Is Fastenal Stock a Good Investment?

Fastenal Investment Advice

FAST

To provide specific investment advice or recommendations on Fastenal Company stock, we recommend investors consider the following general factors when evaluating Fastenal Company. This will help you to make an informed decision on whether to include Fastenal in one of your diversified portfolios:

Examine Fastenal's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
Research Fastenal's leadership team and their track record. Good management can help Fastenal navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
Consider the overall health of the Trading Companies & Distributors space and any emerging trends that could impact Fastenal's business and its evolving consumer preferences.
Compare Fastenal's performance and market position to its competitors. Analyze how Fastenal is positioned in terms of product offerings, innovation, and market share.
Check if Fastenal pays a dividend and its dividend yield and payout ratio.
Review what financial analysts are saying about Fastenal's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.

It's important to note that investing in Fastenal Company stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Fastenal Company is a good investment.

Sell

Buy

Strong Hold

Macroaxis provides unbiased investment recommendation on Fastenal that should be used to complement current analysts and expert consensus on Fastenal Company. Our trade advice engine determines the company's potential to grow exclusively from the perspective of an investors' current risk tolerance and investing horizon. To make sure Fastenal is not overpriced, please confirm all Fastenal fundamentals, including its cash flow from operations, working capital, and the relationship between the cash per share and number of employees . Given that Fastenal has a price to earning of 28.13 X, we urge you to verify Fastenal Company market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your prevailing risk tolerance and investing horizon.

Market Performance	Very Weak	Details
Volatility	Very steady	Details
Hype Condition	Low key	Details
Current Valuation	Overvalued	Details
Odds Of Distress	Very Low	Details
Economic Sensitivity	Slowly supersedes the market	Details
Investor Sentiment	Alarmed	Details
Analyst Consensus	Hold	Details
Financial Strenth (F Score)	Healthy	Details
Financial Leverage	Inapplicable	Details
Reporting Quality (M-Score)	Possible Manipulator	Details

Examine Fastenal Stock

Researching Fastenal's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 86.0% of the company shares are owned by institutional investors. The company last dividend was issued on the 24th of April 2024. Fastenal had 2:1 split on the 23rd of May 2019.

To determine if Fastenal is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Fastenal's research are outlined below:

	Fastenal generated a negative expected return over the last 90 days
	Over 86.0% of the company shares are owned by institutional investors
	Latest headline from news.google.com: William Blair Equities Analysts Reduce Earnings Estimates for Fastenal - MarketBeat

Fastenal uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Fastenal Company. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Fastenal's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.

	11th of April 2024 Upcoming Quarterly Report	View
	11th of July 2024 Next Financial Report	View
	31st of March 2024 Next Fiscal Quarter End	View
	16th of January 2025 Next Fiscal Year End	View
	31st of December 2023 Last Quarter Report	View
	31st of December 2023 Last Financial Announcement	View

Earnings surprises can significantly impact Fastenal's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Fastenal's investors have experienced.

Reported	Fiscal Date	Estimated EPS	Reported EPS	Surprise
2009-07-13	2009-06-30	0.08	0.07	-0.01	12
2009-04-14	2009-03-31	0.09	0.08	-0.01	11
2009-01-20	2008-12-31	0.1	0.11	0.01	10
2008-01-22	2007-12-31	0.09	0.1	0.01	11
2005-10-12	2005-09-30	0.07	0.08	0.01	14
2005-01-19	2004-12-31	0.05	0.06	0.01	20
2004-07-13	2004-06-30	0.05	0.06	0.01	20
2004-04-13	2004-03-31	0.04	0.05	0.01	25

Fastenal Target Price Consensus

We track the performance of the top 100 financial experts across various large and mid-size financial boutiques. Fastenal target price is determined by taking all analyst projections and averaging them out. There is no one specific way to measure analysts' performance other than comparing it to past results via a very sophisticated attribution analysis. Fastenal's target price projections below should be used in combination with other traditional price prediction techniques such as stock price forecasting, investor sentiment analysis, technical analysis, earnings estimate, and various momentum models.

Hold

Most Fastenal analysts issue ratings four times a year, at intervals of three months. Ratings are usually accompanied by a target price to help potential investors understand Fastenal stock's fair price compared to its market value. Analysts arrive at stock ratings after researching the public financial statements of Fastenal, talking to its executives and customers, or listening to those companies' conference calls.

Macroaxis Advice Exposure Valuation

Fastenal Target Price Projection

Fastenal's current and average target prices are 67.23 and 59.33, respectively. The current price of Fastenal is the price at which Fastenal Company is currently trading. On the other hand, Fastenal's target price is what analysts think the stock is worth or could sell for in the future. The more significant the discrepancy between the two prices, the more it stimulates investors to act.

Current Price

Fastenal Market Quote on 15th of May 2024

Low Price	67.23	Odds
High Price	67.23	Odds

67.23 Target Price

Analyst Consensus On Fastenal Target Price

Low Estimate	53.99	Odds
High Estimate	65.86	Odds

59.33

Historical

Lowest Forecast 53.99

Target Price 59.33

Highest Forecast 65.86

Note that most analysts generally publish their price targets in research reports on specific companies, along with recommendations for the company's stock.Although price targets are often quoted in the financial news media, there could be a delay between the publication of the latest analyst outlook on Fastenal Company and the information provided on this page.

Fastenal Analyst Ratings

Fastenal's analyst stock recommendations are determined by taking an average estimate of all analysts we track and classifying them as Strong Buy, Buy, Hold, Strong Sell, or Sell. Ratings generally communicate what analysts sense about Fastenal stock, and they use a lot of effort and time to analyze it and arrive at a rating. That suggests that analyst recommendations are the outcome of an objective and thorough examination of Fastenal's financials, market performance, and future outlook by experienced professionals. Fastenal's historical ratings below, therefore, can serve as a valuable tool for investors.

Know Fastenal's Top Institutional Investors

Have you ever been surprised when a price of an equity instrument such as Fastenal is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Fastenal Company backward and forwards among themselves. Fastenal's institutional investor refers to the entity that pools money to purchase Fastenal's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.

		Shares
Northern Trust Corp	2023-12-31	7 M
Royal Bank Of Canada	2023-12-31	7 M
Amvescap Plc.	2023-12-31	6.9 M
Norges Bank	2023-12-31	6.3 M
Cantillon Capital Management Llc	2023-12-31	5.4 M
Legal & General Group Plc	2023-12-31	5.3 M
Envestnet Asset Management Inc	2023-12-31	4.8 M
Franklin Resources Inc	2023-12-31	4.6 M
Ubs Asset Mgmt Americas Inc	2023-12-31	4.5 M
Vanguard Group Inc	2023-12-31	70.3 M
Blackrock Inc	2023-12-31	46.1 M

Note, although Fastenal's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Fastenal's market capitalization trends

The company currently falls under 'Large-Cap' category with a current market capitalization of 38.49 B. Market capitalization usually refers to the total value of a company's stock within the entire market. To calculate Fastenal's market, we take the total number of its shares issued and multiply it by Fastenal's current market price. To manage market risk and economic uncertainty, many investors today build portfolios that are diversified across equities with different market capitalizations. However, as a general rule, conservative investors tend to hold large-cap stocks, and those looking for more risk prefer small-cap and mid-cap equities.

Market Cap

38.85 Billion

Fastenal's profitablity analysis

Fastenal's profitability indicators refer to fundamental financial ratios that showcase Fastenal's ability to generate income relative to its revenue or operating costs. If, let's say, Fastenal is currently losing money, the management's focus should be on how to reverse that trend. However, when revenue exceeds expenses, Fastenal's executives or investors may be in less hurry to break that information down - which is where profitability analysis comes into play. Gaining a greater understanding of Fastenal's profitability requires more research than a typical breakdown of Fastenal's financial statements. By doing a profitability analysis, companies can identify areas needing attention, and investors can make a profitable trade.

	Last Reported	Projected for Next Year
Return On Tangible Assets	0.26	0.16
Return On Capital Employed	0.40	0.40
Return On Assets	0.26	0.16
Return On Equity	0.34	0.20

The company has Profit Margin (PM) of 0.16 %, which maeans that even a very small decline in it revenue will erase profits resulting in a net loss. This is way below average. Similarly, it shows Operating Margin (OM) of 0.21 %, which suggests for every 100 dollars of sales, it generated a net operating income of $0.21.

Determining Fastenal's profitability involves analyzing its financial statements and using various financial metrics to determine if Fastenal is a good buy. For example, gross profit margin measures Fastenal's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Fastenal's profitability and make more informed investment decisions.

Fastenal's Earnings Breakdown by Geography

The data published in Fastenal's official financial statements usually reflect Fastenal's business processes, product offerings, services, and other fundamental events. But there are other numbers, ratios, or fundamental indicators derived from these statements that are easier to understand and visualize within the underlying realities that drive quantitative information of Fastenal. For example, before you start analyzing numbers published by Fastenal accountants, it's critical to develop an understanding of what Fastenal's liquidity, profitability, and earnings quality are in the context of the Trading Companies & Distributors space in which it operates.

Please note, the presentation of Fastenal's financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Fastenal's management is honest, while the outside auditors are strict and uncompromising. Whatever the case, the imprecision that can be found in Fastenal's accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of Fastenal Company. Please utilize our Beneish M Score to check the likelihood of Fastenal's management manipulating its earnings.

Evaluate Fastenal's management efficiency

Fastenal has return on total asset (ROA) of 0.2093 % which means that it generated a profit of $0.2093 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of 0.3456 %, meaning that it created $0.3456 on every $100 dollars invested by stockholders. Fastenal's management efficiency ratios could be used to measure how well Fastenal manages its routine affairs as well as how well it operates its assets and liabilities. Return On Tangible Assets is likely to drop to 0.16 in 2024. Return On Capital Employed is likely to drop to 0.40 in 2024. At this time, Fastenal's Total Current Liabilities is comparatively stable compared to the past year. Liabilities And Stockholders Equity is likely to gain to about 4.7 B in 2024, despite the fact that Change To Liabilities is likely to grow to (38.1 M).

	Last Reported	Projected for Next Year
Book Value Per Share	5.86	6.16
Net Current Asset Value	0.00	0.00
Tangible Asset Value	0.00	0.00
Tangible Book Value Per Share	5.86	6.16
Enterprise Value Over EBITDA	21.87	20.98
Price Book Value Ratio	11.05	8.86
Enterprise Value Multiple	21.87	20.98
Price Fair Value	11.05	8.86
Enterprise Value	37.3 B	39.2 B

The analysis of Fastenal's management efficiency is an essential part of evaluating and assessing the financial and operational performance of the entity. It is also vital to analyze Fastenal's future growth prospects and the overall market conditions to determine the value and potential of its stock. The analysis involves studying a range of financial metrics such as revenue, earnings, profit margins, cash flow, debt, market share, and external factors such as economic trends, industry outlook, competition, and government regulations. The goal of Fastenal Stock analysis is to determine whether it is undervalued, fairly valued, or overvalued and to make informed investment decisions.

Dividend Yield

0.0232

Forward Dividend Yield

0.0232

Forward Dividend Rate

1.56

Beta

1.059

Basic technical analysis of Fastenal Stock

As of the 15th of May 2024, Fastenal shows the Standard Deviation of 1.3, variance of 1.7, and Mean Deviation of 0.8603. Fastenal technical analysis allows you to utilize historical prices and volume patterns in order to determine a pattern that computes the direction of the firm's future prices. Put another way, you can use this information to find out if the firm will indeed mirror its model of historical prices and volume momentum, or the prices will eventually revert. We are able to interpolate and collect thirteen technical drivers for Fastenal Company, which can be compared to its peers. Please confirm Fastenal market risk adjusted performance, information ratio, as well as the relationship between the Information Ratio and skewness to decide if Fastenal is priced favorably, providing market reflects its regular price of 67.23 per share. Given that Fastenal has information ratio of (0.08), we urge you to verify Fastenal Company's prevailing market performance to make sure the company can sustain itself at a future point.

Fastenal's insider trading activities

Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Fastenal insiders, such as employees or executives, is commonly permitted as long as it does not rely on Fastenal's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Fastenal insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.

		James Jansen over three weeks ago Disposition of 6290 shares by James Jansen of Fastenal at 61.5604 subject to Rule 16b-3
		Charles Miller over two months ago Disposition of 11076 shares by Charles Miller of Fastenal at 75.1583 subject to Rule 16b-3
		Reyne Wisecup over six months ago Exercise or conversion by Reyne Wisecup of 19564 shares of Fastenal subject to Rule 16b-3

Understand Fastenal's technical and predictive indicators

Using predictive indicators to make investment decisions involves analyzing Fastenal's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.

	Risk Adjusted Performance	(0.01)
	Market Risk Adjusted Performance	(0.08)
	Mean Deviation	0.8603
	Coefficient Of Variation	(5,251)
	Standard Deviation	1.3
	Variance	1.7
	Information Ratio	(0.08)
	Jensen Alpha	(0.06)
	Total Risk Alpha	(0.19)
	Treynor Ratio	(0.09)
	Maximum Drawdown	9.18
	Value At Risk	(1.57)
	Potential Upside	1.94
	Skewness	(1.68)
	Kurtosis	8.49

	Risk Adjusted Performance	(0.01)
	Market Risk Adjusted Performance	(0.08)
	Mean Deviation	0.8603
	Coefficient Of Variation	(5,251)
	Standard Deviation	1.3
	Variance	1.7
	Information Ratio	(0.08)
	Jensen Alpha	(0.06)
	Total Risk Alpha	(0.19)
	Treynor Ratio	(0.09)
	Maximum Drawdown	9.18
	Value At Risk	(1.57)
	Potential Upside	1.94
	Skewness	(1.68)
	Kurtosis	8.49

Consider Fastenal's intraday indicators

Fastenal intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Fastenal stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.

	Daily Balance Of Power	(9,223,372,036,855)
	Rate Of Daily Change	1.0
	Day Median Price	67.23
	Day Typical Price	67.23
	Price Action Indicator	(0.07)
	Period Momentum Indicator	(0.13)

Fastenal Corporate Filings

8K	30th of April 2024 Report filed with the SEC to announce major events that shareholders should know about	View Verify
F4	18th of April 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities	View Verify
10Q	16th of April 2024 Quarterly performance report mandated by Securities and Exchange Commission (SEC), to be filed by publicly traded corporations	View Verify
	6th of March 2024 Other Reports	View Verify

Fastenal time-series forecasting models is one of many Fastenal's stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary Fastenal's historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the market movement and maximize returns from investment trading.

Fastenal Stock media impact

Far too much social signal, news, headlines, and media speculation about Fastenal that are available to investors today. That information is available publicly through Fastenal media outlets and privately through word of mouth or via Fastenal internal channels. However, regardless of the origin, that massive amount of Fastenal data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.

A primary focus of Fastenal news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Fastenal relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Fastenal's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Fastenal alpha.

Fastenal Sentiment by Major News Outlets

Investor sentiment, mood or attitude towards Fastenal can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.

Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.

Fastenal Historical Investor Sentiment

Investor biases related to Fastenal's public news can be used to forecast risks associated with an investment in Fastenal. The trend in average sentiment can be used to explain how an investor holding Fastenal can time the market purely based on public headlines and social activities around Fastenal Company. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.

Fastenal's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Fastenal and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Fastenal news discussions. The higher the estimate score, the more favorable the investor's outlook on Fastenal.

Fastenal Maximum Pain Price across 2024-05-17 Option Contracts

Fastenal's options can also be used to analyze investors' bias and current market sentiment in the context of behavioral finance. For example, Max pain usually refers to a trading concept that asserts that market manipulation can cause the market price of Fastenal close to the expiration of its current option contract to expire worthlessly. According to most research, about 35% of options are not executed, with roughly 50% traded out before expiration. So, Max pain occurs when market makers reach a net favorable position across all options at a strike price where option holders stand to lose the most money. By contrast, option sellers may reap the most after selling more options than buying, causing them to expire worthlessly. Please continue to view the detailed analysis of Fastenal's options.

Be your own money manager

Our tools can tell you how much better you can do entering a position in Fastenal without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

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How to buy Fastenal Stock?

Examine Fastenal's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
Research Fastenal's leadership team and their track record. Good management can help Fastenal navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
Consider the overall health of the Trading Companies & Distributors space and any emerging trends that could impact Fastenal's business and its evolving consumer preferences.
Compare Fastenal's performance and market position to its competitors. Analyze how Fastenal is positioned in terms of product offerings, innovation, and market share.
Check if Fastenal pays a dividend and its dividend yield and payout ratio.
Review what financial analysts are saying about Fastenal's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.

Already Invested in Fastenal Company?

The danger of trading Fastenal Company is mainly related to its market volatility and Company specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of Fastenal is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than Fastenal. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile Fastenal is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.

When determining whether Fastenal is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Fastenal Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Fastenal Company Stock. Highlighted below are key reports to facilitate an investment decision about Fastenal Company Stock: