Download PDF

1. Company Snapshot

1.a. Company Description

Fastenal Company, together with its subsidiaries, engages in the wholesale distribution of industrial and construction supplies in the United States, Canada, Mexico, North America, and internationally.It offers fasteners, and related industrial and construction supplies under the Fastenal name.The company's fastener products include threaded fasteners, bolts, nuts, screws, studs, and related washers, which are used in manufactured products and construction projects, as well as in the maintenance and repair of machines.


It also offers miscellaneous supplies and hardware, including pins, machinery keys, concrete anchors, metal framing systems, wire ropes, strut products, rivets, and related accessories.The company serves the manufacturing market comprising original equipment manufacturers; maintenance, repair, and operations; and non-residential construction market, which includes general, electrical, plumbing, sheet metal, and road contractors.It also serves farmers, truckers, railroads, mining companies, schools, and retail trades; and oil exploration, production, and refinement companies, as well as federal, state, and local governmental entities.


The company distributes its products through a network of 3,209 in-market locations and 15 distribution centers.Fastenal Company was founded in 1967 and is headquartered in Winona, Minnesota.

Show Full description

1.b. Last Insights on FAST

Breaking News: Fastenal Company reported strong Q1 2026 results with revenue up 12.4% and EPS of $0.3, matching expectations. Despite robust double-digit revenue growth guidance and expanding profitability, shares are considered overvalued. Gross margin pressure from tariffs and customer pushback, plus concentration of growth among large customers, signal potential headwinds. Daily sales rose on contracts, pricing, and FX. Analysts do not recommend an upgrade, citing premium valuation multiples versus peers. A hold recommendation is given by some analysts.

1.c. Company Highlights

2. Fastenal Q1 2026: Strong Sales, Sharper Margins, and Solid Cash Flow

Fastenal’s first‑quarter results showcased a robust start to 2026, with daily sales climbing to $34.9 million—a 12.4% increase driven by targeted execution and new key‑account wins. Operating margin rose to 20.3%, up 20 bps from the prior year, while EPS hit $0.30, just slightly above the $0.2987 consensus. Cash flow remained stellar, with operating cash of $378 million (111% of net income) and a trailing‑12‑month ROIC of 31%. The company’s valuation sits at a P/E of 40.46 and a P/B of 13.18, reflecting the market’s premium for its disciplined cost structure and growth prospects.

Publication Date: 06:49

📋 Highlights
  • Daily Sales Growth:: 12.4% increase to $34.9 million per day, driven by new business wins and expanded customer sites.
  • Digital Sales Momentum:: 13.6% growth in digital footprint sales, contributing 61.5% of Q1 revenue.
  • International Acceleration:: 24% sales growth in March, primarily from Europe and Asia, with 8% YoY contract expansion.
  • Margin Dynamics:: Operating margin rose to 20.3% (+20 bps YoY), but gross margin fell 40 bps below target due to pricing vs. cost pressures.
  • Cash Flow & Returns:: $378 million operating cash flow (111% of net income) and $296 million shareholder returns via dividends/buybacks.

Digital Momentum Drives Growth

Digital initiatives led the charge, with digital footprint daily sales up 13.6% and accounting for 61.5% of quarterly sales—outpacing the company’s overall growth rate (Staff, 2026 Q1 earnings call). This acceleration underscores Fastenal’s investment in technology to deepen customer relationships and streamline supply chains, positioning the firm for continued upside as digital adoption spreads across industries.

International Expansion Accelerates

International sales surged, with a 24% jump in March fueled by Europe and Asia. New national‑account contracts grew 8% YoY to over 3,600, bolstering the company’s geographic diversification and mitigating domestic market volatility. The firm’s global footprint now supports a broader customer base, enhancing revenue resilience.

Margin Management Amid Tariff Headwinds

Gross margin lagged 40 bps below target due to tariff‑related cost pass‑through, yet SG&A efficiency kept operating margin expanding. SG&A fell to 24.3% of sales, reflecting disciplined spending and leverage. The company expects price/cost neutrality by midyear, with cumulative pricing estimates unchanged at 5‑8%.

Capital Allocation and Shareholder Returns

Fastenal returned $296 million to shareholders through dividends and share repurchases, while investing $58 million in hub automation, FMI devices, and IT infrastructure. Modest repurchases offset dilution, and the firm’s low net debt/EBITDA ratio of 0.08 signals ample capacity for future capital deployment.

3. NewsRoom

Card image cap

Fastenal Q1 Earnings Call Highlights

08:36

Source: defenseworld.net

Card image cap

Fastenal Co (FAST) Q1 2026 Earnings Call Highlights: Strong Sales Growth Amid Pricing Challenges

06:00

Source: gurufocus.com

Card image cap

Fastenal Company (FAST) Q1 2026 Earnings Call Transcript

Apr -13

Source: seekingalpha.com

Card image cap

Fastenal's Plunge Doesn't Make It Cheap Enough For An Upgrade

Apr -13

Source: seekingalpha.com

Card image cap

Fastenal Q1 Earnings Meet Estimates, Sales Beat, Stock Down

Apr -13

Source: zacks.com

Card image cap

Crude Oil Gains 5%; Fastenal Shares Fall After Q1 Earnings

Apr -13

Source: benzinga.com

Card image cap

Fastenal (FAST) Meets Q1 Earnings Estimates

Apr -13

Source: zacks.com

Card image cap

Is Fastenal (FAST) Overvalued After Q1 2026 Earnings? EPS $0.30 vs Est. $0.30 (in line); Revenue $2.2017B vs Est. $2.1988B (beat) -- GF Score 97/100, GF Value Says 21.6% Overvalued

Apr -13

Source: gurufocus.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.40%)

6. Segments

United States (u.s)

Expected Growth: None%

None

Other

Expected Growth: 8.0%

The 'Other' segment is expected to grow at a rate close to the global average. This is because it includes a mix of different business activities, some of which may grow faster than the average (like certain international markets) while others may grow slower. The overall growth rate reflects a balanced mix of opportunities and challenges across these diverse activities.

7. Detailed Products

Fasteners

Fastenal offers a wide range of fasteners including nuts, bolts, screws, washers, and rivets from top manufacturers.

Fastening Tools

Fastenal provides a variety of fastening tools including drills, drivers, wrenches, and pliers from leading brands.

Cutting Tools

Fastenal offers a range of cutting tools including saw blades, drill bits, and cutting fluids from reputable manufacturers.

Material Handling

Fastenal provides material handling solutions including bins, containers, and storage systems to help organize and manage inventory.

Janitorial and Sanitation

Fastenal offers a range of janitorial and sanitation products including cleaning supplies, trash bags, and personal protective equipment.

Packaging and Shipping

Fastenal provides packaging and shipping solutions including boxes, tape, and labels from leading manufacturers.

Safety and Protection

Fastenal offers a range of safety and protection products including hard hats, gloves, and safety glasses from top brands.

MRO (Maintenance, Repair, and Operations) Supplies

Fastenal provides MRO supplies including lubricants, adhesives, and sealants from reputable manufacturers.

8. Fastenal Company's Porter Forces

Forces Ranking

Threat Of Substitutes

Fastenal's products are highly specialized and customized, making it difficult for customers to find substitutes. Additionally, the company's strong relationships with suppliers and its ability to provide a wide range of products reduce the threat of substitutes.

Bargaining Power Of Customers

Fastenal's customers are primarily large industrial companies, which can exert some bargaining power due to their size and purchasing power. However, Fastenal's ability to provide customized solutions and its strong relationships with customers mitigate this power.

Bargaining Power Of Suppliers

Fastenal has a diverse supplier base and is not heavily dependent on any one supplier. Additionally, the company's strong relationships with suppliers and its ability to negotiate prices reduce the bargaining power of suppliers.

Threat Of New Entrants

The industrial distribution industry has high barriers to entry, including the need for significant capital investment and a large network of suppliers and customers. Fastenal's strong brand recognition and established relationships with customers and suppliers make it difficult for new entrants to gain traction.

Intensity Of Rivalry

The industrial distribution industry is highly competitive, with many established players competing for market share. Fastenal competes with other large distributors, as well as smaller, specialized players, which increases the intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 9.61%
Debt Cost 4.24%
Equity Weight 90.39%
Equity Cost 9.01%
WACC 8.55%
Leverage 10.64%

11. Quality Control: Fastenal Company passed 8 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
TransDigm Group

A-Score: 7.0/10

Value: 3.0

Growth: 8.0

Quality: 6.7

Yield: 9.0

Momentum: 7.0

Volatility: 8.3

1-Year Total Return ->

View Full Report
Stock-Card
PACCAR

A-Score: 6.0/10

Value: 4.1

Growth: 6.7

Quality: 5.0

Yield: 8.0

Momentum: 4.0

Volatility: 8.3

1-Year Total Return ->

View Full Report
Stock-Card
MSC Industrial Direct Co

A-Score: 6.0/10

Value: 4.0

Growth: 3.7

Quality: 6.0

Yield: 8.0

Momentum: 6.0

Volatility: 8.3

1-Year Total Return ->

View Full Report
Stock-Card
Paychex

A-Score: 6.0/10

Value: 2.1

Growth: 5.8

Quality: 9.0

Yield: 7.0

Momentum: 2.5

Volatility: 9.3

1-Year Total Return ->

View Full Report
Stock-Card
Fastenal

A-Score: 5.5/10

Value: 0.7

Growth: 5.8

Quality: 7.8

Yield: 4.0

Momentum: 5.5

Volatility: 9.0

1-Year Total Return ->

View Full Report
Stock-Card
Grainger

A-Score: 5.1/10

Value: 2.4

Growth: 7.8

Quality: 6.7

Yield: 2.0

Momentum: 3.0

Volatility: 9.0

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

44.77$

Current Price

44.77$

Potential

-0.00%

Expected Cash-Flows