WallStSmart

Core & Main Inc (CNM)vsFastenal Company (FAST)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Fastenal Company generates 10% more annual revenue ($8.44B vs $7.65B). FAST leads profitability with a 15.4% profit margin vs 5.9%. CNM appears more attractively valued with a PEG of 1.46. FAST earns a higher WallStSmart Score of 62/100 (C+).

CNM

Buy

55

out of 100

Grade: C-

Growth: 4.0Profit: 6.0Value: 4.7Quality: 7.0
Piotroski: 6/9Altman Z: 2.42

FAST

Buy

62

out of 100

Grade: C+

Growth: 6.0Profit: 9.0Value: 5.3Quality: 9.0
Piotroski: 5/9Altman Z: 6.57
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CNMSignificantly Overvalued (-43.7%)

Margin of Safety

-43.7%

Fair Value

$33.64

Current Price

$52.37

$18.73 premium

UndervaluedFair: $33.64Overvalued
FASTUndervalued (+55.6%)

Margin of Safety

+55.6%

Fair Value

$103.39

Current Price

$47.16

$56.23 discount

UndervaluedFair: $103.39Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CNM1 strengths · Avg: 9.0/10
Return on EquityProfitability
22.1%9/10

Every $100 of equity generates 22 in profit

FAST5 strengths · Avg: 9.2/10
Return on EquityProfitability
32.6%10/10

Every $100 of equity generates 33 in profit

Altman Z-ScoreHealth
6.5710/10

Safe zone — low bankruptcy risk

Market CapQuality
$52.87B9/10

Large-cap with strong market position

Debt/EquityHealth
0.119/10

Conservative balance sheet, low leverage

Operating MarginProfitability
20.3%8/10

Strong operational efficiency at 20.3%

Areas to Watch

CNM3 concerns · Avg: 2.7/10
Profit MarginProfitability
5.9%3/10

5.9% margin — thin

Debt/EquityHealth
1.223/10

Elevated debt levels

Revenue GrowthGrowth
-0.1%2/10

Revenue declined 0.1%

FAST3 concerns · Avg: 2.7/10
Price/BookValuation
13.6x4/10

Trading at 13.6x book value

PEG RatioValuation
3.332/10

Expensive relative to growth rate

P/E RatioValuation
40.8x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull Case : CNM

The strongest argument for CNM centers on Return on Equity. PEG of 1.46 suggests the stock is reasonably priced for its growth.

Bull Case : FAST

The strongest argument for FAST centers on Return on Equity, Altman Z-Score, Market Cap. Profitability is solid with margins at 15.4% and operating margin at 20.3%. Revenue growth of 12.4% demonstrates continued momentum.

Bear Case : CNM

The primary concerns for CNM are Profit Margin, Debt/Equity, Revenue Growth.

Bear Case : FAST

The primary concerns for FAST are Price/Book, PEG Ratio, P/E Ratio. A P/E of 40.8x leaves little room for execution misses.

Key Dynamics to Monitor

CNM profiles as a value stock while FAST is a mature play — different risk/reward profiles.

CNM carries more volatility with a beta of 0.91 — expect wider price swings.

FAST is growing revenue faster at 12.4% — sustainability is the question.

FAST generates stronger free cash flow (320M), providing more financial flexibility.

Bottom Line

FAST scores higher overall (62/100 vs 55/100), backed by strong 15.4% margins and 12.4% revenue growth. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Core & Main Inc

INDUSTRIALS · INDUSTRIAL DISTRIBUTION · USA

Core & Main Inc. (CNM) stands as a leading distributor of waterworks and plumbing products in the United States, serving a diverse range of clients including municipalities, contractors, and industrial sectors. With a strong commitment to delivering innovative infrastructure solutions for water, wastewater, and stormwater management, the company is increasingly focused on fostering sustainability amidst mounting environmental challenges. Leveraging its extensive supply chain and operational expertise, Core & Main is well-positioned to address the urgent needs for infrastructure modernization and compliance with rigorous environmental regulations, thus playing a pivotal role in advancing water management practices within the essential utilities sector.

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Fastenal Company

INDUSTRIALS · INDUSTRIAL DISTRIBUTION · USA

Fastenal Company is an American company based in Winona, Minnesota. Fastenal's service model centers on approximately 3,200 in-market locations, each providing custom inventory, and a dedicated sales team to support local businesses. Fastenal offers companies supply chain solutions that help business reduce inventory touches, and supply chain waste.

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