Fastenal Co.

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FAST : NASDAQ : Distribution Services
$55.2 | %
Today's Range: 54.245 - 55.23
Avg. Daily Volume: 2611700.0
02/23/18 - 4:00 PM ET

Financial Analysis


FASTENAL CO's gross profit margin for the fourth quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Sales and net income have grown, and although the growth in revenues has outpaced the average competitor within the industry, the net income growth has not. FASTENAL CO is extremely liquid. Currently, the Quick Ratio is 2.06 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has increased by 8.47% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.

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Income Statement Q4 FY17 Q4 FY16
Net Sales ($mil)1088.5947.95
EBITDA ($mil)235.7211.45
EBIT ($mil)203.4182.27
Net Income ($mil)152.4114.81


Balance Sheet Q4 FY17 Q4 FY16
Cash & Equiv. ($mil)116.9112.74
Total Assets ($mil)2910.52668.88
Total Debt ($mil)415.0390.0
Equity ($mil)2096.91933.09


Profitability Q4 FY17 Q4 FY16
Gross Profit Margin51.7752.86
EBITDA Margin21.6522.3
Operating Margin18.6919.23
Sales Turnover1.511.48
Return on Assets19.8718.71
Return on Equity27.5925.83
Debt Q4 FY17 Q4 FY16
Current Ratio5.516.24
Debt/Capital0.170.17
Interest Expense2.61.8
Interest Coverage78.23101.15


Share Data Q4 FY17 Q4 FY16
Shares outstanding (mil)287.59289.16
Div / share0.320.3
EPS0.530.4
Book value / share7.296.69
Institutional Own % n/a n/a
Avg Daily Volume2709798.02339401.0

Valuation


BUY. The current P/E ratio indicates a premium compared to an average of 26.40 for the Trading Companies & Distributors industry and a value on par with the S&P 500 average of 25.25. For additional comparison, its price-to-book ratio of 7.43 indicates a significant premium versus the S&P 500 average of 3.23 and a significant premium versus the industry average of 4.47. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. Upon assessment of these and other key valuation criteria, FASTENAL CO proves to trade at a premium to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
FAST 26.96 Peers 26.40   FAST 26.63 Peers 18.62

Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.

FAST is trading at a valuation on par with its peers.

 

Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

FAST is trading at a significant premium to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
FAST 20.00 Peers 19.95   FAST 1.11 Peers 1.60

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

FAST is trading at a valuation on par with its peers.

 

Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

FAST trades at a significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
FAST 7.43 Peers 4.47   FAST 16.18 Peers 78.98

Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

FAST is trading at a significant premium to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, FAST is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
FAST 3.55 Peers 1.75   FAST 10.81 Peers 11.57

Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

FAST is trading at a significant premium to its industry.

 

Average. Comparing a company's sales growth to its industry helps to determine if the company is adding or losing market share.

FAST is keeping pace with its peers on the basis of sales growth.

 

 

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