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How Did Fastenal Perform Compared to Its Peers in 3Q15?

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Oct. 15 2015, Published 8:26 a.m. ET

Fastenal and its peers

An analysis of Fastenal’s income statement in 3Q15 follows:

  • The net profit margins of Fastenal (FAST), W.W. Grainger (GWW), HD Supply Holdings (HDS), Watsco (WSO), and MSC Industrial Direct Co. (MSM) are 13.7%, 8.9%, 5.1%, 6.9%, and 8.5%, respectively.
  • The EPS (earnings per share) of Fastenal, W.W. Grainger, HD Supply, Watsco, and MSC Industrial are $0.47, $3.24, $0.51, $1.85, and $1.03, respectively.

An analysis of Fastenal’s balance sheet in 3Q15 follows:

  • The current ratios of Fastenal, W.W. Grainger, HD Supply, Watsco, and MSC Industrial are 4.5, 3.4, 0.42, 3.9, and 2.2, respectively.

An analysis of Fastenal’s valuation follows:

  • The PE (price-to-earnings) ratios of Fastenal, W.W. Grainger, HD Supply, Watsco, and MSC Industrial are 21.6x, 19x, 19.1x, 26.8x, and 16.4x, respectively.
  • The PBV (price-to-book value) ratios of Fastenal, W.W. Grainger, Watsco, and MSC Industrial are 6.3x, 4.91x, 4.5x, and 2.9x, respectively.

According to the above findings, the peers are way ahead of Fastenal based on the EPS. However, Fastenal outperformed its peers based on the net profit margin, current ratio, PE ratio, and PBV ratio.

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ETFs that invest in Fastenal Company

The First Trust NASDAQ-100 Ex-Technology Sector Index Fund (QQXT) invests 1.62% of its holdings in Fastenal. The ETF tracks an equal-weighted index of NASDAQ-100 stocks that excludes technology companies.

The Guggenheim S&P Equal Weight Industrials ETF (RGI) invests 1.56% of its holdings in Fastenal. The ETF tracks an equal-weighted index of US Industrials stocks drawn from the S&P 500.

The First Trust NASDAQ-100 Equal Weighted Index Fund (QQEW) invests 1.01% of its holdings in Fastenal. The ETF tracks an equal-weighted version of the NASDAQ 100.

Compared Fastenal and its ETFs

An analysis of Fastenal’s price movement follows:

  • The YTD (year-to-date) price movements of Fastenal, QQXT, RGI, and QQEW are -18.6%, 1%, -5.5%, and -0.81% respectively.

An analysis of Fastenal’s valuation follows:

  • The PE (price-to-earnings) ratios of Fastenal, QQXT, RGI, and QQEW are 21.6x, 33.1x, 15.4x, and 24.3x, respectively.
  • The PBV (price-to-book value) ratios of Fastenal, QQXT, RGI, and QQEW are 6.3x, 4.7x, 3x, and 4x, respectively.

According to the above findings, the ETFs outperformed Fastenal based on the price movement and PE ratio. However, Fastenal is way ahead of its ETFs based on the PBV ratio.

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