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Fastenal Company
(NASDAQ:FAST)
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Rating:77Outperform
Price Target:
$52.00
â–²(13.59% Upside)
Action:Reiterated
Date:06/24/26
FAST scores well on financial quality (strong margins, returns, conservative leverage, and solid cash generation) and a constructive earnings outlook supported by strong sales momentum and operating leverage. These positives are partially offset by premium valuation (high P/E) and only moderately positive technical momentum.
Positive Factors
Strong cash generation
Consistent, high operating and free cash flow provides durable financial flexibility: supports recurring dividends, disciplined capex (~3.5% of sales), opportunistic M&A or buybacks, and funds rollout of managed inventory and digital investments without raising leverage.
Negative Factors
Pricing execution delays and tariff cost pressure
When supplier cost inflation and tariffs move through the P&L faster than contract/pricing adjustments, gross margins can be structurally pressured for multiple quarters. Delay in realizing price/cost parity reduces near-term incremental margins and cash flow.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Consistent, high operating and free cash flow provides durable financial flexibility: supports recurring dividends, disciplined capex (~3.5% of sales), opportunistic M&A or buybacks, and funds rollout of managed inventory and digital investments without raising leverage.
Read all positive factors
Fastenal Company Key Performance Indicators (KPIs)
Any
Revenue By Geography
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Data provided by:
The Fly
The FlyFastenal Company (FAST) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$55.79B
Dividend Yield2.1%
Average Volume (3M)6.71M
Price to Earnings (P/E)42.6
Beta (1Y)0.53
Revenue Growth10.94%
EPS Growth12.68%
CountryUS
Employees21,339
SectorIndustrials
Sector Strength72
IndustryIndustrial - Distribution
Share Statistics
EPS (TTM)1.14
Shares Outstanding1,148,035,000
10 Day Avg. Volume6,834,429
30 Day Avg. Volume6,710,510
Financial Highlights & Ratios
PEG Ratio3.65
Price to Book (P/B)11.68
Price to Sales (P/S)5.62
P/FCF Ratio43.84
Enterprise Value/Market Cap0.93
Enterprise Value/Revenue6.12
Enterprise Value/Gross Profit13.63
Enterprise Value/Ebitda27.29
Forecast
1Y Price Target
$47.88Price Target Upside4.58% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
EPS Forecast (FY)1.24
Revenue Forecast (FY)$9.15B
Fastenal Company Business Overview & Revenue Model
Company Description
Fastenal Company, along with its associated entities, operates as a global wholesale supplier of industrial and construction materials, with significant operations throughout North America, including the United States, Canada, and Mexico, and othe...
How the Company Makes Money
Fastenal makes money primarily by selling industrial and construction supplies to business customers, generating revenue from product sales rather than subscriptions. Its key revenue streams include (1) fasteners and industrial consumables sold in...
Fastenal Company Earnings Call Summary
Earnings Call Date:Apr 13, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 13, 2026
Earnings Call Sentiment Positive
The call conveyed strong organic growth, accelerating digital adoption, expanded enterprise contracts, solid operating leverage and cash generation — offset by near-term gross margin pressure driven by tariffs, branded supplier cost increases, and delayed pricing execution. Management reiterated its strategic priorities (key accounts, FMI growth, international expansion) and committed to continued pricing actions and cost discipline. While Q2 may remain challenging on a price/cost basis, the underlying demand, market share gains, and financial discipline suggest a constructive multi-quarter outlook.Positive Updates
Strong Top-Line Growth
Daily sales increased 12.4% year over year to $34.9 million per day for the quarter, marking the third consecutive quarter of double-digit growth.
Negative Updates
Gross Margin Pressure from Pricing Lag
Gross margin was approximately 40 basis points below the company's Q1 target and roughly 50 basis points below prior-year levels because tariff-related and other cost increases moved through the P&L faster than pricing actions could be implemented.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Top-Line Growth
Daily sales increased 12.4% year over year to $34.9 million per day for the quarter, marking the third consecutive quarter of double-digit growth.
Read all positive updates
Company Guidance
Guidance highlights: management reiterated full‑year net capital expenditures of about $320 million (≈3.5% of net sales) with Q1 net CapEx ≈ $58 million, said pricing actions will continue (maintaining a cumulative 5–8% pricing expectation and expecting price/cost dynamics to start plateauing around midyear), and confirmed prior incremental‑margin commentary (high‑20s possible); they view AIPA/122/232 tariff changes as limited in P&L impact (232 unchanged). Key operating metrics cited as context for the outlook: Q1 daily sales +12.4% to $34.9M/day, operating margin 20.3% (+20 bps YoY), gross margin ~40 bps below their Q1 target (≈50 bps YoY shortfall) with realized pricing ~3.5% YoY (vs 3.3% in Q4), SG&A 24.3% of sales (vs 25% LY), digital channels 61.5% of sales (digital daily sales +13.6%), FMI driving ~45% of Q1 sales (FMI signings ≈7,000 in the quarter, ~110/day, +8% YoY; active devices +≈6%), e‑business daily sales +~7% (electronic transactions ≈30% of sales), operating cash flow ≈$378M (111% of net income), Q1 shareholder returns $296M (≈87% of net income), and TTM ROIC ≈31% (up ~180 bps).Fastenal Company Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
90
Very Positive
Cash Flow
84
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 8.44B | 8.20B | 7.55B | 7.35B | 6.98B | 6.01B |
| Gross Profit | 3.79B | 3.69B | 3.40B | 3.35B | 3.22B | 2.78B |
| EBITDA | 1.89B | 1.84B | 1.69B | 1.71B | 1.63B | 1.39B |
| Net Income | 1.30B | 1.26B | 1.15B | 1.16B | 1.09B | 925.00M |
Balance Sheet | ||||||
| Total Assets | 5.21B | 5.05B | 4.70B | 4.46B | 4.55B | 4.30B |
| Cash, Cash Equivalents and Short-Term Investments | 308.60M | 276.80M | 255.80M | 221.30M | 230.10M | 236.20M |
| Total Debt | 445.50M | 441.90M | 485.40M | 535.00M | 802.10M | 636.80M |
| Total Liabilities | 1.22B | 1.11B | 1.08B | 1.11B | 1.39B | 1.26B |
| Stockholders Equity | 3.99B | 3.94B | 3.62B | 3.35B | 3.16B | 3.04B |
Cash Flow | ||||||
| Free Cash Flow | 1.16B | 1.05B | 946.80M | 1.26B | 767.20M | 613.50M |
| Operating Cash Flow | 1.41B | 1.30B | 1.17B | 1.43B | 941.00M | 770.10M |
| Investing Cash Flow | -234.70M | -231.00M | -214.50M | -161.20M | -163.00M | -148.50M |
| Financing Cash Flow | -1.11B | -1.05B | -913.70M | -1.28B | -774.90M | -627.10M |
Fastenal Company Technical Analysis
Positive
45.78
Price Trends
45.24
Positive
45.45
Positive
44.02
Positive
Market Momentum
0.74
Negative
66.65
Neutral
88.34
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FAST, the sentiment is Positive. The current price of 45.78 is below the 20-day moving average (MA) of 46.61, above the 50-day MA of 45.24, and above the 200-day MA of 44.02, indicating a bullish trend. The MACD of 0.74 indicates Negative momentum. The RSI at 66.65 is Neutral, neither overbought nor oversold. The STOCH value of 88.34 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FAST.
Fastenal Company Risk Analysis
Fastenal Company disclosed 34 risk factors in its most recent earnings report. Fastenal Company reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Fastenal Company Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $63.41B | 35.99 | 47.84% | 0.86% | 6.61% | -4.69% | |
77 Outperform | $55.79B | 42.63 | 33.25% | 2.10% | 10.94% | 12.68% | |
77 Outperform | $12.23B | 30.83 | 21.64% | 0.70% | 7.54% | 6.04% | |
72 Outperform | $6.86B | 29.66 | 15.00% | 3.96% | 4.41% | 16.62% | |
69 Neutral | $15.00B | 21.62 | 13.70% | 0.72% | 11.16% | 6.33% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
51 Neutral | $18.24B | 301.30 | 1.31% | 3.33% | 4.79% | -92.77% |
* Industrials Sector Average
FAST
Fastenal Company
48.60
7.00
16.83%
AIT
Applied Industrial Technologies
330.85
88.40
36.46%
GPC
Genuine Parts Company
132.57
11.38
9.39%
MSM
MSC Industrial
122.78
36.84
42.87%
GWW
WW Grainger
1,342.98
317.95
31.02%
WCC
Wesco International
307.89
118.95
62.96%
Fastenal Company Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Fastenal Expands Credit Facility and Amends Note Agreement
Positive
Jun 23, 2026
On June 18, 2026, Fastenal Company renewed and expanded its unsecured revolving credit facility, securing an $835 million commitment with an accordion feature that could raise total capacity to $1.335 billion and extending the facility’s mat...
Business Operations and StrategyExecutive/Board Changes
Fastenal Appoints Vishal Talwar to Board, Boosts Governance
Positive
Jun 12, 2026
On June 12, 2026, Fastenal Company expanded its board of directors from eleven to twelve members and elected Vishal Talwar as an independent director, with his term running until the next annual shareholders’ meeting or until a successor is ...
Business Operations and StrategyShareholder Meetings
Fastenal Shareholders Approve New Equity Compensation Plans
Positive
Apr 29, 2026
On April 23, 2026, Fastenal Company held its annual meeting of shareholders in Winona, Minnesota, where investors approved a new Employee Restricted Stock Unit Plan. At the same meeting, shareholders also approved a Non-Employee Director Stock and...
Executive/Board ChangesShareholder Meetings
Fastenal Shareholders Endorse Leadership, Reject Added Diversity Reporting
Positive
Apr 24, 2026
At its April 23, 2026 annual meeting in Winona, Minnesota, Fastenal shareholders elected an 11-member board of directors and overwhelmingly ratified PricewaterhouseCoopers LLP as independent auditor for the 2026 fiscal year. Investors also backed ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.