Fastenal Co

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FAST : NASDAQ : Services
$39.97 -0.71 | -1.75%
Today's Range: 39.79 - 40.6
Avg. Daily Volume: 3362300.0
08/21/17 - 4:00 PM ET

Financial Analysis


FASTENAL CO's gross profit margin for the second quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. FASTENAL CO is extremely liquid. Currently, the Quick Ratio is 2.13 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has increased from the same period last year.

During the same period, stockholders' equity ("net worth") has increased by 6.60% 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 Q2 FY17 Q2 FY16
Net Sales ($mil)1121.51014.29
EBITDA ($mil)268.8233.76
EBIT ($mil)236.9208.97
Net Income ($mil)148.9131.52


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)115.1155.46
Total Assets ($mil)2851.42699.14
Total Debt ($mil)445.0430.0
Equity ($mil)1991.51868.16


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin52.6451.9
EBITDA Margin23.9623.04
Operating Margin21.1220.6
Sales Turnover1.451.45
Return on Assets18.418.75
Return on Equity26.3527.09
Debt Q2 FY17 Q2 FY16
Current Ratio5.474.36
Debt/Capital0.180.19
Interest Expense2.21.48
Interest Coverage107.68140.82


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)287.98288.95
Div / share0.320.3
EPS0.520.45
Book value / share6.926.47
Institutional Own % n/a n/a
Avg Daily Volume3354698.02744942.0

Valuation


BUY. The current P/E ratio indicates a premium compared to an average of 21.95 for the Trading Companies & Distributors industry and a value on par with the S&P 500 average of 24.23. For additional comparison, its price-to-book ratio of 6.02 indicates a significant premium versus the S&P 500 average of 3.02 and a significant premium versus the industry average of 3.73. 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 22.86 Peers 21.95   FAST 21.48 Peers 19.06

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 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 19.81 Peers 23.63   FAST 2.04 Peers 3.44

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 6.02 Peers 3.73   FAST 4.00 Peers 97.23

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 2.90 Peers 1.46   FAST 5.39 Peers 37.42

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.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

FAST significantly trails its peers on the basis of sales growth

 

 

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