Fastenal Company (FAST) AI Stock Analysis

• Market Cap: $41.38B
• Dividend Yield: 2.22%
• Average Volume (3M): 3.81M
• Price to Earnings (P/E): 36.0
• Beta (1Y): 0.70
• Revenue Growth: 2.71%
• EPS Growth: -0.63%
• Country: US
• Employees: 20,958
• Sector: Industrials
• Sector Strength: 64
• Industry: Industrial - Distribution
• EPS (TTM): 2.00
• Shares Outstanding: 573,451,100
• 10 Day Avg. Volume: 3,782,357
• 30 Day Avg. Volume: 3,805,697
• PEG Ratio: 22.98
• Price to Book (P/B): N/A
• Price to Sales (P/S): 5.68
• Price to Cash Flow (P/CF): 37.90
• P/FCF Ratio: 37.90
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $80.50
• Price Target Upside: 13.06% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

Fastenal's overall score reflects its strong financial health, balanced by mixed technical indicators and relatively high valuation. Positive strategic initiatives and moderate earnings call sentiment support its competitive position, with the need to watch for potential leverage and margin pressures.

Positive Factors

International Growth

Fastenal saw the sharpest positive inflection in Canada, Mexico, and the rest of the world, signaling robust international production.

Market Positioning

Fastenal's vision is to be the best distributor to large, complex accounts, expecting thousands of large accounts to be signed in the coming years.

Sales Performance

February daily sales came in at +5.0% y/y, better than expected.

Negative Factors

Growth Risks

Tariffs negatively impacting growth are a key risk to short-cycle recovery in the near term.

Industrial Activity

Soft industrial activity will limit EPS upside and multiple expansion.

Long-term Growth Concerns

Long term, there is caution on the ability to achieve DD top-line aspirations.

Fastenal Company Business Overview & Revenue Model

Company Description

Fastenal Company, together with its subsidiaries, engages in the wholesale distribution of industrial and construction supplies in the United States, Canada, Mexico, North America, and internationally. It offers fasteners, and related industrial and construction supplies under the Fastenal name. The company's fastener products include threaded fasteners, bolts, nuts, screws, studs, and related washers, which are used in manufactured products and construction projects, as well as in the maintenance and repair of machines. It also offers miscellaneous supplies and hardware, including pins, machinery keys, concrete anchors, metal framing systems, wire ropes, strut products, rivets, and related accessories. The company serves the manufacturing market comprising original equipment manufacturers; maintenance, repair, and operations; and non-residential construction market, which includes general, electrical, plumbing, sheet metal, and road contractors. It also serves farmers, truckers, railroads, mining companies, schools, and retail trades; and oil exploration, production, and refinement companies, as well as federal, state, and local governmental entities. The company distributes its products through a network of 3,209 in-market locations and 15 distribution centers. Fastenal Company was founded in 1967 and is headquartered in Winona, Minnesota.

How the Company Makes Money

Fastenal Company generates revenue primarily through the sale of its extensive product catalog, which includes fasteners, tools, and safety equipment. The company's business model revolves around its vast distribution network, consisting of thousands of local branches and on-site locations that provide immediate access to critical supplies for its customers. Revenue is driven by direct sales to businesses and government entities, leveraging both physical locations and e-commerce platforms. Additionally, Fastenal's industrial vending solutions and inventory management services create recurring revenue streams by embedding their services within customer operations, ensuring a steady demand for their products. Strategic partnerships with manufacturers and suppliers also play a significant role in optimizing product offerings and pricing, enhancing Fastenal's competitive edge in the industrial supply market.

Fastenal Company Financial Statement Overview

Summary

Fastenal demonstrates strong financial performance with robust revenue growth, stable EBITDA margin, and effective cash management. However, the rise in total liabilities requires monitoring.

Income Statement

The company demonstrated strong financial performance with a consistent increase in total revenue from 2020 to TTM (Trailing-Twelve-Months). The gross profit margin and net profit margin remain robust, maintaining high profitability levels. Revenue growth rate over the years indicates a healthy business trajectory, although the growth in 2024 TTM was modest compared to previous years. EBITDA margin is stable, reflecting efficient cost management.

Balance Sheet

Fastenal Company has a strong equity base, with a significant increase in stockholders' equity from 2020 to TTM. The debt-to-equity ratio is moderate, indicating a balanced approach to leveraging. Return on equity (ROE) is healthy, showcasing effective use of equity capital. However, the total liabilities have also grown, which might indicate increased leverage risk if not managed properly.

Cash Flow

The cash flow statement reveals a strong operating cash flow, which consistently exceeds net income, indicating good cash conversion. Free cash flow growth rate has been positive, though it declined in the TTM period, posing a potential concern. The company effectively manages its capital expenditures to sustain free cash flow generation.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
7.55B	7.35B	6.98B	6.01B	5.65B
	Gross Profit
3.40B	3.35B	3.22B	2.78B	2.57B
	EBIT
1.51B	1.53B	1.45B	1.22B	1.14B
	EBITDA
1.51B	1.71B	1.63B	1.39B	1.30B
	Net Income Common Stockholders
1.15B	1.16B	1.09B	925.00M	859.10M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
255.80M	221.30M	230.10M	236.20M	245.70M
	Total Assets
4.70B	4.46B	4.55B	4.30B	3.96B
	Total Debt
485.40M	535.00M	802.10M	636.80M	650.10M
	Net Debt
229.60M	313.70M	572.00M	400.60M	404.40M
	Total Liabilities
1.08B	1.11B	1.39B	1.26B	1.23B
	Stockholders Equity
3.62B	3.35B	3.16B	3.04B	2.73B
Cash Flow		Free Cash Flow
946.80M	1.26B	767.20M	613.50M	933.70M
	Operating Cash Flow
1.17B	1.43B	941.00M	770.10M	1.10B
	Investing Cash Flow
-214.50M	-161.20M	-163.00M	-148.50M	-281.70M
	Financing Cash Flow
-913.70M	-1.28B	-774.90M	-627.10M	-754.40M

Fastenal Company Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 71.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FAST, the sentiment is Negative. The current price of 71.2 is below the 20-day moving average (MA) of 75.89, below the 50-day MA of 75.31, and below the 200-day MA of 72.78, indicating a bearish trend. The MACD of 0.53 indicates Negative momentum. The RSI at 55.96 is Neutral, neither overbought nor oversold. The STOCH value of 72.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FAST.

Fastenal Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WSO	78 Outperform	$19.11B	35.54	20.39%	2.28%	4.59%	-2.05%
FAST	77 Outperform	$41.38B	36.02	33.04%	2.22%	2.71%	-0.63%
AIT	74 Outperform	$7.99B	21.08	22.70%	0.75%	0.37%	3.52%
GWW	71 Outperform	$44.50B	23.71	58.98%	0.89%	4.19%	6.60%
POOL	63 Neutral	$11.43B	26.82	33.41%	1.58%	-4.16%	-15.44%
Sector *	62 Neutral	$7.16B	12.21	3.05%	3.43%	3.62%	-14.48%

Fastenal Company Corporate Events

Fastenal Company Highlights Strategic Initiatives in 2025

On March 13, 2025, Fastenal Company held an investor presentation to discuss its strategic initiatives and operational updates. The event highlighted the company’s focus on enhancing productivity, improving sales growth, and optimizing supply chain partnerships. Fastenal emphasized its commitment to aligning resources towards common goals, fostering strategic partnerships, and leveraging digital solutions to drive growth. The presentation also outlined the company’s efforts to streamline operations and prioritize key account growth, aiming to maintain its competitive edge in the industrial supply sector.

Fastenal Company Board Changes: Lundquist Departs, Ericson Joins

On January 16, 2025, Nicholas J. Lundquist, a long-serving director and former executive of Fastenal Company, announced he would not seek re-election due to term limits, ending a 46-year tenure that exemplified the company’s internal promotion philosophy. Simultaneously, the Board appointed Brady D. Ericson as an independent director, bringing extensive leadership experience from PHINIA Inc. and BorgWarner, to maintain the board’s composition and enhance strategic oversight, with Ericson also joining the Audit Committee.