MSC INDUSTRIAL DIRECT CO-A (MSM) Stock Fundamental Analysis
NYSE:MSM - New York Stock Exchange, Inc. - US5535301064 - Common Stock
MSM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 48 industry peers in the Trading Companies & Distributors industry. MSM has an average financial health and profitability rating. MSM is not valued too expensively and it also shows a decent growth rate. Finally MSM also has an excellent dividend rating. With these ratings, MSM could be worth investigating further for dividend investing!.
1. Profitability
1.1 Basic Checks
In the past year MSM was profitable.
In the past year MSM had a positive cash flow from operations.
Each year in the past 5 years MSM has been profitable.
MSM 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 9.54%, MSM is in the better half of the industry, outperforming 78.72% of the companies in the same industry.
The Return On Equity of MSM (17.15%) is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 15.34%, MSM belongs to the top of the industry, outperforming 89.36% 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 9.69%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.54% | ||
| ROE | 17.15% | ||
| ROIC | 15.34% |
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 (6.21%) is better than 65.96% of its industry peers.
MSM's Profit Margin has declined in the last couple of years.
MSM has a Operating Margin of 9.96%. This is in the better half of the industry: MSM outperforms 65.96% of its industry peers.
MSM's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 41.05%, MSM is in the better half of the industry, outperforming 72.34% of the companies in the same industry.
MSM's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.96% | ||
| PM (TTM) | 6.21% | ||
| GM | 41.05% |
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.
The number of shares outstanding for MSM has been increased compared to 1 year ago.
The number of shares outstanding for MSM has been increased compared to 5 years ago.
Compared to 1 year ago, MSM has a worse debt to assets ratio.
2.2 Solvency
MSM has an Altman-Z score of 5.10. This indicates that MSM is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 5.10, MSM belongs to the best of the industry, outperforming 82.98% of the companies in the same industry.
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.
MSM's Debt to FCF ratio of 1.57 is fine compared to the rest of the industry. MSM outperforms 76.60% of its industry peers.
MSM has a Debt/Equity ratio of 0.21. This is a healthy value indicating a solid balance between debt and equity.
MSM has a better Debt to Equity ratio (0.21) than 70.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 1.57 | ||
| Altman-Z | 5.1 |
ROIC/WACC1.34
WACC11.49%
2.3 Liquidity
MSM has a Current Ratio of 1.93. This is a normal value and indicates that MSM is financially healthy and should not expect problems in meeting its short term obligations.
MSM has a Current ratio of 1.93. This is comparable to the rest of the industry: MSM outperforms 48.94% of its industry peers.
A Quick Ratio of 0.91 indicates that MSM may have some problems paying its short term obligations.
The Quick ratio of MSM (0.91) is worse than 70.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.93 | ||
| Quick Ratio | 0.91 |
3. Growth
3.1 Past
The earnings per share for MSM have decreased strongly by -27.63% in the last year.
Measured over the past years, MSM shows a decrease in Earnings Per Share. The EPS has been decreasing by -2.08% on average per year.
MSM shows a decrease in Revenue. In the last year, the revenue decreased by -5.24%.
MSM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.58% yearly.
EPS 1Y (TTM)-27.63%
EPS 3Y-0.14%
EPS 5Y-2.08%
EPS Q2Q%-31.2%
Revenue 1Y (TTM)-5.24%
Revenue growth 3Y5.62%
Revenue growth 5Y2.58%
Sales Q2Q%-2.67%
3.2 Future
MSM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.34% yearly.
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-1.78%
Revenue Next 2Y1.4%
Revenue Next 3Y3.17%
Revenue Next 5Y3.5%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 18.81, MSM is valued on the expensive side.
MSM's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 28.29, MSM is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 19.12, the valuation of MSM can be described as rather expensive.
MSM's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of MSM to the average of the S&P500 Index (24.44), we can say MSM is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.81 | ||
| Fwd PE | 19.12 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as MSM.
Based on the Price/Free Cash Flow ratio, MSM is valued cheaply inside the industry as 80.85% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14 | ||
| EV/EBITDA | 11.04 |
4.3 Compensation for Growth
The decent profitability rating of MSM 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 4.18%, which is a nice return.
Compared to an average industry Dividend Yield of 1.84, MSM pays a better dividend. On top of this MSM pays more dividend than 97.87% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.28, MSM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.18% |
5.2 History
The dividend of MSM has a limited annual growth rate of 5.09%.
MSM has been paying a dividend for at least 10 years, so it has 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
79.55% 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.
DP79.55%
EPS Next 2Y-4.95%
EPS Next 3Y5.14%
MSC INDUSTRIAL DIRECT CO-A
NYSE:MSM (1/21/2025, 8:15:39 PM)
After market: 82.76 0 (0%)82.76
+0.98 (+1.2%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners81.27%
Inst Owner Change-0.65%
Ins Owners19.87%
Ins Owner Change-0.21%
Market Cap4.62B
Analysts52.5
Price Target80.17 (-3.13%)
Short Float %7.72%
Short Ratio4.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.18% |
Yearly Dividend3.36
Dividend Growth(5Y)5.09%
DP79.55%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)5.58%
Min EPS beat(2)-5.6%
Max EPS beat(2)16.76%
EPS beat(4)2
Avg EPS beat(4)2.77%
Min EPS beat(4)-5.6%
Max EPS beat(4)16.76%
EPS beat(8)4
Avg EPS beat(8)1.42%
EPS beat(12)7
Avg EPS beat(12)1.61%
EPS beat(16)9
Avg EPS beat(16)1.52%
Revenue beat(2)1
Avg Revenue beat(2)-0.07%
Min Revenue beat(2)-1.76%
Max Revenue beat(2)1.62%
Revenue beat(4)1
Avg Revenue beat(4)-0.82%
Min Revenue beat(4)-2.16%
Max Revenue beat(4)1.62%
Revenue beat(8)4
Avg Revenue beat(8)0.04%
Revenue beat(12)6
Avg Revenue beat(12)-0.05%
Revenue beat(16)8
Avg Revenue beat(16)-0.17%
PT rev (1m)0%
PT rev (3m)-4.44%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-46.5%
EPS NY rev (1m)0%
EPS NY rev (3m)-24.84%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-8.1%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)-4.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.81 | ||
| Fwd PE | 19.12 | ||
| P/S | 1.22 | ||
| P/FCF | 14 | ||
| P/OCF | 10.72 | ||
| P/B | 3.36 | ||
| P/tB | 8.32 | ||
| EV/EBITDA | 11.04 |
EPS(TTM)4.4
EY5.32%
EPS(NY)4.33
Fwd EY5.23%
FCF(TTM)5.91
FCFY7.14%
OCF(TTM)7.72
OCFY9.33%
SpS67.92
BVpS24.61
TBVpS9.94
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.54% | ||
| ROE | 17.15% | ||
| ROCE | 20.47% | ||
| ROIC | 15.34% | ||
| ROICexc | 15.83% | ||
| ROICexgc | 29.2% | ||
| OM | 9.96% | ||
| PM (TTM) | 6.21% | ||
| GM | 41.05% | ||
| FCFM | 8.7% |
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-Score6
Asset Turnover1.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 1.57 | ||
| Debt/EBITDA | 0.63 | ||
| Cap/Depr | 122.17% | ||
| Cap/Sales | 2.66% | ||
| Interest Coverage | 14.49 | ||
| Cash Conversion | 93.6% | ||
| Profit Quality | 140.02% | ||
| Current Ratio | 1.93 | ||
| Quick Ratio | 0.91 | ||
| Altman-Z | 5.1 |
F-Score6
WACC11.49%
ROIC/WACC1.34
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)-27.63%
EPS 3Y-0.14%
EPS 5Y-2.08%
EPS Q2Q%-31.2%
EPS Next Y-22.12%
EPS Next 2Y-4.95%
EPS Next 3Y5.14%
EPS Next 5Y13.34%
Revenue 1Y (TTM)-5.24%
Revenue growth 3Y5.62%
Revenue growth 5Y2.58%
Sales Q2Q%-2.67%
Revenue Next Year-1.78%
Revenue Next 2Y1.4%
Revenue Next 3Y3.17%
Revenue Next 5Y3.5%
EBIT growth 1Y-20.57%
EBIT growth 3Y6.19%
EBIT growth 5Y0.29%
EBIT Next Year-1.5%
EBIT Next 3Y7.54%
EBIT Next 5Y11.7%
FCF growth 1Y71.29%
FCF growth 3Y22.15%
FCF growth 5Y2.39%
OCF growth 1Y63.16%
OCF growth 3Y22.3%
OCF growth 5Y4.57%