Fastenal Company (FAST) AI Stock Analysis

• Market Cap: $55.01B
• Dividend Yield: 2.99%
• Average Volume (3M): 6.59M
• Price to Earnings (P/E): 45.8
• Beta (1Y): 0.74
• Revenue Growth: 4.84%
• EPS Growth: 2.98%
• Country: US
• Employees: 21,339
• Sector: Industrials
• Sector Strength: 94
• Industry: Industrial - Distribution
• EPS (TTM): 0.29
• Shares Outstanding: 1,147,636,600
• 10 Day Avg. Volume: 8,374,744
• 30 Day Avg. Volume: 6,592,012
• PEG Ratio: 15.29
• Price to Book (P/B): 14.19
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 61.66
• Enterprise Value/Market Cap: 0.99
• Enterprise Value/Revenue: 1.79
• Enterprise Value/Gross Profit: 15.50
• Enterprise Value/Ebitda: 7.95
• 1Y Price Target: $45.00
• Price Target Upside: -6.11% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 11

• Rating: 79 Outperform
• Price Target: $52.00 ▲(8.49%Upside)

Fastenal Company's strong financial performance and a very positive earnings call are the primary drivers of its high overall stock score. While the stock's technical indicators suggest a bullish trend, caution is advised due to potential overbought conditions. The high P/E ratio raises valuation concerns, but the attractive dividend yield offers some compensation.

Positive Factors

Financial Performance

The company beat consensus on sales, gross margin, and operating margin.

Revenue Pipeline

Total contract signings up 10% points to future revenue pipeline.

Sales Growth

Investors believe FAST will have strong sales growth in the second half, with share gains bolstered by an accelerating pricing environment.

Negative Factors

Cost Concerns

Shares faded late in the conference call on comments that price/cost could see 10-15 basis points of giveback in the second half.

Price/Cost Pressure

The main pushback is around valuation, as investors are paying more for growth at FAST than they have historically.

Valuation Concerns

The stock trades at a large premium to peers, which reflects better operational performance that will continue.

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 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. While growth rates are moderate, the overall financial metrics indicate a stable and profitable company with a strong foundation for future expansion.

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.

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.

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.

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
EBITDA	1.69B	1.71B	1.63B	1.39B	1.30B
Net Income	1.15B	1.16B	1.09B	925.00M	859.10M
Balance Sheet
Total Assets	4.70B	4.46B	4.55B	4.30B	3.96B
Cash, Cash Equivalents and Short-Term Investments	255.80M	221.30M	230.10M	236.20M	245.70M
Total Debt	485.40M	535.00M	802.10M	636.80M	650.10M
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: Positive
• Last Price: 47.93
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 47.93 is above the 20-day moving average (MA) of 44.28, above the 50-day MA of 42.55, and above the 200-day MA of 39.33, indicating a bullish trend. The MACD of 1.46 indicates Negative momentum. The RSI at 82.01 is Negative, neither overbought nor oversold. The STOCH value of 97.76 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	79 Outperform	$55.01B	45.84	32.57%	2.99%	4.84%	2.98%
WSO	77 Outperform	$19.64B	37.40	18.91%	2.35%	3.92%	1.09%
AIT	73 Outperform	$10.21B	26.78	22.23%	0.62%	0.50%	4.48%
GWW	73 Outperform	$50.19B	26.68	57.19%	0.80%	3.71%	7.23%
POOL	70 Outperform	$12.27B	29.23	30.09%	1.49%	-1.71%	-8.68%
Sector *	65 Neutral	$11.06B	15.73	5.16%	1.93%	3.12%	-25.59%
FERG	―	£33.05B	26.71	29.28%	<0.01%	―	―

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.