MSC INDUSTRIAL DIRECT CO-A (MSM) Stock Fundamental Analysis
NYSE:MSM - US5535301064 - Common Stock
92.27 USD
-0.39 (-0.42%)
92.27 USD
0 (0%)
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. MSM has an excellent profitability rating, but there are some minor concerns on its financial health. MSM is valued expensive and it does not seem to be growing.
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.
In the past 5 years MSM has always been profitable.
In the past 5 years MSM always reported a positive cash flow from operatings.
1.2 Ratios
MSM has a better Return On Assets (8.02%) than 74.00% of its industry peers.
MSM's Return On Equity of 14.52% is fine compared to the rest of the industry. MSM outperforms 66.00% of its industry peers.
MSM has a better Return On Invested Capital (13.01%) 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 9.98%.
The last Return On Invested Capital (13.01%) for MSM is well below the 3 year average (17.86%), which needs to be investigated, but indicates that MSM had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.02% | ||
| ROE | 14.52% | ||
| ROIC | 13.01% |
ROA(3y)12.15%
ROA(5y)11.16%
ROE(3y)22.31%
ROE(5y)20.98%
ROIC(3y)17.86%
ROIC(5y)16.13%
1.3 Margins
Looking at the Profit Margin, with a value of 5.30%, MSM is in the better half of the industry, outperforming 64.00% of the companies in the same industry.
MSM's Profit Margin has declined in the last couple of years.
MSM's Operating Margin of 8.49% is fine compared to the rest of the industry. MSM outperforms 62.00% of its industry peers.
MSM's Operating Margin has declined in the last couple of years.
MSM has a Gross Margin of 40.92%. 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 | 8.49% | ||
| PM (TTM) | 5.3% | ||
| GM | 40.92% |
OM growth 3Y0.54%
OM growth 5Y-2.24%
PM growth 3Y0.4%
PM growth 5Y-4.64%
GM growth 3Y0.04%
GM growth 5Y-0.67%
2. Health
2.1 Basic Checks
MSM has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
MSM has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, MSM has more shares outstanding
The debt/assets ratio for MSM is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.26 indicates that MSM is not in any danger for bankruptcy at the moment.
MSM has a Altman-Z score of 5.26. This is amongst the best in the industry. MSM outperforms 82.00% of its industry peers.
MSM has a debt to FCF ratio of 1.98. This is a very positive value and a sign of high solvency as it would only need 1.98 years to pay back of all of its debts.
MSM has a better Debt to FCF ratio (1.98) than 78.00% of its industry peers.
A Debt/Equity ratio of 0.21 indicates that MSM is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.21, MSM is doing good in the industry, outperforming 68.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 1.98 | ||
| Altman-Z | 5.26 |
ROIC/WACC1.35
WACC9.64%
2.3 Liquidity
MSM has a Current Ratio of 1.92. This is a normal value and indicates that MSM is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.92, MSM is in line with its industry, outperforming 50.00% of the companies in the same industry.
A Quick Ratio of 0.91 indicates that MSM may have some problems paying its short term obligations.
MSM has a worse Quick ratio (0.91) than 64.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.92 | ||
| Quick Ratio | 0.91 |
3. Growth
3.1 Past
MSM shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -31.67%.
Measured over the past years, MSM shows a decrease in Earnings Per Share. The EPS has been decreasing by -2.08% on average per year.
The Revenue has decreased by -4.11% in the past year.
Measured over the past years, MSM shows a small growth in Revenue. The Revenue has been growing by 2.58% on average per year.
EPS 1Y (TTM)-31.67%
EPS 3Y-0.14%
EPS 5Y-2.08%
EPS Q2Q%-18.8%
Revenue 1Y (TTM)-4.11%
Revenue growth 3Y5.62%
Revenue growth 5Y2.58%
Sales Q2Q%-0.84%
3.2 Future
MSM is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.51% yearly.
The Revenue is expected to grow by 3.01% on average over the next years.
EPS Next Y-22.78%
EPS Next 2Y-6.78%
EPS Next 3Y0.61%
EPS Next 5Y6.51%
Revenue Next Year-2.04%
Revenue Next 2Y1.11%
Revenue Next 3Y2.31%
Revenue Next 5Y3.01%
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
MSM is valuated quite expensively with a Price/Earnings ratio of 25.01.
MSM's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 27.06. MSM is around the same levels.
With a Price/Forward Earnings ratio of 22.17, MSM is valued on the expensive side.
MSM's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of MSM to the average of the S&P500 Index (22.69), we can say MSM is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.01 | ||
| Fwd PE | 22.17 |
4.2 Price Multiples
MSM's Enterprise Value to EBITDA ratio is in line with the industry average.
MSM's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. MSM is cheaper than 74.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.49 | ||
| EV/EBITDA | 13.81 |
4.3 Compensation for Growth
MSM has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-6.78%
EPS Next 3Y0.61%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.74%, MSM has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.69, MSM pays a better dividend. On top of this MSM pays more dividend than 98.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, MSM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.74% |
5.2 History
The dividend of MSM has a limited annual growth rate of 5.09%.
MSM has paid a dividend for at least 10 years, which is a reliable track record.
MSM has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)5.09%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
MSM pays out 95.14% of its income as dividend. This is not a sustainable payout ratio.
MSM's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP95.14%
EPS Next 2Y-6.78%
EPS Next 3Y0.61%
92.27
-0.39 (-0.42%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners88.59%
Inst Owner Change3.56%
Ins Owners20.41%
Ins Owner Change4.77%
Market Cap5.14B
Analysts69.33
Price Target92.43 (0.17%)
Short Float %6.04%
Short Ratio4.4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.74% |
Yearly Dividend3.36
Dividend Growth(5Y)5.09%
DP95.14%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.24%
Min EPS beat(2)3.94%
Max EPS beat(2)4.54%
EPS beat(4)3
Avg EPS beat(4)4.91%
Min EPS beat(4)-5.6%
Max EPS beat(4)16.76%
EPS beat(8)5
Avg EPS beat(8)1.78%
EPS beat(12)7
Avg EPS beat(12)1.64%
EPS beat(16)10
Avg EPS beat(16)1.91%
Revenue beat(2)0
Avg Revenue beat(2)-1.37%
Min Revenue beat(2)-1.85%
Max Revenue beat(2)-0.9%
Revenue beat(4)1
Avg Revenue beat(4)-0.72%
Min Revenue beat(4)-1.85%
Max Revenue beat(4)1.62%
Revenue beat(8)2
Avg Revenue beat(8)-0.86%
Revenue beat(12)6
Avg Revenue beat(12)-0.17%
Revenue beat(16)7
Avg Revenue beat(16)-0.31%
PT rev (1m)2.26%
PT rev (3m)13.74%
EPS NQ rev (1m)1.01%
EPS NQ rev (3m)8.7%
EPS NY rev (1m)0.52%
EPS NY rev (3m)3.86%
Revenue NQ rev (1m)0.6%
Revenue NQ rev (3m)2.09%
Revenue NY rev (1m)0.11%
Revenue NY rev (3m)0.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.01 | ||
| Fwd PE | 22.17 | ||
| P/S | 1.37 | ||
| P/FCF | 19.49 | ||
| P/OCF | 14.24 | ||
| P/B | 3.76 | ||
| P/tB | 9.27 | ||
| EV/EBITDA | 13.81 |
EPS(TTM)3.69
EY4%
EPS(NY)4.16
Fwd EY4.51%
FCF(TTM)4.73
FCFY5.13%
OCF(TTM)6.48
OCFY7.02%
SpS67.23
BVpS24.55
TBVpS9.95
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.02% | ||
| ROE | 14.52% | ||
| ROCE | 17.36% | ||
| ROIC | 13.01% | ||
| ROICexc | 13.54% | ||
| ROICexgc | 25.17% | ||
| OM | 8.49% | ||
| PM (TTM) | 5.3% | ||
| GM | 40.92% | ||
| FCFM | 7.04% |
ROA(3y)12.15%
ROA(5y)11.16%
ROE(3y)22.31%
ROE(5y)20.98%
ROIC(3y)17.86%
ROIC(5y)16.13%
ROICexc(3y)18.26%
ROICexc(5y)16.62%
ROICexgc(3y)32.65%
ROICexgc(5y)29.44%
ROCE(3y)23.83%
ROCE(5y)21.53%
ROICexcg growth 3Y8.36%
ROICexcg growth 5Y0.99%
ROICexc growth 3Y6.81%
ROICexc growth 5Y0.34%
OM growth 3Y0.54%
OM growth 5Y-2.24%
PM growth 3Y0.4%
PM growth 5Y-4.64%
GM growth 3Y0.04%
GM growth 5Y-0.67%
F-Score5
Asset Turnover1.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 1.98 | ||
| Debt/EBITDA | 0.7 | ||
| Cap/Depr | 110.29% | ||
| Cap/Sales | 2.6% | ||
| Interest Coverage | 12.96 | ||
| Cash Conversion | 88.85% | ||
| Profit Quality | 132.79% | ||
| Current Ratio | 1.92 | ||
| Quick Ratio | 0.91 | ||
| Altman-Z | 5.26 |
F-Score5
WACC9.64%
ROIC/WACC1.35
Cap/Depr(3y)111.09%
Cap/Depr(5y)95.87%
Cap/Sales(3y)2.19%
Cap/Sales(5y)1.94%
Profit Quality(3y)117.22%
Profit Quality(5y)113.93%
High Growth Momentum
Growth
EPS 1Y (TTM)-31.67%
EPS 3Y-0.14%
EPS 5Y-2.08%
EPS Q2Q%-18.8%
EPS Next Y-22.78%
EPS Next 2Y-6.78%
EPS Next 3Y0.61%
EPS Next 5Y6.51%
Revenue 1Y (TTM)-4.11%
Revenue growth 3Y5.62%
Revenue growth 5Y2.58%
Sales Q2Q%-0.84%
Revenue Next Year-2.04%
Revenue Next 2Y1.11%
Revenue Next 3Y2.31%
Revenue Next 5Y3.01%
EBIT growth 1Y-26.43%
EBIT growth 3Y6.19%
EBIT growth 5Y0.29%
EBIT Next Year-1.04%
EBIT Next 3Y5.29%
EBIT Next 5Y6.87%
FCF growth 1Y-55.88%
FCF growth 3Y22.15%
FCF growth 5Y2.39%
OCF growth 1Y-46.8%
OCF growth 3Y22.3%
OCF growth 5Y4.57%