MSA SAFETY INC (MSA)
US5534981064 - Common Stock
We assign a fundamental rating of 6 out of 10 to MSA. MSA was compared to 85 industry peers in the Commercial Services & Supplies industry. MSA scores excellent points on both the profitability and health parts. This is a solid base for a good stock. MSA is quite expensive at the moment. It does show a decent growth rate. With these ratings, MSA could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
MSA had positive earnings in the past year.
MSA had a positive operating cash flow in the past year.
In the past 5 years MSA has always been profitable.
Each year in the past 5 years MSA had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 12.27%, MSA belongs to the best of the industry, outperforming 92.86% of the companies in the same industry.
With an excellent Return On Equity value of 26.82%, MSA belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 16.92%, MSA belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for MSA is in line with the industry average of 10.04%.
The last Return On Invested Capital (16.92%) for MSA is above the 3 year average (9.77%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.27% | ||
| ROE | 26.82% | ||
| ROIC | 16.92% |
ROA(3y)3.71%
ROA(5y)5.1%
ROE(3y)9.35%
ROE(5y)12.36%
ROIC(3y)9.77%
ROIC(5y)10.36%
1.3 Margins
MSA has a better Profit Margin (14.80%) than 95.24% of its industry peers.
MSA's Profit Margin has declined in the last couple of years.
The Operating Margin of MSA (22.07%) is better than 96.43% of its industry peers.
In the last couple of years the Operating Margin of MSA has grown nicely.
The Gross Margin of MSA (48.06%) is better than 85.71% of its industry peers.
MSA's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.07% | ||
| PM (TTM) | 14.8% | ||
| GM | 48.06% |
OM growth 3Y11.99%
OM growth 5Y9.32%
PM growth 3Y-29.13%
PM growth 5Y-18.55%
GM growth 3Y2.57%
GM growth 5Y1.13%
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.
MSA has more shares outstanding than it did 1 year ago.
The number of shares outstanding for MSA has been increased compared to 5 years ago.
The debt/assets ratio for MSA is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 6.30 indicates that MSA is not in any danger for bankruptcy at the moment.
MSA has a better Altman-Z score (6.30) than 86.90% of its industry peers.
The Debt to FCF ratio of MSA is 1.55, which is an excellent value as it means it would take MSA, only 1.55 years of fcf income to pay off all of its debts.
MSA's Debt to FCF ratio of 1.55 is fine compared to the rest of the industry. MSA outperforms 78.57% of its industry peers.
MSA has a Debt/Equity ratio of 0.57. This is a neutral value indicating MSA is somewhat dependend on debt financing.
MSA has a Debt to Equity ratio (0.57) which is comparable to the rest of the industry.
Although MSA does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 1.55 | ||
| Altman-Z | 6.3 |
ROIC/WACC1.92
WACC8.81%
2.3 Liquidity
MSA has a Current Ratio of 2.51. This indicates that MSA is financially healthy and has no problem in meeting its short term obligations.
MSA's Current ratio of 2.51 is fine compared to the rest of the industry. MSA outperforms 79.76% of its industry peers.
A Quick Ratio of 1.54 indicates that MSA should not have too much problems paying its short term obligations.
MSA has a better Quick ratio (1.54) than 67.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.51 | ||
| Quick Ratio | 1.54 |
3. Growth
3.1 Past
MSA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 23.39%, which is quite impressive.
The Earnings Per Share has been growing by 9.28% on average over the past years. This is quite good.
The Revenue has grown by 12.98% in the past year. This is quite good.
The Revenue has been growing slightly by 5.65% on average over the past years.
EPS 1Y (TTM)23.39%
EPS 3Y16.03%
EPS 5Y9.28%
EPS growth Q2Q18.38%
Revenue 1Y (TTM)12.98%
Revenue growth 3Y9.86%
Revenue growth 5Y5.65%
Revenue growth Q2Q3.77%
3.2 Future
MSA is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.90% yearly.
Based on estimates for the next years, MSA will show a small growth in Revenue. The Revenue will grow by 5.77% on average per year.
EPS Next Y11.06%
EPS Next 2Y9.9%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year6.58%
Revenue Next 2Y5.77%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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
A Price/Earnings ratio of 26.00 indicates a quite expensive valuation of MSA.
Compared to the rest of the industry, the Price/Earnings ratio of MSA is on the same level as its industry peers.
MSA is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.83, which is the current average of the S&P500 Index.
MSA is valuated rather expensively with a Price/Forward Earnings ratio of 22.29.
MSA's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 20.47. MSA is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26 | ||
| Fwd PE | 22.29 |
4.2 Price Multiples
MSA's Enterprise Value to EBITDA ratio is in line with the industry average.
70.24% of the companies in the same industry are more expensive than MSA, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.39 | ||
| EV/EBITDA | 17.42 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of MSA may justify a higher PE ratio.
PEG (NY)2.35
PEG (5Y)2.8
EPS Next 2Y9.9%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.08%, MSA has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.31, MSA pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.34, MSA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.08% |
5.2 History
The dividend of MSA has a limited annual growth rate of 4.65%.
MSA has been paying a dividend for at least 10 years, so it has a reliable track record.
MSA has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)4.65%
Div Incr Years10
Div Non Decr Years10
5.3 Sustainability
MSA pays out 27.73% of its income as dividend. This is a sustainable payout ratio.
The dividend of MSA is growing, but earnings are growing more, so the dividend growth is sustainable.
DP27.73%
EPS Next 2Y9.9%
EPS Next 3YN/A
MSA SAFETY INC
NYSE:MSA (5/16/2024, 7:05:36 PM)
After market: 189.26 0 (0%)189.26
-2.85 (-1.48%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap7.45B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.08% |
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)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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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 | 26 | ||
| Fwd PE | 22.29 | ||
| 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)2.35
PEG (5Y)2.8
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.27% | ||
| ROE | 26.82% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 22.07% | ||
| PM (TTM) | 14.8% | ||
| GM | 48.06% | ||
| 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 Turnover0.83
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.51 | ||
| Quick Ratio | 1.54 | ||
| 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)
Growth
EPS 1Y (TTM)23.39%
EPS 3Y16.03%
EPS 5Y
EPS growth Q2Q
EPS Next Y11.06%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)12.98%
Revenue growth 3Y9.86%
Revenue growth 5Y
Revenue growth 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