Wednesday, July 10, 2013

Investopedia: Fastenal Still Growing, But Still Highly Valued

Even when sluggish manufacturing activity weighs down growth in the industrial distribution/MRO space, Fastenal (Nasdaq:FAST) still manages to find the ways to outgrow most of its rivals. Quarter-to-quarter execution hasn't really ever been the issue here, nor the company's investments into aggressively growing the vending machine business. What the issue was, is, and likely will continue to be is what investors should pay for that growth – while Fastenal is clearly not as cyclical as some players in the space, even a 20% free cash flow CAGR estimate doesn't lead to a compelling price target.

Click this link to read the full article:
http://www.investopedia.com/stock-analysis/071013/fastenal-still-growing-still-highly-valued-fast-msm-gww-itw-amzn.aspx

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