MSA SAFETY INC (MSA) Stock Fundamental Analysis
NYSE:MSA - New York Stock Exchange, Inc. - US5534981064 - Common Stock - Currency: USD
We assign a fundamental rating of 7 out of 10 to MSA. MSA was compared to 84 industry peers in the Commercial Services & Supplies industry. Both the health and profitability get an excellent rating, making MSA a very profitable company, without any liquidiy or solvency issues. MSA is not valued too expensively and it also shows a decent growth rate. These ratings could make MSA a good candidate for quality investing.
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.
Each year in the past 5 years MSA has been profitable.
In the past 5 years MSA always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 12.92%, MSA belongs to the top of the industry, outperforming 92.68% of the companies in the same industry.
MSA has a Return On Equity of 24.92%. This is amongst the best in the industry. MSA outperforms 91.46% of its industry peers.
With an excellent Return On Invested Capital value of 16.69%, MSA belongs to the best of the industry, outperforming 90.24% 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 10.12%.
The last Return On Invested Capital (16.69%) for MSA is above the 3 year average (14.63%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.92% | ||
| ROE | 24.92% | ||
| ROIC | 16.69% |
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
MSA has a better Profit Margin (15.76%) than 92.68% of its industry peers.
In the last couple of years the Profit Margin of MSA has grown nicely.
Looking at the Operating Margin, with a value of 22.40%, MSA belongs to the top of the industry, outperforming 95.12% of the companies in the same industry.
MSA's Operating Margin has improved in the last couple of years.
The Gross Margin of MSA (47.59%) is better than 85.37% of its industry peers.
In the last couple of years the Gross Margin of MSA has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.4% | ||
| PM (TTM) | 15.76% | ||
| GM | 47.59% |
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
MSA has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, MSA has about the same amount of shares outstanding.
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
An Altman-Z score of 6.09 indicates that MSA is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.09, MSA belongs to the top of the industry, outperforming 87.80% of the companies in the same industry.
MSA has a debt to FCF ratio of 2.10. This is a good value and a sign of high solvency as MSA would need 2.10 years to pay back of all of its debts.
The Debt to FCF ratio of MSA (2.10) is better than 79.27% of its industry peers.
MSA has a Debt/Equity ratio of 0.42. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of MSA (0.42) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 2.1 | ||
| Altman-Z | 6.09 |
ROIC/WACC1.91
WACC8.73%
2.3 Liquidity
A Current Ratio of 2.79 indicates that MSA has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.79, MSA belongs to the top of the industry, outperforming 80.49% of the companies in the same industry.
A Quick Ratio of 1.76 indicates that MSA should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.76, MSA is doing good in the industry, outperforming 76.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.79 | ||
| Quick Ratio | 1.76 |
3. Growth
3.1 Past
MSA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.53%, which is quite good.
Measured over the past years, MSA shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.91% on average per year.
MSA shows a small growth in Revenue. In the last year, the Revenue has grown by 1.15%.
The Revenue has been growing slightly by 5.22% on average over the past years.
EPS 1Y (TTM)9.53%
EPS 3Y18.56%
EPS 5Y9.91%
EPS Q2Q%9.22%
Revenue 1Y (TTM)1.15%
Revenue growth 3Y8.9%
Revenue growth 5Y5.22%
Sales Q2Q%0.88%
3.2 Future
The Earnings Per Share is expected to grow by 8.43% on average over the next years. This is quite good.
MSA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.20% yearly.
EPS Next Y4.94%
EPS Next 2Y6.83%
EPS Next 3Y7.06%
EPS Next 5Y8.43%
Revenue Next Year-0.05%
Revenue Next 2Y2.22%
Revenue Next 3Y2.59%
Revenue Next 5Y4.2%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
MSA is valuated rather expensively with a Price/Earnings ratio of 20.57.
MSA's Price/Earnings ratio is a bit cheaper when compared to the industry. MSA is cheaper than 67.07% 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 29.63.
Based on the Price/Forward Earnings ratio of 19.60, the valuation of MSA can be described as rather expensive.
Based on the Price/Forward Earnings ratio, MSA is valued a bit cheaper than 67.07% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of MSA to the average of the S&P500 Index (22.68), we can say MSA is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.57 | ||
| Fwd PE | 19.6 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MSA is on the same level as its industry peers.
MSA's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.72 | ||
| EV/EBITDA | 14.05 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
MSA has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)4.16
PEG (5Y)2.07
EPS Next 2Y6.83%
EPS Next 3Y7.06%
5. Dividend
5.1 Amount
MSA has a Yearly Dividend Yield of 1.28%.
MSA's Dividend Yield is a higher than the industry average which is at 2.12.
With a Dividend Yield of 1.28, MSA pays less dividend than the S&P500 average, which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.28% |
5.2 History
The dividend of MSA has a limited annual growth rate of 4.06%.
MSA has paid a dividend for at least 10 years, which is 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
MSA pays out 27.64% of its income as dividend. This is a sustainable payout ratio.
MSA's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP27.64%
EPS Next 2Y6.83%
EPS Next 3Y7.06%
158.38
-0.63 (-0.4%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners87.13%
Inst Owner Change0.08%
Ins Owners0.71%
Ins Owner Change-0.05%
Market Cap6.23B
Analysts77.78
Price Target191.25 (20.75%)
Short Float %0.9%
Short Ratio1.98
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.28% |
Yearly Dividend2
Dividend Growth(5Y)4.06%
DP27.64%
Div Incr Years11
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.11%
Min EPS beat(2)-0.61%
Max EPS beat(2)0.38%
EPS beat(4)3
Avg EPS beat(4)0.86%
Min EPS beat(4)-0.61%
Max EPS beat(4)1.97%
EPS beat(8)7
Avg EPS beat(8)10.65%
EPS beat(12)11
Avg EPS beat(12)10.74%
EPS beat(16)13
Avg EPS beat(16)9.74%
Revenue beat(2)0
Avg Revenue beat(2)-4.83%
Min Revenue beat(2)-4.87%
Max Revenue beat(2)-4.78%
Revenue beat(4)0
Avg Revenue beat(4)-3.68%
Min Revenue beat(4)-4.87%
Max Revenue beat(4)-0.58%
Revenue beat(8)4
Avg Revenue beat(8)1.53%
Revenue beat(12)8
Avg Revenue beat(12)1.4%
Revenue beat(16)10
Avg Revenue beat(16)1.29%
PT rev (1m)-0.63%
PT rev (3m)0.64%
EPS NQ rev (1m)-0.23%
EPS NQ rev (3m)0.51%
EPS NY rev (1m)-0.06%
EPS NY rev (3m)0.18%
Revenue NQ rev (1m)-0.56%
Revenue NQ rev (3m)0.08%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.57 | ||
| Fwd PE | 19.6 | ||
| P/S | 3.45 | ||
| P/FCF | 25.72 | ||
| P/OCF | 21.01 | ||
| P/B | 5.45 | ||
| P/tB | 22.57 | ||
| EV/EBITDA | 14.05 |
EPS(TTM)7.7
EY4.86%
EPS(NY)8.08
Fwd EY5.1%
FCF(TTM)6.16
FCFY3.89%
OCF(TTM)7.54
OCFY4.76%
SpS45.97
BVpS29.07
TBVpS7.02
PEG (NY)4.16
PEG (5Y)2.07
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.92% | ||
| ROE | 24.92% | ||
| ROCE | 21.12% | ||
| ROIC | 16.69% | ||
| ROICexc | 18.25% | ||
| ROICexgc | 36.13% | ||
| OM | 22.4% | ||
| PM (TTM) | 15.76% | ||
| GM | 47.59% | ||
| FCFM | 13.4% |
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 Turnover0.82
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 2.1 | ||
| Debt/EBITDA | 1.03 | ||
| Cap/Depr | 84.28% | ||
| Cap/Sales | 3% | ||
| Interest Coverage | 11.35 | ||
| Cash Conversion | 63.15% | ||
| Profit Quality | 85.01% | ||
| Current Ratio | 2.79 | ||
| Quick Ratio | 1.76 | ||
| Altman-Z | 6.09 |
F-Score7
WACC8.73%
ROIC/WACC1.91
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)9.53%
EPS 3Y18.56%
EPS 5Y9.91%
EPS Q2Q%9.22%
EPS Next Y4.94%
EPS Next 2Y6.83%
EPS Next 3Y7.06%
EPS Next 5Y8.43%
Revenue 1Y (TTM)1.15%
Revenue growth 3Y8.9%
Revenue growth 5Y5.22%
Sales Q2Q%0.88%
Revenue Next Year-0.05%
Revenue Next 2Y2.22%
Revenue Next 3Y2.59%
Revenue Next 5Y4.2%
EBIT growth 1Y4.53%
EBIT growth 3Y94.21%
EBIT growth 5Y12.36%
EBIT Next Year18.57%
EBIT Next 3Y10.92%
EBIT Next 5Y10.5%
FCF growth 1Y383.51%
FCF growth 3Y17.32%
FCF growth 5Y13.53%
OCF growth 1Y219.23%
OCF growth 3Y14.19%
OCF growth 5Y12.43%