Education
About Us
Working with TipRanks
Follow Us
Fastenal Company (FAST)
NASDAQ:FAST
Top Page
Fastenal Company
(NASDAQ:FAST)
Select Model
Select Model
Rating:67Neutral
Price Target:
$47.00
â–²(15.28% Upside)
Fastenal Company has a strong financial foundation and positive earnings call highlights, which are the most significant factors supporting its stock score. However, technical analysis indicates bearish momentum, and the valuation suggests the stock is relatively expensive, which tempers the overall score.
Positive Factors
Revenue Growth
Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion.
Digital Sales Expansion
The growth in digital sales reflects successful digital integration, enhancing customer reach and operational efficiency.
Strong Financial Position
A strong balance sheet with low leverage provides financial stability and flexibility for future investments and growth.
Negative Factors
Pricing Challenges
Challenges in pricing can impact revenue growth and profitability, affecting the company's ability to maintain margins.
Margin Pressure
Potential margin squeeze from rising costs could reduce profitability, impacting financial performance over time.
SG&A Expense Growth
Rising SG&A expenses indicate cost management challenges, which could pressure operating margins if not controlled.
Fastenal Company (FAST) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$47.41B
Dividend Yield2.15%
Average Volume (3M)6.55M
Price to Earnings (P/E)38.7
Beta (1Y)0.75
Revenue Growth6.92%
EPS Growth5.98%
CountryUS
Employees21,339
SectorIndustrials
Sector Strength72
IndustryIndustrial - Distribution
Share Statistics
EPS (TTM)0.29
Shares Outstanding1,148,035,800
10 Day Avg. Volume6,073,547
30 Day Avg. Volume6,549,054
Financial Highlights & Ratios
PEG Ratio-36.16
Price to Book (P/B)11.39
Price to Sales (P/S)5.46
P/FCF Ratio43.50
Enterprise Value/Market Cap1.20
Enterprise Value/Revenue7.09
Enterprise Value/Gross Profit15.70
Enterprise Value/Ebitda31.50
Forecast
1Y Price Target
$44.80Price Target Upside9.88% Upside
Rating ConsensusHold
Number of Analyst Covering9
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Fastenal Company Business Overview & Revenue Model
Company DescriptionFastenal 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 MoneyFastenal generates revenue primarily through the sale of its industrial and construction supplies to businesses across various sectors. The company's revenue model is predominantly based on direct sales through its extensive network of retail locations and online platforms. Key revenue streams include the sale of fasteners, tools, safety equipment, and other related products, along with value-added services such as inventory management and vending solutions. Fastenal also benefits from long-term relationships with suppliers and customers, allowing for bulk purchasing and competitive pricing. Additionally, the company has established partnerships with various manufacturers, enhancing its product offerings and enabling it to meet the diverse needs of its clientele.
Fastenal Company Earnings Call Summary
Earnings Call Date:Oct 13, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Jan 19, 2026
Earnings Call Sentiment Positive
The earnings call reflected a positive sentiment with significant revenue growth, margin expansion, and progress in digital and on-site sales. However, challenges remain in pricing and cost management, which could affect future profitability.Q3-2025 Updates
Positive Updates
Record-Breaking Revenue and Growth
In Q3 2025, Fastenal achieved net sales of $2.13 billion, marking an 11.7% increase over the previous year. This was the second consecutive quarter above the $2 billion mark, showcasing the effectiveness of their strategy and customer partnerships.
Significant Sales and Margin Expansion
The company reported a 12.6% increase in net income and a 12.3% rise in EPS. Operating margin expanded to 20.7%, with gross margin increasing to 45.3%, driven by fastener expansion and supplier initiatives.
Digital and On-Site Growth
Sales through FMI technology grew just shy of 18% year over year, with digital sales accounting for 61.3% of Q3 total sales. The company also saw strong growth in nontraditional markets, including healthcare, education, and government.
Strong Performance in National Accounts
National account sales were up double digits, with significant gains in customer penetration. Sites spending over $50,000 per month grew by 15.4%.
Negative Updates
Pricing Challenges and Uncertainty
Pricing contributed less to growth than anticipated, with a contribution of 2.5 percentage points, below the earlier forecast of 3% to 5%. The company cited delays and complexities in implementing pricing actions due to tariff uncertainties.
Potential for Margin Squeeze
Fourth quarter gross margin might face pressure due to rising costs and delayed pricing actions, potentially leading to a margin squeeze.
SG&A Expense Growth
SG&A grew at 11% year over year due to bonus resets and increased employee-related expenses, indicating cost management challenges.
Company Guidance
During the Fastenal Company 2025 Q3 earnings call, significant growth metrics were highlighted. The company achieved net sales of $2.13 billion, marking an 11.7% increase compared to Q3 of the previous year, with daily sales growth of 11.2% and year-to-date sales up 15.9%. Fastenal experienced double-digit growth in national account sales and saw substantial increases in active customer sites spending over $10,000 and $50,000 monthly, growing by 8.1% and 15.4%, respectively. The company maintained a gross margin of 45.3%, up 40 basis points year-over-year, and reported a net income increase of 12.6%, with earnings per share (EPS) rising by 12.3%. Despite challenges such as tariff impacts and sluggish market demand, Fastenal's strategic initiatives, including fastener expansion and digital integration, contributed to a 20.7% operating margin. The company's digital footprint also expanded, with technology-driven sales accounting for 61.3% of total sales.Fastenal Company Financial Statement Overview
Summary
Fastenal Company exhibits strong financial health with consistent revenue and income growth, robust profitability margins, and a solid balance sheet with conservative leverage. The company's strong cash flow generation further supports its financial stability, making it well-positioned in the Industrial - Distribution industry.Income Statement
Fastenal Company demonstrates strong income statement metrics with consistent revenue growth and profitability. The TTM shows a gross profit margin of 45.06%, net profit margin of 15.30%, EBIT margin of 20.10%, and EBITDA margin of 21.21%. The revenue growth rate from 2024 to TTM is 3.03%, indicating steady growth. The company maintains healthy margins, reflecting efficient operations and profit generation.85
Very Positive
Balance Sheet
The balance sheet reflects a strong equity base with a debt-to-equity ratio of 0.14, indicating conservative leverage. The return on equity (ROE) is robust at 31.22%, showcasing effective use of shareholder funds. The equity ratio is high at 75.90%, pointing to a solid financial structure with a focus on equity financing, which minimizes financial risk.80
Positive
Cash Flow
Fastenal Company's cash flow statement is impressive, with a free cash flow to net income ratio of 0.74, highlighting efficient cash utilization. The operating cash flow to net income ratio is 0.94, demonstrating strong cash generation relative to net income. Although the free cash flow growth rate has fluctuated, the company maintains a solid cash position to support operations and growth.78
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 8.00B | 7.55B | 7.35B | 6.98B | 6.01B | 5.65B |
| Gross Profit | 3.61B | 3.40B | 3.35B | 3.22B | 2.78B | 2.57B |
| EBITDA | 1.80B | 1.69B | 1.71B | 1.63B | 1.39B | 1.30B |
| Net Income | 1.23B | 1.15B | 1.16B | 1.09B | 925.00M | 859.10M |
Balance Sheet | ||||||
| Total Assets | 5.12B | 4.70B | 4.46B | 4.55B | 4.30B | 3.96B |
| Cash, Cash Equivalents and Short-Term Investments | 288.10M | 255.80M | 221.30M | 230.10M | 236.20M | 245.70M |
| Total Debt | 517.30M | 485.40M | 535.00M | 802.10M | 636.80M | 650.10M |
| Total Liabilities | 1.22B | 1.08B | 1.11B | 1.39B | 1.26B | 1.23B |
| Stockholders Equity | 3.89B | 3.62B | 3.35B | 3.16B | 3.04B | 2.73B |
Cash Flow | ||||||
| Free Cash Flow | 965.00M | 946.80M | 1.26B | 767.20M | 613.50M | 933.70M |
| Operating Cash Flow | 1.21B | 1.17B | 1.43B | 941.00M | 770.10M | 1.10B |
| Investing Cash Flow | -230.50M | -214.50M | -161.20M | -163.00M | -148.50M | -281.70M |
| Financing Cash Flow | -982.90M | -913.70M | -1.28B | -774.90M | -627.10M | -754.40M |
Fastenal Company Technical Analysis
Negative
40.77
Price Trends
45.56
Negative
45.48
Negative
42.04
Negative
Market Momentum
-1.31
Negative
32.02
Neutral
21.70
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 40.77 is below the 20-day moving average (MA) of 42.12, below the 50-day MA of 45.56, and below the 200-day MA of 42.04, indicating a bearish trend. The MACD of -1.31 indicates Negative momentum. The RSI at 32.02 is Neutral, neither overbought nor oversold. The STOCH value of 21.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FAST.
Fastenal Company Risk Analysis
Fastenal Company disclosed 33 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | $12.26B | 19.78 | 13.06% | 0.69% | 5.28% | 1.97% | |
74 Outperform | $9.67B | 24.67 | 22.10% | 0.68% | 4.03% | 5.93% | |
73 Outperform | $45.76B | 26.86 | 48.98% | 0.90% | 4.83% | -3.60% | |
67 Neutral | $47.41B | 38.72 | 32.74% | 2.15% | 6.92% | 5.98% | |
64 Neutral | $17.33B | 21.46 | 17.05% | 3.27% | 3.26% | -25.41% | |
64 Neutral | $4.84B | 24.31 | 14.34% | 3.97% | -1.35% | -22.24% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
FAST
Fastenal Company
40.77
0.09
0.22%
AIT
Applied Industrial Technologies
259.66
-3.55
-1.35%
GPC
Genuine Parts Company
125.03
5.84
4.90%
MSM
MSC Industrial
85.59
0.61
0.72%
GWW
WW Grainger
952.66
-226.50
-19.21%
WCC
Wesco International
257.38
51.62
25.09%
Fastenal Company Corporate Events
Fastenal’s Q3 Earnings Call Highlights Growth and Challenges
Oct 15, 2025
Fastenal’s Q3 2025 Earnings Call Reflects Positive Growth Amidst Challenges
Fastenal Reports Strong Q3 2025 Financial Results
Oct 14, 2025
Fastenal Company, a prominent player in the wholesale distribution of industrial and construction supplies, has announced its financial results for the third quarter of 2025, showcasing a robust performance amidst a challenging industrial landscape.
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.