Fastenal Q3: The Math Behind My Sell Rating

Impact · against what's priced in

Fastenal's strong Q3 operational performance is insufficient to offset a stretched valuation. While daily sales growth and digital operating leverage are positive, the current 40x earnings multiple leaves the stock vulnerable to a significant correction toward historical norms.

FAST−0.10

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In context

Strong Q3 daily sales growth of 15.5% and operating leverage from digital adoption are offset by a valuation of ~40x earnings, which is significantly above the historical average of 25x.

Read from the article alone

• q3 results▲267%
• earnings
• valuation
• FAST
• industrial distribution
• margins
• market share

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