MSC INDUSTRIAL DIRECT CO-A (MSM) Stock Fundamental Analysis
NYSE:MSM • US5535301064
93.84 USD
+0.53 (+0.57%)
At close: Feb 27, 2026
93.84 USD
0 (0%)
After Hours: 2/27/2026, 8:21:09 PM
Taking everything into account, MSM scores 5 out of 10 in our fundamental rating. MSM was compared to 50 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 correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- In the past year MSM was profitable.
- MSM had a positive operating cash flow in the past year.
- 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
- MSM has a better Return On Assets (8.22%) than 78.00% of its industry peers.
- Looking at the Return On Equity, with a value of 14.81%, MSM is in the better half of the industry, outperforming 68.00% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 13.57%, MSM belongs to the top of the industry, outperforming 86.00% 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 9.42%.
| Industry Rank | Sector 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%
1.3 Margins
- With a decent Profit Margin value of 5.37%, MSM is doing good in the industry, outperforming 64.00% 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 8.38%, MSM perfoms like the industry average, outperforming 60.00% 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 40.73%. 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 | 8.38% | ||
| 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%
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.
- The number of shares outstanding for MSM has been reduced compared to 1 year ago.
- MSM has more shares outstanding than it did 5 years ago.
- MSM has a better debt/assets ratio than last year.
2.2 Solvency
- MSM has an Altman-Z score of 5.28. This indicates that MSM is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of MSM (5.28) is better than 86.00% of its industry peers.
- MSM has a debt to FCF ratio of 3.19. This is a good value and a sign of high solvency as MSM would need 3.19 years to pay back of all of its debts.
- MSM has a Debt to FCF ratio of 3.19. This is in the better half of the industry: MSM outperforms 74.00% of its industry peers.
- MSM has a Debt/Equity ratio of 0.16. This is a healthy value indicating a solid balance between debt and equity.
- The Debt to Equity ratio of MSM (0.16) is better than 74.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 3.19 | ||
| Altman-Z | 5.28 |
ROIC/WACC1.45
WACC9.34%
2.3 Liquidity
- A Current Ratio of 1.73 indicates that MSM should not have too much problems paying its short term obligations.
- MSM has a Current ratio of 1.73. This is comparable to the rest of the industry: MSM outperforms 48.00% of its industry peers.
- MSM has a Quick Ratio of 1.73. This is a bad value and indicates that MSM is not financially healthy enough and could expect problems in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 0.82, MSM is doing worse than 68.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.73 | ||
| Quick Ratio | 0.82 |
3. Growth
3.1 Past
- MSM shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -11.82%.
- 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 small growth in Revenue. The Revenue has grown by 0.30% 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)-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
- 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.
- The Revenue is expected to grow by 4.00% on average over the next years.
EPS Next Y14.63%
EPS Next 2Y13.73%
EPS Next 3Y13.46%
EPS Next 5Y8.53%
Revenue Next Year5.41%
Revenue Next 2Y5.32%
Revenue Next 3Y5.44%
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 accelerating.
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 24.19, the valuation of MSM can be described as rather expensive.
- MSM's Price/Earnings is on the same level as the industry average.
- MSM is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.10, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 19.35 indicates a rather expensive valuation of MSM.
- MSM's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. MSM is cheaper than 64.00% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of MSM to the average of the S&P500 Index (28.06), we can say MSM is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.19 | ||
| Fwd PE | 19.35 |
4.2 Price Multiples
- MSM's Enterprise Value to EBITDA is on the same level as the industry average.
- Based on the Price/Free Cash Flow ratio, MSM is valued a bit cheaper than the industry average as 68.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.43 | ||
| EV/EBITDA | 13.79 |
4.3 Compensation for Growth
- MSM's 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.
- A more expensive valuation may be justified as MSM's earnings are expected to grow with 13.46% in the coming years.
PEG (NY)1.65
PEG (5Y)N/A
EPS Next 2Y13.73%
EPS Next 3Y13.46%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.71%, MSM has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 1.26, MSM pays a better dividend. On top of this MSM pays more dividend than 92.00% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.80, MSM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.71% |
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
- 93.27% of the earnings are spent on dividend by MSM. This is not a sustainable payout ratio.
DP93.27%
EPS Next 2Y13.73%
EPS Next 3Y13.46%
93.84
+0.53 (+0.57%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)01-07 2026-01-07/bmo
Earnings (Next)04-01 2026-04-01/bmo
Inst Owners87.29%
Inst Owner Change1.53%
Ins Owners18.98%
Ins Owner Change5.57%
Market Cap5.24B
Revenue(TTM)3.81B
Net Income(TTM)204.51M
Analysts67.14
Price Target90.22 (-3.86%)
Short Float %8.22%
Short Ratio5.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.71% |
Yearly Dividend3.4
Dividend Growth(5Y)-15.79%
DP93.27%
Div Incr Years3
Div Non Decr Years3
Ex-Date01-14 2026-01-14 (0.87)
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)0%
PT rev (3m)-1.67%
EPS NQ rev (1m)-1.71%
EPS NQ rev (3m)-6.23%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.51%
Revenue NQ rev (1m)-0.54%
Revenue NQ rev (3m)-2.57%
Revenue NY rev (1m)-0.17%
Revenue NY rev (3m)-0.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.19 | ||
| Fwd PE | 19.35 | ||
| P/S | 1.38 | ||
| P/FCF | 31.43 | ||
| P/OCF | 20.04 | ||
| P/B | 3.79 | ||
| P/tB | 9.09 | ||
| EV/EBITDA | 13.79 |
EPS(TTM)3.88
EY4.13%
EPS(NY)4.85
Fwd EY5.17%
FCF(TTM)2.99
FCFY3.18%
OCF(TTM)4.68
OCFY4.99%
SpS68.22
BVpS24.75
TBVpS10.33
PEG (NY)1.65
PEG (5Y)N/A
Graham Number46.49
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 5.28 |
F-Score5
WACC9.34%
ROIC/WACC1.45
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 Y14.63%
EPS Next 2Y13.73%
EPS Next 3Y13.46%
EPS Next 5Y8.53%
Revenue 1Y (TTM)0.3%
Revenue growth 3Y0.7%
Revenue growth 5Y3.38%
Sales Q2Q%4.01%
Revenue Next Year5.41%
Revenue Next 2Y5.32%
Revenue Next 3Y5.44%
Revenue Next 5Y4%
EBIT growth 1Y-15.63%
EBIT growth 3Y-12.98%
EBIT growth 5Y-2.85%
EBIT Next Year59.44%
EBIT Next 3Y24.21%
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 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 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 14.63% in the next year.