MSM - Fastenal: MRO Play Trading At A Substantial Premium

2024-07-15 15:13:15 ET

Summary

• Fastenal Company has consistently outperformed peers and the wider industry, driven by a unique business model with a focus on customer relationships, vending machines, and a decentralized culture.
• Despite modest growth and earnings performance, shares have risen over 40% in the past year and a half, leading to inflated multiples and a lack of appeal at current levels.
• A slowdown in the MRO industry has impacted Fastenal's growth as well, leaving the current valuation very demanding.

Early in 2023, I believed it was time to fasten up in the case of shares of Fastenal Company ( FAST ) . The company continued and continues to outgrow the MRO industry, granting shares a well-deserved premium versus the market at large....

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