MSC INDUSTRIAL DIRECT CO-A (MSM) Stock Fundamental Analysis
NYSE:MSM • US5535301064
93.87 USD
+0.29 (+0.31%)
At close: Feb 19, 2026
93.87 USD
0 (0%)
After Hours: 2/19/2026, 7:17:55 PM
MSM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 51 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.
- In the past year MSM had a positive cash flow from operations.
- MSM had positive earnings in each of the past 5 years.
- In the past 5 years MSM always reported a positive cash flow from operatings.
1.2 Ratios
- With a decent Return On Assets value of 8.22%, MSM is doing good in the industry, outperforming 76.47% of the companies in the same industry.
- MSM has a Return On Equity of 14.81%. This is in the better half of the industry: MSM outperforms 66.67% of its industry peers.
- With an excellent Return On Invested Capital value of 13.57%, MSM belongs to the best of the industry, outperforming 84.31% 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 9.62%.
| 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
- MSM has a Profit Margin of 5.37%. This is in the better half of the industry: MSM outperforms 62.75% of its industry peers.
- MSM's Profit Margin has declined in the last couple of years.
- The Operating Margin of MSM (8.38%) is comparable to the rest of the industry.
- MSM's Operating Margin has declined in the last couple of years.
- The Gross Margin of MSM (40.73%) is better than 78.43% 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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so MSM is still creating some value.
- Compared to 1 year ago, MSM has less shares outstanding
- The number of shares outstanding for MSM has been increased compared to 5 years ago.
- Compared to 1 year ago, MSM has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 5.28 indicates that MSM is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 5.28, MSM belongs to the top of the industry, outperforming 80.39% 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 72.55% of the companies in the same industry.
- A Debt/Equity ratio of 0.16 indicates that MSM is not too dependend on debt financing.
- MSM's Debt to Equity ratio of 0.16 is fine compared to the rest of the industry. MSM outperforms 72.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 3.19 | ||
| Altman-Z | 5.28 |
ROIC/WACC1.43
WACC9.51%
2.3 Liquidity
- MSM has a Current Ratio of 1.73. This is a normal value and indicates that MSM is financially healthy and should not expect problems in meeting its short term obligations.
- With a Current ratio value of 1.73, MSM perfoms like the industry average, outperforming 47.06% of the companies in the same industry.
- 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 70.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.73 | ||
| Quick Ratio | 0.82 |
3. Growth
3.1 Past
- The earnings per share for MSM have decreased strongly by -11.82% in the last year.
- Measured over the past years, MSM shows a decrease in Earnings Per Share. The EPS has been decreasing by -4.42% on average per year.
- MSM shows a small growth in Revenue. In the last year, the Revenue has grown by 0.30%.
- 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
- The Earnings Per Share is expected to grow by 8.53% on average over the next years. This is quite good.
- 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 Y14.63%
EPS Next 2Y13.73%
EPS Next 3Y13.46%
EPS Next 5Y8.53%
Revenue Next Year5.6%
Revenue Next 2Y5.4%
Revenue Next 3Y5.36%
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.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 24.19 indicates a rather expensive valuation of MSM.
- MSM's Price/Earnings is on the same level as the industry average.
- Compared to an average S&P500 Price/Earnings ratio of 27.09, MSM is valued at the same level.
- With a Price/Forward Earnings ratio of 19.35, MSM is valued on the expensive side.
- Based on the Price/Forward Earnings ratio, MSM is valued a bit cheaper than the industry average as 64.71% of the companies are valued more expensively.
- MSM is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 27.98, which is the current average of the S&P500 Index.
| 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.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of MSM indicates a somewhat cheap valuation: MSM is cheaper than 68.63% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.44 | ||
| EV/EBITDA | 13.83 |
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.
- MSM's earnings are expected to grow with 13.46% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.65
PEG (5Y)N/A
EPS Next 2Y13.73%
EPS Next 3Y13.46%
5. Dividend
5.1 Amount
- MSM has a Yearly Dividend Yield of 3.78%.
- MSM's Dividend Yield is rather good when compared to the industry average which is at 1.44. MSM pays more dividend than 90.20% of the companies in the same industry.
- MSM's Dividend Yield is rather good when compared to the S&P500 average which is at 1.85.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.78% |
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%
93.87
+0.29 (+0.31%)
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 Change-0.18%
Ins Owners18.98%
Ins Owner Change5.57%
Market Cap5.24B
Revenue(TTM)3.81B
Net Income(TTM)204.51M
Analysts67.14
Price Target90.22 (-3.89%)
Short Float %8.22%
Short Ratio5.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.78% |
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)-2.46%
EPS NQ rev (3m)-6.23%
EPS NY rev (1m)-0.51%
EPS NY rev (3m)-0.51%
Revenue NQ rev (1m)-0.73%
Revenue NQ rev (3m)-2.57%
Revenue NY rev (1m)0.18%
Revenue NY rev (3m)-0.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.19 | ||
| Fwd PE | 19.35 | ||
| P/S | 1.38 | ||
| P/FCF | 31.44 | ||
| P/OCF | 20.05 | ||
| P/B | 3.79 | ||
| P/tB | 9.09 | ||
| EV/EBITDA | 13.83 |
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
WACC9.51%
ROIC/WACC1.43
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 Year5.6%
Revenue Next 2Y5.4%
Revenue Next 3Y5.36%
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.