MSA SAFETY INC (MSA) Stock Fundamental Analysis
NYSE:MSA - New York Stock Exchange, Inc. - US5534981064 - Common Stock - Currency: USD
Taking everything into account, MSA scores 7 out of 10 in our fundamental rating. MSA was compared to 83 industry peers in the Commercial Services & Supplies industry. MSA gets an excellent profitability rating and is at the same time showing great financial health properties. MSA has a decent growth rate and is not valued too expensively. MSA also has an excellent dividend rating. This makes MSA very considerable for dividend investing!
1. Profitability
1.1 Basic Checks
In the past year MSA was profitable.
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
MSA has a Return On Assets of 12.81%. This is amongst the best in the industry. MSA outperforms 86.75% of its industry peers.
Looking at the Return On Equity, with a value of 24.06%, MSA belongs to the top of the industry, outperforming 87.95% of the companies in the same industry.
With an excellent Return On Invested Capital value of 16.29%, MSA belongs to the best of the industry, outperforming 90.36% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for MSA is above the industry average of 11.67%.
The 3 year average ROIC (14.63%) for MSA is below the current ROIC(16.29%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.81% | ||
| ROE | 24.06% | ||
| ROIC | 16.29% |
ROA(3y)7.72%
ROA(5y)6.1%
ROE(3y)16.81%
ROE(5y)13.55%
ROIC(3y)14.63%
ROIC(5y)11.25%
1.3 Margins
MSA has a Profit Margin of 15.77%. This is amongst the best in the industry. MSA outperforms 87.95% of its industry peers.
In the last couple of years the Profit Margin of MSA has grown nicely.
MSA has a better Operating Margin (22.20%) than 95.18% of its industry peers.
MSA's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 47.26%, MSA belongs to the best of the industry, outperforming 83.13% of the companies in the same industry.
MSA's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.2% | ||
| PM (TTM) | 15.77% | ||
| GM | 47.26% |
OM growth 3Y78.35%
OM growth 5Y6.79%
PM growth 3Y117.98%
PM growth 5Y9.9%
GM growth 3Y2.69%
GM growth 5Y0.88%
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.
The number of shares outstanding for MSA remains at a similar level compared to 1 year ago.
Compared to 5 years ago, MSA has more shares outstanding
Compared to 1 year ago, MSA has an improved debt to assets ratio.
2.2 Solvency
MSA has an Altman-Z score of 6.52. This indicates that MSA is financially healthy and has little risk of bankruptcy at the moment.
MSA has a Altman-Z score of 6.52. This is amongst the best in the industry. MSA outperforms 86.75% of its industry peers.
MSA has a debt to FCF ratio of 1.98. This is a very positive value and a sign of high solvency as it would only need 1.98 years to pay back of all of its debts.
MSA has a better Debt to FCF ratio (1.98) than 80.72% of its industry peers.
MSA has a Debt/Equity ratio of 0.39. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of MSA (0.39) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 1.98 | ||
| Altman-Z | 6.52 |
ROIC/WACC1.86
WACC8.77%
2.3 Liquidity
MSA has a Current Ratio of 2.94. This indicates that MSA is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 2.94, MSA belongs to the best of the industry, outperforming 83.13% of the companies in the same industry.
MSA has a Quick Ratio of 1.84. This is a normal value and indicates that MSA is financially healthy and should not expect problems in meeting its short term obligations.
MSA has a Quick ratio of 1.84. This is in the better half of the industry: MSA outperforms 73.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.94 | ||
| Quick Ratio | 1.84 |
3. Growth
3.1 Past
MSA shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.73%.
MSA shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.91% yearly.
Looking at the last year, MSA shows a small growth in Revenue. The Revenue has grown by 0.75% in the last year.
MSA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.22% yearly.
EPS 1Y (TTM)6.73%
EPS 3Y18.56%
EPS 5Y9.91%
EPS Q2Q%4.35%
Revenue 1Y (TTM)0.75%
Revenue growth 3Y8.9%
Revenue growth 5Y5.22%
Sales Q2Q%1.94%
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 8.10% yearly.
MSA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.00% yearly.
EPS Next Y1.44%
EPS Next 2Y6.5%
EPS Next 3Y6.93%
EPS Next 5Y8.1%
Revenue Next Year0.76%
Revenue Next 2Y2.99%
Revenue Next 3Y3.54%
Revenue Next 5Y4%
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 stable.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 22.24, MSA is valued on the expensive side.
Based on the Price/Earnings ratio, MSA is valued a bit cheaper than the industry average as 63.86% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.30, MSA is valued at the same level.
MSA is valuated rather expensively with a Price/Forward Earnings ratio of 19.78.
Based on the Price/Forward Earnings ratio, MSA is valued a bit cheaper than 65.06% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of MSA to the average of the S&P500 Index (21.76), we can say MSA is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.24 | ||
| Fwd PE | 19.78 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MSA is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, MSA is valued a bit cheaper than the industry average as 62.65% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.79 | ||
| EV/EBITDA | 15.4 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates MSA does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of MSA may justify a higher PE ratio.
PEG (NY)15.41
PEG (5Y)2.24
EPS Next 2Y6.5%
EPS Next 3Y6.93%
5. Dividend
5.1 Amount
MSA has a Yearly Dividend Yield of 5.06%, which is a nice return.
Compared to an average industry Dividend Yield of 2.44, MSA pays a better dividend. On top of this MSA pays more dividend than 95.18% of the companies listed in the same industry.
MSA's Dividend Yield is rather good when compared to the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.06% |
5.2 History
The dividend of MSA has a limited annual growth rate of 4.06%.
MSA has paid a dividend for at least 10 years, which is a reliable track record.
MSA has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)4.06%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
28.04% of the earnings are spent on dividend by MSA. This is a low number and sustainable payout ratio.
MSA's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP28.04%
EPS Next 2Y6.5%
EPS Next 3Y6.93%
172.77
-2.22 (-1.27%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners88.85%
Inst Owner Change0%
Ins Owners0.8%
Ins Owner Change0.07%
Market Cap6.79B
Analysts77.78
Price Target180.8 (4.65%)
Short Float %2.93%
Short Ratio4.42
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.06% |
Yearly Dividend2
Dividend Growth(5Y)4.06%
DP28.04%
Div Incr Years11
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.33%
Min EPS beat(2)-0.61%
Max EPS beat(2)5.26%
EPS beat(4)3
Avg EPS beat(4)1.69%
Min EPS beat(4)-0.61%
Max EPS beat(4)5.26%
EPS beat(8)7
Avg EPS beat(8)7.76%
EPS beat(12)11
Avg EPS beat(12)9.79%
EPS beat(16)14
Avg EPS beat(16)10.12%
Revenue beat(2)1
Avg Revenue beat(2)-0.63%
Min Revenue beat(2)-4.87%
Max Revenue beat(2)3.61%
Revenue beat(4)1
Avg Revenue beat(4)-1.66%
Min Revenue beat(4)-4.87%
Max Revenue beat(4)3.61%
Revenue beat(8)4
Avg Revenue beat(8)0.86%
Revenue beat(12)8
Avg Revenue beat(12)1.68%
Revenue beat(16)11
Avg Revenue beat(16)1.58%
PT rev (1m)-2.07%
PT rev (3m)-4.58%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-8.4%
EPS NY rev (1m)0.03%
EPS NY rev (3m)-3.33%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.35%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.24 | ||
| Fwd PE | 19.78 | ||
| P/S | 3.74 | ||
| P/FCF | 26.79 | ||
| P/OCF | 22.1 | ||
| P/B | 5.71 | ||
| P/tB | 21.29 | ||
| EV/EBITDA | 15.4 |
EPS(TTM)7.77
EY4.5%
EPS(NY)8.73
Fwd EY5.06%
FCF(TTM)6.45
FCFY3.73%
OCF(TTM)7.82
OCFY4.52%
SpS46.19
BVpS30.27
TBVpS8.12
PEG (NY)15.41
PEG (5Y)2.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.81% | ||
| ROE | 24.06% | ||
| ROCE | 20.62% | ||
| ROIC | 16.29% | ||
| ROICexc | 17.84% | ||
| ROICexgc | 34.85% | ||
| OM | 22.2% | ||
| PM (TTM) | 15.77% | ||
| GM | 47.26% | ||
| FCFM | 13.96% |
ROA(3y)7.72%
ROA(5y)6.1%
ROE(3y)16.81%
ROE(5y)13.55%
ROIC(3y)14.63%
ROIC(5y)11.25%
ROICexc(3y)15.96%
ROICexc(5y)12.44%
ROICexgc(3y)32.31%
ROICexgc(5y)24.61%
ROCE(3y)18.52%
ROCE(5y)14.24%
ROICexcg growth 3Y97.54%
ROICexcg growth 5Y5.68%
ROICexc growth 3Y98.64%
ROICexc growth 5Y5.18%
OM growth 3Y78.35%
OM growth 5Y6.79%
PM growth 3Y117.98%
PM growth 5Y9.9%
GM growth 3Y2.69%
GM growth 5Y0.88%
F-Score7
Asset Turnover0.81
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 1.98 | ||
| Debt/EBITDA | 1 | ||
| Cap/Depr | 82.72% | ||
| Cap/Sales | 2.96% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 65.65% | ||
| Profit Quality | 88.55% | ||
| Current Ratio | 2.94 | ||
| Quick Ratio | 1.84 | ||
| Altman-Z | 6.52 |
F-Score7
WACC8.77%
ROIC/WACC1.86
Cap/Depr(3y)77.54%
Cap/Depr(5y)90.68%
Cap/Sales(3y)2.75%
Cap/Sales(5y)3.08%
Profit Quality(3y)77.96%
Profit Quality(5y)213.06%
High Growth Momentum
Growth
EPS 1Y (TTM)6.73%
EPS 3Y18.56%
EPS 5Y9.91%
EPS Q2Q%4.35%
EPS Next Y1.44%
EPS Next 2Y6.5%
EPS Next 3Y6.93%
EPS Next 5Y8.1%
Revenue 1Y (TTM)0.75%
Revenue growth 3Y8.9%
Revenue growth 5Y5.22%
Sales Q2Q%1.94%
Revenue Next Year0.76%
Revenue Next 2Y2.99%
Revenue Next 3Y3.54%
Revenue Next 5Y4%
EBIT growth 1Y1.26%
EBIT growth 3Y94.21%
EBIT growth 5Y12.36%
EBIT Next Year13.47%
EBIT Next 3Y9.25%
EBIT Next 5Y9.97%
FCF growth 1Y228.59%
FCF growth 3Y17.32%
FCF growth 5Y13.53%
OCF growth 1Y301.03%
OCF growth 3Y14.19%
OCF growth 5Y12.43%