Fastenal Company

Valuation Analysis

About the Company

Fastenal Company, together with its subsidiaries, engages in the wholesale distribution of industrial and construction supplies in the United States, Canada, Mexico, 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 that are used in manufactured products and construction projects, as well as in the maintenance and repair of machines. It 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,

Fastenal Company Stock at a Glance

Fastenal Company (FAST) is currently trading at $46.57 with a market capitalization of $53.5B. The trailing P/E ratio stands at 41.21x, with a forward P/E of 33.88x. The 52-week range spans from $38.97 to $50.63; the current price is 8% below the yearly high. Year-over-year revenue growth stands at +12.4%. The net profit margin stands at 15.39%.

💰 Dividend

Fastenal Company pays an annual dividend of $0.92 per share, representing a yield of 1.98%. The payout ratio stands at 79.65%.

📊 Analyst Rating

11 analysts rate Fastenal Company (FAST) on consensus: Hold. The average price target is $46.72, implying +0.32% from the current price. Analyst price targets range from $39.90 to $55.00.

Fastenal Company: The Investment Case in Detail

Fastenal Company (FAST) operates in the Industrials — specifically Industrial Distribution — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

The Bull Case

Revenue is growing at a healthy 12.4% pace year-over-year, suggesting the business model continues to find new customers and pricing power. The combination of a 44.89% gross margin and 20.33% operating margin shows the business converts revenue into profit efficiently — a hallmark of competitive moat. Return on equity of 33.84% places management among the most capital-efficient operators in the public market — every euro of shareholder capital is working hard.

The Bear Case

Our valuation screen flags the stock as overvalued — current multiples imply the business needs to deliver well above its recent trajectory to justify the price.

Valuation in Context

At a PEG of 3.36, investors are paying more than three times the growth rate for each unit of earnings — that pricing assumes growth not only continues but accelerates from here. The EV/EBITDA multiple of 28.38x reflects rich expectations — historically, multiples at this level have proven hard to maintain for more than a few quarters.

What to Watch Next

• The forward P/E of 33.88x is meaningfully below the trailing 41.21x — analysts expect earnings to step up; the next earnings release is the test.

Investment Thesis: Strengths & Weaknesses

Technical Snapshot

Price trades above both the 50- and 200-day moving averages, with 50d above 200d — a classic bullish setup (golden-cross alignment).

Risk Profile

The data points to relatively defensive market behavior.

Trading Data

💵 Dividend Info

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