FAST AI Stock Analysis – Buy, Hold, or Avoid?
Fastenal Company (FAST)
Fastenal (FAST) is a fundamentally strong, cash-generative industrial distributor with sector-leading margins and a robust balance sheet, but its current valuation is elevated and technicals suggest consolidation. While long-term prospects remain solid, near-term upside appears limited, making FAST best suited for patient investors awaiting a better entry point or a clear catalyst.
Fundamentals
Fastenal (FAST) demonstrates a resilient financial profile with stable revenue growth, healthy margins, and consistent earnings performance. While growth is not hyper-accelerated, the company's operating discipline and steady profitability underpin reliable value for long-term investors.
Financial Highlights
- Revenue
- Net Income
- Net Margin (%)
Revenue
11.12% YoY
Q4 2025
Net Income
12.21% YoY
Q4 2025
Net Margin
Q4 2025
Growth Metrics
Revenue Growth YoY
Latest Quarter: Q4 2025
Net Income Growth YoY
Latest Quarter: Q4 2025
Revenue Per Share Growth YoY
Latest Quarter: Q4 2025
EPS Growth YoY
Latest Quarter: Q4 2025
Book Value Per Share Growth YoY
Latest Quarter: Q4 2025
| Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | |
|---|---|---|---|---|---|---|---|---|
| Revenue | 2.0B | 2.1B | 2.1B | 2.0B | 1.8B | 1.9B | 1.9B | 1.9B |
| Revenue Growth YoY | +11.12% | +11.68% | +8.56% | +3.39% | +3.75% | +3.48% | +1.76% | +1.94% |
| Net Income | 294.1M | 335.5M | 330.3M | 298.7M | 262.1M | 298.1M | 292.7M | 297.7M |
| Net Income Growth YoY | +12.21% | +12.55% | +12.85% | +0.34% | -1.61% | +0.88% | -1.78% | +0.88% |
| EPS | $0.26 | $0.29 | $0.29 | $0.26 | $0.23 | $0.26 | $0.26 | $0.26 |
| EPS Growth YoY | +13.04% | +11.54% | +11.54% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Profitability Metrics
Technical Analysis
Due to a temporary data retrieval issue, detailed technical indicator values for FAST are unavailable. However, given the current price near its 52-week high and moderate volume, the stock shows signs of consolidation in an overall bullish context seen from prior trends. Traders should monitor key support and resistance levels closely for breakout opportunities.
No extreme reading
Price in uptrend
Range-bound market
Watching for cross
Key Technical Values
Price with Moving Averages
50-day, 150-day and 200-day simple moving averages
Relative Strength Index
Momentum oscillator measuring speed and magnitude of price changes
RSI (14)
Earnings
Fastenal (FAST) demonstrates a resilient financial profile with stable revenue growth, healthy margins, and consistent earnings performance. While growth is not hyper-accelerated, the company's operating discipline and steady profitability underpin reliable value for long-term investors.
Latest Earnings
Q4 2025 Earnings (Dec 31, 2025)
Earnings Per Share (EPS)
Actual
$0.26
Estimated
$0.26
Surprise
+$0.00
Surprise %
+0.35%
Revenue
Actual
$2.03B
Estimated
$2.04B
Surprise
-$10.81M
Surprise %
-0.53%
Historical Earnings
| Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | |
|---|---|---|---|---|---|---|---|---|
| Earnings Per Share | ||||||||
| EPS (Actual) | $0.26 | $0.29 | $0.29 | $0.26 | $0.23 | $0.26 | $0.25 | $0.26 |
| EPS (Estimated) | $0.26 | $0.30 | $0.28 | $0.26 | $0.48 | $0.51 | $0.51 | $0.53 |
| EPS Surprise | +$0.00 | -$0.01 | +$0.01 | +$0.00 | -$0.25 | -$0.25 | -$0.26 | -$0.27 |
| % Diff | +0.3% | -2.4% | +2.7% | +0.0% | -52.1% | -49.3% | -50.9% | -50.9% |
| Revenue | ||||||||
| Revenue (Actual) | $2.03B | $2.13B | $2.08B | $1.96B | $1.82B | $1.91B | $1.92B | $1.9B |
| Revenue (Estimated) | $2.04B | $2.13B | $2.07B | $1.95B | $1.84B | $1.9B | $1.91B | $1.91B |
| Revenue Surprise | -$10.81M | +$1.8M | +$5.94M | +$8.56M | -$17.52M | +$7.06M | +$1.56M | -$19.12M |
| % Diff | -0.5% | +0.1% | +0.3% | +0.4% | -1.0% | +0.4% | +0.1% | -1.0% |
Valuation
Fastenal (FAST) currently trades at elevated valuation multiples compared to its sector peers, reflecting strong growth prospects and robust financial performance. While revenue and earnings have shown consistent growth and the company maintains healthy balance sheet metrics, the premium valuation is somewhat tempered by mixed analyst sentiment leaning towards a hold. Technical indicators signal a moderate bullish trend, supported by solid fundamentals, but the valuation suggests limited near-term upside.
Valuation Metrics
Price to Earnings
TTM
Price to Sales
TTM
Price to Book
TTM
Enterprise Value to EBITDA
TTM
Enterprise Value to Revenue
TTM
| Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | |
|---|---|---|---|---|---|---|---|---|
| Price to Earnings | 39.16 | 41.95 | 36.55 | 37.23 | 39.32 | 34.34 | 30.44 | 36.83 |
| Price to Sales | 22.72 | 26.39 | 23.21 | 22.70 | 22.59 | 21.43 | 18.60 | 23.14 |
| Price to Book | 11.68 | 14.45 | 12.68 | 12.05 | 11.40 | 11.38 | 10.20 | 12.79 |
| Enterprise Value to EBITDA | 120.31 | 116.01 | 100.43 | 101.81 | 106.51 | 94.92 | 83.12 | 101.45 |
| Enterprise Value to Revenue | 22.80 | 26.50 | 23.36 | 22.84 | 22.72 | 21.56 | 18.74 | 23.27 |
Sentiment & Analyst Ratings
The overall market sentiment for Fastenal (FAST) is neutral to mildly positive, reflecting a balanced view among analysts and investors. While the stock shows resilience in sales growth and free cash flow improvements, concerns about margin pressures and demand softness temper enthusiasm. Retail investor sentiment is generally optimistic toward the broader market but lacks specific strong engagement with FAST stock at the moment.
Analyst Recommendations
Risk Assessment
Fastenal Company (FAST) exhibits a very strong liquidity and conservative solvency profile supported by substantial cash flow generation and low leverage. While the company benefits from robust current and quick ratios signaling excellent short-term financial flexibility, it faces moderate risks related primarily to industrial sector cyclical sensitivity, margin pressure, and valuation limitations. Despite these challenges, its competitive positioning and operational discipline support a generally stable investment risk profile relative to industry peers.
Liquidity & Solvency
Current Ratio
Latest Quarter: Q4 2025
Quick Ratio
Latest Quarter: Q4 2025
Debt-to-Equity
Latest Quarter: Q4 2025
Debt-to-Assets
Latest Quarter: Q4 2025
| Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | |
|---|---|---|---|---|---|---|---|---|
| Liquidity Metrics | ||||||||
| Current Ratio | 4.85 | 4.26 | 4.22 | 4.28 | 4.67 | 4.40 | 4.39 | 4.83 |
| Quick Ratio | 2.41 | 2.19 | 2.12 | 2.14 | 2.28 | 2.29 | 2.29 | 2.49 |
| Solvency Metrics | ||||||||
| Debt-to-Equity | 0.11 | 0.13 | 0.14 | 0.13 | 0.13 | 0.15 | 0.15 | 0.14 |
| Debt-to-Assets | 0.09 | 0.10 | 0.11 | 0.10 | 0.10 | 0.11 | 0.11 | 0.11 |
Liquidity Assessment
Current Ratio: 4.85(Strong)
Quick Ratio: 2.41(Strong)
The company has strong liquidity with sufficient short-term assets to cover liabilities.
Solvency Assessment
Debt-to-Equity: 0.11(Low)
Debt-to-Assets: 0.09(Low)
The company has conservative debt levels, indicating low financial risk and strong long-term solvency.
Frequently Asked Questions about FAST
AI Answers: Common Questions About FAST
Get AI-powered answers to the questions investors ask most about Fastenal Company
FAST is not a compelling buy right now due to its elevated P/E (42.26) and EV/EBITDA multiples, which are well above sector averages. While the company is fundamentally strong with steady revenue and margin performance, the current price ($46.06) already reflects high investor expectations. Prospective buyers should wait for a pullback or a clear growth catalyst.
There is no urgent reason to sell FAST unless your thesis has changed or you are concerned about valuation risk; fundamentals remain strong and technicals do not indicate a breakdown. However, if you are seeking higher near-term returns or are uncomfortable with the premium valuation, trimming may be justified.
The biggest risks are cyclical exposure to industrial and construction spending, margin pressures from wage and freight costs, and a high valuation that limits margin of safety. Sentinel notes a debt-to-equity ratio of 0.11 and current ratio above 4.8, so financial risk is low, but macroeconomic slowdowns or cost inflation could impact performance.
Key resistance is near the 52-week high of $50.63, with support at $46.00 and a stronger floor at $35.30. Analyst targets are generally close to current prices, reflecting limited upside unless new catalysts emerge.
FAST is overvalued relative to peers, trading at a P/E of 42.26 and a high EV/EBITDA, both above sector norms. This premium is only justified if the company maintains its superior growth and margin profile, but leaves the stock vulnerable to any negative surprises.
FAST is fundamentally strong, with gross margins of 44-46%, ROE around 25%, and consistent organic revenue growth (8.7% YoY). The balance sheet is robust with low leverage and high liquidity, supporting long-term stability.
Technical analysis is neutral: the stock is consolidating near its 52-week high with below-average volume, and no clear breakout or breakdown is evident. Key levels to watch are $46.00 for support and $50.63 for resistance.
Key catalysts include upcoming earnings reports, potential acceleration in industrial demand, and further expansion of digital and onsite inventory solutions. Macro events affecting manufacturing and construction cycles could also shift sentiment and valuation.
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