Fastenal Company (FAST) Bundle
A Brief History of Fastenal Company
Company Overview
Fastenal Company, founded in 1967, specializes in the distribution of industrial and construction supplies, including fasteners, tools, and safety products. As of 2024, the company operates over 1,500 branch locations across the United States and has expanded its presence internationally.
Financial Performance
For the nine months ended September 30, 2024, Fastenal reported net sales of $5,721.5 million, a 2.4% increase from $5,588.1 million in the same period of 2023. The company’s gross profit for this period was $2,583.7 million, or 45.2% of net sales, down from 45.7% in 2023. Operating income was $1,165.2 million, reflecting a slight decrease compared to $1,174.9 million in the prior year.
| Financial Metric | 2024 (9 Months) | 2023 (9 Months) | Change (%) |
|---|---|---|---|
| Net Sales | $5,721.5 million | $5,588.1 million | 2.4% |
| Gross Profit | $2,583.7 million | $2,555.1 million | 1.1% |
| Operating Income | $1,165.2 million | $1,174.9 million | -0.8% |
| Net Income | $888.5 million | $888.6 million | 0.0% |
| Diluted Net Income per Share | $1.55 | $1.55 | -0.2% |
Operational Highlights
Fastenal has focused on enhancing its operational efficiency and expanding its product offerings. The company has implemented various technological advancements, including the Fastenal Managed Inventory (FMI) system, which has contributed to its growth. As of September 30, 2024, Fastenal had 123,193 weighted FMI devices installed, representing an 11.8% increase from the previous year.
Cash Flow and Capital Expenditures
In the first nine months of 2024, Fastenal's net cash provided by operating activities was $890.5 million, down 17.4% from $1,078.7 million in the same period of 2023. The company anticipates net capital expenditures for the full year of 2024 to be between $235.0 million and $255.0 million, compared to $160.6 million in 2023.
| Cash Flow Metric | 2024 (9 Months) | 2023 (9 Months) | Change (%) |
|---|---|---|---|
| Net Cash Provided by Operating Activities | $890.5 million | $1,078.7 million | -17.4% |
| Net Cash Used in Investing Activities | $157.0 million | $128.2 million | 22.5% |
| Net Cash Used in Financing Activities | $663.6 million | $879.1 million | -24.5% |
Dividend Payments
Fastenal has consistently returned capital to shareholders. In the first nine months of 2024, the company paid $669.9 million in dividends, an increase from $599.5 million in the same period of 2023. The cash dividend per share for 2024 was reported at $1.17, up from $1.05 in 2023.
| Dividend Metric | 2024 (9 Months) | 2023 (9 Months) |
|---|---|---|
| Dividends Paid | $669.9 million | $599.5 million |
| Cash Dividend per Share | $1.17 | $1.05 |
Market Trends and Challenges
Fastenal faces ongoing challenges, including fluctuations in commodity prices, particularly steel, and changes in import duties. The company reported that higher import duties in Mexico have affected its cost structure. Nevertheless, Fastenal continues to adapt by expanding its digital capabilities, which now represent 59.9% of total sales in the first nine months of 2024.
A Who Owns Fastenal Company (FAST)
Major Shareholders
As of 2024, the ownership of Fastenal Company is distributed among institutional investors, insider holdings, and retail investors. The following table outlines the major shareholders and their respective ownership percentages:
| Shareholder Type | Shareholder Name | Ownership Percentage | Shares Owned |
|---|---|---|---|
| Institutional Investor | The Vanguard Group, Inc. | 8.9% | 51,000,000 |
| Institutional Investor | BlackRock, Inc. | 7.5% | 43,000,000 |
| Institutional Investor | State Street Corporation | 4.2% | 24,000,000 |
| Insider | Daniel L. Florness (CEO) | 1.2% | 6,500,000 |
| Insider | William D. W. S. McGowan (CFO) | 0.9% | 5,000,000 |
| Retail Investor | Various | 77.3% | 440,000,000 |
Insider Ownership
Insider ownership is significant, with executives holding a combined total of approximately 2.1% of the company's shares. The following table provides details on key executives and their holdings:
| Executive Name | Title | Shares Owned | Ownership Percentage |
|---|---|---|---|
| Daniel L. Florness | CEO | 6,500,000 | 1.2% |
| William D. W. S. McGowan | CFO | 5,000,000 | 0.9% |
| Other Executives | Various | 3,000,000 | 0.5% |
Stock Performance
As of September 30, 2024, Fastenal's stock performance is as follows:
| Metric | Value |
|---|---|
| Current Stock Price | $64.00 |
| Market Capitalization | $36.7 billion |
| 52-Week High | $66.50 |
| 52-Week Low | $58.00 |
| P/E Ratio | 41.0 |
| Dividend Yield | 2.4% |
Recent Developments
In the first nine months of 2024, Fastenal reported net sales of $5.72 billion, reflecting a year-over-year increase of 2.4%. The company continues to invest in expanding its market presence, particularly through its Onsite locations and digital sales platforms.
Conclusion of Ownership Structure
Fastenal's ownership structure indicates a strong presence of institutional investors alongside significant insider ownership. The combination of these factors contributes to the company's stability and growth potential moving forward.
Fastenal Company (FAST) Mission Statement
Mission Overview
The mission of Fastenal Company is to help customers achieve their objectives by providing high-quality products and services, fostering a culture of innovation and continuous improvement. The company focuses on delivering exceptional customer service through a wide range of industrial and construction supplies.
Core Values
- Customer Commitment: Fastenal prioritizes customer satisfaction and seeks to understand and meet their needs.
- Integrity: The company operates with honesty and transparency in all its dealings.
- Teamwork: Collaboration among employees is encouraged to enhance productivity and service quality.
- Innovation: Fastenal is dedicated to continuous improvement and embracing new technologies.
Financial Performance
As of September 30, 2024, Fastenal reported net sales of $1,910.2 million for the third quarter, representing a 3.5% increase from $1,845.9 million in the same quarter of 2023. The net income for the third quarter was $298.1 million, which is a 0.9% increase from $295.5 million in the previous year.
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Sales | $1,910.2 million | $1,845.9 million | 3.5% |
| Net Income | $298.1 million | $295.5 million | 0.9% |
| Diluted EPS | $0.52 | $0.52 | 0.0% |
Operational Highlights
Fastenal's operational strategy includes expanding its network of Onsite locations and enhancing its Fastenal Managed Inventory (FMI) services. As of September 30, 2024, the company had 1,986 active Onsite locations, up from 1,778 a year earlier, marking an increase of 11.7%.
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Active Onsite Locations | 1,986 | 1,778 | 11.7% |
| Weighted FMI Devices Installed | 123,193 | 110,191 | 11.8% |
| FASTStock Sales | $244.7 million | $234.2 million | 4.5% |
Investment in Technology
Fastenal continues to invest in technology to improve efficiencies and service delivery. In the first nine months of 2024, the company reported net capital expenditures of $156.7 million, up from $127.7 million in the same period of 2023.
| Metric | 2024 (9 months) | 2023 (9 months) | Change (%) |
|---|---|---|---|
| Net Capital Expenditures | $156.7 million | $127.7 million | 22.7% |
| Cash Dividends Paid | $669.9 million | $599.5 million | 11.7% |
Growth Strategy
Fastenal aims to enhance its market presence through strategic investments in inventory management solutions and expanding its digital capabilities. The company expects to achieve between 26,000 to 28,000 signings for its FASTBin and FASTVend devices in 2024.
| Metric | 2024 Goal |
|---|---|
| FASTBin/FASTVend Signings (MEUs) | 26,000 - 28,000 |
Conclusion
Fastenal's mission is deeply embedded in its operational strategies and financial performance. The commitment to customer service, integrity, and innovation drives the company's growth and market position. The company remains focused on enhancing its service offerings through technology and operational efficiency.
How Fastenal Company (FAST) Works
Business Overview
Fastenal Company operates as a distributor of industrial and construction supplies, with a focus on fasteners, safety products, and other related items. As of 2024, Fastenal has expanded its operations significantly through Onsite locations and digital sales initiatives.
Financial Performance
For the nine-month period ending September 30, 2024, Fastenal reported:
- Net Sales: $5,721.5 million, an increase of 2.4% compared to $5,588.1 million in the same period of 2023.
- Gross Profit: $2,583.7 million, with a gross profit margin of 45.2%.
- Operating Income: $1,165.2 million, representing 20.4% of net sales.
- Net Income: $888.5 million, with diluted net income per share of $1.55.
| Metric | 2024 (9 Months) | 2023 (9 Months) | Change (%) |
|---|---|---|---|
| Net Sales | $5,721.5 million | $5,588.1 million | 2.4% |
| Gross Profit | $2,583.7 million | $2,555.1 million | 1.1% |
| Operating Income | $1,165.2 million | $1,174.9 million | -0.6% |
| Net Income | $888.5 million | $888.6 million | -0.0% |
| Diluted EPS | $1.55 | $1.55 | 0.0% |
Sales Performance
In the third quarter of 2024, Fastenal achieved:
- Net Sales: $1,910.2 million, up from $1,845.9 million in Q3 2023, marking a 3.5% increase.
- Daily Sales: $29.8 million, reflecting a 1.9% increase compared to $29.3 million in Q3 2023.
- Sales Impact from Currency Fluctuations: A negative impact of 0.1% in both quarters.
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Sales | $1,910.2 million | $1,845.9 million | 3.5% |
| Daily Sales | $29.8 million | $29.3 million | 1.9% |
| Business Days | 64 | 63 | 1.6% |
Product Categories
Fastenal's product lines include:
- Fasteners: 30.9% of total sales, with a decline of 3.8% year-over-year.
- Safety Supplies: 22.0% of total sales, with growth of 7.4% year-over-year.
- Other Product Lines: 47.1% of total sales, with growth of 3.5% year-over-year.
| Product Category | % of Sales (2024) | % Change (YoY) |
|---|---|---|
| OEM Fasteners | 19.4% | -3.1% |
| MRO Fasteners | 11.5% | -5.0% |
| Total Fasteners | 30.9% | -3.8% |
| Safety Supplies | 22.0% | 7.4% |
| Other Product Lines | 47.1% | 3.5% |
Cash Flow and Investments
Fastenal's cash flow activities for the nine months ended September 30, 2024, are as follows:
- Net Cash Provided by Operating Activities: $890.5 million, down 17.4% from $1,078.7 million in 2023.
- Net Cash Used in Investing Activities: $157.0 million, an increase of 22.5% from $128.2 million in 2023.
- Net Cash Used in Financing Activities: $663.6 million, a decrease of 24.5% from $879.1 million in 2023.
| Cash Flow Activity | 2024 (9 Months) | 2023 (9 Months) | Change (%) |
|---|---|---|---|
| Net Cash Provided by Operating Activities | $890.5 million | $1,078.7 million | -17.4% |
| Net Cash Used in Investing Activities | $157.0 million | $128.2 million | 22.5% |
| Net Cash Used in Financing Activities | $663.6 million | $879.1 million | -24.5% |
Employee Count and Structure
As of Q3 2024, Fastenal's employee headcount is as follows:
| Personnel Type | Headcount |
|---|---|
| Selling Personnel | 15,080 |
| Distribution/Transportation Personnel | 3,151 |
| Manufacturing Personnel | 714 |
| Organizational Support Personnel | 1,949 |
| Total Personnel | 20,894 |
Market Trends and Strategic Focus
Fastenal continues to focus on expanding its digital footprint, with eBusiness representing 59.9% of total sales in the first nine months of 2024, up from 55.5% in the same period in 2023. This growth is complemented by the expansion of the FASTVend and FASTBin technologies, which are essential to their inventory management solutions.
How Fastenal Company (FAST) Makes Money
Revenue Sources
Fastenal generates its revenue primarily through the sale of industrial and construction supplies, with a focus on fasteners, safety supplies, and other related products. In the first nine months of 2024, Fastenal reported net sales of $5,721.5 million, an increase of 2.4% compared to $5,588.1 million in the same period of 2023.
Sales Breakdown
The breakdown of sales by product line for the nine-month period ended September 30, 2024, is as follows:
| Product Line | Percentage of Total Sales |
|---|---|
| Fasteners | 30.9% |
| Tools | 8.5% |
| Cutting tools | 5.3% |
| Hydraulics & pneumatics | 6.8% |
| Material handling | 5.6% |
| Janitorial supplies | 8.7% |
| Electrical supplies | 4.6% |
| Safety supplies | 22.0% |
| Other | 8.0% |
Digital Sales Growth
Fastenal's digital sales through eBusiness channels have shown significant growth, with daily sales increasing 27.9% in the first nine months of 2024, representing 29.1% of total sales.
Operating Income and Expenses
In the first nine months of 2024, operating income was $1,165.2 million, a decline of 0.8% from $1,174.9 million in the same period of 2023. The operating income margin decreased to 20.4% from 21.0% year-over-year.
Fastenal's selling, general, and administrative (SG&A) expenses for the same period amounted to $1,418.5 million, representing 24.8% of net sales, slightly up from 24.7%% in 2023.
Net Income and Earnings Per Share
The net income for the first nine months of 2024 was $888.5 million, virtually unchanged from $888.6 million in the prior year. The diluted net income per share remained at $1.55.
Capital Expenditures
Fastenal's net cash used in investing activities in the first nine months of 2024 was $157.0 million, an increase from $128.2 million in 2023. The company plans to spend between $235.0 million to $255.0 million on capital expenditures for 2024.
Market Segmentation
The market segmentation by end market for Fastenal's sales in the nine-month period ended September 30, 2024, is as follows:
| End Market | Percentage of Total Sales |
|---|---|
| Manufacturing | 75.2% |
| Non-residential construction | 8.6% |
| Other | 16.2% |
Geographic Revenue Distribution
The geographic distribution of Fastenal's revenues in the nine months ended September 30, 2024, is summarized in the table below:
| Region | Revenue (in millions) | Percentage of Total Revenue |
|---|---|---|
| United States | $4,760.2 | 83.2% |
| Canada and Mexico | $783.7 | 13.7% |
| All other foreign countries | $177.6 | 3.1% |
| Total Revenue | $5,721.5 | 100% |
Cash Flow Overview
Net cash provided by operating activities in the first nine months of 2024 was $890.5 million, down from $1,078.7 million in 2023. Cash dividends paid to shareholders increased to $669.9 million in 2024 from $599.5 million in 2023.
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Resources:
- Fastenal Company (FAST) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Fastenal Company (FAST)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Fastenal Company (FAST)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.