Fastenal Company (FAST) AI Stock Analysis

• Market Cap: $48.61B
• Dividend Yield: 2.09%
• Average Volume (3M): 6.62M
• Price to Earnings (P/E): 39.7
• Beta (1Y): 0.74
• Revenue Growth: 6.92%
• EPS Growth: 5.98%
• Country: US
• Employees: 21,339
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Distribution
• EPS (TTM): 0.29
• Shares Outstanding: 1,148,035,800
• 10 Day Avg. Volume: 7,114,069
• 30 Day Avg. Volume: 6,621,650
• PEG Ratio: -36.16
• Price to Book (P/B): 11.39
• Price to Sales (P/S): 5.46
• P/FCF Ratio: 43.50
• Enterprise Value/Market Cap: 1.17
• Enterprise Value/Revenue: 7.09
• Enterprise Value/Gross Profit: 15.70
• Enterprise Value/Ebitda: 31.49
• 1Y Price Target: $44.29
• Price Target Upside: 5.78% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 9
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: $45.00 ▲(7.48% Upside)

Fastenal Company exhibits strong financial performance and positive earnings call sentiment, which are the most significant factors contributing to its score. However, technical indicators suggest potential bearish momentum, and the high P/E ratio indicates possible overvaluation. The strategic appointment of a new CFO is a positive development but does not significantly alter the overall assessment.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective customer partnerships, supporting long-term business expansion.

Digital Sales Expansion

The growth in digital sales highlights Fastenal's successful adaptation to technological trends, enhancing operational efficiency and customer reach.

Strong Cash Flow Generation

Robust cash flow generation supports operational and strategic initiatives, ensuring financial flexibility and sustainability.

Negative Factors

Pricing Challenges

Pricing challenges due to tariff uncertainties may hinder revenue growth and margin expansion, impacting long-term profitability.

Potential Margin Squeeze

Rising costs and delayed pricing actions could lead to margin compression, affecting profitability and financial health.

SG&A Expense Growth

Rising SG&A expenses indicate cost management challenges, potentially impacting profit margins and operational efficiency.

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 generates revenue primarily through the sale of industrial and construction products, including fasteners, tools, and safety equipment. The company employs a direct sales model, leveraging its extensive branch network to reach customers across multiple sectors. Key revenue streams include regular sales transactions, inventory management services, and vending solutions that provide automatic replenishment of supplies. Additionally, Fastenal has established significant partnerships with manufacturers and suppliers, allowing it to offer a wide range of products and competitive pricing. The company's focus on value-added services, such as customized inventory solutions and supply chain management, further contributes to its earnings by encouraging long-term customer relationships and repeat business.

Fastenal Company Financial Statement Overview

Summary

Fastenal Company demonstrates strong financial performance with consistent revenue growth and robust profitability margins. The balance sheet reflects a solid equity base and low leverage, while the cash flow statement indicates strong cash generation. Overall, the company is well-positioned financially with a stable and profitable business model.

Income Statement

Fastenal Company demonstrates strong financial performance with consistent revenue growth and robust profitability margins. The TTM data shows a revenue growth rate of 2.87%, supported by a solid gross profit margin of 45.15% and a net profit margin of 15.34%. The EBIT and EBITDA margins are also healthy at 20.26% and 22.50%, respectively, indicating efficient operational management. Overall, the income statement reflects a stable and profitable business model with positive growth trends.

Balance Sheet

The balance sheet of Fastenal Company is characterized by a strong equity position and manageable debt levels. The debt-to-equity ratio stands at 0.13, indicating low leverage and financial stability. The return on equity is impressive at 32.69%, showcasing effective use of shareholder funds to generate profits. The equity ratio of 76.10% further underscores the company's solid capital structure. Overall, the balance sheet reflects a stable financial position with low risk.

Cash Flow

Fastenal Company exhibits strong cash flow generation with a free cash flow growth rate of 10.17% in the TTM period. The operating cash flow to net income ratio is 1.45, indicating efficient cash conversion. The free cash flow to net income ratio is 0.80, reflecting a healthy cash flow relative to profits. Overall, the cash flow statement highlights robust cash generation capabilities, supporting the company's operational and strategic initiatives.

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

• Technical Analysis Sentiment: Neutral
• Last Price: 41.87
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FAST, the sentiment is Neutral. The current price of 41.87 is above the 20-day moving average (MA) of 40.83, above the 50-day MA of 41.56, and below the 200-day MA of 42.62, indicating a neutral trend. The MACD of 0.16 indicates Negative momentum. The RSI at 54.24 is Neutral, neither overbought nor oversold. The STOCH value of 70.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FAST.

Fastenal Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WCC	75 Outperform	$12.57B	20.27	13.06%	0.72%	5.28%	1.97%
AIT	74 Outperform	$9.75B	24.86	22.10%	0.71%	4.03%	5.93%
GWW	73 Outperform	$48.60B	28.53	48.98%	0.87%	4.83%	-3.60%
FAST	72 Outperform	$48.61B	39.70	32.74%	2.09%	6.92%	5.98%
GPC	69 Neutral	$18.01B	22.30	17.05%	3.22%	3.26%	-25.41%
MSM	69 Neutral	$4.78B	24.05	14.34%	3.97%	-1.35%	-22.24%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Fastenal Company Corporate Events

Fastenal Appoints Max Tunnicliff as New CFO

On November 3, 2025, Fastenal Company announced the appointment of Max Tunnicliff as Chief Financial Officer and Senior Executive Vice President, effective November 10, 2025. Tunnicliff, who previously held senior financial roles at Beko Europe and Whirlpool Corporation, brings extensive global financial experience to Fastenal. This strategic appointment aims to strengthen Fastenal’s financial foundation and support its growth strategy. Concurrently, Sheryl A. Lisowski will continue as Executive Vice President, Chief Accounting Officer, and Treasurer, following her interim CFO role.