Why NYSE:MSM is a Top Pick for Dividend Investors.

Last update: Aug 12, 2024

Unearth the potential of MSC INDUSTRIAL DIRECT CO-A (NYSE:MSM) as a dividend stock recommended by our stock screening tool. NYSE:MSM maintains a robust financial footing and delivers a sustainable dividend. We'll delve into the details below.

Understanding NYSE:MSM's Dividend

ChartMill assigns a Dividend Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing various dividend elements, such as yield, historical performance, dividend growth, and sustainability. NYSE:MSM has been awarded a 7 for its dividend quality:

MSM has a Yearly Dividend Yield of 4.13%, which is a nice return.
Compared to an average industry Dividend Yield of 1.93, MSM pays a better dividend. On top of this MSM pays more dividend than 96.08% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.33, MSM pays a better dividend.
The dividend of MSM is nicely growing with an annual growth rate of 7.27%!
MSM has paid a dividend for at least 10 years, which is a reliable track record.

How do we evaluate the Health for 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:

An Altman-Z score of 5.28 indicates that MSM is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 5.28, MSM belongs to the best of the industry, outperforming 80.39% of the companies in the same industry.
MSM has a debt to FCF ratio of 1.51. This is a very positive value and a sign of high solvency as it would only need 1.51 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 1.51, MSM is doing good in the industry, outperforming 72.55% of the companies in the same industry.
MSM has a Debt/Equity ratio of 0.21. This is a healthy value indicating a solid balance between debt and equity.
MSM has a Debt to Equity ratio of 0.21. This is in the better half of the industry: MSM outperforms 66.67% of its industry peers.
MSM has a Current Ratio of 2.08. This indicates that MSM is financially healthy and has no problem in meeting 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.

A Closer Look at Profitability for NYSE:MSM

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NYSE:MSM scores a 8 out of 10:

The Return On Assets of MSM (11.77%) is better than 86.27% of its industry peers.
MSM's Return On Equity of 20.73% is fine compared to the rest of the industry. MSM outperforms 68.63% of its industry peers.
With an excellent Return On Invested Capital value of 17.26%, MSM belongs to the best of the industry, outperforming 86.27% of the companies in the same industry.
MSM had an Average Return On Invested Capital over the past 3 years of 16.95%. This is significantly above the industry average of 11.04%.
The last Return On Invested Capital (17.26%) for MSM is above the 3 year average (16.95%), which is a sign of increasing profitability.
MSM has a better Profit Margin (7.44%) than 64.71% of its industry peers.
Looking at the Operating Margin, with a value of 11.06%, MSM is in the better half of the industry, outperforming 68.63% of the companies in the same industry.
MSM's Gross Margin of 41.03% is fine compared to the rest of the industry. MSM outperforms 70.59% of its industry peers.

Our Best Dividend screener lists more Best Dividend stocks and is updated daily.

Check the latest full fundamental report of MSM for a complete fundamental analysis.

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.