Fastenal Company (NASDAQ:FAST) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of FAST, it is a financially-robust , dividend-paying company with a strong track record of performance. Below is a brief commentary on these key aspects. If you're interested in understanding beyond my broad commentary, read the full report on Fastenal here.
Excellent balance sheet with solid track record and pays a dividend
Over the past year, FAST has grown its earnings by 12%, with its most recent figure exceeding its annual average over the past five years. The strong earnings growth is reflected in impressive double-digit 31% return to shareholders, which is an notable feat for the company. FAST is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This implies that FAST manages its cash and cost levels well, which is a key determinant of the company’s health. FAST appears to have made good use of debt, producing operating cash levels of 1.39x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
Income investors would also be happy to know that FAST is a great dividend company, with a current yield standing at 2.6%. FAST has also been regularly increasing its dividend payments to shareholders over the past decade.
For Fastenal, there are three essential factors you should further examine:
- Future Outlook: What are well-informed industry analysts predicting for FAST’s future growth? Take a look at our free research report of analyst consensus for FAST’s outlook.
- Valuation: What is FAST worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether FAST is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of FAST? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.