Fastenal Company

FAST
Financial Analysis · Updated May 13, 2026 · Coverage 2026-Q2
Latest Q Revenue
$2.1B
Q1 FY2026
TTM ROIC
39%
FY2025 · NOPAT / Invested Capital (NOPAT = Operating Income × (1 - effective tax rate ~23-25%); Invested Capital = Equity + Debt - Cash) · WACC ~8.5% · Moat spread +30.5pp

Financial Snapshot


ticker: FAST step: 04 generated: 2026-05-12 source: quick-research

Fastenal Company (FAST) — Financial Snapshot

Income Statement Summary

Metric FY2022 FY2023 FY2024 YoY
Revenue $6.98B $7.35B $7.55B +2.7%
Gross Margin ~45.3% ~45.5% ~44.8% -70bps
Operating Margin ~20% ~19.5% ~18.9% -60bps
Net Income ~$1.07B ~$1.15B ~$1.15B flat
EPS (diluted) ~$1.87 ~$2.02 ~$2.01 flat

FY2025: Revenue $8.20B (+8.7%), Net income $1.26B (+9.4%), EPS ~$2.21. Q1 2026 showed 12.4% sales growth with some margin pressure from tariffs.

Cash Flow & Balance Sheet (FY2025)

Metric Value
Operating Cash Flow ~$1.5B
Free Cash Flow ~$1.3B
FCF Margin ~16%
Cash & Equivalents ~$256M
Total Debt ~$200M
Net Debt Net cash positive (~$56M)

Fastenal has a remarkably clean balance sheet for an industrial company — effectively debt-free. Capital is primarily returned via dividends ($0.43/quarter = $1.72/year annualized) and modest buybacks.

Key Ratios (approximate, FY2025)

  • P/E: ~38–42x (significant premium to industrial peers) | FCF Yield: ~2.5%
  • EV/EBITDA: ~28–30x | Dividend Yield: ~2.0–2.5%
  • Revenue Growth (FY2025): +8.7% | Net Margin: ~15.3%
  • ROIC: ~30%+ (best-in-class for industrial distribution)

Growth Profile

Fastenal's revenue growth is closely tied to U.S. manufacturing PMI — the company expands faster than GDP in industrial expansion cycles and sees modest declines in manufacturing recessions. The long-term structural growth driver is the secular shift from branch-based purchasing to Onsite/FMI embedded programs: each new Onsite location adds recurring, growing revenue with minimal incremental cost. FY2024 was a flat year (+2.7%) as manufacturing softened; FY2025 accelerated to +8.7% on Onsite wins, safety category growth, and manufacturing recovery. Q1 2026 showed 12.4% growth, suggesting continued momentum.

Forward Estimates

  • FY2026: Revenue expected to grow 8–12% if manufacturing remains stable; gross margin under mild pressure from tariffs (fastener imports from China/Mexico); adj. EPS ~$2.40–$2.60
  • Onsite expansion: Targeting continued net new Onsite signings; each new active Onsite represents a permanent recurring revenue base
  • Dividend: $1.72/share annualized ($0.43/quarter); consistent annual increases; Fastenal has raised dividend every year for 25+ years

Deeper Financial Analysis

The fundamental tier adds 9 additional research dimensions for $FAST.

Revenue Breakdown
Segment revenue, geographic mix, product-line contribution margins, and cohort dynamics.
Financial Trends
Quarter-over-quarter momentum, leading indicators, and inflection point analysis.
Balance Sheet
Debt structure, liquidity runway, dilution risk, and working capital dynamics.
Capital Allocation
Buyback cadence, M&A appetite, dividend policy, and reinvestment priorities.
Returns on Capital (ROIC)
Multi-year ROIC vs. WACC, marginal returns on reinvestment, sales-to-invested-capital efficiency, and moat spread.
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Markdown: /stocks/fast/financials/md · → thesis · → memo