Fastenal Co (FAST)
Services | Industrial Equipment Wholesale
CEO: Daniel L. Florness
Fastenal Co receives a in our proprietary ranking system that combines valuation, moat, operational performance, and financial strength. View the Top 50 tickrz ranked stocks here.
Valuation is the most heavily weighted component in our tickrz ranking methodology. Numerous academic and practitioner studies have found that a value approach outperforms the market over the long-run. Fastenal Co's valuation score is comprised of a P/E ratio of 24.9x, a P/B ratio of 6.4x, a P/S ratio of 3.1x, and an EV/EBITDA ratio of 14x. .
WARREN BUFFETT RANKING
Fastenal Co ranks 189 out of the S&P 500 constituents in our multi-factor Warren Buffett ranking methodology. This is a average score, meaning it ranks in the middle of the pack on valuation, moat, volatility, and financial strength factors. However, the company's moat is strong so it could be worth investigating in the future should its valuation improve.
To calculate a company's Moat Score, we look at its historical earnings growth, historical average return on equity, the volatility of its earnings stream, and also factor in the strength of its balance sheet. Fastenal Co appears to have a durable competitive advantage within the Services sector.
Fastenal Co has a Piotroski F Score of 5 out of 9. The F Score examines changes in profitability, leverage, liquidity, and operating efficiency. Interest coverage of 118.63x, a debt/equity ratio of 18% and a Moat Rank of 89 translate to a strong Financial Strength score.
Investment research has shown that stocks with strong performance over the last 6 to 12 months tend to perform better in the medium term than stocks with poor performance over the same period. In fact, the momentum factor is one of the strongest of all the investment factors. The company has seen its stock appreciate by 2.11% over the last 12 months. This performance is weak compared to other stocks in the S&P 500, earning it a rank of 380.
VALUE + YIELD
Shares currently yield 2.85%. Our dividend ranking approach looks at a company's dividend growth rate, payout ratio, business moat, and valuation. Based on our methodology, Fastenal Co ranks 177 among the S&P 500 constituents.
A company's growth metrics are less important than its valuation, moat, and financial strength. However, a check on growth can be a good way to avoid companies in secular decline. Its 7.4% 5 year annualized EPS growth, 7.4% 5 year annualized sales-per-share growth, and 5 year annualized book value-per-share growth of 6.2% speak to its impressive growth ranking.