MSA SAFETY INC (MSA) Stock Fundamental Analysis
NYSE:MSA - New York Stock Exchange, Inc. - US5534981064 - Common Stock - Currency: USD
Overall MSA gets a fundamental rating of 7 out of 10. We evaluated MSA against 83 industry peers in the Commercial Services & Supplies industry. MSA scores excellent points on both the profitability and health parts. This is a solid base for a good stock. MSA has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year MSA was profitable.
MSA had a positive operating cash flow in the past year.
Each year in the past 5 years MSA has been profitable.
MSA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 12.81%, MSA belongs to the top of the industry, outperforming 86.75% of the companies in the same industry.
The Return On Equity of MSA (24.06%) is better than 87.95% of its industry peers.
With an excellent Return On Invested Capital value of 16.29%, MSA belongs to the best of the industry, outperforming 90.36% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for MSA is above the industry average of 11.67%.
The last Return On Invested Capital (16.29%) for MSA is above the 3 year average (14.63%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.81% | ||
| ROE | 24.06% | ||
| ROIC | 16.29% |
ROA(3y)7.72%
ROA(5y)6.1%
ROE(3y)16.81%
ROE(5y)13.55%
ROIC(3y)14.63%
ROIC(5y)11.25%
1.3 Margins
The Profit Margin of MSA (15.77%) is better than 87.95% of its industry peers.
MSA's Profit Margin has improved in the last couple of years.
MSA's Operating Margin of 22.20% is amongst the best of the industry. MSA outperforms 95.18% of its industry peers.
MSA's Operating Margin has improved in the last couple of years.
MSA has a Gross Margin of 47.26%. This is amongst the best in the industry. MSA outperforms 83.13% of its industry peers.
MSA's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.2% | ||
| PM (TTM) | 15.77% | ||
| GM | 47.26% |
OM growth 3Y78.35%
OM growth 5Y6.79%
PM growth 3Y117.98%
PM growth 5Y9.9%
GM growth 3Y2.69%
GM growth 5Y0.88%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), MSA is creating some value.
The number of shares outstanding for MSA remains at a similar level compared to 1 year ago.
MSA has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, MSA has an improved debt to assets ratio.
2.2 Solvency
MSA has an Altman-Z score of 6.34. This indicates that MSA is financially healthy and has little risk of bankruptcy at the moment.
MSA has a Altman-Z score of 6.34. This is amongst the best in the industry. MSA outperforms 87.95% of its industry peers.
MSA has a debt to FCF ratio of 1.98. This is a very positive value and a sign of high solvency as it would only need 1.98 years to pay back of all of its debts.
The Debt to FCF ratio of MSA (1.98) is better than 80.72% of its industry peers.
MSA has a Debt/Equity ratio of 0.39. This is a healthy value indicating a solid balance between debt and equity.
MSA has a Debt to Equity ratio (0.39) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 1.98 | ||
| Altman-Z | 6.34 |
ROIC/WACC1.62
WACC10.08%
2.3 Liquidity
MSA has a Current Ratio of 2.94. This indicates that MSA is financially healthy and has no problem in meeting its short term obligations.
MSA's Current ratio of 2.94 is amongst the best of the industry. MSA outperforms 83.13% of its industry peers.
A Quick Ratio of 1.84 indicates that MSA should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.84, MSA is in the better half of the industry, outperforming 73.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.94 | ||
| Quick Ratio | 1.84 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.73% over the past year.
MSA shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.91% yearly.
MSA shows a small growth in Revenue. In the last year, the Revenue has grown by 0.75%.
Measured over the past years, MSA shows a small growth in Revenue. The Revenue has been growing by 5.22% on average per year.
EPS 1Y (TTM)6.73%
EPS 3Y18.56%
EPS 5Y9.91%
EPS Q2Q%4.35%
Revenue 1Y (TTM)0.75%
Revenue growth 3Y8.9%
Revenue growth 5Y5.22%
Sales Q2Q%1.94%
3.2 Future
Based on estimates for the next years, MSA will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.10% on average per year.
Based on estimates for the next years, MSA will show a small growth in Revenue. The Revenue will grow by 4.00% on average per year.
EPS Next Y1.44%
EPS Next 2Y6.5%
EPS Next 3Y6.93%
EPS Next 5Y8.1%
Revenue Next Year0.76%
Revenue Next 2Y2.99%
Revenue Next 3Y3.54%
Revenue Next 5Y4%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
MSA is valuated rather expensively with a Price/Earnings ratio of 21.56.
Based on the Price/Earnings ratio, MSA is valued a bit cheaper than 65.06% of the companies in the same industry.
MSA's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.15.
A Price/Forward Earnings ratio of 19.18 indicates a rather expensive valuation of MSA.
MSA's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. MSA is cheaper than 66.27% of the companies in the same industry.
MSA is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.60, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.56 | ||
| Fwd PE | 19.18 |
4.2 Price Multiples
MSA's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, MSA is valued a bit cheaper than 61.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.98 | ||
| EV/EBITDA | 14.76 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates MSA does not grow enough to justify the current Price/Earnings ratio.
MSA has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)14.95
PEG (5Y)2.17
EPS Next 2Y6.5%
EPS Next 3Y6.93%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.25%, MSA has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.45, MSA pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.42, MSA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.25% |
5.2 History
The dividend of MSA has a limited annual growth rate of 4.06%.
MSA has been paying a dividend for at least 10 years, so it has a reliable track record.
MSA has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)4.06%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
28.04% of the earnings are spent on dividend by MSA. This is a low number and sustainable payout ratio.
The dividend of MSA is growing, but earnings are growing more, so the dividend growth is sustainable.
DP28.04%
EPS Next 2Y6.5%
EPS Next 3Y6.93%
167.53
+0.2 (+0.12%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners88.85%
Inst Owner Change1.66%
Ins Owners0.8%
Ins Owner Change0.07%
Market Cap6.59B
Analysts77.78
Price Target180.8 (7.92%)
Short Float %2.53%
Short Ratio3.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.25% |
Yearly Dividend2
Dividend Growth(5Y)4.06%
DP28.04%
Div Incr Years11
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.33%
Min EPS beat(2)-0.61%
Max EPS beat(2)5.26%
EPS beat(4)3
Avg EPS beat(4)1.69%
Min EPS beat(4)-0.61%
Max EPS beat(4)5.26%
EPS beat(8)7
Avg EPS beat(8)7.76%
EPS beat(12)11
Avg EPS beat(12)9.79%
EPS beat(16)14
Avg EPS beat(16)10.12%
Revenue beat(2)1
Avg Revenue beat(2)-0.63%
Min Revenue beat(2)-4.87%
Max Revenue beat(2)3.61%
Revenue beat(4)1
Avg Revenue beat(4)-1.66%
Min Revenue beat(4)-4.87%
Max Revenue beat(4)3.61%
Revenue beat(8)4
Avg Revenue beat(8)0.86%
Revenue beat(12)8
Avg Revenue beat(12)1.68%
Revenue beat(16)11
Avg Revenue beat(16)1.58%
PT rev (1m)-2.07%
PT rev (3m)-4.58%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-8.4%
EPS NY rev (1m)0.03%
EPS NY rev (3m)-3.33%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.35%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.56 | ||
| Fwd PE | 19.18 | ||
| P/S | 3.63 | ||
| P/FCF | 25.98 | ||
| P/OCF | 21.43 | ||
| P/B | 5.53 | ||
| P/tB | 20.64 | ||
| EV/EBITDA | 14.76 |
EPS(TTM)7.77
EY4.64%
EPS(NY)8.73
Fwd EY5.21%
FCF(TTM)6.45
FCFY3.85%
OCF(TTM)7.82
OCFY4.67%
SpS46.19
BVpS30.27
TBVpS8.12
PEG (NY)14.95
PEG (5Y)2.17
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.81% | ||
| ROE | 24.06% | ||
| ROCE | 20.62% | ||
| ROIC | 16.29% | ||
| ROICexc | 17.84% | ||
| ROICexgc | 34.85% | ||
| OM | 22.2% | ||
| PM (TTM) | 15.77% | ||
| GM | 47.26% | ||
| FCFM | 13.96% |
ROA(3y)7.72%
ROA(5y)6.1%
ROE(3y)16.81%
ROE(5y)13.55%
ROIC(3y)14.63%
ROIC(5y)11.25%
ROICexc(3y)15.96%
ROICexc(5y)12.44%
ROICexgc(3y)32.31%
ROICexgc(5y)24.61%
ROCE(3y)18.52%
ROCE(5y)14.24%
ROICexcg growth 3Y97.54%
ROICexcg growth 5Y5.68%
ROICexc growth 3Y98.64%
ROICexc growth 5Y5.18%
OM growth 3Y78.35%
OM growth 5Y6.79%
PM growth 3Y117.98%
PM growth 5Y9.9%
GM growth 3Y2.69%
GM growth 5Y0.88%
F-Score7
Asset Turnover0.81
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 1.98 | ||
| Debt/EBITDA | 1 | ||
| Cap/Depr | 82.72% | ||
| Cap/Sales | 2.96% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 65.65% | ||
| Profit Quality | 88.55% | ||
| Current Ratio | 2.94 | ||
| Quick Ratio | 1.84 | ||
| Altman-Z | 6.34 |
F-Score7
WACC10.08%
ROIC/WACC1.62
Cap/Depr(3y)77.54%
Cap/Depr(5y)90.68%
Cap/Sales(3y)2.75%
Cap/Sales(5y)3.08%
Profit Quality(3y)77.96%
Profit Quality(5y)213.06%
High Growth Momentum
Growth
EPS 1Y (TTM)6.73%
EPS 3Y18.56%
EPS 5Y9.91%
EPS Q2Q%4.35%
EPS Next Y1.44%
EPS Next 2Y6.5%
EPS Next 3Y6.93%
EPS Next 5Y8.1%
Revenue 1Y (TTM)0.75%
Revenue growth 3Y8.9%
Revenue growth 5Y5.22%
Sales Q2Q%1.94%
Revenue Next Year0.76%
Revenue Next 2Y2.99%
Revenue Next 3Y3.54%
Revenue Next 5Y4%
EBIT growth 1Y1.26%
EBIT growth 3Y94.21%
EBIT growth 5Y12.36%
EBIT Next Year13.47%
EBIT Next 3Y9.25%
EBIT Next 5Y9.97%
FCF growth 1Y228.59%
FCF growth 3Y17.32%
FCF growth 5Y13.53%
OCF growth 1Y301.03%
OCF growth 3Y14.19%
OCF growth 5Y12.43%