Fastenal sells
and delivers industrial and construction supplies (threaded fasteners, tools
and equipment, cutting tools and abrasives, components and accessories for
hydraulics, pneumatics, plumbing and HVAC, material handling products and
janitorial, welding, safety and electrical supplies) through both wholesale and
retail channels in the US ,
Singapore ,
Canada ,
Mexico ,
China ,
the Netherlands
and Puerto Rico . The company has grown its profits and
dividends rapidly over the last 10 years (19% and 40% respectively) while
earning a 16-25%+ return on equity. FAST’s
growth is sensitive to economic downturn; however longer term, the company
should continue to produce excellent results as a result of:
(1) expansion of its product line,
(2) installation
of a more efficient distribution system,
(3) effective cost controls,
Negatives:
(1)
revenues are sensitive to economic conditions,
(2) rising raw
material and fuel costs.
Statistical Summary
Stock Dividend Payout # Increases
Yield Growth Rate Ratio
Since 2004
Ind Ave 1.5 14 37 NA
Debt/ EPS Down Net Value Line
Equity ROE Since 2004 Margin Rating
Ind Ave 27 31 NA 8 NA
Chart
Note:
FAST stock made good initial progress off its March 2009 low, quickly surpassing
the downtrend off its September 2008 high (straight red line) and the November
2008 trading high (green line). Long
term, the stock is in an uptrend (blue lines).
Intermediate term, it is in a trading range (purple lines). The wiggly red line is the 200 day moving
average. The Aggressive Growth Portfolio
owns a 50% in FAST, having Sold Half in early 2012. The upper boundary of its Buy Value Range is
$39; the lower boundary of its Sell Half Range is $67.
10/14
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