Fastenal Company (FAST) AI Stock Analysis

• Market Cap: $48.96B
• Dividend Yield: 4.12%
• Average Volume (3M): 5.13M
• Price to Earnings (P/E): 42.6
• Beta (1Y): 0.72
• Revenue Growth: 3.08%
• EPS Growth: -0.76%
• Country: US
• Employees: 21,339
• Sector: Industrials
• Sector Strength: 86
• Industry: Industrial - Distribution
• EPS (TTM): 0.26
• Shares Outstanding: 1,147,241,300
• 10 Day Avg. Volume: 6,701,424
• 30 Day Avg. Volume: 5,132,620
• PEG Ratio: N/A
• Price to Book (P/B): 12.72
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 54.08
• Enterprise Value/Market Cap: 0.96
• Enterprise Value/Revenue: 1.57
• Enterprise Value/Gross Profit: 13.79
• Enterprise Value/Ebitda: 6.96
• 1Y Price Target: $41.08
• Price Target Upside: -4.75% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 9

• Rating: 77 Outperform
• Price Target: ―

Fastenal Company demonstrates strong financial performance and positive market momentum, supporting a solid stock outlook. The company's strategic initiatives to enhance digital sales and FMI growth, along with a stable financial foundation, are key strengths. However, the high P/E ratio and challenges such as tariffs and declining free cash flow are notable concerns. Overall, Fastenal is well-positioned for growth but must address some operational and market challenges to enhance its stock performance.

Positive Factors

Market Position

The company’s share gain initiatives continue to gain traction, with volume and sales growth expected to accelerate.

Sales Growth

Fastenal delivered strong share gains and modest pricing, resulting in a 9.3% year-over-year growth in May daily sales, accelerating from the previous month's 6.5% growth.

Negative Factors

Geopolitical Factors

Uncertainty and slower activity in Mexico and Canada, partly driven by a longer Easter holiday and tariffs.

Sales Performance

April daily sales miss investor expectations on price timing.

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 industrial and construction supplies. The company's business model revolves around its vast network of retail stores, online platforms, and Onsite locations, which provide direct access to a broad range of products. Key revenue streams include the sale of fasteners, tools, and safety equipment. Additionally, Fastenal offers inventory management solutions and industrial vending services, allowing customers to efficiently manage their supply needs. Partnerships with various manufacturers and a strong logistics network further enhance Fastenal's ability to deliver products quickly and reliably, contributing to its revenue growth.

Fastenal Company Financial Statement Overview

Summary

Fastenal Company presents a strong financial profile with robust profitability, low leverage, and effective capital management. The income statement shows consistent revenue growth and high margins, while the balance sheet reflects financial stability with low debt levels. Although the cash flow statement is generally healthy, the decline in free cash flow growth requires attention. Overall, Fastenal is well-positioned for future growth, supported by its solid financial foundation.

Income Statement

Fastenal Company shows a robust financial performance with strong gross profit and net profit margins. The gross profit margin for TTM (Trailing-Twelve-Months) is approximately 44.5%, and the net profit margin is 15.1%. The revenue growth rate is solid, with a 3.9% increase from the previous year, indicating steady growth. EBIT and EBITDA margins are also favorable at 19.9% and 21.6%, respectively, demonstrating operational efficiency. Overall, the income statement reflects strong profitability and consistent revenue growth.

Balance Sheet

The balance sheet of Fastenal Company is stable, with a debt-to-equity ratio of 0.13 for TTM, indicating low leverage. The return on equity (ROE) is impressive at 31.2%, showcasing effective utilization of shareholder funds. The equity ratio is 75.8%, which reflects a solid equity base and low reliance on debt. These metrics highlight financial stability and a conservative capital structure, though the slightly increasing debt levels warrant attention.

Cash Flow

Fastenal's cash flow statements indicate healthy cash generation with an operating cash flow to net income ratio of 0.95, suggesting strong cash conversion efficiency. The free cash flow growth rate is negative at -8.3%, reflecting a decrease in free cash flow compared to the previous period, which is a minor concern. However, the free cash flow to net income ratio of 0.75 indicates a reasonable level of cash flow relative to net income. Overall, the cash flow position is solid, but the declining free cash flow trend needs monitoring.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.61B	7.55B	7.35B	6.98B	6.01B	5.65B
Gross Profit	3.42B	3.40B	3.35B	3.22B	2.78B	2.57B
EBITDA	1.69B	1.69B	1.71B	1.63B	1.39B	1.30B
Net Income	1.15B	1.15B	1.16B	1.09B	925.00M	859.10M
Balance Sheet
Total Assets	4.87B	4.70B	4.46B	4.55B	4.30B	3.96B
Cash, Cash Equivalents and Short-Term Investments	231.80M	255.80M	221.30M	230.10M	236.20M	245.70M
Total Debt	495.80M	485.40M	535.00M	802.10M	636.80M	650.10M
Total Liabilities	1.18B	1.08B	1.11B	1.39B	1.26B	1.23B
Stockholders Equity	3.69B	3.62B	3.35B	3.16B	3.04B	2.73B
Cash Flow
Free Cash Flow	868.50M	946.80M	1.26B	767.20M	613.50M	933.70M
Operating Cash Flow	1.10B	1.17B	1.43B	941.00M	770.10M	1.10B
Investing Cash Flow	-219.90M	-214.50M	-161.20M	-163.00M	-148.50M	-281.70M
Financing Cash Flow	-881.80M	-913.70M	-1.28B	-774.90M	-627.10M	-754.40M

Fastenal Company Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 43.13
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 43.13 is above the 20-day moving average (MA) of 42.00, above the 50-day MA of 41.16, and above the 200-day MA of 38.62, indicating a bullish trend. The MACD of 0.39 indicates Negative momentum. The RSI at 64.07 is Neutral, neither overbought nor oversold. The STOCH value of 90.40 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FAST.

Fastenal Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FAST	77 Outperform	$48.96B	42.58	32.35%	4.12%	3.08%	-0.76%
AIT	75 Outperform	$9.34B	24.59	22.23%	0.75%	0.50%	4.48%
GWW	72 Outperform	$49.73B	26.44	57.19%	0.87%	3.71%	7.23%
WSO	70 Outperform	$18.49B	35.05	18.91%	2.63%	3.92%	1.09%
POOL	67 Neutral	$11.38B	28.38	31.49%	1.65%	-3.56%	-16.75%
Sector *	65 Neutral	$10.77B	15.80	5.51%	1.90%	3.03%	-26.66%
FERG		£32.25B	26.07	29.28%	1.13%	―	―

Fastenal Company Corporate Events

Fastenal Company Announces Stock Split and Board Elections

Fastenal Company announced a two-for-one forward stock split of its Common Stock, with the record date set for May 5, 2025, and the effective date at the close of business on May 21, 2025. The stock split will increase the number of shares authorized for issuance to 1.6 billion, and trading will reflect this change starting May 22, 2025. Additionally, during the annual meeting held on April 24, 2025, in Winona, Minnesota, shareholders elected eleven directors, ratified PricewaterhouseCoopers LLP as the independent accounting firm for 2025, and approved the executive compensation package.

Fastenal Appoints Sheryl Lisowski as Interim CFO

On April 10, 2025, Fastenal Company‘s Board of Directors appointed Sheryl A. Lisowski as the interim Chief Financial Officer, effective April 17, 2025. Ms. Lisowski, who has been with Fastenal since 1994, will continue to serve as Executive Vice President – Chief Accounting Officer and Treasurer. Her compensation will be adjusted with an increased base salary and a quarterly cash incentive bonus based on the company’s financial performance. This appointment is temporary until a permanent CFO is appointed.