Fastenal (FAST, Financial) has revealed plans to initiate a two-for-one stock split, an action approved by the company's board of directors. This move will involve modifications to Fastenal's Restated Articles of Incorporation, facilitating a corresponding increase in the total authorized shares of common stock.
Shareholders recorded as of May 5 will benefit from this stock split, as they will receive one additional share for each share they currently possess. The split is scheduled to be finalized at the close of business on May 21. The company's stock will then commence trading on a split-adjusted basis around May 22.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 12 analysts, the average target price for Fastenal Co (FAST, Financial) is $73.68 with a high estimate of $86.00 and a low estimate of $37.00. The average target implies an downside of 8.17% from the current price of $80.23. More detailed estimate data can be found on the Fastenal Co (FAST) Forecast page.
Based on the consensus recommendation from 16 brokerage firms, Fastenal Co's (FAST, Financial) average brokerage recommendation is currently 2.8, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Fastenal Co (FAST, Financial) in one year is $70.72, suggesting a downside of 11.85% from the current price of $80.23. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Fastenal Co (FAST) Summary page.
FAST Key Business Developments
Release Date: April 11, 2025
- Revenue Growth: Sales grew by 3.4% with daily sales up 5%.
- Operating Margin: 20.1%, down 50 basis points year-over-year.
- Gross Margin: 45.1%, down 40 basis points from the previous year.
- SG&A Expenses: 25% of sales, up from 24.9% in the prior year.
- EPS: $0.52, flat compared to the first quarter of 2024.
- Operating Cash Flow: $262 million, representing 88% of net income.
- Inventory Growth: Up 11.9% year-over-year.
- Accounts Receivable: Increased by 5.4%.
- Accounts Payable: Increased by 23.9%.
- Capital Expenditure: $53.8 million, up from $48.3 million in the previous year.
- FMI Device Deployment: 129,996 devices, a growth of 12.5%.
- Digital Footprint Sales: 61% of total sales, up from 59% the previous year.
- Dividend Increase: Increased from $0.43 to $0.44 per share.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Fastenal Co (FAST, Financial) reported a 3.5% increase in sales for Q1 2025, with daily sales growth of 5%, indicating strong execution despite a sluggish market.
- The company has successfully expanded its Fastenal Managed Inventory (FMI) program, with 43% of revenue now going through technology platforms, enhancing operational efficiency.
- Fastenal Co (FAST) experienced record customer attendance at its annual expo, reflecting strong customer engagement and interest in the company's offerings.
- The company increased its dividend from $0.43 to $0.44, demonstrating confidence in its financial stability and commitment to returning value to shareholders.
- Fastenal Co (FAST) has made significant progress in diversifying its supply chain, which has helped mitigate risks associated with tariffs and geopolitical uncertainties.
Negative Points
- The company's operating margin decreased by 50 basis points to 20.1% in Q1 2025, partly due to one less selling day compared to the previous year.
- Fastenal Co (FAST) faced higher costs from third-party freight providers and vehicle leases, impacting its gross margin, which fell by 40 basis points.
- The company reported flat earnings per share (EPS) of $0.52 compared to Q1 2024, indicating challenges in achieving profit growth.
- Inventory levels increased by 11.9%, reflecting efforts to improve product availability but also indicating potential inefficiencies in inventory management.
- Fastenal Co (FAST) acknowledged the need to improve its e-commerce capabilities, particularly for smaller customers, to capture more market share in the online space.
