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Fastenal Company
S&P 500 Nasdaq 100
🏹 Trader: 🎯 Near 52W High 💎 VCP Breakout | BRS 75 Ready View all →
$58.8B
Market Cap
36.8
P/E
2.98
PEG
31.7%
ROCE
33.3%
ROE
0.08
D/E
20.2%
OPM
-2.1%
% from 52W High
61
α RS
🔍 FAST is showing a high-conviction setup because it matches 19 of 37 tracked screener presets, RS Rating is 61, and it's within 2.1% of its 52-week high. Net: Broad signal stack, not a recommendation. ? Conviction RS Rating 52W High
Sources
Conviction 19/37 · RS Rating 61 · 2.1% from 52W high
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Currency-adjusted total returns for FAST including FX impact
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📈 Price History
Ratio Health
Excellent
Good
Average
Poor
By Category
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About

Fastenal Company, together with its subsidiaries, engages in the wholesale distribution of industrial and construction supplies in the United States, Canada, Mexico, and internationally.

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📈 Growth Pattern
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Good quarter Investor Presentation One-Pager? Q2 2026
Revenue
$2,386.9M
+14.7% YoY
Operating Income
$501.8M
+15.1% YoY
Operating Margin
21.0%
Flat YoY (21.0% vs 21.0%; CFO cited +5 bps)
Net Income
$382.8M
+15.9% YoY
What Went Right
  • Daily sales grew 14.7% YoY, driven by share gains and larger customers; customer sites spending $50k+/month grew 16.5% with revenues up 26%.
  • Digital Footprint DSR grew 16.2% and is 61.6% of sales; FMI units signed rose 8.3% to 109 devices/day.
  • ROIC expanded 180 bps on a trailing 12-month basis, with operating cash flow of $266M and SG&A leveraged 90 bps to 23.5% of sales.
What to Watch
  • Gross margin contracted ~75 bps YoY, with price/cost still a ~40 bps headwind despite 10 bps sequential improvement.
  • Management lowered its 2026 Digital Footprint estimate to 63%-64% of sales from an original 66%, as non-digital sales are growing faster-than-expected alongside digital.
  • Tariff/cost inflation remains unpredictable; fuel costs and the strategic mix shift toward larger, lower-gross-margin accounts continue to pressure gross margin.
Management Guidance
  • Q3 revenue guidance: Not explicitly provided.
  • Operating margin guidance: No explicit target; expects gross margin profile to remain fairly consistent with historical trends and incremental margins to improve gradually as price/cost is chipped away.
  • Full-year 2026: Net capital expenditures expected to be ~$320M (~3.5% of sales); Digital Footprint estimated at 63%-64% of sales; pricing likely to remain in the low-single to mid-single digit range in the back half.
Investor Lens
The thesis is stronger after Q2: 14.7% daily sales growth, continued key-account share gains, and a flat 21.0% operating margin show the strategy is compounding even with cost headwinds. The caveat is gross margin pressure from price/cost and customer mix, which management expects to offset gradually rather than quickly, so incremental margin recovery may lag the strong top-line momentum.
From investor presentation · AI-generated analysis · Not investment advice
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📈 STRONG Strong Q2: 14.7% sales growth and stable 21.0% operating margin.
Revenue
Q2 net sales rose 14.7% YoY to $2,386.9M on the same selling days. Growth was broad-based: heavy manufacturing up 18%, construction up ~17%, direct materials up 16.5% and indirect materials up 14.1%.
Profitability
Net income rose 15.9% to $382.8M, with diluted EPS up 15.9% to $0.33. Operating income increased 15.1% to $501.8M, supported by SG&A leverage and disciplined cost control.
Margins
Operating margin was 21.0%, flat versus prior year, as SG&A leverage offset gross margin pressure. Gross margin fell ~75 bps YoY to 44.6%, with price/cost contributing ~40 bps of headwind.
Balance Sheet
Operating cash flow was $266M (~69% of net income); net capital spending was ~$60M in Q2 with full-year net CapEx expected at ~$320M. The company returned $305M to shareholders via dividends and buybacks, ~80% of net income.
Key Risks
Management flagged persistent tariff/cost inflation, elevated fuel and transportation costs, and the structurally lower gross margin associated with larger strategic accounts. Discretionary consumer-linked end markets also continued to lag the rest of the business.
Outlook
No explicit Q3 revenue or operating margin guidance was provided. Management expects continued gradual improvement in price/cost and incremental margins throughout the back half, with full-year net CapEx of ~$320M and digital footprint of 63%-64% of sales.
Generated by AI · Q2 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q2 2026 Q2 2026 2026-07-14
Q2 2026 saw 14.7% sales growth, operating margin expansion, and record ROIC, driven by share gains, technology adoption, and strong performance in manufacturing and construction. Cost inflation and fuel volatility remain risks, but capital allocation and digital investments support continued growth.
Q1 2026 Q1 2026 2026-04-13
Q1 2026 saw 12.4% daily sales growth, strong international and digital expansion, and improved operating margin. Tariff and supplier cost pressures impacted gross margin, but SG&A leverage and capital discipline supported robust cash flow and shareholder returns.
Q4 2025 Q4 2025 2026-01-20
Delivered double-digit Q4 and annual sales growth, driven by key account expansion, digital solutions, and disciplined cost management. Outlook for 2026 is strong, with anticipated double-digit sales growth and continued investment in technology and efficiency.
Q3 2025 Q3 2025 2025-10-13
Q3 2025 saw 11.7% sales growth and double-digit net income gains, driven by market share expansion, digital sales, and fastener initiatives, despite a flat industrial economy and tariff headwinds. Gross and operating margins improved, with continued investment in inventory and technology.
Q2 2025 Q2 2025 2025-07-14
Record Q2 revenue exceeded $2 billion, with 8.6% sales growth and strong contract signings driving market share gains despite sluggish demand. Operating margin rose to 21%, and digital sales surpassed 30% of revenue. Additional pricing actions and double-digit sales growth are expected for the rest of 2025.
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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

⚠️ Important Disclaimers — Please read without fail.

Investment Risk:
Investing in securities, including US equities and ETFs, involves inherent risks including the potential loss of principal. All investments are subject to market fluctuations, economic conditions, regulatory changes, and other factors that may affect their value. Past performance is not indicative of future results. This analysis is provided for informational and educational purposes only and should not be construed as investment advice under any circumstances.

No Investment Recommendation:
This analysis does not constitute, nor should it be interpreted as, an offer, solicitation, or recommendation to buy, sell, or hold any securities or financial products. Investors are strongly advised to conduct their own independent research and due diligence and to consult with a licensed financial advisor or an SEC-registered investment adviser before making any investment decisions, taking into account their individual financial situation, risk tolerance, and investment objectives.

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Conflict of Interest Disclosure:
The author and/or analyst may currently hold or have previously held positions in the securities discussed. Any such positions are not intended to influence the objectivity or independence of the analysis. This research is produced independently and is not sponsored, endorsed, or commissioned by any company or institution.

Information Sources:
The analysis is based on publicly available information including SEC filings (10-K, 10-Q), annual reports, management commentary, and publicly available financial data. Information is believed to be accurate as of the date of publication but may be subject to change without notice. Readers are encouraged to independently verify all information before acting upon it.

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