Fastenal Co (FAST, Financial) has recently captured the attention of investors and financial analysts alike, thanks to its strong financial performance and promising growth prospects. With its shares currently priced at $68.72, Fastenal Co has experienced a daily gain of 1.31% and a three-month change of 0.87%. A detailed analysis, underscored by the GF Score, positions Fastenal Co for significant future growth.
What Is the GF Score?
The GF Score is a proprietary ranking system developed by GuruFocus, assessing stocks based on five key aspects of valuation. These aspects have shown a strong correlation with long-term stock performance from 2006 to 2021. Stocks with higher GF Scores typically yield higher returns. The GF Score ranges from 0 to 100, with 100 indicating the highest potential for outperformance. Fastenal Co boasts a GF Score of 98, signaling exceptional potential.
- Financial strength rank: 9/10
- Profitability rank: 10/10
- Growth rank: 10/10
- GF Value rank: 6/10
- Momentum rank: 8/10
Understanding Fastenal Co's Business
Fastenal Co, established in 1967 in Winona, Minnesota, has expanded significantly from its first fastener store to a major supplier with approximately 1,600 branches and 15 distribution centers. Fastenal serves over 400,000 active customers, offering not only fasteners, which make up about 30%-35% of sales, but also a wide range of products and supply chain solutions. With a market cap of $39.35 billion and annual sales of $7.42 billion, Fastenal maintains an operating margin of 20.46%, reflecting its efficient operations and strong market position.
Financial Strength and Profitability
Fastenal Co's financial robustness is evident in its Interest Coverage ratio of 194.56, significantly surpassing the benchmark set by investing legend Benjamin Graham. Additionally, its Altman Z-Score of 25.44 and a low Debt-to-Revenue ratio of 0.07 further underscore its financial health and stability.
Fastenal Co's profitability is equally impressive, with an operating margin that has consistently improved over the past five years, reaching 20.81% in 2023. Its Piotroski F-Score and a Predictability Rank of 5 stars highlight its operational efficiency and reliability.
Growth Trajectory
Fastenal Co's commitment to growth is evident in its 9.3% 3-Year Revenue Growth Rate, alongside a notable increase in EBITDA over the past few years. These metrics not only demonstrate Fastenal's ability to expand its operations but also its potential to enhance shareholder value in the long term.
Conclusion
Considering Fastenal Co's strong financial metrics, profitability, and growth, the GF Score highlights the company's exceptional position for potential market outperformance. Investors looking for similar opportunities can explore more companies with strong GF Scores through the GF Score Screen.
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.
