MSC INDUSTRIAL DIRECT CO-A (MSM) Fundamental Analysis & Valuation

NYSE:MSM • US5535301064

Current stock price

87.11 USD
+1.39 (+1.62%)
At close:
87.11 USD
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This MSM fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

7

1. MSM Profitability Analysis

1.1 Basic Checks

  • MSM had positive earnings in the past year.
  • MSM had a positive operating cash flow in the past year.
  • In the past 5 years MSM has always been profitable.
  • Each year in the past 5 years MSM had a positive operating cash flow.
MSM Yearly Net Income VS EBIT VS OCF VS FCFMSM Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M

1.2 Ratios

  • Looking at the Return On Assets, with a value of 8.22%, MSM is in the better half of the industry, outperforming 79.17% of the companies in the same industry.
  • The Return On Equity of MSM (14.81%) is better than 70.83% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 13.57%, MSM belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
  • MSM had an Average Return On Invested Capital over the past 3 years of 16.43%. This is significantly above the industry average of 9.17%.
Industry RankSector Rank
ROA 8.22%
ROE 14.81%
ROIC 13.57%
ROA(3y)10.7%
ROA(5y)10.67%
ROE(3y)18.71%
ROE(5y)20.03%
ROIC(3y)16.43%
ROIC(5y)16.08%
MSM Yearly ROA, ROE, ROICMSM Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15 20 25

1.3 Margins

  • The Profit Margin of MSM (5.37%) is better than 66.67% of its industry peers.
  • MSM's Profit Margin has declined in the last couple of years.
  • MSM has a better Operating Margin (8.38%) than 64.58% of its industry peers.
  • MSM's Operating Margin has declined in the last couple of years.
  • Looking at the Gross Margin, with a value of 40.73%, MSM belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
  • In the last couple of years the Gross Margin of MSM has remained more or less at the same level.
Industry RankSector Rank
OM 8.38%
PM (TTM) 5.37%
GM 40.73%
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%
MSM Yearly Profit, Operating, Gross MarginsMSM Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40

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6

2. MSM Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so MSM is creating value.
  • The number of shares outstanding for MSM has been reduced compared to 1 year ago.
  • The number of shares outstanding for MSM has been increased compared to 5 years ago.
  • The debt/assets ratio for MSM has been reduced compared to a year ago.
MSM Yearly Shares OutstandingMSM Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10M 20M 30M 40M 50M
MSM Yearly Total Debt VS Total AssetsMSM Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B 2.5B

2.2 Solvency

  • An Altman-Z score of 5.05 indicates that MSM is not in any danger for bankruptcy at the moment.
  • With a decent Altman-Z score value of 5.05, MSM is doing good in the industry, outperforming 79.17% of the companies in the same industry.
  • The Debt to FCF ratio of MSM is 3.19, which is a good value as it means it would take MSM, 3.19 years of fcf income to pay off all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 3.19, MSM is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
  • MSM has a Debt/Equity ratio of 0.16. This is a healthy value indicating a solid balance between debt and equity.
  • MSM has a better Debt to Equity ratio (0.16) than 72.92% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.16
Debt/FCF 3.19
Altman-Z 5.05
ROIC/WACC1.59
WACC8.52%
MSM Yearly LT Debt VS Equity VS FCFMSM Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B

2.3 Liquidity

  • A Current Ratio of 1.73 indicates that MSM should not have too much problems paying its short term obligations.
  • MSM's Current ratio of 1.73 is in line compared to the rest of the industry. MSM outperforms 47.92% of its industry peers.
  • A Quick Ratio of 0.82 indicates that MSM may have some problems paying its short term obligations.
  • MSM has a Quick ratio of 0.82. This is in the lower half of the industry: MSM underperforms 68.75% of its industry peers.
Industry RankSector Rank
Current Ratio 1.73
Quick Ratio 0.82
MSM Yearly Current Assets VS Current LiabilitesMSM Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B

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4

3. MSM Growth Analysis

3.1 Past

  • MSM shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -11.82%.
  • The Earnings Per Share has been decreasing by -4.42% on average over the past years.
  • MSM shows a small growth in Revenue. In the last year, the Revenue has grown by 0.30%.
  • MSM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.38% yearly.
EPS 1Y (TTM)-11.82%
EPS 3Y-15.2%
EPS 5Y-4.42%
EPS Q2Q%15.12%
Revenue 1Y (TTM)0.3%
Revenue growth 3Y0.7%
Revenue growth 5Y3.38%
Sales Q2Q%4.01%

3.2 Future

  • Based on estimates for the next years, MSM will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.53% on average per year.
  • The Revenue is expected to grow by 4.00% on average over the next years.
EPS Next Y15.48%
EPS Next 2Y13.99%
EPS Next 3Y13.77%
EPS Next 5Y8.53%
Revenue Next Year5.33%
Revenue Next 2Y5.25%
Revenue Next 3Y5.44%
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.
  • The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
MSM Yearly Revenue VS EstimatesMSM Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 1B 2B 3B 4B
MSM Yearly EPS VS EstimatesMSM Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2 4 6

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4

4. MSM Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 22.45 indicates a rather expensive valuation of MSM.
  • Based on the Price/Earnings ratio, MSM is valued a bit cheaper than the industry average as 60.42% of the companies are valued more expensively.
  • MSM is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.23, which is the current average of the S&P500 Index.
  • A Price/Forward Earnings ratio of 17.88 indicates a rather expensive valuation of MSM.
  • Based on the Price/Forward Earnings ratio, MSM is valued a bit cheaper than the industry average as 62.50% of the companies are valued more expensively.
  • The average S&P500 Price/Forward Earnings ratio is at 22.42. MSM is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 22.45
Fwd PE 17.88
MSM Price Earnings VS Forward Price EarningsMSM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • MSM's Enterprise Value to EBITDA ratio is in line with the industry average.
  • 66.67% of the companies in the same industry are more expensive than MSM, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 29.18
EV/EBITDA 12.77
MSM Per share dataMSM EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60

4.3 Compensation for Growth

  • MSM's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • MSM has a very decent profitability rating, which may justify a higher PE ratio.
  • MSM's earnings are expected to grow with 13.77% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.45
PEG (5Y)N/A
EPS Next 2Y13.99%
EPS Next 3Y13.77%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. MSM Dividend Analysis

5.1 Amount

  • MSM has a Yearly Dividend Yield of 4.01%, which is a nice return.
  • MSM's Dividend Yield is rather good when compared to the industry average which is at 0.90. MSM pays more dividend than 97.92% of the companies in the same industry.
  • MSM's Dividend Yield is rather good when compared to the S&P500 average which is at 1.89.
Industry RankSector Rank
Dividend Yield 4.01%

5.2 History

  • The dividend of MSM decreases each year by -15.79%.
  • MSM has been paying a dividend for at least 10 years, so it has 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
MSM Yearly Dividends per shareMSM Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2 4 6 8 10

5.3 Sustainability

  • 93.27% of the earnings are spent on dividend by MSM. This is not a sustainable payout ratio.
DP93.27%
EPS Next 2Y13.99%
EPS Next 3Y13.77%
MSM Yearly Income VS Free CF VS DividendMSM Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M
MSM Dividend Payout.MSM Dividend Payout, showing the Payout Ratio.MSM Dividend Payout.PayoutRetained Earnings

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MSM Fundamentals: All Metrics, Ratios and Statistics

MSC INDUSTRIAL DIRECT CO-A

NYSE:MSM (3/23/2026, 4:15:00 PM)

After market: 87.11 0 (0%)

87.11

+1.39 (+1.62%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)01-07
Earnings (Next)04-01
Inst Owners88.43%
Inst Owner Change8.65%
Ins Owners19.08%
Ins Owner Change5.57%
Market Cap4.86B
Revenue(TTM)3.81B
Net Income(TTM)204.51M
Analysts52.94
Price Target88.68 (1.8%)
Short Float %7.2%
Short Ratio4.4
Dividend
Industry RankSector Rank
Dividend Yield 4.01%
Yearly Dividend3.4
Dividend Growth(5Y)-15.79%
DP93.27%
Div Incr Years3
Div Non Decr Years3
Ex-Date01-14
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.82%
Min EPS beat(2)3.37%
Max EPS beat(2)6.27%
EPS beat(4)4
Avg EPS beat(4)4.53%
Min EPS beat(4)3.37%
Max EPS beat(4)6.27%
EPS beat(8)6
Avg EPS beat(8)3.65%
EPS beat(12)8
Avg EPS beat(12)2.46%
EPS beat(16)11
Avg EPS beat(16)2.34%
Revenue beat(2)1
Avg Revenue beat(2)-0.17%
Min Revenue beat(2)-0.78%
Max Revenue beat(2)0.44%
Revenue beat(4)1
Avg Revenue beat(4)-0.77%
Min Revenue beat(4)-1.85%
Max Revenue beat(4)0.44%
Revenue beat(8)2
Avg Revenue beat(8)-0.79%
Revenue beat(12)5
Avg Revenue beat(12)-0.23%
Revenue beat(16)7
Avg Revenue beat(16)-0.23%
PT rev (1m)-1.71%
PT rev (3m)-3.35%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-6.23%
EPS NY rev (1m)0.74%
EPS NY rev (3m)0.23%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.57%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)-0.55%
Valuation
Industry RankSector Rank
PE 22.45
Fwd PE 17.88
P/S 1.28
P/FCF 29.18
P/OCF 18.6
P/B 3.52
P/tB 8.43
EV/EBITDA 12.77
EPS(TTM)3.88
EY4.45%
EPS(NY)4.87
Fwd EY5.59%
FCF(TTM)2.99
FCFY3.43%
OCF(TTM)4.68
OCFY5.37%
SpS68.22
BVpS24.75
TBVpS10.33
PEG (NY)1.45
PEG (5Y)N/A
Graham Number46.49
Profitability
Industry RankSector Rank
ROA 8.22%
ROE 14.81%
ROCE 18.12%
ROIC 13.57%
ROICexc 13.88%
ROICexgc 26.09%
OM 8.38%
PM (TTM) 5.37%
GM 40.73%
FCFM 4.38%
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 RankSector Rank
Debt/Equity 0.16
Debt/FCF 3.19
Debt/EBITDA 0.52
Cap/Depr 100.66%
Cap/Sales 2.49%
Interest Coverage 13.73
Cash Conversion 63.24%
Profit Quality 81.45%
Current Ratio 1.73
Quick Ratio 0.82
Altman-Z 5.05
F-Score5
WACC8.52%
ROIC/WACC1.59
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)-11.82%
EPS 3Y-15.2%
EPS 5Y-4.42%
EPS Q2Q%15.12%
EPS Next Y15.48%
EPS Next 2Y13.99%
EPS Next 3Y13.77%
EPS Next 5Y8.53%
Revenue 1Y (TTM)0.3%
Revenue growth 3Y0.7%
Revenue growth 5Y3.38%
Sales Q2Q%4.01%
Revenue Next Year5.33%
Revenue Next 2Y5.25%
Revenue Next 3Y5.44%
Revenue Next 5Y4%
EBIT growth 1Y-15.63%
EBIT growth 3Y-12.98%
EBIT growth 5Y-2.85%
EBIT Next Year59.21%
EBIT Next 3Y24.44%
EBIT Next 5Y13.13%
FCF growth 1Y-73.1%
FCF growth 3Y9.24%
FCF growth 5Y-7.18%
OCF growth 1Y-62.93%
OCF growth 3Y10.67%
OCF growth 5Y-3.4%

MSC INDUSTRIAL DIRECT CO-A / MSM Fundamental Analysis FAQ

What is the ChartMill fundamental rating of MSC INDUSTRIAL DIRECT CO-A (MSM) stock?

ChartMill assigns a fundamental rating of 6 / 10 to MSM.


What is the valuation status for 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 7 / 10.


How financially healthy is MSC INDUSTRIAL DIRECT CO-A?

The financial health rating of MSC INDUSTRIAL DIRECT CO-A (MSM) is 6 / 10.


Can you provide the expected EPS growth for MSM stock?

The Earnings per Share (EPS) of MSC INDUSTRIAL DIRECT CO-A (MSM) is expected to grow by 15.48% in the next year.