MSC INDUSTRIAL DIRECT CO-A (MSM)
US5535301064 - Common Stock
Taking everything into account, MSM scores 5 out of 10 in our fundamental rating. MSM was compared to 51 industry peers in the Trading Companies & Distributors industry. MSM has an excellent profitability rating, but there are some minor concerns on its financial health. MSM is not valued too expensively and it also shows a decent growth rate.
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.
MSM had positive earnings in each of the past 5 years.
In the past 5 years MSM always reported a positive cash flow from operatings.
1.2 Ratios
MSM has a better Return On Assets (10.50%) than 84.31% of its industry peers.
MSM has a Return On Equity of 18.58%. This is in the better half of the industry: MSM outperforms 76.47% of its industry peers.
The Return On Invested Capital of MSM (16.39%) is better than 88.24% of its industry peers.
MSM had an Average Return On Invested Capital over the past 3 years of 17.86%. This is significantly above the industry average of 9.29%.
| 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
MSM has a Profit Margin of 6.77%. This is in the better half of the industry: MSM outperforms 70.59% of its industry peers.
In the last couple of years the Profit Margin of MSM has declined.
The Operating Margin of MSM (10.63%) is better than 76.47% of its industry peers.
MSM's Operating Margin has declined in the last couple of years.
With a decent Gross Margin value of 41.16%, MSM is doing good in the industry, outperforming 72.55% 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 | 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), MSM is 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 5.19. This indicates that MSM is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 5.19, MSM belongs to the best of the industry, outperforming 84.31% of the companies in the same industry.
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 72.55% of its industry peers.
A Debt/Equity ratio of 0.20 indicates that MSM is not too dependend on debt financing.
MSM has a Debt to Equity ratio of 0.20. This is in the better half of the industry: MSM outperforms 64.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 1.63 | ||
| Altman-Z | 5.19 |
ROIC/WACC1.44
WACC11.4%
2.3 Liquidity
A Current Ratio of 1.96 indicates that MSM should not have too much problems paying its short term obligations.
MSM has a Current ratio of 1.96. This is comparable to the rest of the industry: MSM outperforms 45.10% of its industry peers.
MSM has a Quick Ratio of 1.96. This is a bad value and indicates that MSM is not financially healthy enough and could expect problems in meeting its short term obligations.
MSM has a Quick ratio of 0.90. This is in the lower half of the industry: MSM underperforms 74.51% of its industry peers.
| 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.
The Earnings Per Share has been decreasing by -2.08% on average over the past years.
Looking at the last year, MSM shows a decrease in Revenue. The Revenue has decreased by -4.70% in the last year.
Measured over the past years, MSM shows a small growth in Revenue. The Revenue has been growing by 2.58% on average per year.
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 17.34% on average over the next years. This is quite good.
The Revenue is expected to grow by 4.35% on average over the next years.
EPS Next Y-21.71%
EPS Next 2Y-4.74%
EPS Next 3Y5.14%
EPS Next 5Y17.34%
Revenue Next Year-1.71%
Revenue Next 2Y1.44%
Revenue Next 3Y3.13%
Revenue Next 5Y4.35%
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 17.56, the valuation of MSM can be described as rather expensive.
60.78% of the companies in the same industry are more expensive than MSM, based on the Price/Earnings ratio.
MSM is valuated rather cheaply when we compare the Price/Earnings ratio to 28.96, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 22.43 indicates a rather expensive valuation of MSM.
The rest of the industry has a similar Price/Forward Earnings ratio as MSM.
The average S&P500 Price/Forward Earnings ratio is at 23.82. MSM is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.56 | ||
| Fwd PE | 22.43 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MSM is valued a bit cheaper than the industry average as 60.78% of the companies are valued more expensively.
MSM's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. MSM is cheaper than 74.51% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.11 | ||
| EV/EBITDA | 10.32 |
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-4.74%
EPS Next 3Y5.14%
5. Dividend
5.1 Amount
MSM has a Yearly Dividend Yield of 3.98%. Purely for dividend investing, there may be better candidates out there.
MSM's Dividend Yield is rather good when compared to the industry average which is at 1.73. MSM pays more dividend than 96.08% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.23, MSM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.98% |
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 decreased its dividend in the last 3 years.
Dividend Growth(5Y)5.09%
Div Incr Years2
Div Non Decr Years2
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-4.74%
EPS Next 3Y5.14%
MSC INDUSTRIAL DIRECT CO-A
NYSE:MSM (11/21/2024, 8:04:00 PM)
After market: 84.13 0 (0%)84.13
+2.79 (+3.43%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap4.70B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.98% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.56 | ||
| Fwd PE | 22.43 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.5% | ||
| ROE | 18.58% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 10.63% | ||
| PM (TTM) | 6.77% | ||
| GM | 41.16% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.96 | ||
| Quick Ratio | 0.9 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-24.09%
EPS 3Y-0.14%
EPS 5Y
EPS Q2Q%
EPS Next Y-21.71%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-4.7%
Revenue growth 3Y5.62%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y