MSC INDUSTRIAL DIRECT CO-A (MSM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MSM - US5535301064 - Common Stock
88.96 USD
-0.38 (-0.43%)
88.96 USD
0 (0%)
MSM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 49 industry peers in the Trading Companies & Distributors industry. Both the profitability and the financial health of MSM get a neutral evaluation. Nothing too spectacular is happening here. MSM has a valuation in line with the averages, but on the other hand it scores bad on growth.
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.
Each year in the past 5 years MSM had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 8.10%, MSM is doing good in the industry, outperforming 77.55% of the companies in the same industry.
MSM's Return On Equity of 14.36% is fine compared to the rest of the industry. MSM outperforms 67.35% of its industry peers.
MSM has a Return On Invested Capital of 13.51%. This is amongst the best in the industry. MSM outperforms 85.71% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MSM is significantly above the industry average of 9.22%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.1% | ||
| ROE | 14.36% | ||
| ROIC | 13.51% |
ROA(3y)10.7%
ROA(5y)10.67%
ROE(3y)18.71%
ROE(5y)20.03%
ROIC(3y)16.43%
ROIC(5y)16.08%
1.3 Margins
MSM has a better Profit Margin (5.29%) than 65.31% of its industry peers.
In the last couple of years the Profit Margin of MSM has declined.
With a Operating Margin value of 8.29%, MSM perfoms like the industry average, outperforming 59.18% of the companies in the same industry.
MSM's Operating Margin has declined in the last couple of years.
The Gross Margin of MSM (40.75%) is better than 77.55% of its industry peers.
In the last couple of years the Gross Margin of MSM has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.29% | ||
| PM (TTM) | 5.29% | ||
| GM | 40.75% |
OM growth 3Y-13.59%
OM growth 5Y-6.02%
PM growth 3Y-16.87%
PM growth 5Y-7.63%
GM growth 3Y-1.16%
GM growth 5Y-0.64%
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.
Compared to 1 year ago, MSM has less shares outstanding
Compared to 5 years ago, MSM has more shares outstanding
Compared to 1 year ago, MSM has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.22 indicates that MSM is not in any danger for bankruptcy at the moment.
The Altman-Z score of MSM (5.22) is better than 81.63% of its industry peers.
The Debt to FCF ratio of MSM is 2.02, which is a good value as it means it would take MSM, 2.02 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 2.02, MSM is doing good in the industry, outperforming 77.55% of the companies in the same industry.
MSM has a Debt/Equity ratio of 0.12. This is a healthy value indicating a solid balance between debt and equity.
MSM has a Debt to Equity ratio of 0.12. This is in the better half of the industry: MSM outperforms 73.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 2.02 | ||
| Altman-Z | 5.22 |
ROIC/WACC1.36
WACC9.91%
2.3 Liquidity
MSM has a Current Ratio of 1.68. 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 (1.68) which is in line with its industry peers.
A Quick Ratio of 0.80 indicates that MSM may have some problems paying its short term obligations.
MSM has a Quick ratio of 0.80. This is in the lower half of the industry: MSM underperforms 69.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.68 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
MSM shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -21.71%.
MSM shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -4.42% yearly.
The Revenue has decreased by -1.35% in the past year.
MSM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.38% yearly.
EPS 1Y (TTM)-21.71%
EPS 3Y-15.2%
EPS 5Y-4.42%
EPS Q2Q%5.83%
Revenue 1Y (TTM)-1.35%
Revenue growth 3Y0.7%
Revenue growth 5Y3.38%
Sales Q2Q%2.72%
3.2 Future
The Earnings Per Share is expected to grow by 8.53% on average over the next years. This is quite good.
The Revenue is expected to grow by 4.00% on average over the next years.
EPS Next Y15.22%
EPS Next 2Y14.58%
EPS Next 3Y14.16%
EPS Next 5Y8.53%
Revenue Next Year5.91%
Revenue Next 2Y5.5%
Revenue Next 3Y5.29%
Revenue Next 5Y4%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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
The Price/Earnings ratio is 23.72, which indicates a rather expensive current valuation of MSM.
MSM's Price/Earnings ratio is in line with the industry average.
MSM's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.31.
With a Price/Forward Earnings ratio of 20.59, MSM is valued on the expensive side.
MSM's Price/Forward Earnings is on the same level as the industry average.
MSM is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 36.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.72 | ||
| Fwd PE | 20.59 |
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 a bit cheaper than the industry average as 77.55% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.56 | ||
| EV/EBITDA | 13.4 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of MSM may justify a higher PE ratio.
MSM's earnings are expected to grow with 14.16% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.56
PEG (5Y)N/A
EPS Next 2Y14.58%
EPS Next 3Y14.16%
5. Dividend
5.1 Amount
MSM has a Yearly Dividend Yield of 4.17%, which is a nice return.
MSM's Dividend Yield is rather good when compared to the industry average which is at 2.08. MSM pays more dividend than 95.92% of the companies in the same industry.
MSM's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.17% |
5.2 History
The dividend of MSM decreases each year by -15.79%.
MSM has paid a dividend for at least 10 years, which is a reliable track record.
MSM has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-15.79%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
95.14% of the earnings are spent on dividend by MSM. This is not a sustainable payout ratio.
DP95.14%
EPS Next 2Y14.58%
EPS Next 3Y14.16%
88.96
-0.38 (-0.43%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners88.76%
Inst Owner Change-1.89%
Ins Owners18.66%
Ins Owner Change5.91%
Market Cap4.95B
Revenue(TTM)3.77B
Net Income(TTM)199.33M
Analysts66.67
Price Target91.75 (3.14%)
Short Float %7.58%
Short Ratio5.7
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.17% |
Yearly Dividend3.4
Dividend Growth(5Y)-15.79%
DP95.14%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.1%
Min EPS beat(2)3.94%
Max EPS beat(2)6.27%
EPS beat(4)4
Avg EPS beat(4)7.88%
Min EPS beat(4)3.94%
Max EPS beat(4)16.76%
EPS beat(8)5
Avg EPS beat(8)2.55%
EPS beat(12)8
Avg EPS beat(12)2.2%
EPS beat(16)11
Avg EPS beat(16)2.36%
Revenue beat(2)1
Avg Revenue beat(2)-0.23%
Min Revenue beat(2)-0.9%
Max Revenue beat(2)0.44%
Revenue beat(4)2
Avg Revenue beat(4)-0.17%
Min Revenue beat(4)-1.85%
Max Revenue beat(4)1.62%
Revenue beat(8)2
Avg Revenue beat(8)-1.04%
Revenue beat(12)6
Avg Revenue beat(12)-0.16%
Revenue beat(16)8
Avg Revenue beat(16)-0.18%
PT rev (1m)-0.74%
PT rev (3m)-0.74%
EPS NQ rev (1m)1.79%
EPS NQ rev (3m)0.92%
EPS NY rev (1m)2.18%
EPS NY rev (3m)3.8%
Revenue NQ rev (1m)0.99%
Revenue NQ rev (3m)0.99%
Revenue NY rev (1m)1.49%
Revenue NY rev (3m)1.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.72 | ||
| Fwd PE | 20.59 | ||
| P/S | 1.31 | ||
| P/FCF | 20.56 | ||
| P/OCF | 14.84 | ||
| P/B | 3.57 | ||
| P/tB | 8.55 | ||
| EV/EBITDA | 13.4 |
EPS(TTM)3.75
EY4.22%
EPS(NY)4.32
Fwd EY4.86%
FCF(TTM)4.33
FCFY4.86%
OCF(TTM)5.99
OCFY6.74%
SpS67.7
BVpS24.93
TBVpS10.4
PEG (NY)1.56
PEG (5Y)N/A
Graham Number45.87
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.1% | ||
| ROE | 14.36% | ||
| ROCE | 18.04% | ||
| ROIC | 13.51% | ||
| ROICexc | 13.96% | ||
| ROICexgc | 26.98% | ||
| OM | 8.29% | ||
| PM (TTM) | 5.29% | ||
| GM | 40.75% | ||
| FCFM | 6.39% |
ROA(3y)10.7%
ROA(5y)10.67%
ROE(3y)18.71%
ROE(5y)20.03%
ROIC(3y)16.43%
ROIC(5y)16.08%
ROICexc(3y)16.85%
ROICexc(5y)16.46%
ROICexgc(3y)31.18%
ROICexgc(5y)29.73%
ROCE(3y)21.95%
ROCE(5y)21.47%
ROICexgc growth 3Y-4.81%
ROICexgc growth 5Y1.25%
ROICexc growth 3Y-8.33%
ROICexc growth 5Y-0.93%
OM growth 3Y-13.59%
OM growth 5Y-6.02%
PM growth 3Y-16.87%
PM growth 5Y-7.63%
GM growth 3Y-1.16%
GM growth 5Y-0.64%
F-Score5
Asset Turnover1.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 2.02 | ||
| Debt/EBITDA | 0.42 | ||
| Cap/Depr | 102.44% | ||
| Cap/Sales | 2.46% | ||
| Interest Coverage | 13.08 | ||
| Cash Conversion | 82.77% | ||
| Profit Quality | 120.85% | ||
| Current Ratio | 1.68 | ||
| Quick Ratio | 0.8 | ||
| Altman-Z | 5.22 |
F-Score5
WACC9.91%
ROIC/WACC1.36
Cap/Depr(3y)116.17%
Cap/Depr(5y)102.76%
Cap/Sales(3y)2.46%
Cap/Sales(5y)2.14%
Profit Quality(3y)139.37%
Profit Quality(5y)110.25%
High Growth Momentum
Growth
EPS 1Y (TTM)-21.71%
EPS 3Y-15.2%
EPS 5Y-4.42%
EPS Q2Q%5.83%
EPS Next Y15.22%
EPS Next 2Y14.58%
EPS Next 3Y14.16%
EPS Next 5Y8.53%
Revenue 1Y (TTM)-1.35%
Revenue growth 3Y0.7%
Revenue growth 5Y3.38%
Sales Q2Q%2.72%
Revenue Next Year5.91%
Revenue Next 2Y5.5%
Revenue Next 3Y5.29%
Revenue Next 5Y4%
EBIT growth 1Y-23.01%
EBIT growth 3Y-12.98%
EBIT growth 5Y-2.85%
EBIT Next Year53.61%
EBIT Next 3Y24.43%
EBIT Next 5Y13.15%
FCF growth 1Y-22.62%
FCF growth 3Y9.24%
FCF growth 5Y-7.18%
OCF growth 1Y-18.74%
OCF growth 3Y10.67%
OCF growth 5Y-3.4%
MSC INDUSTRIAL DIRECT CO-A / MSM FAQ
What is the ChartMill fundamental rating of MSC INDUSTRIAL DIRECT CO-A (MSM) stock?
ChartMill assigns a fundamental rating of 5 / 10 to MSM.
What is the valuation status of MSC INDUSTRIAL DIRECT CO-A (MSM) stock?
ChartMill assigns a valuation rating of 4 / 10 to MSC INDUSTRIAL DIRECT CO-A (MSM). This can be considered as Fairly Valued.
How profitable is MSC INDUSTRIAL DIRECT CO-A (MSM) stock?
MSC INDUSTRIAL DIRECT CO-A (MSM) has a profitability rating of 6 / 10.
Can you provide the PE and PB ratios for MSM stock?
The Price/Earnings (PE) ratio for MSC INDUSTRIAL DIRECT CO-A (MSM) is 23.72 and the Price/Book (PB) ratio is 3.57.
How financially healthy is MSC INDUSTRIAL DIRECT CO-A?
The financial health rating of MSC INDUSTRIAL DIRECT CO-A (MSM) is 6 / 10.