Fastenal Co (FAST, Financial) has recently captured the attention of investors and financial analysts with its strong financial position. Despite a daily loss of 2.3%, the company's stock price of $67.09 reflects a positive three-month change of 6.56%. A detailed analysis, supported by the GF Score, indicates that Fastenal Co is poised for significant growth in the foreseeable future.
What Is the GF Score?
The GF Score is a proprietary stock performance ranking system developed by GuruFocus. It evaluates stocks based on five key aspects: financial strength, profitability, growth, GF Value, and momentum. These components are weighted differently to calculate a comprehensive score ranging from 0 to 100, with 100 indicating the highest potential for outperformance. Fastenal Co boasts a GF Score of 97, suggesting a strong likelihood of market-leading returns.
- Financial strength rank: 9/10
- Profitability rank: 10/10
- Growth rank: 10/10
- GF Value rank: 5/10
- 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 constitute about 30%-35% of sales, but also a wide range of products and supply chain solutions. The company's market cap stands impressively at $38.42 billion, with annual sales of $7.42 billion and an operating margin of 20.46%.
Financial Strength Breakdown
Fastenal Co's financial robustness is evident in its Interest Coverage ratio of 194.56, significantly surpassing the benchmark set by investment guru Benjamin Graham. The company's Altman Z-Score of 25.7 further underscores its low risk of financial distress. Additionally, a Debt-to-Revenue ratio of 0.07 highlights Fastenal's prudent debt management.
Profitability and Growth Metrics
Fastenal Co's profitability is impressive, with an Operating Margin that has consistently improved over the past five years. The company's Piotroski F-Score and Predictability Rank of 5 stars reflect its operational efficiency and reliability. Growth has been equally strong, with a 3-Year Revenue Growth Rate of 9.3% and notable EBITDA increases, demonstrating Fastenal's ongoing expansion and profitability.
Conclusion
Considering Fastenal Co's exceptional financial strength, profitability, and growth metrics, the GF Score highlights the firm's unparalleled position for potential 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.
