Exploring NYSE:MSM's dividend characteristics.

Last update: Jun 20, 2024

Our stock screener has spotted MSC INDUSTRIAL DIRECT CO-A (NYSE:MSM) as a good dividend stock with solid fundamentals. NYSE:MSM shows decent health and profitability. At the same time it gives a good and sustainable dividend. We'll dive into each aspect below.

Dividend Examination for NYSE:MSM

ChartMill assigns a proprietary Dividend Rating to each stock. The score is computed by evaluating various valuation aspects, like the yield, the history, the dividend growth and sustainability. NYSE:MSM was assigned a score of 7 for dividend:

MSM's Dividend Yield is rather good when compared to the industry average which is at 1.86. MSM pays more dividend than 98.04% of the companies in the same industry.
MSM's Dividend Yield is rather good when compared to the S&P500 average which is at 2.39.
On average, the dividend of MSM grows each year by 7.27%, which is quite nice.
MSM has been paying a dividend for at least 10 years, so it has a reliable track record.
MSM's earnings are growing more than its dividend. This makes the dividend growth sustainable.

Health Assessment of NYSE:MSM

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NYSE:MSM scores a 8 out of 10:

MSM has an Altman-Z score of 5.17. This indicates that MSM is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 5.17, MSM belongs to the best of the industry, outperforming 80.39% of the companies in the same industry.
The Debt to FCF ratio of MSM is 1.59, which is an excellent value as it means it would take MSM, only 1.59 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.59, MSM is in the better half of the industry, outperforming 72.55% of the companies in the same industry.
A Debt/Equity ratio of 0.21 indicates that MSM is not too dependend on debt financing.
The Debt to Equity ratio of MSM (0.21) is better than 66.67% of its industry peers.
A Current Ratio of 2.01 indicates that MSM has no problem at all paying its short term obligations.
MSM does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.

Assessing Profitability for NYSE:MSM

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:MSM has achieved a 8:

MSM has a better Return On Assets (12.55%) than 86.27% of its industry peers.
With a decent Return On Equity value of 22.58%, MSM is doing good in the industry, outperforming 72.55% of the companies in the same industry.
MSM's Return On Invested Capital of 18.42% is amongst the best of the industry. MSM outperforms 88.24% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MSM is significantly above the industry average of 11.19%.
The last Return On Invested Capital (18.42%) for MSM is above the 3 year average (16.95%), which is a sign of increasing profitability.
With a decent Profit Margin value of 7.89%, MSM is doing good in the industry, outperforming 64.71% of the companies in the same industry.
MSM's Operating Margin of 11.49% is fine compared to the rest of the industry. MSM outperforms 68.63% of its industry peers.
The Gross Margin of MSM (40.97%) is better than 70.59% of its industry peers.

More Best Dividend stocks can be found in our Best Dividend screener.

Our latest full fundamental report of MSM contains the most current fundamental analsysis.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.