Fastenal: Embedded Inventory Infrastructure in Customer Factories
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Should l Buy FAST?
Source: Yahoo Finance
- Revenue Growth: Fastenal's revenue increased by 8.67% to $8.2 billion in 2025, demonstrating strong market resilience despite sluggish industrial production, indicating the company's stability during economic fluctuations.
- Shareholder Returns: In 2025, Fastenal returned $1.0042 billion to shareholders, representing 79.8% of net income, and has consistently paid quarterly dividends since 1999, reflecting the company's commitment to shareholders and stable cash flow.
- Durability of Customer Relationships: By the end of fiscal 2025, Fastenal had deployed 136,638 FMI vending machines at customer sites, with contract customers accounting for 73.8% of sales, significantly increasing switching costs and enhancing the company's market position.
- Financial Stability: Fastenal boasts $3.94 billion in equity against $1.11 billion in total liabilities, showcasing its conservative balance sheet management, which further strengthens the company's risk resilience amid economic uncertainties.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy FAST?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on FAST
Wall Street analysts forecast FAST stock price to rise
9 Analyst Rating
3 Buy
3 Hold
3 Sell
Hold
Current: 44.360
Low
38.00
Averages
45.00
High
52.00
Current: 44.360
Low
38.00
Averages
45.00
High
52.00
About FAST
Fastenal Company is engaged in the wholesale distribution of industrial and construction supplies. The Company is a distributor of threaded fasteners, bolts, nuts, screws, studs, and related washers, as well as miscellaneous supplies and hardware, such as pins, machinery keys, concrete anchors, metal framing systems, wire rope, struts, rivets, and related accessories. Its business tools include Fastenal Managed Inventory (FMI), Bin stock (FASTStock and FASTBin), and Industrial vending (FASTVend). It serves general and commercial contractors in non-residential end markets as well as farmers, truckers, railroads, oil exploration companies, oil production and refinement companies, mining companies, federal, state, and local governmental entities, schools, warehouse and storage, data centers, and certain retail trades. The Company also invests in digital solutions and leverages local inventory for same-day solutions and provides services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Fastenal: Embedded Inventory Infrastructure in Customer Factories
- Revenue Growth: Fastenal's revenue increased by 8.67% to $8.2 billion in 2025, demonstrating strong market resilience despite sluggish industrial production, indicating the company's stability during economic fluctuations.
- Shareholder Returns: In 2025, Fastenal returned $1.0042 billion to shareholders, representing 79.8% of net income, and has consistently paid quarterly dividends since 1999, reflecting the company's commitment to shareholders and stable cash flow.
- Durability of Customer Relationships: By the end of fiscal 2025, Fastenal had deployed 136,638 FMI vending machines at customer sites, with contract customers accounting for 73.8% of sales, significantly increasing switching costs and enhancing the company's market position.
- Financial Stability: Fastenal boasts $3.94 billion in equity against $1.11 billion in total liabilities, showcasing its conservative balance sheet management, which further strengthens the company's risk resilience amid economic uncertainties.
See More
Analysis of Upcoming U.S. Jobs Report Outlook
- Job Market Expectations: According to FactSet consensus estimates, the U.S. is expected to add only 50,000 jobs in April, significantly lower than March's 178,000, indicating signs of economic slowdown that could impact investor confidence.
- Unemployment Rate Stability: The unemployment rate is anticipated to remain steady at 4.3%, suggesting that despite the decrease in job additions, the labor market remains relatively stable, potentially alleviating fears of an economic downturn.
- GDP Growth Situation: The U.S. GDP grew at a seasonally adjusted annualized rate of 2% in the first quarter, higher than the fourth quarter's 0.5% but below the 2.2% estimate, reflecting economic sluggishness that may influence future monetary policy decisions.
- Market Volatility: Despite a strong performance in April, with the S&P 500 and Nasdaq hitting record highs, investors should remain cautious of the upcoming
See More
Three High-Quality Stocks to Watch
- Fastenal's Strong Performance: With a five-year return of 75.5%, Fastenal has seen elevated product demand, averaging 9.1% unit sales growth, resulting in a best-in-class gross margin of 45.5%, showcasing its competitive edge in the market.
- ESCO's Impressive Revenue Growth: ESCO boasts a remarkable five-year return of 187%, with annual revenue growth of 11.5% and a 36.3% increase in earnings per share, indicating significant market share gains in aerospace, defense, and utility sectors.
- Ares Management's Outstanding Results: Ares has achieved a five-year return of 101%, with annual revenue growth of 21.4% and a compounded EPS growth rate of 20.7%, reflecting its strong performance in the alternative investment space and increasing market share.
- Positive Market Trends: These companies not only excel in their respective fields but also demonstrate strong growth potential in the current market environment, attracting investor attention and potentially leading to long-term gains.
See More
IYM ETF 52-Week Price Analysis
- Price Range Analysis: The IYM ETF has a 52-week low of $128.20 and a high of $189.805, with the last trade at $183.79, indicating that the ETF is fluctuating near its high, potentially attracting investor interest in its price movements.
- Technical Analysis Tool: Comparing the current share price to the 200-day moving average can provide investors with valuable technical insights, aiding in market trend assessment and potential buying opportunities.
- ETF Unit Trading Mechanism: ETFs trade like stocks, where investors are buying and selling 'units' that can be created or destroyed based on investor demand, thus impacting the ETF's liquidity and market performance.
- Inflows and Outflows Monitoring: Weekly monitoring of changes in shares outstanding for ETFs helps identify those experiencing significant inflows or outflows, where inflows necessitate the purchase of underlying assets, while outflows may lead to the selling of those assets, affecting individual stock performance.
See More
US Stocks Surge as Oil Prices Plunge Amid Ceasefire Talks
- Market Rally: The S&P 500 rose by 1.18%, reaching a two-month high, while the Nasdaq 100 increased by 1.81%, reflecting strong investor optimism ahead of the earnings season, particularly as major banks prepare to report.
- Oil Price Plunge: WTI crude oil prices fell over 7% due to potential US-Iran ceasefire extensions, which will lower jet fuel costs for airlines, thereby boosting profitability and further supporting stock market gains.
- Inflation Data Impact: The March PPI report showed a 4.0% year-over-year increase, below the expected 4.6%, indicating easing inflation pressures that could influence the Fed's rate hike decisions, leading to more cautious market expectations regarding future monetary policy.
- Airline Stocks Surge: American Airlines Group saw its stock rise over 8% as a result of falling oil prices, demonstrating market confidence in the airline industry's recovery and reflecting investor optimism about the profitability potential from lower fuel costs.
See More
US Stocks Rally as Oil Prices Plunge
- Strong Market Performance: The S&P 500 rose by 0.77%, the Dow Jones by 0.59%, and the Nasdaq 100 by 0.98%, reflecting optimism about economic recovery, particularly with the potential extension of the US-Iran ceasefire.
- Significant Oil Price Drop: WTI crude oil prices fell over 5% due to optimistic expectations surrounding US-Iran negotiations, which not only alleviates inflationary pressures but may also support the stock market, indicating confidence in future economic growth.
- Inflation Data Impact: The US March PPI rose 4.0% year-over-year, below the expected 4.6%, suggesting that rising fuel prices are slowly filtering into inflation statistics, potentially prompting the Fed to adopt a more dovish stance in upcoming policy meetings.
- Earnings Season Approaches: Q1 earnings for the S&P 500 are projected to increase by 12% year-over-year, although the growth is only 3% when excluding the tech sector, indicating a mix of expectations and caution among investors that could influence decision-making.
See More
Fastenal: Embedded Inventory Infrastructure in Customer Factories
- Revenue Growth: Fastenal's revenue increased by 8.67% to $8.2 billion in 2025, demonstrating strong market resilience despite sluggish industrial production, indicating the company's stability during economic fluctuations.
- Shareholder Returns: In 2025, Fastenal returned $1.0042 billion to shareholders, representing 79.8% of net income, and has consistently paid quarterly dividends since 1999, reflecting the company's commitment to shareholders and stable cash flow.
- Durability of Customer Relationships: By the end of fiscal 2025, Fastenal had deployed 136,638 FMI vending machines at customer sites, with contract customers accounting for 73.8% of sales, significantly increasing switching costs and enhancing the company's market position.
- Financial Stability: Fastenal boasts $3.94 billion in equity against $1.11 billion in total liabilities, showcasing its conservative balance sheet management, which further strengthens the company's risk resilience amid economic uncertainties.
See More
Analysis of Upcoming U.S. Jobs Report Outlook
- Job Market Expectations: According to FactSet consensus estimates, the U.S. is expected to add only 50,000 jobs in April, significantly lower than March's 178,000, indicating signs of economic slowdown that could impact investor confidence.
- Unemployment Rate Stability: The unemployment rate is anticipated to remain steady at 4.3%, suggesting that despite the decrease in job additions, the labor market remains relatively stable, potentially alleviating fears of an economic downturn.
- GDP Growth Situation: The U.S. GDP grew at a seasonally adjusted annualized rate of 2% in the first quarter, higher than the fourth quarter's 0.5% but below the 2.2% estimate, reflecting economic sluggishness that may influence future monetary policy decisions.
- Market Volatility: Despite a strong performance in April, with the S&P 500 and Nasdaq hitting record highs, investors should remain cautious of the upcoming
See More
Three High-Quality Stocks to Watch
- Fastenal's Strong Performance: With a five-year return of 75.5%, Fastenal has seen elevated product demand, averaging 9.1% unit sales growth, resulting in a best-in-class gross margin of 45.5%, showcasing its competitive edge in the market.
- ESCO's Impressive Revenue Growth: ESCO boasts a remarkable five-year return of 187%, with annual revenue growth of 11.5% and a 36.3% increase in earnings per share, indicating significant market share gains in aerospace, defense, and utility sectors.
- Ares Management's Outstanding Results: Ares has achieved a five-year return of 101%, with annual revenue growth of 21.4% and a compounded EPS growth rate of 20.7%, reflecting its strong performance in the alternative investment space and increasing market share.
- Positive Market Trends: These companies not only excel in their respective fields but also demonstrate strong growth potential in the current market environment, attracting investor attention and potentially leading to long-term gains.
See More
IYM ETF 52-Week Price Analysis
- Price Range Analysis: The IYM ETF has a 52-week low of $128.20 and a high of $189.805, with the last trade at $183.79, indicating that the ETF is fluctuating near its high, potentially attracting investor interest in its price movements.
- Technical Analysis Tool: Comparing the current share price to the 200-day moving average can provide investors with valuable technical insights, aiding in market trend assessment and potential buying opportunities.
- ETF Unit Trading Mechanism: ETFs trade like stocks, where investors are buying and selling 'units' that can be created or destroyed based on investor demand, thus impacting the ETF's liquidity and market performance.
- Inflows and Outflows Monitoring: Weekly monitoring of changes in shares outstanding for ETFs helps identify those experiencing significant inflows or outflows, where inflows necessitate the purchase of underlying assets, while outflows may lead to the selling of those assets, affecting individual stock performance.
See More
US Stocks Surge as Oil Prices Plunge Amid Ceasefire Talks
- Market Rally: The S&P 500 rose by 1.18%, reaching a two-month high, while the Nasdaq 100 increased by 1.81%, reflecting strong investor optimism ahead of the earnings season, particularly as major banks prepare to report.
- Oil Price Plunge: WTI crude oil prices fell over 7% due to potential US-Iran ceasefire extensions, which will lower jet fuel costs for airlines, thereby boosting profitability and further supporting stock market gains.
- Inflation Data Impact: The March PPI report showed a 4.0% year-over-year increase, below the expected 4.6%, indicating easing inflation pressures that could influence the Fed's rate hike decisions, leading to more cautious market expectations regarding future monetary policy.
- Airline Stocks Surge: American Airlines Group saw its stock rise over 8% as a result of falling oil prices, demonstrating market confidence in the airline industry's recovery and reflecting investor optimism about the profitability potential from lower fuel costs.
See More
US Stocks Rally as Oil Prices Plunge
- Strong Market Performance: The S&P 500 rose by 0.77%, the Dow Jones by 0.59%, and the Nasdaq 100 by 0.98%, reflecting optimism about economic recovery, particularly with the potential extension of the US-Iran ceasefire.
- Significant Oil Price Drop: WTI crude oil prices fell over 5% due to optimistic expectations surrounding US-Iran negotiations, which not only alleviates inflationary pressures but may also support the stock market, indicating confidence in future economic growth.
- Inflation Data Impact: The US March PPI rose 4.0% year-over-year, below the expected 4.6%, suggesting that rising fuel prices are slowly filtering into inflation statistics, potentially prompting the Fed to adopt a more dovish stance in upcoming policy meetings.
- Earnings Season Approaches: Q1 earnings for the S&P 500 are projected to increase by 12% year-over-year, although the growth is only 3% when excluding the tech sector, indicating a mix of expectations and caution among investors that could influence decision-making.
See More
