Gross margins Cant be 600-700bps better than bigger competition forever! Broken growth story!! Watch Out Below!!
who are we kidding? do you really think FAST can keep gross margin at 51% when GWW is at 44% and MSM is at 46%. Stock has a market cap of $13.5 billion and tangible assets are $1.8 billion so it is trading at 7.5x tangible assets and it is a simple distributor of basic products!!!! graham and dodd would laugh at this one.
Actually they can keep their margin there. It is all about product mixed sold. Fasteners bring way more margin then janitorial, cutting tools and power tool sales. Since they are the largest fastener distributor in North America and are expanding in Europe to go after Worth, they should be able to keep their margin where it is.