Fastenal's ROCE Trend Indicates a Compounding Machine

Fastenal (NASDAQ:FAST) has consistently earned a 38% return on capital employed over the last five years, with the capital employed increasing 29% in that time. The company's ROCE is higher than the Trade Distributors industry average of 12%. Fastenal's ability to reinvest its earnings at high rates of return has contributed to its 125% return to shareholders over the last five years.