Beyond The Numbers: 5 Analysts Discuss Fastenal Stock

Fastenal FAST underwent analysis by 5 analysts in the last quarter, revealing a spectrum of viewpoints from bullish to bearish.

The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.

Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $76.2, along with a high estimate of $85.00 and a low estimate of $71.00. Surpassing the previous average price target of $71.40, the current average has increased by 6.72%.

Breaking Down Analyst Ratings: A Detailed Examination

The perception of Fastenal by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Fastenal. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Fastenal compared to the broader market.
• Price Targets: Analysts gauge the dynamics of price targets, providing estimates for the future value of Fastenal's stock. This comparison reveals trends in analysts' expectations over time.

For valuable insights into Fastenal's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.

Stay up to date on Fastenal analyst ratings.

Discovering Fastenal: A Closer Look

Fastenal opened its first fastener store in 1967 in Winona, Minnesota. Since then, Fastenal has greatly expanded its footprint as well as its products and services. Today, Fastenal serves its 400,000 active customers through approximately 1,600 branches, over 1,700 on-site locations, and 14 distribution centers. Since 1993, the company has added other product categories, but fasteners remain its largest category at about 30%-35% of sales. Fastenal also offers customers supply-chain solutions, such as vending and vendor-managed inventory.

Fastenal's Financial Performance

Market Capitalization: Surpassing industry standards, the company's market capitalization asserts its dominance in terms of size, suggesting a robust market position.

Revenue Growth: Over the 3 months period, Fastenal showcased positive performance, achieving a revenue growth rate of 3.72% as of 31 December, 2023. This reflects a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Industrials sector.

Net Margin: Fastenal's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 15.15%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): Fastenal's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of 7.82%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): Fastenal's ROA excels beyond industry benchmarks, reaching 5.88%. This signifies efficient management of assets and strong financial health.

Debt Management: Fastenal's debt-to-equity ratio is below the industry average at 0.16, reflecting a lower dependency on debt financing and a more conservative financial approach.

What Are Analyst Ratings?

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.

This article was generated by Benzinga's automated content engine and reviewed by an editor.