Fastenal Company (FAST) AI Stock Analysis

• Market Cap: $46.71B
• Dividend Yield: 2.03%
• Average Volume (3M): 3.45M
• Price to Earnings (P/E): 40.6
• Beta (1Y): 0.72
• Revenue Growth: 3.08%
• EPS Growth: -0.76%
• Country: US
• Employees: 21,339
• Sector: Industrials
• Sector Strength: 92
• Industry: Industrial - Distribution
• EPS (TTM): 0.26
• Shares Outstanding: 1,147,241,300
• 10 Day Avg. Volume: 2,679,975
• 30 Day Avg. Volume: 3,445,058
• PEG Ratio: N/A
• Price to Book (P/B): 12.22
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 51.91
• Enterprise Value/Market Cap: 0.97
• Enterprise Value/Revenue: 1.51
• Enterprise Value/Gross Profit: 13.24
• Enterprise Value/Ebitda: 6.69
• 1Y Price Target: $75.83
• Price Target Upside: 86.54% Upside
• 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

Earnings Performance

FAST reported 1Q25 earnings with revenues above and GAAP earnings in line with consensus.

Sales Growth

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

Volume Growth

Core volume growth of +6.5% y/y in the quarter suggests outperformance relative to the company’s benchmark.

Negative Factors

Gross Margin

Q1 GM of 45.1% came in a bit below MSe 45.2% and Cons 45.3% - the slight miss could reflect cost inflation coming through later in the month related to metal.

Market Uncertainty

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

Sales Expectations

April daily sales miss investor expectations on price timing.

Fastenal Company Business Overview & Revenue Model

Company Description

Fastenal Company (FAST) is a leading industrial supply company specializing in the wholesale distribution and retail of industrial and construction supplies. Headquartered in Winona, Minnesota, Fastenal operates across multiple sectors, including manufacturing, construction, and commercial businesses. The company's extensive product lineup includes fasteners, tools, safety supplies, and more, catering to a wide range of industries and businesses of all sizes.

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
	EBIT
1.51B	1.51B	1.53B	1.45B	1.22B	1.14B
	EBITDA
1.69B	1.69B	1.71B	1.63B	1.39B	1.30B
	Net Income Common Stockholders
1.15B	1.15B	1.16B	1.09B	925.00M	859.10M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
237.10M	255.80M	221.30M	230.10M	236.20M	245.70M
	Total Assets
4.53B	4.70B	4.46B	4.55B	4.30B	3.96B
	Total Debt
483.40M	485.40M	535.00M	802.10M	636.80M	650.10M
	Net Debt
246.30M	229.60M	313.70M	572.00M	400.60M	404.40M
	Total Liabilities
1.10B	1.08B	1.11B	1.39B	1.26B	1.23B
	Stockholders Equity
3.43B	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: 40.65
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 40.65 is above the 20-day moving average (MA) of 40.41, above the 50-day MA of 39.35, and above the 200-day MA of 37.44, indicating a bullish trend. The MACD of 0.41 indicates Positive momentum. The RSI at 54.06 is Neutral, neither overbought nor oversold. The STOCH value of 59.41 is Neutral, 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
FERG	78 Outperform	£35.63B	22.07	29.63%	1.93%	1.84%	-5.54%
FAST	77 Outperform	$46.71B	40.62	32.35%	2.03%	3.08%	-0.76%
GWW	77 Outperform	$51.79B	27.53	57.19%	0.76%	3.71%	7.23%
AIT	72 Outperform	$8.50B	22.39	22.23%	0.70%	0.50%	4.48%
WSO	70 Outperform	$18.51B	35.02	18.91%	2.42%	3.92%	1.09%
POOL	68 Neutral	$11.82B	29.49	31.49%	1.58%	-3.56%	-16.75%
Sector *	64 Neutral	$4.39B	11.81	5.20%	249.38%	3.96%	-12.36%

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.

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.