Fastenal Co Ranks High in Growth Investor Model

Fastenal Co shines as it reaches a 77% rating in the P/B Growth Investor model, signaling investment interest. Investors should take note of this rating as it indicates strong fundamentals and positive outlook.

Date: 11-02-2025

AI Rating: 7

Analysis of Fastenal Co
Fastenal Co (FAST) has achieved a rating of 77% in the P/B Growth Investor model, reflecting a solid assessment of its underlying fundamentals and stock valuation. Typically, a score above 80% indicates some level of investment interest, and a score above 90% reveals strong interest. As such, this 77% rating suggests that the company demonstrates characteristics favorable for future growth.

FAST has shown positive indicators in several critical areas. The Book/Market Ratio, Return on Assets, and Cash Flow from Operations to Assets all resulted in a “PASS” rating, indicating effective financial management and operational efficiency. The performance in Cash Flow from Operations to Assets versus Return on Assets further reinforces this positive outlook.

Moreover, Sales Variance also received a “PASS,” which can suggest that the company is maintaining stable sales which contributes to growth prospects. Notably, the Capital Expenditures to Assets ratio achieved a “PASS,” indicating appropriate investments in assets to support future revenue generation.

However, there are two critical areas where FAST did not perform well: Advertising to Assets and Research and Development (R&D) to Assets, both of which received a “FAIL” rating. This underperformance raises concerns surrounding the company's marketing investments and commitment to innovation, which are important for sustaining growth in a competitive environment.

Investors should weigh these factors carefully. Despite the negative indicators, the overall strong fundamentals evidenced by the favorable ratings could signify potential for positive stock price performance in the future.

Stocks: FAST