FAST - Embedded Expectations Analysis - 2021 06 21
Fastenal Company (FAST:USA) currently trades near historical highs relative to UAFRS-based (Uniform) earnings, with a 30.3x Uniform P/E. At these levels, the market has bullish expectations for the firm, but management may be concerned about Onsite location shutdowns, their Asia operations, and their e-commerce businessSpecifically, management may be concerned about their capex reductions, continued shutdowns of Onsite locations, and growth declines in their OEM fastener and non residential construction businesses. In addition, they may lack confidence in their ability to grow their e-commerce business and flexibly reduce Onsite labor, and they may be downplaying concerns about lost growth due to shutdowns. Furthermore, management may be exaggerating the value of having 200+ professionals in Asia and the potential of acquiring certain assets of Apex. Moreover, they may have concerns about the ability of customers to return to their branches, the impact of coronavirus on their China operations, and the timeline of an economic recovery
Fastenal is engaged in the wholesale distribution of industrial and construction supplies. The company is a distributor of fasteners and related industrial and construction supplies. This includes threaded fasteners, bolts, nuts, screws, studs, and related washers, as well as miscellaneous supplies and hardware, such as pins, machinery keys, concrete anchors, metal framing systems, wire rope, strut, rivets, and related accessories. The company's fastener product line is primarily sold under the Fastenal product name.
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