Fastenal distributes fasteners and other essential supplies to thousands of manufacturers.
The company has built a diversified revenue base that still has room to grow.
However, the market has priced Fastenal at a premium, which complicates things for those considering buying shares.
10 stocks we like better than Fastenal ›
Manufacturing is the basis of the global economy. Almost everything, from footwear to automobiles, is produced in factories. Within that landscape, Fastenal (NASDAQ: FAST) has built a tremendous business.
The company distributes fasteners, supplies, safety gear, and other products that almost every manufacturer needs but often overlooks.
Decades of steady growth have made Fastenal a giant in the industry, and its shareholders quite wealthy. The company has paid and raised its dividend for 25 consecutive years, and returned over 13,000% since the mid-1990s.
Shares are up 67% over the past three years alone. Can the stock continue to deliver, or is Fastenal approaching the end of its runway? Here is what you need to know.
Image source: Getty Images.
Supply chains are crucial to all manufacturers. But while most companies focus on the core materials they need to build their products, they often overlook the simple items that workers frequently need. Think nuts and bolts, safety goggles, and batteries. Fastenal has found immense success catering to this need.
Fastenal is a leading distributor of industrial supplies, selling essential yet under-the-radar products to its customers. It focuses on technology to provide excellent service and nearly unbeatable convenience.
For example, Fastenal installs vending machines at customer facilities, allowing workers to easily access what they need without interrupting their work. Fastenal will also open on-site stores at larger facilities and has a full-fledged e-commerce storefront.
Continuous expansion has helped Fastenal continue to grow its top and bottom lines:
FAST Revenue (TTM) data by YCharts
Today, Fastenal has approximately 130,000…
..
