Fastenal Co

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FAST : NASDAQ : Services
$43.11 -0.64 | -1.46%
Today's Range: 42.94 - 43.70
Avg. Daily Volume: 2,578,400
08/31/16 - 4:00 PM ET

Financial Analysis


FASTENAL CO's gross profit margin for the second quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased. FASTENAL CO has strong liquidity. Currently, the Quick Ratio is 1.68 which shows the ability to cover short-term cash needs. The company managed to increase its liquidity from the same period a year ago, despite already having strong liquidity to begin with. This would indicate improved cash flow.

During the same period, stockholders' equity ("net worth") has increased by 5.90% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.

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Income Statement Q2 FY16 Q2 FY15
Net Sales ($mil)1014.29997.83
EBITDA ($mil)233.76245.46
EBIT ($mil)208.97225.44
Net Income ($mil)131.52140.36


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)155.46121.17
Total Assets ($mil)2699.142480.93
Total Debt ($mil)430.0330.0
Equity ($mil)1868.161763.98


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin51.952.32
EBITDA Margin23.0424.59
Operating Margin20.622.59
Sales Turnover1.451.56
Return on Assets18.7520.94
Return on Equity27.0929.45
Debt Q2 FY16 Q2 FY15
Current Ratio4.364.19
Debt/Capital0.190.16
Interest Expense1.480.8
Interest Coverage140.82282.86


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)288.95290.15
Div / share0.30.28
EPS0.450.48
Book value / share6.476.08
Institutional Own % n/a n/a
Avg Daily Volume2595688.02755956.0

Valuation


BUY. The current P/E ratio indicates a premium compared to an average of 21.26 for the Trading Companies & Distributors industry and a value on par with the S&P 500 average of 25.13. For additional comparison, its price-to-book ratio of 6.76 indicates a significant premium versus the S&P 500 average of 2.82 and a significant premium versus the industry average of 4.45. 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 24.99 Peers 21.26   FAST 23.67 Peers 14.49

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

FAST is trading at a premium to 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 23.51 Peers 20.92   FAST NM Peers 1.48

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

FAST is trading at a premium to its peers.

 

Neutral. 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's negative PEG ratio makes this valuation measure meaningless.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
FAST 6.76 Peers 4.45   FAST -0.57 Peers -49.11

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.

 

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

FAST is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
FAST 3.22 Peers 1.46   FAST 1.57 Peers 0.08

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.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

FAST has a sales growth rate that significantly exceeds its peers.

 

 

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