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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 7/10

vs
industry
vs
history
Cash to Debt No Debt
FAST's Cash to Debt is ranked higher than
82% of the 236 Companies
in the Global Industrial Distribution industry.

( Industry Median: 1.12 vs. FAST: No Debt )
FAST' s 10-Year Cash to Debt Range
Min: 0.03   Max: No Debt
Current: No Debt

Equity to Asset 0.85
FAST's Equity to Asset is ranked higher than
94% of the 236 Companies
in the Global Industrial Distribution industry.

( Industry Median: 0.49 vs. FAST: 0.85 )
FAST' s 10-Year Equity to Asset Range
Min: 0.81   Max: 0.9
Current: 0.85

0.81
0.9
Interest Coverage 6306.70
FAST's Interest Coverage is ranked higher than
85% of the 177 Companies
in the Global Industrial Distribution industry.

( Industry Median: 16.07 vs. FAST: 6306.70 )
FAST' s 10-Year Interest Coverage Range
Min: 74.67   Max: 9999.99
Current: 6306.7

74.67
9999.99
F-Score: 3
Z-Score: 33.84
M-Score: -2.37
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 8/10

vs
industry
vs
history
Operating margin (%) 21.43
FAST's Operating margin (%) is ranked higher than
97% of the 238 Companies
in the Global Industrial Distribution industry.

( Industry Median: 3.93 vs. FAST: 21.43 )
FAST' s 10-Year Operating margin (%) Range
Min: 13.17   Max: 21.5
Current: 21.43

13.17
21.5
Net-margin (%) 13.49
FAST's Net-margin (%) is ranked higher than
97% of the 238 Companies
in the Global Industrial Distribution industry.

( Industry Median: 2.40 vs. FAST: 13.49 )
FAST' s 10-Year Net-margin (%) Range
Min: 8.34   Max: 13.49
Current: 13.49

8.34
13.49
ROE (%) 25.31
FAST's ROE (%) is ranked higher than
97% of the 236 Companies
in the Global Industrial Distribution industry.

( Industry Median: 7.04 vs. FAST: 25.31 )
FAST' s 10-Year ROE (%) Range
Min: 14.59   Max: 29.09
Current: 25.31

14.59
29.09
ROA (%) 21.61
FAST's ROA (%) is ranked higher than
100% of the 238 Companies
in the Global Industrial Distribution industry.

( Industry Median: 2.95 vs. FAST: 21.61 )
FAST' s 10-Year ROA (%) Range
Min: 12.91   Max: 25.07
Current: 21.61

12.91
25.07
ROC (Joel Greenblatt) (%) 40.39
FAST's ROC (Joel Greenblatt) (%) is ranked higher than
90% of the 238 Companies
in the Global Industrial Distribution industry.

( Industry Median: 16.15 vs. FAST: 40.39 )
FAST' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: 26.96   Max: 52.66
Current: 40.39

26.96
52.66
Revenue Growth (%) 13.20
FAST's Revenue Growth (%) is ranked higher than
85% of the 185 Companies
in the Global Industrial Distribution industry.

( Industry Median: 6.10 vs. FAST: 13.20 )
FAST' s 10-Year Revenue Growth (%) Range
Min: 2.9   Max: 35.2
Current: 13.2

2.9
35.2
EBITDA Growth (%) 17.70
FAST's EBITDA Growth (%) is ranked higher than
82% of the 155 Companies
in the Global Industrial Distribution industry.

( Industry Median: 7.70 vs. FAST: 17.70 )
FAST' s 10-Year EBITDA Growth (%) Range
Min: -1.2   Max: 33.2
Current: 17.7

-1.2
33.2
EPS Growth (%) 18.80
FAST's EPS Growth (%) is ranked higher than
78% of the 138 Companies
in the Global Industrial Distribution industry.

( Industry Median: 8.70 vs. FAST: 18.80 )
FAST' s 10-Year EPS Growth (%) Range
Min: -2.1   Max: 33.1
Current: 18.8

-2.1
33.1
» FAST's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q1 2013

FAST Guru Trades in Q1 2013

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Q2 2013

FAST Guru Trades in Q2 2013

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Jeremy Grantham 132,217 sh (-35.26%)
Steven Cohen 1,055,442 sh (-40.64%)
» More
» Details

Insider Trades

Latest Guru Trades with FAST

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Ray Dalio 2013-12-31 New Buy0.05%$45.62 - $51.89 $ 50.124%133861
Ray Dalio 2011-12-31 Sold Out 0.12%$32.23 - $44.32 $ 50.1229%0
Ray Dalio 2011-09-30 Reduce -67.1%0.25%$29.47 - $36.63 $ 50.1250%244461
Ruane Cunniff 2011-06-30 Reduce -50.05%3.51%$30.97 - $36.01 $ 50.1252%22722715
Ron Baron 2011-06-30 Reduce -50.23%0.65%$30.97 - $36.01 $ 50.1252%7289204
Ruane Cunniff 2011-03-31 Add 98.88%3.49%$14.44 - $16.12 $ 50.12228%11373114
Ron Baron 2011-03-31 Add 96.3%0.63%$14.44 - $16.12 $ 50.12228%3661607
George Soros 2011-03-31 Sold Out $14.44 - $16.12 $ 50.12228%0
Premium More recent guru trades are included for Premium Members only!!
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Guru Investment Theses on Fastenal Company

Sequoia Fund's Discussion of Fastenal - Mar 07, 2014

Fastenal had a challenging year. Sales growth decelerated to 6% from 13% the prior year, reflecting slowing sales to end markets such as mining, military, and non-residential construction. The modest sales growth result produced minimal operating leverage and the operating profit margin stayed flat at 21.4%. Earnings per share increased 7% to $1.51. Fastenal’s owners are not accustomed to such modest results.



Fortunately, Fastenal’s creative and aggressive management is not standing still and is taking action to improve both top line growth and profitability. Starting in the third quarter of 2013, Fastenal began aggressively adding salespeople at its store locations. Management believes that there is a strong long-term correlation between the increase in sales personnel and revenue growth. The cost of investing in new sales people has had a short-term negative impact on profitability but should enable Fastenal to return to mid-teens sales and earnings growth in the near future. There is risk in adding sales people when demand appears weak for all industrial distributors. Still, we believe Fastenal’s long-term prospects are healthy.



Source: Sequoia Fund's 2013 Annual Report - Management's Discussion of Fund Performance



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Baron Funds Comments on Fastenal Co. - Feb 20, 2014

Fastenal Co. (FAST) is a leading distributor of fasteners and other industrial supplies. Its shares fell after disappointing sales metrics, coupled with an ongoing investment in its sales force, weighed on recent earnings results. With improved business trends in the company's important manufacturing and construction end-markets, we are hopeful that Fastenal's growth will accelerate in 2014



From Baron Funds' fourth quarter letter 2013 to shareholders.



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Baron Funds Comments on Fastenal Co. - Aug 02, 2013

Shares of industrial distributor Fastenal Co. (FAST) detracted from performance, as the company's sales decelerated slightly given volatile order trends from its manufacturing and commercial construction customers.We remain confident that new initiatives, such as installing vending machines at customers' sites and international expansion, will drive accelerated market share gains and higher margins for Fastenal as the economic recovery gains steam.

From the Baron Funds’ second quarter 2013 commentary.


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Baron Funds Comments on Fastenal Co. - Feb 06, 2013

Shares of Fastenal Co. (FAST), the leading distributor of industrial supplies, performed well during the quarter, as sales across the company's 2,600 branches remained strong, rising approximately 7-10% over the prior year's figures. These results were attributable to a rebound in domestic manufacturing, continued gains in market share from smaller competitors in this fragmented market, and the company's successful introduction to its customer base of vending machines that dispense industrial supplies directly to the manufacturing factory floor.

From Baron Funds' fourth quarter letter.


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Baron Funds Comments on Fastenal - Aug 23, 2012

From Baron Funds' second-quarter commentary:

After having risen nearly 25% during the first quarter, shares of Fastenal Co. (FAST), the leading industrial supplies distributor, declined. Demand from its manufacturing and commercial construction clients decelerated slightly, given the tougher economic climate. Sales across the company's 2,500 stores strengthened considerably throughout 2011, thereby creating difficult annual sales comparisons for 2012. Despite the more challenging economic backdrop, we believe that the company remains innovative, continues to invest in its business, and will benefit meaningfully from its initiative to install automated vending machines at many customer locations.
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Baron Funds Comments on Fastenal - May 24, 2012

From Baron Funds' first quarter letter: Shares of Fastenal Co. (FAST), the leading industrial supplies distributor, gained 24.5%, as demand from manufacturing and commercial construction clients continued to improve. Sales across the company's 2,500 branches have continued to show healthy comparative sales increases, even at stores more than 10 years old.This broad-based strength is indicative of a growing rebound in factory production, new initiatives such as automated vending taking hold, and market-share gains out of the 2008-2009 downturn. Fastenal's customers are increasingly relying on the company to save them costs, cut working capital and improve productivity. (Matt Weiss)
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Top Ranked Articles about Fastenal Company

Sequoia Fund's Discussion of Fastenal
Fastenal had a challenging year. Sales growth decelerated to 6% from 13% the prior year, reflecting slowing sales to end markets such as mining, military, and non-residential construction. The modest sales growth result produced minimal operating leverage and the operating profit margin stayed flat at 21.4%. Earnings per share increased 7% to $1.51. Fastenal’s owners are not accustomed to such modest results. Read more...
Baron Funds Comments on Fastenal Co.
Fastenal Co. (FAST) is a leading distributor of fasteners and other industrial supplies. Its shares fell after disappointing sales metrics, coupled with an ongoing investment in its sales force, weighed on recent earnings results. With improved business trends in the company's important manufacturing and construction end-markets, we are hopeful that Fastenal's growth will accelerate in 2014 Read more...
Baron Funds Comments on Fastenal Co.
Shares of industrial distributor Fastenal Co. (FAST) detracted from performance, as the company's sales decelerated slightly given volatile order trends from its manufacturing and commercial construction customers.We remain confident that new initiatives, such as installing vending machines at customers' sites and international expansion, will drive accelerated market share gains and higher margins for Fastenal as the economic recovery gains steam. Read more...

Ratios

vs
industry
vs
history
P/E(ttm) 32.90
FAST's P/E(ttm) is ranked lower than
66% of the 206 Companies
in the Global Industrial Distribution industry.

( Industry Median: 18.50 vs. FAST: 32.90 )
FAST' s 10-Year P/E(ttm) Range
Min: 15.06   Max: 46.3
Current: 32.9

15.06
46.3
P/B 8.70
FAST's P/B is ranked lower than
85% of the 227 Companies
in the Global Industrial Distribution industry.

( Industry Median: 1.30 vs. FAST: 8.70 )
FAST' s 10-Year P/B Range
Min: 3.44   Max: 10.52
Current: 8.7

3.44
10.52
P/S 4.40
FAST's P/S is ranked lower than
93% of the 239 Companies
in the Global Industrial Distribution industry.

( Industry Median: 0.57 vs. FAST: 4.40 )
FAST' s 10-Year P/S Range
Min: 1.73   Max: 5.55
Current: 4.4

1.73
5.55
PFCF 71.50
FAST's PFCF is ranked lower than
84% of the 125 Companies
in the Global Industrial Distribution industry.

( Industry Median: 17.71 vs. FAST: 71.50 )
FAST' s 10-Year PFCF Range
Min: 18.16   Max: 1579.8
Current: 71.5

18.16
1579.8
EV-to-EBIT 21.30
FAST's EV-to-EBIT is ranked lower than
66% of the 215 Companies
in the Global Industrial Distribution industry.

( Industry Median: 14.30 vs. FAST: 21.30 )
FAST' s 10-Year EV-to-EBIT Range
Min: 9.1   Max: 28.6
Current: 21.3

9.1
28.6
PEG 1.40
FAST's PEG is ranked higher than
63% of the 107 Companies
in the Global Industrial Distribution industry.

( Industry Median: 1.50 vs. FAST: 1.40 )
FAST' s 10-Year PEG Range
Min: 0.68   Max: 7.87
Current: 1.4

0.68
7.87
Shiller P/E 43.80
FAST's Shiller P/E is ranked lower than
70% of the 103 Companies
in the Global Industrial Distribution industry.

( Industry Median: 22.42 vs. FAST: 43.80 )
FAST' s 10-Year Shiller P/E Range
Min: 20.29   Max: 63.97
Current: 43.8

20.29
63.97

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 1.90
FAST's Dividend Yield is ranked lower than
56% of the 188 Companies
in the Global Industrial Distribution industry.

( Industry Median: 2.20 vs. FAST: 1.90 )
FAST' s 10-Year Dividend Yield Range
Min: 0.42   Max: 2.35
Current: 1.9

0.42
2.35
Dividend Payout 0.63
FAST's Dividend Payout is ranked lower than
60% of the 170 Companies
in the Global Industrial Distribution industry.

( Industry Median: 0.35 vs. FAST: 0.63 )
FAST' s 10-Year Dividend Payout Range
Min: 0.02   Max: 0.58
Current: 0.63

0.02
0.58
Dividend growth (3y) 25.00
FAST's Dividend growth (3y) is ranked higher than
85% of the 86 Companies
in the Global Industrial Distribution industry.

( Industry Median: 12.40 vs. FAST: 25.00 )
FAST' s 10-Year Dividend growth (3y) Range
Min: 0   Max: 128.5
Current: 25

0
128.5
Yield on cost (5-Year) 5.68
FAST's Yield on cost (5-Year) is ranked higher than
85% of the 195 Companies
in the Global Industrial Distribution industry.

( Industry Median: 2.48 vs. FAST: 5.68 )
FAST' s 10-Year Yield on cost (5-Year) Range
Min: 1.26   Max: 7.03
Current: 5.68

1.26
7.03
Share Buyback Rate -0.30
FAST's Share Buyback Rate is ranked higher than
74% of the 138 Companies
in the Global Industrial Distribution industry.

( Industry Median: -0.80 vs. FAST: -0.30 )
FAST' s 10-Year Share Buyback Rate Range
Min: 0.7   Max: -0.3
Current: -0.3

Valuation & Return

vs
industry
vs
history
Price/Net Current Asset Value 32.30
FAST's Price/Net Current Asset Value is ranked lower than
92% of the 62 Companies
in the Global Industrial Distribution industry.

( Industry Median: 5.50 vs. FAST: 32.30 )
FAST' s 10-Year Price/Net Current Asset Value Range
Min: 13.09   Max: 51.99
Current: 32.3

13.09
51.99
Price/Tangible Book 8.40
FAST's Price/Tangible Book is ranked lower than
84% of the 218 Companies
in the Global Industrial Distribution industry.

( Industry Median: 1.30 vs. FAST: 8.40 )
FAST' s 10-Year Price/Tangible Book Range
Min: 4.53   Max: 17.04
Current: 8.4

4.53
17.04
Price/DCF (Projected) 3.40
FAST's Price/DCF (Projected) is ranked lower than
80% of the 105 Companies
in the Global Industrial Distribution industry.

( Industry Median: 1.30 vs. FAST: 3.40 )
FAST' s 10-Year Price/DCF (Projected) Range
Min: 2.42   Max: 7.91
Current: 3.4

2.42
7.91
Price/Median PS Value 1.20
FAST's Price/Median PS Value is ranked lower than
56% of the 225 Companies
in the Global Industrial Distribution industry.

( Industry Median: 1.10 vs. FAST: 1.20 )
FAST' s 10-Year Price/Median PS Value Range
Min: 0.61   Max: 1.96
Current: 1.2

0.61
1.96
Price/Peter Lynch Fair Value 1.60
FAST's Price/Peter Lynch Fair Value is ranked lower than
60% of the 63 Companies
in the Global Industrial Distribution industry.

( Industry Median: 1.10 vs. FAST: 1.60 )
FAST' s 10-Year Price/Peter Lynch Fair Value Range
Min: 0.78   Max: 7.68
Current: 1.6

0.78
7.68
Price/Graham Number 3.50
FAST's Price/Graham Number is ranked lower than
78% of the 190 Companies
in the Global Industrial Distribution industry.

( Industry Median: 1.00 vs. FAST: 3.50 )
FAST' s 10-Year Price/Graham Number Range
Min: 1.93   Max: 6.69
Current: 3.5

1.93
6.69
Earnings Yield (Greenblatt) 4.70
FAST's Earnings Yield (Greenblatt) is ranked lower than
58% of the 223 Companies
in the Global Industrial Distribution industry.

( Industry Median: 7.00 vs. FAST: 4.70 )
FAST' s 10-Year Earnings Yield (Greenblatt) Range
Min: 3.5   Max: 11
Current: 4.7

3.5
11
Forward Rate of Return (Yacktman) 21.36
FAST's Forward Rate of Return (Yacktman) is ranked higher than
85% of the 151 Companies
in the Global Industrial Distribution industry.

( Industry Median: 6.71 vs. FAST: 21.36 )
FAST' s 10-Year Forward Rate of Return (Yacktman) Range
Min: 6   Max: 29.4
Current: 21.36

6
29.4

Business Description

Industry: Industrial Distribution » Industrial Distribution
Compare:WOSYY, GWW, GPC, NDEKY, LKQ » details
Traded in other countries:FAS.Germany
Fastenal Company was incorporated under the laws of Minnesota in 1968. It operates 14 distribution centers in North America. The Company engages in the wholesale distribution of industrial and construction supplies. It distributes these supplies through a network of approximately 2,500 company owned stores. It distributes these supplies through a network of approximately 2,600 company owned stores. It conducts business under various trademarks and service marks, including: Fastenal, FAS-N-IT, FNL, Blackstone, Rock River, Blue Global, Fastenal Racing, FNL G9, Equiprite, Clean Choice, Bodyguard, Profitter, Dynaflo, FMT, Tritan, Caliber, PowerPhase. The product line, which it refers to as the fastener product line, consists of two broad categories: threaded fasteners, such as bolts, nuts, screws, studs, and related washers; and miscellaneous supplies, such as paints, various pins and machinery keys, concrete anchors, batteries, sealants, metal framing systems, wire rope, strut, private-label stud anchors, rivets, and related accessories. Most of its customers are in the construction and manufacturing markets. The construction market includes general, electrical, plumbing, sheet metal, and road contractors. The manufacturing market includes both original equipment manufacturers and maintenance and repair operations. Other users of its products include farmers, truckers, railroads, mining companies, federal, state and local governmental entities, schools, and certain retail trades. Competitors include both large distributors located mainly in large cities and smaller distributors located in many of the same cities in which it has stores.

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