Fastenal Company (FAST) AI Stock Analysis

• Market Cap: $49.64B
• Dividend Yield: 4.07%
• Average Volume (3M): 5.53M
• Price to Earnings (P/E): 43.2
• Beta (1Y): 0.72
• Revenue Growth: 4.84%
• EPS Growth: 2.98%
• Country: US
• Employees: 21,339
• Sector: Industrials
• Sector Strength: 91
• Industry: Industrial - Distribution
• EPS (TTM): 0.29
• Shares Outstanding: 1,147,241,300
• 10 Day Avg. Volume: 5,224,697
• 30 Day Avg. Volume: 5,525,498
• PEG Ratio: 10.87
• Price to Book (P/B): 13.58
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 59.03
• Enterprise Value/Market Cap: 1.05
• Enterprise Value/Revenue: 1.71
• Enterprise Value/Gross Profit: 14.85
• Enterprise Value/Ebitda: 7.73
• 1Y Price Target: $42.13
• Price Target Upside: -2.63% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 7

• Rating: 78 Outperform
• Price Target: $51.00 ▲(17.86%Upside)

Fastenal's overall stock score reflects its strong financial performance, including robust profitability and cash flow, which forms a solid foundation for future growth. The technical analysis suggests positive momentum, albeit with overbought signals. While the valuation appears high, the dividend yield provides some support. Finally, the earnings call highlights strategic growth initiatives, despite some margin pressures.

Positive Factors

Earnings

Shares are up 1% after an impressive quarter that saw company initiatives drive strong outgrowth and help lift gross margins.

Future Growth

Management sounded highly confident on second-half growth being double-digits-plus.

Negative Factors

Cost Pressures

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

Market Uncertainty

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

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 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: 43.27
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 43.27 is above the 20-day moving average (MA) of 42.34, above the 50-day MA of 41.54, and above the 200-day MA of 38.87, indicating a bullish trend. The MACD of 0.68 indicates Negative momentum. The RSI at 71.26 is Negative, neither overbought nor oversold. The STOCH value of 76.35 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
FAST	78 Outperform	$49.64B	43.17	32.57%	4.07%	4.84%	2.98%
WSO	77 Outperform	$19.05B	36.09	18.91%	2.55%	3.92%	1.09%
FERG	76 Outperform	$43.50B	27.54	29.28%	1.50%	2.32%	-12.51%
GWW	74 Outperform	$50.90B	27.05	57.19%	0.85%	3.71%	7.23%
AIT	73 Outperform	$9.67B	25.47	22.23%	0.72%	0.50%	4.48%
POOL	67 Neutral	$11.52B	28.72	31.49%	1.63%	-3.56%	-16.75%
Sector *	65 Neutral	$10.85B	15.55	5.22%	1.89%	3.09%	-26.84%

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.