Fastenal Company (NASDAQ:FAST) stock had a rough day in the market on Wednesday, April 11. Shares dropped -6.19% and closed the day at $51.05. They're now trading 13.08% below their 52-week high of $58.74.
With today's big drop, Fastenal now has a market cap of $15 billion. That makes it a large cap company.
The business operates in the industrial and construction industry and employs 18,004 people. Its shares trade primarily on the NASDAQ stock exchange.
Fastenal has 287.69 million shares outstanding and 12.12 million traded hands for the day. That's above the average 30-day volume of 2.56 million shares.
Over the last five years, Fastenal's revenue is up by 40.11%. You can see this growth in annual revenue chart below...
In the last year alone, Fastenal's revenue has grown by 10.81%. That's a solid sign for Fastenal stock owners.
We like to invest in companies that grow their sales. A growing top line is a sign of a healthy business.
For now, Fastenal will continue to pull in revenue. So let's take a closer look at the company's total financial health. And the best way to do that is by looking at its balance sheet... Fastenal's cash comes in at $117 million and the company's debt is $415 million...
Fastenal's cash pile is smaller than its total debt. This is common for many companies. They can issue debt at a lower cost to take on new projects.
What is Fastenal Stock Worth?
To determine the value of Fastenal stock let's look at a few key metrics:
Price-to-Earnings (P/E): This ratio comes in at 24.72 for Fastenal. That's a reasonable level. A high P/E ratio shows that investors are already expecting high earnings growth.
Price-to-Book (P/B): This ratio is a cornerstone for value investors. A lower number here indicates a better value play. And at 6.76, Fastenal looks reasonable… but P/B varies greatly based on the industry.
These two metrics are a great place to start when valuing a company, but your analysis should go much deeper.