MSC INDUSTRIAL DIRECT CO-A (MSM)
US5535301064 - Common Stock
We assign a fundamental rating of 5 out of 10 to MSM. MSM was compared to 48 industry peers in the Trading Companies & Distributors industry. MSM scores excellent on profitability, but there are some minor concerns on its financial health. MSM has a decent growth rate and is not valued too expensively. MSM also has an excellent dividend rating. These ratings would make MSM suitable for dividend investing!
1. Profitability
1.1 Basic Checks
MSM had positive earnings in the past year.
In the past year MSM had a positive cash flow from operations.
In the past 5 years MSM has always been profitable.
In the past 5 years MSM always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 10.50%, MSM belongs to the best of the industry, outperforming 85.42% of the companies in the same industry.
MSM's Return On Equity of 18.58% is fine compared to the rest of the industry. MSM outperforms 66.67% of its industry peers.
With an excellent Return On Invested Capital value of 16.39%, MSM belongs to the best of the industry, outperforming 89.58% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for MSM is significantly above the industry average of 9.74%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.5% | ||
| ROE | 18.58% | ||
| ROIC | 16.39% |
ROA(3y)12.15%
ROA(5y)11.16%
ROE(3y)22.31%
ROE(5y)20.98%
ROIC(3y)17.86%
ROIC(5y)16.13%
1.3 Margins
The Profit Margin of MSM (6.77%) is better than 70.83% of its industry peers.
MSM's Profit Margin has declined in the last couple of years.
MSM's Operating Margin of 10.63% is fine compared to the rest of the industry. MSM outperforms 66.67% of its industry peers.
In the last couple of years the Operating Margin of MSM has declined.
MSM's Gross Margin of 41.16% is fine compared to the rest of the industry. MSM outperforms 72.92% of its industry peers.
MSM's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.63% | ||
| PM (TTM) | 6.77% | ||
| GM | 41.16% |
OM growth 3Y0.54%
OM growth 5Y-2.24%
PM growth 3Y0.4%
PM growth 5Y-4.64%
GM growth 3Y0.04%
GM growth 5Y-0.67%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so MSM is still creating some value.
Compared to 1 year ago, MSM has more shares outstanding
MSM has more shares outstanding than it did 5 years ago.
MSM has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.04 indicates that MSM is not in any danger for bankruptcy at the moment.
MSM has a Altman-Z score of 5.04. This is amongst the best in the industry. MSM outperforms 85.42% of its industry peers.
MSM has a debt to FCF ratio of 1.63. This is a very positive value and a sign of high solvency as it would only need 1.63 years to pay back of all of its debts.
MSM has a better Debt to FCF ratio (1.63) than 77.08% of its industry peers.
MSM has a Debt/Equity ratio of 0.20. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.20, MSM is in the better half of the industry, outperforming 68.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 1.63 | ||
| Altman-Z | 5.04 |
ROIC/WACC1.43
WACC11.47%
2.3 Liquidity
A Current Ratio of 1.96 indicates that MSM should not have too much problems paying its short term obligations.
With a Current ratio value of 1.96, MSM perfoms like the industry average, outperforming 47.92% of the companies in the same industry.
A Quick Ratio of 0.90 indicates that MSM may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.90, MSM is doing worse than 72.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.96 | ||
| Quick Ratio | 0.9 |
3. Growth
3.1 Past
The earnings per share for MSM have decreased strongly by -24.09% in the last year.
MSM shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.08% yearly.
Looking at the last year, MSM shows a decrease in Revenue. The Revenue has decreased by -4.70% in the last year.
MSM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.58% yearly.
EPS 1Y (TTM)-24.09%
EPS 3Y-0.14%
EPS 5Y-2.08%
EPS Q2Q%-37.2%
Revenue 1Y (TTM)-4.7%
Revenue growth 3Y5.62%
Revenue growth 5Y2.58%
Sales Q2Q%-8.03%
3.2 Future
The Earnings Per Share is expected to grow by 13.34% on average over the next years. This is quite good.
MSM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.50% yearly.
EPS Next Y-22.12%
EPS Next 2Y-4.95%
EPS Next 3Y5.14%
EPS Next 5Y13.34%
Revenue Next Year-1.71%
Revenue Next 2Y1.44%
Revenue Next 3Y3.13%
Revenue Next 5Y3.5%
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 accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 16.03, the valuation of MSM can be described as correct.
MSM's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.73, MSM is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 20.58, the valuation of MSM can be described as rather expensive.
MSM's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.83. MSM is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.03 | ||
| Fwd PE | 20.58 |
4.2 Price Multiples
MSM's Enterprise Value to EBITDA ratio is in line with the industry average.
MSM's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. MSM is cheaper than 79.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.78 | ||
| EV/EBITDA | 9.8 |
4.3 Compensation for Growth
MSM has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-4.95%
EPS Next 3Y5.14%
5. Dividend
5.1 Amount
MSM has a Yearly Dividend Yield of 4.41%, which is a nice return.
Compared to an average industry Dividend Yield of 1.86, MSM pays a better dividend. On top of this MSM pays more dividend than 95.83% 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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.41% |
5.2 History
The dividend of MSM has a limited annual growth rate of 5.09%.
MSM has paid a dividend for at least 10 years, which is a reliable track record.
MSM has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)5.09%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
72.42% of the earnings are spent on dividend by MSM. This is not a sustainable payout ratio.
The dividend of MSM is growing, but earnings are growing more, so the dividend growth is sustainable.
DP72.42%
EPS Next 2Y-4.95%
EPS Next 3Y5.14%
MSC INDUSTRIAL DIRECT CO-A
NYSE:MSM (12/20/2024, 8:25:47 PM)
After market: 76.77 0 (0%)76.77
-0.25 (-0.32%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners81.27%
Inst Owner Change5.31%
Ins Owners19.87%
Ins Owner Change-0.21%
Market Cap4.29B
Analysts69.23
Price Target80.17 (4.43%)
Short Float %8.25%
Short Ratio5.64
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.41% |
Dividend Growth(5Y)5.09%
DP72.42%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-3.25%
Min EPS beat(2)-5.6%
Max EPS beat(2)-0.9%
EPS beat(4)1
Avg EPS beat(4)-2.78%
Min EPS beat(4)-5.6%
Max EPS beat(4)0.83%
EPS beat(8)4
Avg EPS beat(8)-0.65%
EPS beat(12)7
Avg EPS beat(12)0.52%
EPS beat(16)9
Avg EPS beat(16)0.5%
Revenue beat(2)0
Avg Revenue beat(2)-1.36%
Min Revenue beat(2)-1.76%
Max Revenue beat(2)-0.96%
Revenue beat(4)0
Avg Revenue beat(4)-1.91%
Min Revenue beat(4)-2.76%
Max Revenue beat(4)-0.96%
Revenue beat(8)4
Avg Revenue beat(8)-0.16%
Revenue beat(12)6
Avg Revenue beat(12)-0.18%
Revenue beat(16)7
Avg Revenue beat(16)-0.32%
PT rev (1m)-7.09%
PT rev (3m)-4.44%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-48.43%
EPS NY rev (1m)-0.52%
EPS NY rev (3m)-24.84%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-9.72%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-4.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.03 | ||
| Fwd PE | 20.58 | ||
| P/S | 1.12 | ||
| P/FCF | 13.78 | ||
| P/OCF | 10.45 | ||
| P/B | 3.08 | ||
| P/tB | 7.57 | ||
| EV/EBITDA | 9.8 |
EPS(TTM)4.79
EY6.24%
EPS(NY)3.73
Fwd EY4.86%
FCF(TTM)5.57
FCFY7.26%
OCF(TTM)7.35
OCFY9.57%
SpS68.38
BVpS24.91
TBVpS10.14
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.5% | ||
| ROE | 18.58% | ||
| ROCE | 21.86% | ||
| ROIC | 16.39% | ||
| ROICexc | 16.65% | ||
| ROICexgc | 30.36% | ||
| OM | 10.63% | ||
| PM (TTM) | 6.77% | ||
| GM | 41.16% | ||
| FCFM | 8.15% |
ROA(3y)12.15%
ROA(5y)11.16%
ROE(3y)22.31%
ROE(5y)20.98%
ROIC(3y)17.86%
ROIC(5y)16.13%
ROICexc(3y)18.26%
ROICexc(5y)16.62%
ROICexgc(3y)32.65%
ROICexgc(5y)29.44%
ROCE(3y)23.83%
ROCE(5y)21.53%
ROICexcg growth 3Y8.36%
ROICexcg growth 5Y0.99%
ROICexc growth 3Y6.81%
ROICexc growth 5Y0.34%
OM growth 3Y0.54%
OM growth 5Y-2.24%
PM growth 3Y0.4%
PM growth 5Y-4.64%
GM growth 3Y0.04%
GM growth 5Y-0.67%
F-Score5
Asset Turnover1.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 1.63 | ||
| Debt/EBITDA | 0.57 | ||
| Cap/Depr | 122.9% | ||
| Cap/Sales | 2.6% | ||
| Interest Coverage | 16.42 | ||
| Cash Conversion | 84.35% | ||
| Profit Quality | 120.38% | ||
| Current Ratio | 1.96 | ||
| Quick Ratio | 0.9 | ||
| Altman-Z | 5.04 |
F-Score5
WACC11.47%
ROIC/WACC1.43
Cap/Depr(3y)111.09%
Cap/Depr(5y)95.87%
Cap/Sales(3y)2.19%
Cap/Sales(5y)1.94%
Profit Quality(3y)117.22%
Profit Quality(5y)113.93%
High Growth Momentum
Growth
EPS 1Y (TTM)-24.09%
EPS 3Y-0.14%
EPS 5Y-2.08%
EPS Q2Q%-37.2%
EPS Next Y-22.12%
EPS Next 2Y-4.95%
EPS Next 3Y5.14%
EPS Next 5Y13.34%
Revenue 1Y (TTM)-4.7%
Revenue growth 3Y5.62%
Revenue growth 5Y2.58%
Sales Q2Q%-8.03%
Revenue Next Year-1.71%
Revenue Next 2Y1.44%
Revenue Next 3Y3.13%
Revenue Next 5Y3.5%
EBIT growth 1Y-17.43%
EBIT growth 3Y6.19%
EBIT growth 5Y0.29%
EBIT Next Year2.1%
EBIT Next 3Y8.53%
EBIT Next 5Y11.7%
FCF growth 1Y-48.73%
FCF growth 3Y22.15%
FCF growth 5Y2.39%
OCF growth 1Y-41.3%
OCF growth 3Y22.3%
OCF growth 5Y4.57%