FAST

Fastenal Co

Industrial/Transportation


Presented:09/22/2017
Price:$44.25
Cap:$12.78B
Current Price:$76.91
Cap:$44.04B

Presented

Date09/22/2017
Price$44.25
Market Cap$12.78B
Ent Value$12.90B
P/E Ratio24.31x
Book Value$6.92
Div Yield2.81%
Shares O/S288.79M
Ave Daily Vol3,138,609
Short Int9.84%

Current

Price$76.91
Market Cap$44.04B
Fastenal Co. engages in the provision of fasteners, tools, and supplies which can help in the manufacture of products, build structures, protect personnel, and maintain facilities and equipment. It operates under the following brands: Agent, Aspect, Blackstone, Body Guard, Clean Choice, DynaFlo, EquipRite, FMT, FNL, Northway, Power Phase, ProFitter, Regiment, Rock River, Stronghold, Talon, and Tritan. The company was founded by Robert A. Kierlin, Michael M. Gostomski, Henry K. McCannon, John D. Remick, and Stephen M. Slaggie in November 1967 and is headquartered in Winona, MN.

Publicly traded companies mentioned herein: Amazon.com Inc (AMZN), Fastenal Co (FAST), Home Depot Inc (HD), WW Grainger Inc (GWW)

Highlights

The presenter is short shares of Fastenal (FAST), and believes the timing and risk/reward are attractive heading into the Q4 2017 with the stock trading at $44.25. In his opinion, FAST’s history of store growth and pricing at a premium to peers such as Grainger are likely to catch up to the company. Amazon continues to be a disruptor in the space, recently winning its first government contract, and pricing remains under pressure. FAST shares could see a “hard re-rating” - similar to what Grainger saw in April 2017 - on an earnings and/or margin miss in coming quarters (Q3 2017 earnings are expected to be reported on October 11, 2017, but the presenter sees a higher probability of a miss when 4Q is reported). If the stock re-rates to 18x his 2018 EPS estimate of $1.90-1.95, it could see $35 in the next 12 months. If the miss is more severe, and the re-rating is to 15-16x, “$30 is not out of the question”.

  • Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

  • Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Request access to DeMatteo Research for full access

Request Access

Already have an account?

Idea Discussion

Commentor 1 - 2 weeks ago

Signing up and creating account with us, unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Commentor 1 - 2 weeks ago

Signing up and creating account with us, unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Idea Discussions display submitted commentary from our investor community.

To read and participate in the discussion with the presenter and investor base, request access to DeMatteo

Request Access

Already have an account?

An error occurred loading this content. Try again later or contact us.