Fastenal Company (FAST)
OvervaluedFundamental
68
Price
$49.53
Market Cap
$58.21B
Part 1 · What the company is worth
Overview
Fastenal distributes the small industrial and construction supplies that keep a factory or job site running — fasteners, safety equipment, tools, and janitorial and cutting supplies — sourced from thousands of manufacturers and resold through a network of local branches and onsite vending machines placed inside customer facilities. It does not manufacture what it sells; its business is logistics and availability: getting a specific bolt or glove to a customer's shop floor faster and more reliably than the customer could stock it themselves.
How it makes money
Revenue comes from selling physical products at a markup over what Fastenal pays its suppliers, recognized when goods are delivered or, increasingly, dispensed from an onsite vending machine. The company splits customers into contract accounts — larger, multi-site or government customers on negotiated pricing — and non-contract accounts, which are smaller and buy less often; contract customers generate steadier, more predictable volume because Fastenal embeds vending machines and inventory-management tools directly inside their facilities.
Revenue by segment
Tools, janitorial supplies, cutting tools, electrical and welding supplies and other categories grouped outside the two largest lines.
Bolts, screws, nuts and other threaded fasteners — Fastenal's original product line and still its largest single category.
Gloves, eyewear, protective clothing and other workplace safety products, the fastest-growing major category in recent years.
Competitive moat
Scale · NarrowFastenal's advantage is density: tens of thousands of vending machines and onsite lockers installed directly inside customer facilities create a habit of reordering through Fastenal rather than shopping around, and the logistics network needed to restock them profitably took decades to build. Grainger and MSC Industrial run comparable networks, though, so the advantage is a matter of degree rather than a barrier competitors cannot cross.
What drives demand
Moderately cyclicalDemand follows how much factories are producing and how much construction is underway, both of which slow when manufacturers cut shifts or builders pause projects in a weaker economy. The products themselves are consumables that get used up regardless — a factory still needs bolts and gloves to keep running — which cushions the swings compared to a distributor of big-ticket equipment, but does not remove them.
Key risks
- Exposure to manufacturing and construction cycles — A large share of sales goes to manufacturing and non-residential construction customers, so a slowdown in factory output or building activity reduces order volume across the branch and vending network.
- Competition from larger and online distributors — Grainger, MSC Industrial and online industrial marketplaces compete for the same contract customers, and a rival's lower price or faster delivery can shift volume away from Fastenal's branches.
- Dependence on the vending and onsite model — Much of recent growth comes from installing vending machines and onsite inventory inside customer facilities; if that model saturates or a large customer removes the equipment, growth slows more than a simple branch-network model would.
- Tariffs and import cost exposure — A meaningful share of the products Fastenal resells is imported, so tariff changes can raise costs faster than the company can pass them through to contract customers on negotiated pricing.
The case for
Buyers argue that the vending and onsite inventory network keeps deepening Fastenal's presence inside customer facilities, that safety supplies are growing faster than the legacy fastener business and diversifying revenue, and that the branch density built over decades is hard for a newer entrant to replicate.
The case against
Sellers fear that a manufacturing slowdown hits order volume directly, that Grainger and online industrial distributors can match Fastenal's service with deep enough pockets, and that a business built on thin per-item margins leaves little room to absorb tariff or freight cost increases.
Written by the editors, published on August 18, 2026
Direct competitors
Who this company fights with for the same customers
Generated on September 18, 2026 with claude-haiku-4-5 — shared with all users
Sells bearings, power transmission, fluid power and general MRO consumables to the same North American plant-maintenance buyers, overlapping with Fastenal's non-fastener product lines.
The largest North American broad-line distributor of maintenance, repair and operating supplies, selling the same safety, tooling and consumable products to the same manufacturing and construction accounts Fastenal serves through national supply agreements.
Competes for the same metalworking and factory-maintenance spend at North American manufacturers, including the on-site vending and vendor-managed inventory programs that are Fastenal's core selling model.
The world's largest fastener and C-parts distributor, selling screws, chemicals and consumables to industrial, automotive and construction customers through the same branch-plus-managed-inventory model, and competing directly with Fastenal in North America.
A privately held catalogue and e-commerce distributor of fasteners, tools and MRO hardware that wins the same unplanned and small-order industrial purchases Fastenal handles from its branches.
Balance Sheet & Liquidity
Revenue
$8.75B
Trailing 12 months (through 6/30/2026)
Net Income
$1.35B
Trailing 12 months (through 6/30/2026)
Free Cash Flow
$1.05B
Total Equity
$3.94B
Total Liabilities
$1.11B
Current Ratio
4.18
Interest Coverage
412.81
Debt/EBITDA
0.24
Earnings Per Share
Revenue & Net Income
Free Cash Flow
Income Breakdown
Historical statement
Margins over time
Debt over time
How heavy the debt is
Growth grid
Growth — Revenue
Fair Value Estimation
Fair Value
$37.18
Current Price
$49.53
Margin of Safety
-33.2%
Fair Value Range
$25.75 - $48.61
Spread across the valuation methods used, not a statistically calibrated confidence interval.
Estimation Methods
Valuation Metrics
P/E Ratio
42.33
ROE
31.9%
P/B Ratio
13.97
P/FCF
49.17
Gross Margin
44.7%
ROIC
31.8%
Profitability Radar
Value Creation (Economic Moat)
ROIC
31.8%
WACC
8.1%
ROIC − WACC
+23.7 pp
ROIC exceeds the cost of capital — the company is creating value for shareholders.
Fundamental Analysis Criteria
Passed (19)
- EPS shows upward trend
- Price CAGR 15.82%
- ROIC 31.8%
- Gross Margin 44.7%
- Debt/Equity ratio
- Operating Margin 20.3%
- Positive Free Cash Flow
- CapEx intensity
- Current Ratio
- Interest Coverage
- Debt/EBITDA
- Return on Tangible Assets
- Low reliance on intangibles
- ROE 34.0%
- Revenue Growth 5Y 7.8%
- Earnings Quality (OCF/NI) 1.03
- Share Dilution 0.3%
- Net Margin Trend 15.5% vs 15.3%
- Piotroski F-Score 8/9
Failed (8)
- EPS CAGR 3.59%
- P/FCF 49.17
- P/B Ratio 13.97
- Price below Graham Number
- DCF valuation (Overvalued)
- Analyst Consensus 42% Buy
- Earnings Surprise avg -2.1%
- PEG Ratio 5.45
Unavailable (1)
- Dividend Payout NaN%
Piotroski F-Score
Strong financial health
Earnings Quality
High quality: earnings backed by cash
Share Dilution
Share count is stable
Institutional Holdings
Governance
Executive Team
| Name | Title | Age |
|---|---|---|
| Mr. Jeffery Michael Watts | President, CEO & Director | 53 |
| Mr. Max H. Tunnicliff | Senior EVP & CFO | 46 |
| Ms. Sheryl Ann Lisowski | Executive VP, Chief Accounting Officer & Treasurer | 58 |
| Mr. Daniel L. Florness | Strategic Advisor to the CEO | 62 |
| Mr. John Lewis Soderberg | Senior Executive Vice President of Information Technology | 54 |
| Mr. Charles S. Miller | Senior Executive Vice President of Sales | 51 |
| Ms. Anthony P. Broersma | Executive Vice President of Operations | 45 |
| Mr. John J. Milek | VP & General Counsel | - |
| Ms. Donnalee K. Papenfuss | Executive VP of Strategy & Communications | 61 |
| Ms. Noelle Joan Oas J.D. | Executive Vice President of Human Resources | 40 |
Audit Risk
2
Board Risk
6
Compensation Risk
9
Shareholder Rights Risk
1
Part 2 · The price and when to enter
This part won't tell you whether the company is worth owning: it helps you choose when to buy it, once the fundamentals have convinced you. Inside: technical analysis, potential, historical drawdowns, gamma exposure.
Documents
- View document
Annual Report (10-K)
A yearly overview of the business, its financial results, and the risks it faces.
Filed on 2026-02-05
- View document
Quarterly Report (10-Q)
A snapshot of financial performance for the most recent three-month period.
Filed on 2026-07-16
- View document
Current Report (8-K)
An announcement of a major event, such as a leadership change or big news.
Filed on 2026-07-14
via SEC EDGAR
Income History
via SEC EDGAR
Latest News
Recent headlines for FAST, sourced from Markets Gazette.
- 9d agoNEUTRALNasdaq-100® Inside the Index: Fastenal (FAST)
Fastenal (FAST) is featured in this edition of Inside the Index, highlighting its industrial distribution strengths through managed-inventory programs, on-site services, and digital sales initiatives. However, the company faces significant risks including manufacturing sector sensitivity, ongoing margin pressures, and a potentially high valuation. Investors should monitor these factors closely as they could impact future performance.
- 4/8/2026NEUTRALFastenal Gears Up For Q1 Print; Here Are The Recent Forecast Changes From Wall Street's Most Accurate Analysts
Fastenal Company (NASDAQ: FAST) is scheduled to report its Q1 earnings on April 13th. Current analyst consensus forecasts earnings per share of $0.30 and revenue of $2.19 billion. The stock experienced a slight decline of 0.5% on Tuesday. Recent analyst rating changes include Wells Fargo upgrading its rating from Underweight to Equal-Weight in March 2022, and Morgan Stanley maintaining an Underweight rating in January 2022. Investors will be closely watching the earnings report for any deviations from these expectations, which could influence future stock performance.
- 2/26/2026POSITIVEHere's How Much You Would Have Made Owning Fastenal Stock In The Last 10 Years
A recent analysis highlights the remarkable performance of Fastenal stock over the past ten years, revealing significant appreciation for long-term investors. This data underscores the company's strength in the industrial product distribution sector and its ability to generate consistent value over time. For investors, Fastenal's history serves as an example of how choosing companies with robust fundamentals and effective management can translate into consistent returns, even during periods of market volatility. The demonstrated stability and growth make Fastenal an interesting case study for those seeking durable investment opportunities.
via Markets Gazette