Fastenal Gross Profit vs. Current Valuation

FAST Stock  USD 82.16  0.65  0.78%   
Taking into consideration Fastenal's profitability measurements, Fastenal Company may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in January. Profitability indicators assess Fastenal's ability to earn profits and add value for shareholders.
 
Gross Profit  
First Reported
1987-03-31
Previous Quarter
822.5 M
Current Value
858.6 M
Quarterly Volatility
261.1 M
 
Black Monday
 
Oil Shock
 
Dot-com Bubble
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
At this time, Fastenal's Sales General And Administrative To Revenue is comparatively stable compared to the past year. Operating Cash Flow Sales Ratio is likely to gain to 0.20 in 2024, whereas Price To Sales Ratio is likely to drop 3.10 in 2024. At this time, Fastenal's Operating Income is comparatively stable compared to the past year. Income Before Tax is likely to gain to about 1.6 B in 2024, whereas Net Income From Continuing Ops is likely to drop slightly above 683 M in 2024.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.570.4566
Fairly Up
Slightly volatile
Net Profit Margin0.0960.1572
Way Down
Slightly volatile
Operating Profit Margin0.140.2081
Way Down
Pretty Stable
Pretax Profit Margin0.140.2072
Way Down
Pretty Stable
Return On Assets0.160.2588
Way Down
Pretty Stable
Return On Equity0.20.3449
Way Down
Slightly volatile
For Fastenal profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Fastenal to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Fastenal Company utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Fastenal's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Fastenal Company over time as well as its relative position and ranking within its peers.
  
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Is Trading Companies & Distributors space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Fastenal. If investors know Fastenal will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Fastenal listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.005
Dividend Share
1.52
Earnings Share
2.01
Revenue Per Share
13.07
Quarterly Revenue Growth
0.035
The market value of Fastenal is measured differently than its book value, which is the value of Fastenal that is recorded on the company's balance sheet. Investors also form their own opinion of Fastenal's value that differs from its market value or its book value, called intrinsic value, which is Fastenal's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Fastenal's market value can be influenced by many factors that don't directly affect Fastenal's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Fastenal's value and its price as these two are different measures arrived at by different means. Investors typically determine if Fastenal is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Fastenal's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Fastenal Current Valuation vs. Gross Profit Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Fastenal's current stock value. Our valuation model uses many indicators to compare Fastenal value to that of its competitors to determine the firm's financial worth.
Fastenal Company is rated # 4 in gross profit category among its peers. It also is rated # 4 in current valuation category among its peers reporting about  14.80  of Current Valuation per Gross Profit. At this time, Fastenal's Gross Profit is comparatively stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Fastenal by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Fastenal Current Valuation vs. Gross Profit

Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.

Fastenal

Gross Profit

 = 

Revenue

-

Cost of Revenue

 = 
3.22 B
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.

Fastenal

Enterprise Value

 = 

Market Cap + Debt

-

Cash

 = 
47.6 B
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.

Fastenal Current Valuation vs Competition

Fastenal Company is rated # 4 in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Industrials industry is currently estimated at about 229.81 Billion. Fastenal totals roughly 47.6 Billion in current valuation claiming about 21% of equities under Industrials industry.

Fastenal Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Fastenal, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Fastenal will eventually generate negative long term returns. The profitability progress is the general direction of Fastenal's change in net profit over the period of time. It can combine multiple indicators of Fastenal, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-54.8 M-52.1 M
Operating Income1.5 B1.6 B
Income Before Tax1.5 B1.6 B
Total Other Income Expense Net-6.7 M-6.4 M
Net Income1.2 B1.2 B
Income Tax Expense367 M385.4 M
Net Income Applicable To Common Shares1.2 B1.3 B
Net Income From Continuing Ops1.1 B683 M
Non Operating Income Net Other630 K493.4 K
Interest Income2.1 M2.2 M
Net Interest Income-11.8 M-12.4 M
Change To Netincome1.8 M1.7 M
Net Income Per Share 2.02  2.12 
Income Quality 1.24  0.66 
Net Income Per E B T 0.76  0.51 

Fastenal Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Fastenal. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Fastenal position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Fastenal's important profitability drivers and their relationship over time.

Use Fastenal in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Fastenal position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Fastenal will appreciate offsetting losses from the drop in the long position's value.

Fastenal Pair Trading

Fastenal Company Pair Trading Analysis

The ability to find closely correlated positions to Fastenal could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Fastenal when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Fastenal - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Fastenal Company to buy it.
The correlation of Fastenal is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Fastenal moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Fastenal moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Fastenal can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Fastenal position

In addition to having Fastenal in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Run Construction Materials Thematic Idea Now

Construction Materials
Construction Materials Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Construction Materials theme has 61 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Construction Materials Theme or any other thematic opportunities.
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Additional Tools for Fastenal Stock Analysis

When running Fastenal's price analysis, check to measure Fastenal's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Fastenal is operating at the current time. Most of Fastenal's value examination focuses on studying past and present price action to predict the probability of Fastenal's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Fastenal's price. Additionally, you may evaluate how the addition of Fastenal to your portfolios can decrease your overall portfolio volatility.