Fastenal CoFRA:FAS -0.15%97 Gross Margin % is 44.64% as of Mar. 2026, which is 3% below its 10-year median of 46.14. GuruFocus rates FRA:FAS with a GF Score™ of 97/100 and a GF Value™ of €37.46 (Fairly Valued). The stock has 2 warning signs investors should review. Among 154 Industrial Distribution companies, Fastenal Co ranks better than 92.86% on this metric.
The historical rank and industry rank for Fastenal Co's Gross Margin % or its related term are showing as below:
FRA:FAS'
s Gross Margin % Range Over the Past 10 Years
Min: 44.89 Med: 46.14 Max: 49.59
Current: 44.89
During the past 13 years, the highestGross Margin % of Fastenal Co was 49.59%. The lowest was 44.89%. And the median was 46.14%.
FRA:FAS's Gross Margin % is ranked better than 92.86% of 154
companies
in the Industrial Distribution industry
Industry Median: 24.295
vs FRA:FAS: 44.89
Fastenal Co had a gross margin of 44.64% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Fastenal Co was -0.40% per year.
Fastenal Co (FRA:FAS) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Fastenal Co had a gross margin of 44.64% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Fastenal Co Gross Margin % Related Terms
Fastenal Co Gross Margin % Historical Data
* Premium members only.
The historical data trend for Fastenal Co's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FRA:FAS vs FERG, GWW, WCC: Gross Margin % Comparison
For the Industrial Distribution subindustry, Fastenal Co's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Fastenal Co Gross Margin % vs Industrial Distribution Industry
For the Industrial Distribution industry and Industrials sector, Fastenal Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Fastenal Co's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Fastenal Co (FRA:FAS) has a Gross Margin % of 44.64% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Fastenal Co and its competitors. This is near median its historical median of 46.14. Over the past decade, Fastenal Co's Gross Margin % has ranged from 44.89 to 49.59. According to the industry distribution chart, Fastenal Co ranks #11 out of 154 companies in the Industrial Distribution industry, placing it in the top 7.1%.
Is Fastenal Co's Gross Margin % too high?
Fastenal Co's current Gross Margin % of 44.64% is near median its 10-year median of 46.14. Over the past 10 years, this metric has ranged from a low of 44.89 to a high of 49.59. The Industrial Distribution industry median Gross Margin % is 24.30. Fastenal Co's value of 44.64% is 83.7% above this industry median. Based on the distribution chart, Fastenal Co ranks #11 out of 154 companies in the Industrial Distribution industry, which is in the top quartile — a strong position relative to peers. Overall, Fastenal Co has a GF Score™ of 97/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Fastenal Co's Gross Margin % compare to FERG and GWW?
According to the Industrial Distribution industry distribution chart, Fastenal Co ranks #11 out of 154 companies for Gross Margin %. This places Fastenal Co in the top 7% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 24.30. Fastenal Co's value of 44.64% is 83.7% above this benchmark. Historically, Fastenal Co's own Gross Margin % has ranged from 44.89 to 49.59 over the past decade. While the company's 10-year median is 46.14 vs. the industry median of 24.30, Fastenal Co has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for an Industrial Distribution company?
The median Gross Margin % among Industrial Distribution companies is 24.30, based on 154 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Fastenal Co's current Gross Margin % of 44.64% is 83.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Fastenal Co and its competitors. For the Industrial Distribution industry, the median Gross Margin % is 24.30 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Fastenal Co's current Gross Margin % is 44.64%, which is near median its own 10-year median of 46.14. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Fastenal Co stock overvalued right now?
Based on GuruFocus' analysis, Fastenal Co (FRA:FAS) is currently considered Fairly Valued. The stock's GF Value™ is €37.46, compared to a current price of €40.09 — trading 7% above its estimated fair value. The current Gross Margin % is 44.64%, which is near median its 10-year median of 46.14 and 83.7% above the Industrial Distribution industry median of 24.30. Fastenal Co's overall GF Score™ is 97/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Fastenal Co (FRA:FAS), the current Gross Margin % is 44.64% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Fastenal Co (FRA:FAS) Overvalued in 2026?
Based on GuruFocus' analysis, Fastenal Co stock appears to be overvalued.
The current stock price of €40.09 is trading 7% above its estimated GF Value™ of €37.46.
GuruFocus considers Fastenal Co to be Fairly Valued.
Key valuation signals for FRA:FAS:
Gross Margin %: 44.64% (near median its 10-year median of 46.14)
GF Value™: €37.46 vs. price of €40.09 (7% above fair value)
Industry Position: 83.7% above the Industrial Distribution median (#11 of 154)
No single metric tells the full story. See the FRA:FAS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Fastenal began as an industrial retailer, expanding its product portfolio from nuts and bolts to cutting tools, safety equipment, and janitorial supplies. It transitioned into a distributor by building out a dense network of branches close to its business customers. Once a customer becomes large enough, Fastenal installs vending machines and its own personnel on-site. Today, these on-site locations exceed Fastenal's branch count and remain the firm's main focus for expansion. Fastenal acts as a one-stop outsourcing partner for its industrial customers, offering value-added services along with a wide breadth of maintenance, repair, and operations supplies.
97GF Score
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