Fastenal CoFAST +0.38%99 Return-on-Tangible-Equity is 34.27% as of Mar. 2026, which is 5% above its 10-year median of 32.54. GuruFocus rates FAST with a GF Score™ of 99/100 and a GF Value™ of $43.22 (Fairly Valued). The stock has 2 warning signs investors should review. Among 154 Industrial Distribution companies, Fastenal Co ranks better than 81.82% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Fastenal Co's annualized net income for the quarter that ended in Mar. 2026 was $1,359 Mil. Fastenal Co's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $3,967 Mil. Therefore, Fastenal Co's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 34.27%.
The historical rank and industry rank for Fastenal Co's Return-on-Tangible-Equity or its related term are showing as below:
FAST'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 26.75 Med: 32.54 Max: 35.47
Current: 33.62
During the past 13 years, Fastenal Co's highest Return-on-Tangible-Equity was 35.47%. The lowest was 26.75%. And the median was 32.54%.
FAST's Return-on-Tangible-Equity is ranked better than 81.82% of 154
companies
in the Industrial Distribution industry
Industry Median: 9.02
vs FAST: 33.62
Fastenal Co (NAS:FAST) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Fastenal Co Return-on-Tangible-Equity Related Terms
Fastenal Co Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Fastenal Co's Return-on-Tangible-Equity 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.
FAST vs FERG, GWW, WCC: Return-on-Tangible-Equity Comparison
For the Industrial Distribution subindustry, Fastenal Co's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Industrial Distribution Industry
For the Industrial Distribution industry and Industrials sector, Fastenal Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Fastenal Co's Return-on-Tangible-Equity 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 34.27% mean?
Fastenal Co (FAST) has a Return-on-Tangible-Equity of 34.27% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Fastenal Co and its competitors. This is near median its historical median of 32.54. Over the past decade, Fastenal Co's Return-on-Tangible-Equity has ranged from 26.75 to 35.47. According to the industry distribution chart, Fastenal Co ranks #28 out of 154 companies in the Industrial Distribution industry, placing it in the top 18.2%.
Is Fastenal Co's Return-on-Tangible-Equity too high?
Fastenal Co's current Return-on-Tangible-Equity of 34.27% is near median its 10-year median of 32.54. Over the past 10 years, this metric has ranged from a low of 26.75 to a high of 35.47. The Industrial Distribution industry median Return-on-Tangible-Equity is 9.02. Fastenal Co's value of 34.27% is 279.9% above this industry median. Based on the distribution chart, Fastenal Co ranks #28 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 99/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Fastenal Co's Return-on-Tangible-Equity compare to FERG and GWW?
According to the Industrial Distribution industry distribution chart, Fastenal Co ranks #28 out of 154 companies for Return-on-Tangible-Equity. This places Fastenal Co in the top 18% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 9.02. Fastenal Co's value of 34.27% is 279.9% above this benchmark. Historically, Fastenal Co's own Return-on-Tangible-Equity has ranged from 26.75 to 35.47 over the past decade. While the company's 10-year median is 32.54 vs. the industry median of 9.02, 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 Return-on-Tangible-Equity for an Industrial Distribution company?
The median Return-on-Tangible-Equity among Industrial Distribution companies is 9.02, based on 154 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Fastenal Co's current Return-on-Tangible-Equity of 34.27% is 279.9% 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Fastenal Co and its competitors. For the Industrial Distribution industry, the median Return-on-Tangible-Equity is 9.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Fastenal Co's current Return-on-Tangible-Equity is 34.27%, which is near median its own 10-year median of 32.54. 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 (FAST) is currently considered Fairly Valued. The stock's GF Value™ is $43.22, compared to a current price of $47.12 — trading 9% above its estimated fair value. The current Return-on-Tangible-Equity is 34.27%, which is near median its 10-year median of 32.54 and 279.9% above the Industrial Distribution industry median of 9.02. Fastenal Co's overall GF Score™ is 99/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Fastenal Co (FAST), the current Return-on-Tangible-Equity is 34.27% 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 (FAST) Overvalued in 2026?
Based on GuruFocus' analysis, Fastenal Co stock appears to be overvalued.
The current stock price of $47.12 is trading 9% above its estimated GF Value™ of $43.22.
GuruFocus considers Fastenal Co to be Fairly Valued.
Key valuation signals for FAST:
Return-on-Tangible-Equity: 34.27% (near median its 10-year median of 32.54)
GF Value™: $43.22 vs. price of $47.12 (9% above fair value)
Industry Position: 279.9% above the Industrial Distribution median (#28 of 154)
No single metric tells the full story. See the FAST 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.
99GF Score
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