Fastenal Company (FAST): Don’t Miss Out On This FAST Growing Stock

Page 2 of 2

By the numbers

Fastenal is quite expensive by price to earnings standards:
Fastenal W.W. Grainger Anixter MSC Airgas
Forward P/E 26 17 10 17 18
But is this premium valuation warranted? Fastenal is above major peers when its comes to growth…
Fastenal W.W. Grainger Anixter MSC Airgas
5-year expected EPS growth 18% 14.50% 15% 13% 12%
…and generating returns for investors:

Fastenal W.W. Grainger Anixter MSC Airgas
Return on investment 26% 20% 6% 21% 7%
Fastenal W.W. Grainger Anixter MSC Airgas
EBITDA margin 23.50% 15.50% 6% 19% 17.50%

Don’t be fooled

Fastenal Company (NASDAQ:FAST) has made some innovative moves and is much more than just a fastener company. Major headwinds that will push the company higher also include higher economic growth. S&P forecasts U.S. GDP to grow 2.7% in 2013, versus estimated growth of 2.2% in 2012. Although from a P/E standpoint the stock looks to be expensive, this premium to the industry is well-warranted given the company’s impressive metrics, from growth to investor returns.

The article Don’t Miss out on This FAST Growing Stock originally appeared on Fool.com and is written by Marshall Hargrave.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.


Page 2 of 2