Fastenal Co (FAST, Financial) has recently garnered attention from the investment community, showcasing a solid financial profile that's piquing the interest of investors and analysts alike. With its stock price at $68.79, Fastenal Co has enjoyed a daily increase of 1.27% and an impressive three-month growth of 16.98%. The GF Score analysis indicates that Fastenal Co is on a trajectory for significant growth, positioning it as a potentially lucrative investment.
What Is the GF Score?
The GF Score is an exclusive stock performance ranking system from GuruFocus, which evaluates stocks based on five key aspects of valuation. These aspects have shown a strong correlation with long-term stock performance from 2006 to 2021. A higher GF Score typically indicates a greater potential for return, making it a valuable tool for investors seeking high-performing stocks. The GF Score ranges from 0 to 100, with 100 representing the highest potential for outperformance.
- Financial strength rank: 9/10
- Profitability rank: 10/10
- Growth rank: 10/10
- GF Value rank: 3/10
- Momentum rank: 9/10
Fastenal Co's GF Score of 94 out of 100 reflects its strong potential for market outperformance, with particularly high ranks in financial strength, profitability, and growth, while its GF Value rank is slightly lower.
Understanding Fastenal Co's Business
Fastenal Co, with a market cap of $39.35 billion and sales of $7.28 billion, has evolved significantly since its inception in 1967. From its first fastener store in Winona, Minnesota, Fastenal Co now operates through approximately 1,600 branches, over 1,700 on-site locations, and 14 distribution centers. Fasteners remain a core product, accounting for 30%-35% of sales, while the company has diversified its offerings and provides supply-chain solutions like vending and vendor-managed inventory.
Financial Strength Breakdown
Fastenal Co's Financial Strength is evident in its impressive Interest Coverage ratio of 108.47, far exceeding the benchmark set by investing legend Benjamin Graham. The company's Altman Z-Score of 25.02 further reinforces its defense against financial distress. Additionally, a Debt-to-Revenue ratio of 0.07 showcases Fastenal Co's strategic debt management, solidifying its financial health.
Profitability Rank Breakdown
Fastenal Co's Profitability Rank is a testament to its superior ability to generate profits compared to its industry peers. The company's Predictability Rank of 5 stars reflects its consistent operational performance, instilling confidence in investors about the company's future prospects.
Growth Rank Breakdown
Fastenal Co's high Growth Rank underscores its dedication to business expansion. The company's 3-Year Revenue Growth Rate of 9.3% surpasses 57.04% of its peers in the Industrial Distribution industry. The upward trend in EBITDA, with a three-year growth rate of 10.5 and a five-year rate of 9.2, highlights Fastenal Co's ability to sustain growth.
Conclusion: Fastenal Co's Position for Outperformance
Considering Fastenal Co's robust financial strength, impressive profitability, and consistent growth metrics, the GF Score underscores the company's exceptional position for potential market outperformance. Investors seeking companies with similar strengths can explore more options using the GF Score Screen available to GuruFocus Premium members.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
