Our stock screener has singled out MSC INDUSTRIAL DIRECT CO-A (NYSE:MSM) as a promising choice for dividend investors. NYSE:MSM not only scores well in profitability, solvency, and liquidity but also offers a decent dividend. We'll explore this further.
Dividend Assessment of NYSE:MSM
ChartMill provides a Dividend Rating for every stock, ranging from 0 to 10. This rating assesses various dividend aspects, including yield, growth, and sustainability. NYSE:MSM earns a 7 out of 10:
- With a Yearly Dividend Yield of 4.04%, MSM is a good candidate for dividend investing.
- MSM's Dividend Yield is rather good when compared to the industry average which is at 1.71. MSM pays more dividend than 96.00% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 2.19, MSM pays a better dividend.
- 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.
Evaluating Health: NYSE:MSM
ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NYSE:MSM, the assigned 5 reflects its health status:
- MSM has an Altman-Z score of 5.37. This indicates that MSM is financially healthy and has little risk of bankruptcy at the moment.
- MSM has a Altman-Z score of 5.37. This is in the better half of the industry: MSM outperforms 80.00% of its industry peers.
- The Debt to FCF ratio of MSM is 1.63, which is an excellent value as it means it would take MSM, only 1.63 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 1.63, MSM is in the better half of the industry, outperforming 74.00% of the companies in the same industry.
- A Debt/Equity ratio of 0.20 indicates that MSM is not too dependend on debt financing.
- MSM has a Debt to Equity ratio of 0.20. This is in the better half of the industry: MSM outperforms 66.00% of its industry peers.
Profitability Analysis 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 7 out of 10:
- With an excellent Return On Assets value of 10.50%, MSM belongs to the best of the industry, outperforming 84.00% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 18.58%, MSM is in the better half of the industry, outperforming 76.00% of the companies in the same industry.
- MSM has a Return On Invested Capital of 16.39%. This is amongst the best in the industry. MSM outperforms 88.00% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for MSM is significantly above the industry average of 9.26%.
- The Profit Margin of MSM (6.77%) is better than 70.00% of its industry peers.
- With a decent Operating Margin value of 10.63%, MSM is doing good in the industry, outperforming 76.00% of the companies in the same industry.
- MSM has a Gross Margin of 41.16%. This is in the better half of the industry: MSM outperforms 74.00% of its industry peers.
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For an up to date full fundamental analysis you can check the fundamental report of MSM
Disclaimer
Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.