| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 18 | 41.8x | 17.8x | Bottom tier | |
Growth | 66 | 12.5% | 7.1% | Around median | |
Quality | 83 | 29.8% | 4.5% | Top tier | |
Safety | 96 | 0.2x | 2.6x | Top tier | |
Capital Return | 38 | 1.86% | 2.12% | Bottom tier | |
Momentum | 72 | 8.2% | 2.9% | Top tier | |
Sentiment | 84 | 12 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Fastenal Company distributes manufacturing and industrial supplies, with a historical focus on fasteners alongside direct and indirect materials. The company generates revenue through contracts with key accounts, customer-site locations, digital sales, and the Fastenal Managed Inventory system known as FMI; in Q2 fiscal 2026, the digital footprint accounted for 61.6% of sales, while FMI-related sales represented approximately 44.6%.
In Q2 fiscal 2026, revenue was $2.4 billion, gross profit was $1.1 billion, net income was $382.8 million, and earnings per share were $0.33. These figures equate to a gross margin of approximately 45.8% and a net income margin of approximately 16.0%, while average daily sales grew 14.7% year over year, compared with 12.4% in Q1 fiscal 2026.
Heavy manufacturing was the largest disclosed component of the mix, accounting for 44% of sales and recording 18% growth in average daily sales during Q2 fiscal 2026. Construction grew by approximately 17% for the second consecutive quarter, supported by demand in electrical, utilities, infrastructure, and data centers, while the direct and indirect material categories grew at mid-teens rates, with direct materials slightly outperforming.
The analyst consensus on FAST is Neutral, with an average price target of $48.88 and a relatively wide range between $42 and $55. The average target is below the 52-week range high of $52.92, while the highest target slightly exceeds that high, reflecting a balance between strong sales growth, gross margin pressure, and the price-cost gap.
Figures in the text are as of 2026-08-27; the live price is shown at the top of the page.
Average daily sales grew 14.7% year over year, up from 12.4% in Q1 fiscal 2026. Management attributed this to new contracts, increased share with existing customers, a pricing impact of 2.9%, and improved industrial production. The number of contracts also increased by more than 7%, and revenue from locations spending $50 thousand or more per month grew by more than 26%.
FMI sales represented approximately 44.6% of total sales in Q2 fiscal 2026, an increase of approximately 60 basis points from the prior year. FMI device signings increased 8.3% to 109 weighted devices per day, or just under 7 thousand devices during the quarter. Digital footprint sales grew 16.2% and reached 61.6% of total sales, while e-commerce grew 12.6%.
Yes, average daily sales growth increased from 12.4% in Q1 fiscal 2026 to 14.7% in Q2 fiscal 2026. Q2 revenue reached approximately $2.4 billion, compared with $2.2 billion in Q1, while net income increased to $382.8 million from $339.8 million. Earnings per share also increased to $0.33 from $0.30 between the two periods.
Automated analysis for informational purposes only — not investment advice.
Gross margin contracted by approximately 75 basis points year over year in Q2 fiscal 2026, with the price-cost impact accounting for approximately 40 basis points of pressure. Additional pressure came from the shift toward larger customers with lower gross margins, freight costs, and customer rebates. In contrast, selling, general, and administrative expenses declined to 23.5% of sales from 24.4%, helping improve the operating margin by approximately 5 basis points.
Heavy manufacturing accounted for 44% of total sales, and its average daily sales grew 18% during Q2 fiscal 2026. Construction grew by approximately 17% for the second consecutive quarter, with strength in electrical, utilities, infrastructure, and data centers. Direct and indirect materials also grew at mid-teens rates, with direct materials slightly outperforming.
The company expects net capital expenditures of approximately $320 million in fiscal 2026, focused on distribution centers, automation, technology infrastructure, and FMI devices. Net capital expenditures were approximately $60 million in Q2 fiscal 2026. The company also returned $350 million to shareholders during the quarter, mostly through cash dividends alongside limited share repurchases, equivalent to approximately 80% of net income according to management’s presentation.
