution centers. Since 1993, the company has added other product categories, but fasteners remain its largest category at about 30%-35% of sales. Fastenal also offers customers supply-chain solutions, such as vending and vendor-managed inventory.
Sector
Industrials
Industry
Industrial Distribution
Stock Style Box
Mid Core
Total Number of Employees
23,201

Competitors

Valuation

Metric
FAST
WCC
GWW
Price/Earnings (Normalized)
34.828.9026.60
Price/Book Value
11.981.4514.89
Price/Sales
5.470.332.87
Price/Cash Flow
30.299.0220.70
Price/Earnings
FAST
WCC
GWW

Financial Strength

Metric
FAST
WCC
GWW
Quick Ratio
1.981.361.56
Current Ratio
4.572.482.88
Interest Coverage
141.553.5527.88
Quick Ratio
FAST
WCC
GWW

Profitability

Metric
FAST
WCC
GWW
Return on Assets (Normalized)
25.46%5.08%23.29%
Return on Equity (Normalized)
34.85%16.06%64.65%
Return on Invested Capital (Normalized)
29.44%9.88%32.58%
Return on Assets
FAST
WCC
GWW
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