MSC INDUSTRIAL DIRECT CO-A (MSM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MSM - US5535301064 - Common Stock
84.94 USD
-1.28 (-1.48%)
84.94 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to MSM. MSM was compared to 50 industry peers in the Trading Companies & Distributors industry. MSM has an average financial health and profitability rating. 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
The Return On Assets of MSM (8.10%) is better than 74.00% of its industry peers.
The Return On Equity of MSM (14.36%) is better than 66.00% of its industry peers.
MSM has a better Return On Invested Capital (13.51%) than 84.00% 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 9.63%.
| 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 62.00% 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 58.00% of the companies in the same industry.
In the last couple of years the Operating Margin of MSM has declined.
MSM has a Gross Margin of 40.75%. This is in the better half of the industry: MSM outperforms 78.00% 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so MSM is still creating some value.
MSM has less shares outstanding than it did 1 year ago.
MSM has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, MSM has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.13 indicates that MSM is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.13, MSM is in the better half of the industry, outperforming 76.00% of the companies in the same industry.
MSM has a debt to FCF ratio of 2.02. This is a good value and a sign of high solvency as MSM would need 2.02 years to pay back of all of its debts.
MSM's Debt to FCF ratio of 2.02 is fine compared to the rest of the industry. MSM outperforms 76.00% of its industry peers.
A Debt/Equity ratio of 0.12 indicates that MSM is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.12, MSM is in the better half of the industry, outperforming 72.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 2.02 | ||
| Altman-Z | 5.13 |
ROIC/WACC1.42
WACC9.54%
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 comparable to the rest of the industry.
A Quick Ratio of 0.80 indicates that MSM may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.80, MSM is doing worse than 72.00% of the companies in the same industry.
| 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.
Looking at the last year, MSM shows a decrease in Revenue. The Revenue has decreased by -1.35% in the last year.
Measured over the past years, MSM shows a small growth in Revenue. The Revenue has been growing by 3.38% on average per year.
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
MSM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.53% yearly.
Based on estimates for the next years, MSM will show a small growth in Revenue. The Revenue will grow by 4.00% on average per year.
EPS Next Y15.22%
EPS Next 2Y14.19%
EPS Next 3Y14.17%
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
A Price/Earnings ratio of 22.65 indicates a rather expensive 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 26.87.
MSM is valuated rather expensively with a Price/Forward Earnings ratio of 19.66.
MSM's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 23.46. MSM is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.65 | ||
| Fwd PE | 19.66 |
4.2 Price Multiples
MSM's Enterprise Value to EBITDA ratio is in line with the industry average.
80.00% of the companies in the same industry are more expensive than MSM, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.67 | ||
| EV/EBITDA | 13 |
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 14.17% in the coming years.
PEG (NY)1.49
PEG (5Y)N/A
EPS Next 2Y14.19%
EPS Next 3Y14.17%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.14%, MSM is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.01, MSM pays a better dividend. On top of this MSM pays more dividend than 96.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.94, MSM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.14% |
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 2Y14.19%
EPS Next 3Y14.17%
84.94
-1.28 (-1.48%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners87.29%
Inst Owner Change0%
Ins Owners18.98%
Ins Owner Change4.45%
Market Cap4.74B
Revenue(TTM)3.77B
Net Income(TTM)199.33M
Analysts67.14
Price Target91.75 (8.02%)
Short Float %7.92%
Short Ratio5.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.14% |
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%
PT rev (3m)-0.74%
EPS NQ rev (1m)-0.19%
EPS NQ rev (3m)0.87%
EPS NY rev (1m)0%
EPS NY rev (3m)3.74%
Revenue NQ rev (1m)-0.12%
Revenue NQ rev (3m)0.87%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.65 | ||
| Fwd PE | 19.66 | ||
| P/S | 1.26 | ||
| P/FCF | 19.67 | ||
| P/OCF | 14.2 | ||
| P/B | 3.41 | ||
| P/tB | 8.18 | ||
| EV/EBITDA | 13 |
EPS(TTM)3.75
EY4.41%
EPS(NY)4.32
Fwd EY5.09%
FCF(TTM)4.32
FCFY5.08%
OCF(TTM)5.98
OCFY7.04%
SpS67.57
BVpS24.88
TBVpS10.38
PEG (NY)1.49
PEG (5Y)N/A
Graham Number45.82
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
WACC9.54%
ROIC/WACC1.42
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 2Y14.19%
EPS Next 3Y14.17%
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 Year59.49%
EBIT Next 3Y24.38%
EBIT Next 5Y13.13%
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 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 6 / 10.
How financially healthy is MSC INDUSTRIAL DIRECT CO-A?
The financial health rating of MSC INDUSTRIAL DIRECT CO-A (MSM) is 5 / 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 15.22% in the next year.