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Fastenal Company (FAST) Stock

Fastenal Company Stock Details, Movements and Public Alerts

Fastenal Company (FAST): The $42B Industrial Distribution Giant Embedding Itself in Customer Operations

When manufacturing plants need fasteners at 2 AM, construction sites require safety equipment immediately, or factories automate inventory replenishment, Fastenal's unique operating model delivers. CEO Dan Florness has evolved the company from traditional fastener distribution into an industrial solutions provider, with 2,200+ Onsite locations embedded directly in customer facilities generating 40%+ of revenue. The FMI vending program—50,000+ machines dispensing everything from safety glasses to drill bits—creates 'last inch' inventory management that competitors cannot replicate at scale. Trading at 28x forward P/E with 23%+ ROIC and 53 consecutive years of dividend growth, Fastenal commands premium valuation for its recession-resistant business model and customer intimacy. The company's daily sales reporting provides real-time industrial economy visibility, making it both an investment and an economic barometer.

52-Week Range

$50.37 - $34.62

-15.47% from high · +22.99% from low

Avg Daily Volume

6,077,376

20-day average

100-day avg: 5,755,468

Fundamentals

Valuation Metrics

P/E Ratio (TTM)

39.26

Above market average

Forward P/E

34.60

Earnings expected to grow

PEG Ratio

3.23

Potentially overvalued

Price to Book

12.31

EV/EBITDA

26.74

EPS (TTM)

$1.07

Price to Sales

6.03

Beta

0.88

Less volatile than market

How is FAST valued relative to its earnings and growth?
Fastenal Company trades at a P/E ratio of 39.26, which is above the market average of approximately 20. This premium valuation suggests investors expect above-average growth or the company has competitive advantages justifying the higher multiple. Looking ahead, the forward P/E of 34.60 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 3.23 indicates a premium valuation even accounting for growth.
What is FAST's risk profile compared to the market?
With a beta of 0.88, Fastenal Company is less volatile than the overall market. This means when the market moves up or down by 10%, this stock typically moves less than 10% in the same direction. Lower beta stocks are often preferred by conservative investors seeking stability. The price-to-book ratio of 12.31 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Performance & Growth

Profit Margin

15.30%

Operating Margin

20.70%

EBITDA

$1.80B

Return on Equity

32.70%

Return on Assets

20.50%

Revenue Growth (YoY)

11.70%

Earnings Growth (YoY)

11.50%

How profitable and efficient is FAST's business model?
Fastenal Company achieves a profit margin of 15.30%, meaning it retains $15.30 from every $100 in revenue after all expenses. This is an impressive margin, indicating strong pricing power and efficient cost management that allows the company to generate substantial profits. The operating margin of 20.70% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 32.70% and ROA at 20.50%, the company generates strong returns on invested capital.
What are FAST's recent growth trends?
Fastenal Company's revenue grew by 11.70% year-over-year, showing steady progress in growing the business. This positive trajectory indicates the company maintains competitive positioning in its markets. Earnings increased by 11.50% year-over-year, reflecting the bottom-line impact of business performance. These growth metrics should be evaluated against INDUSTRIAL DISTRIBUTION industry averages for proper context.

Dividend Information

Dividend Per Share

$0.85

Dividend Yield

2.04%

Ex-Dividend Date

Oct 28, 2025

Dividend Date

Nov 25, 2025

What dividend income can investors expect from FAST?
Fastenal Company offers a dividend yield of 2.04%, paying $0.85 per share annually. This above-average yield of 2-4% provides meaningful income while still allowing the company to reinvest for growth. It compares favorably to the S&P 500 average and offers competitive returns versus bonds in the current rate environment. To receive the next dividend, shares must be purchased before the ex-dividend date of Oct 28, 2025.
How reliable is FAST's dividend for long-term investors?
The dividend sustainability can be assessed through the payout ratio - Fastenal Company pays $0.85 per share in dividends against earnings of $1.07 per share, resulting in a payout ratio of 79.44%. This high payout ratio of 60-90% leaves limited earnings for reinvestment. While currently sustainable, there's less buffer for dividend growth or protection during earnings downturns. The next dividend payment is scheduled for Nov 25, 2025.

Company Size & Market

Market Cap

$48.2B

Revenue (TTM)

$8.00B

Revenue/Share (TTM)

$6.97

Shares Outstanding

1.15B

Book Value/Share

$3.39

Asset Type

Common Stock

What is FAST's market capitalization and position?
Fastenal Company has a market capitalization of $48.2B, classifying it as a large-cap stock ($10B-$200B). Large-caps are typically industry leaders with established business models, offering a balance of stability and growth potential. They often provide dividend income and are core holdings in institutional portfolios. With 1.15B shares outstanding, the company's ownership is widely distributed. As a participant in the INDUSTRIAL DISTRIBUTION industry, it competes with other firms in this sector.
How does FAST's price compare to its book value?
Fastenal Company's book value per share is $3.39, while the current stock price is $42.58, resulting in a price-to-book (P/B) ratio of 12.55. This high P/B ratio indicates significant intangible assets, strong brand value, or high growth expectations. Technology and consumer brand companies often trade at elevated P/B ratios due to intellectual property and competitive advantages not reflected on the balance sheet. As a common stock, this represents equity ownership with voting rights.

Analyst Ratings

Analyst Target Price

$43.46

2.07% upside potential

Analyst Recommendations

Strong Buy

0

Buy

4

Hold

10

Sell

2

Strong Sell

3

How reliable are analyst predictions for FAST?
19 analysts cover FAST with 21% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The bearish sentiment could create opportunity if analysts are wrong. The consensus target of $43.46 implies 2.1% upside, but targets are often adjusted to follow price moves rather than predict them.
What is the Wall Street consensus on FAST?
Current analyst recommendations:04 Buy, 10 Hold, 2 Sell, 3 Strong Sell. The bearish sentiment indicates concerns, but contrarian investors sometimes find opportunities when Wall Street is negative.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.

Fundamentals last updated: Dec 13, 2025, 08:26 AM

Technical Indicators

RSI (14-day)

45.23

Neutral

50-Day Moving Average

$48.16

-11.59% below MA-50

200-Day Moving Average

$41.54

2.50% above MA-200

MACD Line

-0.05

MACD Signal

-0.01

MACD Histogram

-0.04

Bearish

What does FAST's RSI value tell investors?
The RSI (Relative Strength Index) for FAST is currently 45.23, indicating the stock is in neutral territory (40-60 range). Neither buyers nor sellers have clear control, suggesting consolidation or balanced market forces. Combined with the price being below the 50-day moving average, this confirms bearish conditions.
How should traders interpret FAST's MACD and moving average crossovers?
MACD analysis shows the MACD line at -0.05 below the signal line at -0.01, with histogram at -0.04. This bearish crossover indicates downward pressure. The narrow histogram suggests a potential trend change ahead. The 50-day MA ($48.16) is above the 200-day MA ($41.54), forming a golden cross pattern that typically signals a long-term uptrend. Price is currently between the MAs, suggesting transition.

Indicators last updated: Oct 8, 2025, 12:48 AM

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Fastenal Company (FAST) Stock Analysis 2025: Industrial Distribution Guide

The Industrial Distribution Innovator

Fastenal began in 1967 selling fasteners from a single Winona, Minnesota location. CEO Dan Florness, who took the helm in 2016 after serving as CFO, accelerated the transformation from traditional distribution toward customer-embedded solutions. The Onsite program—placing Fastenal stores directly inside customer facilities—creates intimacy that competitors cannot match. These mini-branches operate as customers' internal procurement departments, managing inventory, consolidating suppliers, and ensuring production lines never stop for lack of parts. The model generates 40%+ of revenue while achieving 85%+ retention as switching would require rebuilding internal inventory management capabilities.

FMI (Fastenal Managed Inventory) technology represents another competitive advantage. The company operates 50,000+ vending machines and automated locker systems that dispense industrial products while tracking consumption in real-time. This technology serves multiple purposes: it reduces customer inventory carrying costs, provides demand visibility for reordering, creates accountability reducing product waste, and generates data that Fastenal uses for assortment optimization. Competitors offer similar programs, but none match Fastenal's scale or integration with branch and Onsite networks.

Business Model & Competitive Moat

Fastenal operates through branches (traditional distribution centers), Onsite locations (customer-embedded stores), and FMI devices (automated vending). Revenue spans fasteners (35-40%), safety products (20%), cutting tools (10%), and diverse MRO products. The customer base includes manufacturing plants, construction sites, government facilities, and industrial operations requiring rapid delivery and technical support. Geographic focus remains North America (90%+ revenue) with selective international expansion.

Competitive moats derive from customer integration, local density, and operational excellence. Onsite and FMI programs create switching costs—embedded operations become part of customer workflows. Branch density (1,600+ locations) enables same-day delivery and local inventory visibility. The sales force (10,000+ employees) combines relationship selling with technical expertise on fastener specifications, safety compliance, and inventory optimization. However, Fastenal competes against well-capitalized distributors (Grainger, HD Supply) and Amazon Business's industrial ambitions. Margins face pressure from digital competitors and customer procurement consolidation.

Financial Performance

  • •Revenue: $7.5B+ annually growing 6-10% through Onsite additions and wallet share expansion
  • •Margins: 20%+ operating margins with 45%+ gross margins reflecting value-added services
  • •ROIC: 23%+ returns on invested capital among highest in industrial distribution
  • •Cash Flow: 100%+ free cash flow conversion enabling dividends, buybacks, and Onsite investment
  • •Dividend: 53 consecutive years of growth (Dividend King); $1.50/share (2.5% yield) with 60% payout
  • •Valuation: 28x forward P/E premium reflecting quality, ROIC, and dividend consistency

Growth Catalysts

  • •Onsite Expansion: 300-400 new Onsite locations annually with each generating $1M+ revenue potential
  • •Wallet Share Growth: Existing customers purchasing more categories; 10%+ same-customer growth opportunity
  • •Manufacturing Reshoring: US industrial investment creating new customer facilities requiring MRO supply
  • •Safety Products: OSHA compliance and workplace safety driving PPE and safety equipment demand
  • •Digital Enhancement: E-commerce and mobile ordering complementing branch/Onsite relationships

Risks & Challenges

  • •Industrial Cyclicality: Revenue correlates with manufacturing activity; recession impacts demand significantly
  • •Amazon Competition: Amazon Business expanding into industrial products with logistics advantages
  • •Margin Pressure: E-commerce price transparency and procurement consolidation pressuring gross margins
  • •Labor Intensity: Sales force and branch operations require significant headcount; wage inflation impacts
  • •Onsite Saturation: Large customer opportunities finite; growth rate may slow as market penetrates

Competitive Landscape

W.W. Grainger (GWW) represents the primary large-cap competitor with $17B revenue and strong e-commerce capabilities. Grainger's 'high-touch' model for large customers competes directly with Fastenal's Onsite program, though Grainger lacks comparable embedded location count. HD Supply (acquired by Home Depot) serves facilities maintenance markets. MSC Industrial Direct focuses on metalworking and industrial supply. Applied Industrial Technologies distributes bearings and power transmission products. Amazon Business threatens all industrial distributors with logistics scale and procurement platform integration.

Fastenal differentiates through customer intimacy and operational scale. The 2,200+ Onsite locations dwarf competitors' embedded programs. Daily sales reporting and management discipline create execution accountability. CEO Dan Florness's operational focus—branches opening at 7 AM, daily sales tracking, local market autonomy—maintains entrepreneurial culture within a large organization. The question is whether Amazon and e-commerce platforms erode the value of local presence and relationship selling that Fastenal has mastered.

Who Is This Stock Suitable For?

Perfect For

  • ✓Quality investors seeking industrial exposure with premium ROIC
  • ✓Dividend growth investors valuing 53-year streak and Dividend King status
  • ✓Long-term holders comfortable with premium valuation for quality
  • ✓Those seeking economic bellwether with transparent daily reporting

Less Suitable For

  • ✗Value investors unwilling to pay 28x forward P/E
  • ✗Growth seekers expecting double-digit revenue acceleration
  • ✗Investors concerned about Amazon industrial disruption
  • ✗Those uncomfortable with cyclical industrial economy exposure

Investment Thesis

Fastenal represents industrial distribution excellence with competitive moats from customer integration, operational scale, and service differentiation. CEO Dan Florness's Onsite expansion creates recurring revenue relationships while FMI technology automates reordering. The 23%+ ROIC, 53-year dividend growth streak, and 100%+ free cash flow conversion demonstrate quality rarely found in industrial businesses. These attributes justify premium valuation for investors prioritizing durability over cheapness.

The investment debate centers on valuation and Amazon risk. At 28x forward earnings, Fastenal trades at double typical industrial valuations, limiting upside unless growth accelerates or premiums expand further. Amazon Business's industrial expansion threatens margins even if not branch-based customer relationships. Manufacturing cyclicality adds economic sensitivity despite recurring Onsite revenue. For long-term portfolios seeking quality industrial exposure with dividend growth, Fastenal merits consideration on pullbacks below 25x earnings. Current valuation requires patience and conviction in competitive moat durability.

Conclusion

Fastenal is a HOLD for quality-focused investors seeking industrial distribution exposure with best-in-class operations and dividend consistency. The 28x forward P/E provides limited margin of safety, but 53-year dividend growth streak and customer integration create durable value. Accumulate on pullbacks below $60 (25x P/E) for more attractive entry points; current valuation offers fair value for premium industrial assets. Consider as core industrial holding in dividend growth portfolios.
Bull Case
$90 (30% upside) - Manufacturing reshoring accelerates, Onsite growth sustains, margins expand
Base Case
$75 (8% upside) - Steady 6-8% growth, dividend grows 7-10%, multiple sustains
Bear Case
$55 (20% downside) - Industrial recession, Amazon competition intensifies, multiple compresses

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