Fastenal Company Stock Fair Value Calculation – FASTENAL COMPANY Reports 5.9% Increase in Total Revenue & 3.8% Rise in Net Income for Q2 FY2023
July 18, 2023
☀️Earnings Overview
On July 13 2023, FASTENAL COMPANY ($NASDAQ:FAST) reported its earnings results for the second quarter of FY2023 (ending June 30 2023), showing a 5.9% year-over-year growth in total revenue to USD 1883.1 million and a 3.8% year-over-year increase in net income to USD 298.0 million.
Analysis – Fastenal Company Stock Fair Value Calculation
GoodWhale has recently conducted an analysis of the financials of FASTENAL COMPANY. According to its findings, the fair value of the company’s shares is estimated at around $59.4. This was computed using GoodWhale’s proprietary Valuation Line. At present, FASTENAL COMPANY shares are trading at $56.7, which means that the stock is priced slightly undervalued by 4.5%. This could be a good opportunity for investors looking for potential long-term returns. It is worth noting, however, that stock prices can be volatile and any investment should take into account individual risk tolerance and financial goals. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Fastenal Company. More…
| Total Revenues | Net Income | Net Margin |
| 7.24k | 1.12k | 15.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Fastenal Company. More…
| Operations | Investing | Financing |
| 1.25k | -171.1 | -1.08k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Fastenal Company. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 4.58k | 1.2k | 5.92 |
Key Ratios Snapshot
Some of the financial key ratios for Fastenal Company are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 9.4% | 10.6% | 20.7% |
| FCF Margin | ROE | ROA |
| 14.8% | 28.2% | 20.5% |
Peers
Fastenal Co is a leading company in the fastener industry and competes with WESCO International Inc, DXP Enterprises Inc, and W.W. Grainger Inc. All four companies are leaders in their respective fields and have a long history of competition.
– WESCO International Inc ($NYSE:WCC)
WESCO International Inc. is a leading provider of electrical, industrial, and communications MRO and OEM products, construction materials, and advanced logistics services. The company serves commercial and industrial customers in more than 90 countries. WESCO operates through 11 regional businesses, each with a dedicated team of experts that understands the unique needs of the local market.
WESCO has a market cap of $6.47B as of 2022 and a ROE of 16.97%. The company is a leading provider of electrical, industrial, and communications MRO and OEM products, construction materials, and advanced logistics services. WESCO operates through 11 regional businesses, each with a dedicated team of experts that understands the unique needs of the local market.
– DXP Enterprises Inc ($NASDAQ:DXPE)
DXP Enterprises is a leading provider of integrated maintenance, repair and operations solutions that enable our customers to operate more efficiently and effectively. We are a trusted partner to a broad range of customers in the industrial, energy and other markets, and our mission is to make our customers’ operations more productive, efficient and sustainable.
DXP’s market cap is $483.23M as of 2022. The company has a Return on Equity of 14.04%.
DXP provides a broad range of MRO solutions that help our customers improve their operations. Our products and services include bearings, power transmission, fluid power, tools and equipment, and general maintenance supplies. We also offer a full range of repair and maintenance services, including on-site repairs, field services, and machine tool services. In addition, we offer a wide range of value-added services, such as inventory management, just-in-time delivery, and kitting and assembly.
– W.W. Grainger Inc ($NYSE:GWW)
W.W. Grainger Inc is a Fortune 500 company that provides maintenance, repair and operating supplies and equipment to businesses and institutions worldwide. With a market cap of 27.04B as of 2022 and a Return on Equity of 56.81%, it is clear that the company is doing well. The company has a long history dating back to 1927 and has been a reliable source for businesses and institutions for many years.
Summary
FASTENAL COMPANY reported strong earnings results for the second quarter of FY2023, with total revenue increasing by 5.9% year-over-year to USD 1883.1 million and net income increasing by 3.8% year-over-year to USD 298.0 million. Despite this positive news, the stock price still moved down the same day. Investors should take this as a signal to further analyze the company’s fundamentals before making an investment decision. They should look at factors such as the company’s growth prospects, competitive advantage, financial position, and management quality.
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