Fundamental analysis · SEC EDGAR · TTM through 30/06/2026

Fundamental analysis of Fastenal Co

FAST · Nasdaq · Industrial

Fundamental quality

ATTRACTIVE

79

out of 100

Fastenal Co fits the profile of a quality compounder: it pairs high return on capital (ROE 33.2%) with wide margins (net margin 15.5%) and a business that keeps growing (8.3% a year). On fundamental quality it scores 79 out of 100, profiling it as a company with solid fundamentals. Its weakest area is its growth (revenue +8.3%/yr). Whether it's cheap or expensive depends on the current price, which you can compute in the tool.

What the company does

Fastenal sells fasteners and industrial supplies with a logistics obsession: vending machines inside customers' factories and its own staff in their warehouses. It turned the humble bolt into one of America's most profitable distribution businesses.

What will shape its future

  • Manufacturing and construction activity, driving its daily consumables sales.
  • Its embedding inside the customer (vending, on-site stores), the moat nobody easily copies.
  • Exceptional margins for a distributor, the bar it must defend every quarter.

Breakdown by area

I.Growth
55

EPS growth: 8.6% · Revenue growth: 8.3%

II.Profitability
82

Net margin: 15.5% · ROE: 33.2% · ROIC: 33.9%

III.Financial health
89

Net debt/EBITDA: -0.04x · FCF: 13.2%

Source: SEC EDGAR · TTM through 30/06/2026

The score includes +4 for dividend strength: 27 consecutive years of increases. Keeping that streak demands growing cash generation and balance-sheet discipline.

The score combines growth, profitability and financial strength. Here its financial strength weighs in its favor, while its growth drags it down the most.

Versus its sector

Percentile against the other 69 Industrial companies in our coverage: how far it beats them on each metric (100 = best in sector).

Net marginbeats 76%
ROEbeats 77%
Growthbeats 49%
Cash generationbeats 63%
Less debtbeats 93%

Computed from the daily dataset scores. A high percentile places the company among the best in its sector on that metric; it is not a buy recommendation.

Key concepts

What do these metrics mean? Fundamental analysis · What is the P/E · What is EPS · What is ROE · Net & gross margin · Free cash flow

Fastenal Co strengths

  • Outstanding return on equity (ROE of 33.2%): it puts shareholder capital to good use.
  • Strong free-cash-flow generation (FCF margin of 13.2%): profit turns into real cash.
  • High net margin (15.5%), high even for its sector: the business is clearly profitable.
  • Revenue rising without interruption since 2020.

Fastenal Co risks and weaknesses

  • No clear weaknesses in the recent fundamentals, though the system doesn't assess qualitative factors (competition, regulation, management).

Fastenal Co historical evolution

YearRevenueNet incomeFree cash flowNet debt
20205,647859934159
20216,011925614154
20226,9811,087767325
20237,3471,1551,26039
20247,5461,151947-56
20258,2011,2581,051-152

Between 2020 and 2025, revenue went from $5,647M to $8,201M (+45%) and net income went from $859M to $1,258M (+46%). It has also reduced its net debt over the period.

Annual figures in millions of U.S. dollars ($M) per SEC filings. Net debt is total debt minus cash.

Latest results

Versus the same period a year earlier

Figures for the half-year ended June 30, 2026, versus the half-year ended June 30, 2025 (SEC filings):

  • Revenue+13.6%
  • Net income+14.9%

Automatic comparison between the two most recent periods filed with the SEC. One quarter doesn't make a trend: read it alongside the historical evolution above.

Dividend

$0.88

per share, yearly

79.8% of earnings

Payout

27 straight years raising it

Growth

The dividend yield depends on today's price. Compute it in the analyzer → · See all dividend-paying stocks →

Advertising

Want to invest in Fastenal Co?

Open your account in minutes with regulated brokers and buy U.S. and European stocks from small amounts. No paperwork.

Interactive BrokersGlobal markets

The serious investor's standard

Open free account →
WebullCommission-free

Popular in the U.S.

Open free account →

Investing carries risk of loss.

Is Fastenal Co cheap or expensive?

That depends on the current price. Look it up, enter it in the tool and get the full valuation verdict (P/E against its sector).

Compute the valuation →

Frequently asked questions

Is Fastenal Co a good company to invest in?

In terms of business quality, Fastenal Co scores 79 out of 100 in our analysis, placing it as a company of high fundamental quality. That said, this isn't a recommendation: whether it's a good investment also depends on its current price and your goals.

Is Fastenal Co a profitable company?

Yes. Fastenal Co shows a net margin of 15.5% and an ROE of 33.2%, a sign of a profitable business.

Does Fastenal Co have a lot of debt?

No. Fastenal Co has a net cash position: more cash than debt.

Is Fastenal Co growing?

Its revenue has grown 8.3% annualized in recent years and its earnings per share 8.6%, and without interruption since 2020.

Does Fastenal Co generate cash?

Yes. It converts about 13.2% of its revenue into free cash flow, and has done so positively year after year.

The thresholds are general and the system doesn't judge qualitative factors. See the full methodology and use this analysis as a first filter, never as a final decision.

Was this page helpful?