Analyzing NYSE:MSM's Dividend Potential.

Last update: Jan 13, 2025

MSC INDUSTRIAL DIRECT CO-A (NYSE:MSM) was identified as a stock worth exploring by dividend investors by our stock screener. NYSE:MSM scores well on profitability, solvency and liquidity. At the same time it seems to pay a decent dividend. We'll explore this a bit deeper below.

Unpacking NYSE:MSM's Dividend Rating

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 4.26%, MSM is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.87, MSM pays a better dividend. On top of this MSM pays more dividend than 97.92% of the companies listed in the same industry.
MSM's Dividend Yield is rather good when compared to the S&P500 average which is at 2.34.
MSM has paid a dividend for at least 10 years, which is 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 5 out of 10:

An Altman-Z score of 5.01 indicates that MSM is not in any danger for bankruptcy at the moment.
MSM has a Altman-Z score of 5.01. This is amongst the best in the industry. MSM outperforms 81.25% of its industry peers.
The Debt to FCF ratio of MSM is 1.57, which is an excellent value as it means it would take MSM, only 1.57 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of MSM (1.57) is better than 75.00% of its industry peers.
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 68.75% of its industry peers.

Profitability Assessment of 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 6 out of 10:

With a decent Return On Assets value of 9.54%, MSM is doing good in the industry, outperforming 77.08% of the companies in the same industry.
MSM has a better Return On Invested Capital (15.34%) than 87.50% of its industry peers.
MSM had an Average Return On Invested Capital over the past 3 years of 17.86%. This is significantly above the industry average of 9.86%.
MSM has a Profit Margin of 6.21%. This is in the better half of the industry: MSM outperforms 64.58% of its industry peers.
MSM's Operating Margin of 9.96% is fine compared to the rest of the industry. MSM outperforms 66.67% of its industry peers.
MSM's Gross Margin of 41.05% is fine compared to the rest of the industry. MSM outperforms 72.92% of its industry peers.

Every day, new Best Dividend stocks can be found on ChartMill in our Best Dividend screener.

For an up to date full fundamental analysis you can check the fundamental report of MSM

Keep in mind

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.