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Is NYSE:MSM a Good Fit for Dividend Investing?

By Mill Chart

Last update: Jul 11, 2024

Unearth the potential of MSC INDUSTRIAL DIRECT CO-A (NYSE:MSM) as a dividend stock recommended by our stock screening tool. NYSE:MSM maintains a robust financial footing and delivers a sustainable dividend. We'll delve into the details below.

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Assessing Dividend Metrics for NYSE:MSM

ChartMill assigns a proprietary Dividend Rating to each stock. The score is computed by evaluating various valuation aspects, like the yield, the history, the dividend growth and sustainability. NYSE:MSM was assigned a score of 7 for dividend:

  • With a Yearly Dividend Yield of 4.38%, MSM is a good candidate for dividend investing.
  • Compared to an average industry Dividend Yield of 1.88, MSM pays a better dividend. On top of this MSM pays more dividend than 98.04% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 2.38, MSM pays a better dividend.
  • The dividend of MSM is nicely growing with an annual growth rate of 7.27%!
  • MSM has paid a dividend for at least 10 years, which is a reliable track record.

Evaluating Health: NYSE:MSM

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NYSE:MSM has earned a 8 out of 10:

  • An Altman-Z score of 5.14 indicates that MSM is not in any danger for bankruptcy at the moment.
  • MSM has a better Altman-Z score (5.14) than 80.39% of its industry peers.
  • The Debt to FCF ratio of MSM is 1.51, which is an excellent value as it means it would take MSM, only 1.51 years of fcf income to pay off all of its debts.
  • The Debt to FCF ratio of MSM (1.51) is better than 72.55% 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.
  • The Debt to Equity ratio of MSM (0.21) is better than 66.67% of its industry peers.
  • A Current Ratio of 2.08 indicates that MSM has no problem at all paying its short term obligations.
  • The current and quick ratio evaluation for MSM is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.

Exploring NYSE:MSM's Profitability

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:MSM has achieved a 8:

  • With an excellent Return On Assets value of 11.77%, MSM belongs to the best of the industry, outperforming 86.27% of the companies in the same industry.
  • MSM has a better Return On Equity (20.73%) than 66.67% of its industry peers.
  • MSM's Return On Invested Capital of 17.26% is amongst the best of the industry. MSM outperforms 86.27% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for MSM is significantly above the industry average of 11.09%.
  • The last Return On Invested Capital (17.26%) for MSM is above the 3 year average (16.95%), which is a sign of increasing profitability.
  • MSM has a better Profit Margin (7.44%) than 64.71% of its industry peers.
  • MSM has a better Operating Margin (11.06%) than 68.63% of its industry peers.
  • MSM has a better Gross Margin (41.03%) than 70.59% of its industry peers.

Our Best Dividend screener lists more Best Dividend stocks and is updated daily.

For an up to date full fundamental analysis you can check the fundamental report of MSM

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.