MSC INDUSTRIAL DIRECT CO-A (MSM) Stock Fundamental Analysis
USA - NYSE:MSM - US5535301064 - Common Stock
85.59 USD
-1.09 (-1.26%)
85.59 USD
0 (0%)
Overall MSM gets a fundamental rating of 5 out of 10. We evaluated MSM against 51 industry peers in the Trading Companies & Distributors industry. MSM has only an average score on both its financial health and profitability. MSM is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year MSM was profitable.
In the past year MSM had a positive cash flow from operations.
Each year in the past 5 years MSM has been profitable.
Each year in the past 5 years MSM had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 8.10%, MSM is in the better half of the industry, outperforming 72.55% of the companies in the same industry.
Looking at the Return On Equity, with a value of 14.36%, MSM is in the better half of the industry, outperforming 64.71% of the companies in the same industry.
MSM has a Return On Invested Capital of 13.51%. This is amongst the best in the industry. MSM outperforms 84.31% of its industry peers.
MSM had an Average Return On Invested Capital over the past 3 years of 16.43%. This is significantly above the industry average of 10.20%.
| 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
Looking at the Profit Margin, with a value of 5.29%, MSM is in the better half of the industry, outperforming 62.75% of the companies in the same industry.
MSM's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 8.29%, MSM perfoms like the industry average, outperforming 58.82% of the companies in the same industry.
In the last couple of years the Operating Margin of MSM has declined.
With a decent Gross Margin value of 40.75%, MSM is doing good in the industry, outperforming 78.43% of the companies in the same industry.
MSM's Gross Margin has been stable in the last couple of years.
| 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
MSM has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some 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.
2.2 Solvency
MSM has an Altman-Z score of 5.13. This indicates that MSM is financially healthy and has little risk of bankruptcy at the moment.
MSM's Altman-Z score of 5.13 is amongst the best of the industry. MSM outperforms 88.24% 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.
MSM has a Debt to FCF ratio of 2.02. This is in the better half of the industry: MSM outperforms 78.43% of its industry peers.
A Debt/Equity ratio of 0.12 indicates that MSM is not too dependend on debt financing.
MSM has a better Debt to Equity ratio (0.12) than 72.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 2.02 | ||
| Altman-Z | 5.13 |
ROIC/WACC1.46
WACC9.26%
2.3 Liquidity
A Current Ratio of 1.68 indicates that MSM should not have too much problems paying its short term obligations.
MSM's Current ratio of 1.68 is in line compared to the rest of the industry. MSM outperforms 43.14% of its industry peers.
MSM has a Quick Ratio of 1.68. This is a bad value and indicates that MSM is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of MSM (0.80) is worse than 70.59% 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.
The Revenue has been growing slightly by 3.38% on average over the past years.
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 15.03% on average over the next years. This is quite good.
The Revenue is expected to grow by 4.31% on average over the next years.
EPS Next Y12.76%
EPS Next 2Y13.72%
EPS Next 3Y14.85%
EPS Next 5Y15.03%
Revenue Next Year4.35%
Revenue Next 2Y4.66%
Revenue Next 3Y4.94%
Revenue Next 5Y4.31%
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 accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 22.82, MSM is valued on the expensive side.
MSM's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 25.67, MSM is valued at the same level.
With a Price/Forward Earnings ratio of 20.24, MSM is valued on the expensive side.
The rest of the industry has a similar Price/Forward Earnings ratio as MSM.
When comparing the Price/Forward Earnings ratio of MSM to the average of the S&P500 Index (31.86), we can say MSM is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.82 | ||
| Fwd PE | 20.24 |
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 74.51% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.78 | ||
| EV/EBITDA | 13.04 |
4.3 Compensation for Growth
The 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.
A more expensive valuation may be justified as MSM's earnings are expected to grow with 14.85% in the coming years.
PEG (NY)1.79
PEG (5Y)N/A
EPS Next 2Y13.72%
EPS Next 3Y14.85%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.09%, MSM is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.94, 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 2.40, MSM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.09% |
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
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 2Y13.72%
EPS Next 3Y14.85%
85.59
-1.09 (-1.26%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners88.76%
Inst Owner Change-0.54%
Ins Owners18.66%
Ins Owner Change1.56%
Market Cap4.77B
Revenue(TTM)3.77B
Net Income(TTM)199.33M
Analysts69.33
Price Target91.75 (7.2%)
Short Float %6.93%
Short Ratio5.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.09% |
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)1.5%
EPS NQ rev (1m)1.06%
EPS NQ rev (3m)1.38%
EPS NY rev (1m)1.52%
EPS NY rev (3m)1.96%
Revenue NQ rev (1m)0.99%
Revenue NQ rev (3m)1.16%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)0.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.82 | ||
| Fwd PE | 20.24 | ||
| P/S | 1.26 | ||
| P/FCF | 19.78 | ||
| P/OCF | 14.28 | ||
| P/B | 3.43 | ||
| P/tB | 8.23 | ||
| EV/EBITDA | 13.04 |
EPS(TTM)3.75
EY4.38%
EPS(NY)4.23
Fwd EY4.94%
FCF(TTM)4.33
FCFY5.05%
OCF(TTM)5.99
OCFY7%
SpS67.7
BVpS24.93
TBVpS10.4
PEG (NY)1.79
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 | 5.13 |
F-Score5
WACC9.26%
ROIC/WACC1.46
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 Y12.76%
EPS Next 2Y13.72%
EPS Next 3Y14.85%
EPS Next 5Y15.03%
Revenue 1Y (TTM)-1.35%
Revenue growth 3Y0.7%
Revenue growth 5Y3.38%
Sales Q2Q%2.72%
Revenue Next Year4.35%
Revenue Next 2Y4.66%
Revenue Next 3Y4.94%
Revenue Next 5Y4.31%
EBIT growth 1Y-23.01%
EBIT growth 3Y-12.98%
EBIT growth 5Y-2.85%
EBIT Next Year53.61%
EBIT Next 3Y23.6%
EBIT Next 5Y18.97%
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 22.82 and the Price/Book (PB) ratio is 3.43.
How financially healthy is MSC INDUSTRIAL DIRECT CO-A?
The financial health rating of MSC INDUSTRIAL DIRECT CO-A (MSM) is 6 / 10.