FAST (Update)

Fastenal Company

Industrial/Transportation


Presented:03/21/2014
Price:$49.71
Cap:$14.80B
Current Price:$76.91
Cap:$44.04B

Presented

Date03/21/2014
Price$49.71
Market Cap$14.80B
Ent Value$14.69B
P/E Ratio24.62x
Book Value$6.47
Div Yield2.8%
Shares O/S61.20M
Ave Daily Vol2,420,000
Short Int9.96%

Current

Price$76.91
Market Cap$44.04B
Fastenal Company, together with its subsidiaries, is engaged in the wholesale distribution of industrial and construction supplies primarily in North America. The company offers fasteners and other industrial and construction supplies primarily 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. The company also offers miscellaneous supplies and hardware, including various pins and machinery keys, concrete anchors, metal framing systems, wire ropes, strut products, rivets, and related accessories. It serves the manufacturing market comprising original equipment manufacturers, and maintenance and repair operations; and other users, such as farmers, truckers, railroads, mining companies, schools, and retail trades, as well as federal, state, and local governmental entities. The company also serves non-residential construction market, which include general, electrical, plumbing, sheet metal, and road contractors. As of January 9, 2014, it operated approximately 2,600 stores.

Please note, this is an update to SHORT — Fastenal Company (FAST) presented on 10/8/13 which is an update to SHORT — Fastenal Company (FAST) originally presented on 6/12/13.

Highlights

The presenter remains short shares of FAST, and sees no reason to cover the position. Amazon is making progress, not losing share. However, FAST customers are calling in saying, “We found this item online for 20% cheaper...” so they are discounting to keep business. Recently, FAST’s comps have been better, and actually accelerated despite the bad weather. Intuitively, he thinks this might continue into March (comps are still easy; a jump from 7-8% to 10% is possible).

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Idea Discussion

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