Fastenal Co (FAST, Financial) has recently been in the spotlight, drawing interest from investors and financial analysts due to its robust financial stance. With shares currently priced at $68.81, Fastenal Co has witnessed a daily loss of 0.76%, marked against a three-month change of 19.92%. A thorough analysis, underlined by the GF Score, suggests that Fastenal Co is well-positioned for substantial growth in the near future.
What Is the GF Score?
The GF Score is a stock performance ranking system developed by GuruFocus, which evaluates stocks based on five key aspects of valuation. These aspects have been closely correlated with long-term stock performance from 2006 to 2021. Stocks with higher GF Scores generally yield higher returns than those with lower scores. The GF Score ranges from 0 to 100, with 100 indicating 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
Each component of the GF Score is ranked based on its correlation with long-term stock performance. These components are weighted differently when calculating the total score. Fastenal Co has been assigned a GF Score of 94 out of 100, indicating a strong potential for market outperformance.
Understanding Fastenal Co's Business
Fastenal Co, with a market cap of $39.36 billion and sales of $7.35 billion, has a solid operating margin of 20.81%. Founded in 1967 in Winona, Minnesota, Fastenal Co has expanded its footprint and diversified its offerings. The company now operates through approximately 1,600 branches, over 1,700 on-site locations, and 14 distribution centers. Fasteners remain its largest sales category, accounting for 30%-35% of total sales. Fastenal Co also provides supply-chain solutions, including vending and vendor-managed inventory, to its 400,000 active customers.
Financial Strength Breakdown
Fastenal Co's Financial Strength rating is a testament to its resilient balance sheet and prudent capital management. The company's Interest Coverage ratio is an impressive 140.25, indicating a strong ability to cover interest obligations. With an Altman Z-Score of 25.82, Fastenal Co is well-protected against financial distress. The company's strategic debt management is reflected in its low Debt-to-Revenue ratio of 0.07.
Profitability Rank Breakdown
Fastenal Co's Profitability Rank is exceptional, indicating its superior ability to generate profits compared to its peers. The company's Operating Margin has shown a steady increase over the past five years, demonstrating consistent operational efficiency. Additionally, Fastenal Co's Predictability Rank of 5 stars reflects its reliable performance, offering investors a degree of certainty.
Growth Rank Breakdown
Fastenal Co's high Growth Rank underscores its commitment to business expansion. The company's 3-Year Revenue Growth Rate of 9.3% surpasses 57.04% of its industry peers. The consistent increase in EBITDA over the past few years highlights Fastenal Co's growth capabilities and strategic focus.
Conclusion: Fastenal Co's Position for Outperformance
Considering Fastenal Co's financial strength, profitability, and growth metrics, the GF Score highlights the firm's unparalleled position for potential outperformance. Investors seeking companies with similar financial robustness and growth prospects can explore more options using the GF Score Screen provided by GuruFocus. With its strong foundation and strategic initiatives, Fastenal Co is poised to continue its trajectory of market leadership. Could this be the right time for value investors to fasten their portfolios with Fastenal Co?
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.
