MSA SAFETY INC (MSA) Stock Fundamental Analysis
NYSE:MSA - New York Stock Exchange, Inc. - US5534981064 - Common Stock
Overall MSA gets a fundamental rating of 6 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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
MSA had positive earnings in the past year.
In the past year MSA had a positive cash flow from operations.
In the past 5 years MSA has always been profitable.
MSA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of MSA (12.19%) is better than 91.46% of its industry peers.
Looking at the Return On Equity, with a value of 24.96%, MSA belongs to the top of the industry, outperforming 92.68% of the companies in the same industry.
The Return On Invested Capital of MSA (16.37%) is better than 89.02% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MSA is in line with the industry average of 10.08%.
The 3 year average ROIC (9.77%) for MSA is below the current ROIC(16.37%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.19% | ||
| ROE | 24.96% | ||
| ROIC | 16.37% |
ROA(3y)3.71%
ROA(5y)5.1%
ROE(3y)9.35%
ROE(5y)12.36%
ROIC(3y)9.77%
ROIC(5y)10.36%
1.3 Margins
MSA's Profit Margin of 15.15% is amongst the best of the industry. MSA outperforms 92.68% of its industry peers.
In the last couple of years the Profit Margin of MSA has declined.
MSA has a better Operating Margin (22.14%) than 93.90% of its industry peers.
In the last couple of years the Operating Margin of MSA has grown nicely.
With an excellent Gross Margin value of 47.91%, MSA belongs to the best of the industry, outperforming 84.15% of the companies in the same industry.
MSA's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.14% | ||
| PM (TTM) | 15.15% | ||
| GM | 47.91% |
OM growth 3Y11.99%
OM growth 5Y9.32%
PM growth 3Y-29.13%
PM growth 5Y-18.55%
GM growth 3Y2.57%
GM growth 5Y1.13%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), MSA is creating value.
The number of shares outstanding for MSA has been increased compared to 1 year ago.
MSA has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, MSA has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.90 indicates that MSA is not in any danger for bankruptcy at the moment.
The Altman-Z score of MSA (5.90) is better than 87.80% of its industry peers.
MSA has a debt to FCF ratio of 1.87. This is a very positive value and a sign of high solvency as it would only need 1.87 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 1.87, MSA is doing good in the industry, outperforming 79.27% of the companies in the same industry.
MSA has a Debt/Equity ratio of 0.48. This is a healthy value indicating a solid balance between debt and equity.
MSA has a Debt to Equity ratio of 0.48. This is comparable to the rest of the industry: MSA outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 1.87 | ||
| Altman-Z | 5.9 |
ROIC/WACC1.81
WACC9.06%
2.3 Liquidity
A Current Ratio of 2.68 indicates that MSA has no problem at all paying its short term obligations.
MSA has a better Current ratio (2.68) than 80.49% of its industry peers.
MSA has a Quick Ratio of 1.56. This is a normal value and indicates that MSA is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.56, MSA is in the better half of the industry, outperforming 67.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.68 | ||
| Quick Ratio | 1.56 |
3. Growth
3.1 Past
MSA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.93%, which is quite good.
MSA shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.28% yearly.
MSA shows a small growth in Revenue. In the last year, the Revenue has grown by 3.93%.
The Revenue has been growing slightly by 5.65% on average over the past years.
EPS 1Y (TTM)10.93%
EPS 3Y16.03%
EPS 5Y9.28%
EPS Q2Q%2.81%
Revenue 1Y (TTM)3.93%
Revenue growth 3Y9.86%
Revenue growth 5Y5.65%
Sales Q2Q%-3.14%
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 8.65% on average per year.
The Revenue is expected to grow by 4.14% on average over the next years.
EPS Next Y10.6%
EPS Next 2Y7.58%
EPS Next 3Y7.88%
EPS Next 5Y8.65%
Revenue Next Year3.94%
Revenue Next 2Y3.21%
Revenue Next 3Y3.51%
Revenue Next 5Y4.14%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
MSA is valuated rather expensively with a Price/Earnings ratio of 22.14.
Based on the Price/Earnings ratio, MSA is valued a bit cheaper than 67.07% of the companies in the same industry.
When comparing the Price/Earnings ratio of MSA to the average of the S&P500 Index (28.29), we can say MSA is valued slightly cheaper.
With a Price/Forward Earnings ratio of 20.43, MSA is valued on the expensive side.
Based on the Price/Forward Earnings ratio, MSA is valued a bit cheaper than 71.95% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of MSA to the average of the S&P500 Index (24.44), we can say MSA is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.14 | ||
| Fwd PE | 20.43 |
4.2 Price Multiples
MSA's Enterprise Value to EBITDA ratio is in line with the industry average.
MSA's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. MSA is cheaper than 64.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.1 | ||
| EV/EBITDA | 14.99 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of MSA may justify a higher PE ratio.
PEG (NY)2.09
PEG (5Y)2.38
EPS Next 2Y7.58%
EPS Next 3Y7.88%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.24%, MSA has a reasonable but not impressive dividend return.
MSA's Dividend Yield is a higher than the industry average which is at 2.09.
With a Dividend Yield of 1.24, MSA pays less dividend than the S&P500 average, which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.24% |
5.2 History
The dividend of MSA has a limited annual growth rate of 4.65%.
MSA has been paying a dividend for at least 10 years, so it has a reliable track record.
MSA has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)4.65%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
28.23% 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.
DP28.23%
EPS Next 2Y7.58%
EPS Next 3Y7.88%
MSA SAFETY INC
NYSE:MSA (1/22/2025, 10:38:47 AM)
166.26
+0.11 (+0.07%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners85.52%
Inst Owner Change-0.02%
Ins Owners0.71%
Ins Owner Change-0.57%
Market Cap6.54B
Analysts77.78
Price Target201.45 (21.17%)
Short Float %1.1%
Short Ratio2.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.24% |
Yearly Dividend1.87
Dividend Growth(5Y)4.65%
DP28.23%
Div Incr Years11
Div Non Decr Years11
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.04%
Min EPS beat(2)0.38%
Max EPS beat(2)1.71%
EPS beat(4)4
Avg EPS beat(4)3.25%
Min EPS beat(4)0.38%
Max EPS beat(4)8.95%
EPS beat(8)8
Avg EPS beat(8)11.86%
EPS beat(12)12
Avg EPS beat(12)13.85%
EPS beat(16)14
Avg EPS beat(16)11%
Revenue beat(2)0
Avg Revenue beat(2)-2.68%
Min Revenue beat(2)-4.78%
Max Revenue beat(2)-0.58%
Revenue beat(4)1
Avg Revenue beat(4)-1.23%
Min Revenue beat(4)-4.78%
Max Revenue beat(4)4.9%
Revenue beat(8)5
Avg Revenue beat(8)2.4%
Revenue beat(12)9
Avg Revenue beat(12)2.1%
Revenue beat(16)11
Avg Revenue beat(16)2.5%
PT rev (1m)0%
PT rev (3m)1.28%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.63%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.54%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.11%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)-1.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.14 | ||
| Fwd PE | 20.43 | ||
| P/S | 3.63 | ||
| P/FCF | 22.1 | ||
| P/OCF | 18.82 | ||
| P/B | 5.97 | ||
| P/tB | 31.42 | ||
| EV/EBITDA | 14.99 |
EPS(TTM)7.51
EY4.52%
EPS(NY)8.14
Fwd EY4.89%
FCF(TTM)7.52
FCFY4.53%
OCF(TTM)8.83
OCFY5.31%
SpS45.86
BVpS27.85
TBVpS5.29
PEG (NY)2.09
PEG (5Y)2.38
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.19% | ||
| ROE | 24.96% | ||
| ROCE | 20.72% | ||
| ROIC | 16.37% | ||
| ROICexc | 17.79% | ||
| ROICexgc | 35.61% | ||
| OM | 22.14% | ||
| PM (TTM) | 15.15% | ||
| GM | 47.91% | ||
| FCFM | 16.4% |
ROA(3y)3.71%
ROA(5y)5.1%
ROE(3y)9.35%
ROE(5y)12.36%
ROIC(3y)9.77%
ROIC(5y)10.36%
ROICexc(3y)10.65%
ROICexc(5y)11.63%
ROICexgc(3y)21.83%
ROICexgc(5y)22.86%
ROCE(3y)12.37%
ROCE(5y)13.11%
ROICexcg growth 3Y21.57%
ROICexcg growth 5Y7.14%
ROICexc growth 3Y14.79%
ROICexc growth 5Y6.57%
OM growth 3Y11.99%
OM growth 5Y9.32%
PM growth 3Y-29.13%
PM growth 5Y-18.55%
GM growth 3Y2.57%
GM growth 5Y1.13%
F-Score9
Asset Turnover0.8
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 1.87 | ||
| Debt/EBITDA | 1.14 | ||
| Cap/Depr | 81.44% | ||
| Cap/Sales | 2.86% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 75.11% | ||
| Profit Quality | 108.25% | ||
| Current Ratio | 2.68 | ||
| Quick Ratio | 1.56 | ||
| Altman-Z | 5.9 |
F-Score9
WACC9.06%
ROIC/WACC1.81
Cap/Depr(3y)81.99%
Cap/Depr(5y)93.09%
Cap/Sales(3y)2.92%
Cap/Sales(5y)3%
Profit Quality(3y)284.36%
Profit Quality(5y)214.69%
High Growth Momentum
Growth
EPS 1Y (TTM)10.93%
EPS 3Y16.03%
EPS 5Y9.28%
EPS Q2Q%2.81%
EPS Next Y10.6%
EPS Next 2Y7.58%
EPS Next 3Y7.88%
EPS Next 5Y8.65%
Revenue 1Y (TTM)3.93%
Revenue growth 3Y9.86%
Revenue growth 5Y5.65%
Sales Q2Q%-3.14%
Revenue Next Year3.94%
Revenue Next 2Y3.21%
Revenue Next 3Y3.51%
Revenue Next 5Y4.14%
EBIT growth 1Y10.76%
EBIT growth 3Y23.03%
EBIT growth 5Y15.5%
EBIT Next Year21.75%
EBIT Next 3Y10.09%
EBIT Next 5Y9.53%
FCF growth 1Y125.53%
FCF growth 3Y-31.77%
FCF growth 5Y-26.27%
OCF growth 1Y100.97%
OCF growth 3Y-23.4%
OCF growth 5Y-18.85%