FAST

Fastenal Company

Industrial/Transportation, Consumer


Presented:06/12/2013
Price:$48.48
Cap:$14.40B
Current Price:$76.91
Cap:$44.04B

Presented

Date06/12/2013
Price$48.48
Market Cap$14.40B
Ent Value$14.22B
P/E Ratio24.34x
Book Value$6.47
Div Yield2.7%
Shares O/S296.66M
Ave Daily Vol1,590,000
Short Int6.08%

Current

Price$76.91
Market Cap$44.04B
Fastenal Company, together with its subsidiaries, operates as a wholesaler and retailer of industrial and construction supplies in the United States, Canada, and internationally. The company offers fasteners and other industrial and construction supplies under the Fastenal name. Its fastener products include threaded fasteners, such as bolts, nuts, screws, studs, and related washers, which are used in manufactured products and building projects, as well as in the maintenance and repair of machines and structures; and miscellaneous supplies and hardware consisting of various pins and machinery keys, concrete anchors, metal framing systems, wire ropes, strut products, rivets, and related accessories. The company serves the manufacturing market that comprise original equipment manufacturers, and maintenance and repair operations, as well as other users, such as farmers, truckers, railroads, mining companies, federal, state and local governmental entities, schools, and retail trades; and construction market, which include general, electrical, plumbing, sheet metal, and road contractors. As of December 31, 2012, it operated 2,700 company-owned or leased stores. Fastenal Company was founded in 1967 and is headquartered in Winona, Minnesota.

Please note, this idea was updated on 10/8/13 and can be read here: SHORT — Fastenal Company (FAST). As well, this idea was updated again on 3/21/14 and can be read here: SHORT — Fastenal Company (FAST).

Highlights

The presenter is bearish on the outlook for shares of FAST. The hardware retail store chain has over 2,600 stores and has recently shifted focus from store growth to building its vending machine network model out across the US. Despite slowing store growth, FAST shares maintain a premium multiple of ~30x, which is reflective of growth levels the company cannot achieve, in the presenter’s opinion.

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Idea Discussion

Commentor 1 - 2 weeks ago

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