- Fastenal runs in-market locations offering supply chain solutions, custom inventory, and dedicated sales teams.
- I see two beneficial factors. First, I would expect that the company will be able to find old locations, which usually generate an existing customer base.
- The management will work smartly by closing locations that are not performing. Notice that the company is opening and closing stores every year.
- It appears very clear that management is bringing significant dynamism to the business model.
- I believe that the most likely scenario stands close to the base case scenario, in which the implied price is $67-$79. I don’t think that my assumptions are far from that of other analysts.
For further details see:
Fastenal's DCF: New Years Of Business Growth Loading