MSC Industrial Direct Co., Inc., together with its subsidiaries, distributes metalworking and maintenance, repair, and operations (MRO) products in the United States, Canada, Mexico, and the United Kingdom.
MSC Industrial Direct Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$79.49|
|52 Week High||US$60.09|
|52 Week Low||US$96.23|
|1 Month Change||-6.52%|
|3 Month Change||-9.03%|
|1 Year Change||22.50%|
|3 Year Change||-9.87%|
|5 Year Change||8.97%|
|Change since IPO||555.59%|
Recent News & Updates
Is Now The Time To Look At Buying MSC Industrial Direct Co., Inc. (NYSE:MSM)?
While MSC Industrial Direct Co., Inc. ( NYSE:MSM ) might not be the most widely known stock at the moment, it received...
MSC Industrial Direct (NYSE:MSM) Has More To Do To Multiply In Value Going Forward
If you're looking for a multi-bagger, there's a few things to keep an eye out for. One common approach is to try and...
MSC Industrial: 3.4% Yield, High Capital Efficiency, Strong Profits
MSM has the highest dividend yield among the industrial companies presented in the S&P 400, 3.4%. The company has a robust capital efficiency coupled with high-quality earnings that support dividend coverage. Its Forward Enterprise Value/EBIT of 15.4x is 13% lower than the sector median. Overall, the stock has a B- Value Grade. I am not expecting MSM to rally during months to come given the changing market narrative amid the sputtering value rotation and growth stocks regaining investor attention, but the share price softness might be used as an opportunity to accumulate for higher yield.
There May Be Reason For Hope In MSC Industrial Direct's (NYSE:MSM) Disappointing Earnings
Shareholders appeared unconcerned with MSC Industrial Direct Co., Inc.'s ( NYSE:MSM ) lackluster earnings report last...
|MSM||US Trade Distributors||US Market|
Return vs Industry: MSM underperformed the US Trade Distributors industry which returned 46.2% over the past year.
Return vs Market: MSM underperformed the US Market which returned 33.7% over the past year.
Stable Share Price: MSM is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: MSM's weekly volatility (3%) has been stable over the past year.
About the Company
MSC Industrial Direct Co., Inc., together with its subsidiaries, distributes metalworking and maintenance, repair, and operations (MRO) products in the United States, Canada, Mexico, and the United Kingdom. Its MRO products include cutting tools, measuring instruments, tooling components, metalworking products, fasteners, flat stock products, raw materials, abrasives, machinery hand and power tools, safety and janitorial supplies, plumbing supplies, materials handling products, power transmission components, and electrical supplies. The company offers approximately 1.9 million stock-keeping units through its catalogs and brochures; e-commerce channels, including its Website, mscdirect.com; inventory management solutions; and call-centers and branches.
MSC Industrial Direct Fundamentals Summary
|MSM fundamental statistics|
Is MSM overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|MSM income statement (TTM)|
|Cost of Revenue||US$1.83b|
Last Reported Earnings
May 29, 2021
Next Earnings Date
Oct 20, 2021
|Earnings per share (EPS)||3.65|
|Net Profit Margin||6.44%|
How did MSM perform over the long term?See historical performance and comparison
3.8%Current Dividend Yield
Is MSC Industrial Direct undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: MSM ($79.49) is trading below our estimate of fair value ($88.19)
Significantly Below Fair Value: MSM is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: MSM is good value based on its PE Ratio (21.7x) compared to the US Trade Distributors industry average (22.3x).
PE vs Market: MSM is poor value based on its PE Ratio (21.7x) compared to the US market (17.8x).
Price to Earnings Growth Ratio
PEG Ratio: MSM is poor value based on its PEG Ratio (1.5x)
Price to Book Ratio
PB vs Industry: MSM is overvalued based on its PB Ratio (3.9x) compared to the US Trade Distributors industry average (2.3x).
How is MSC Industrial Direct forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: MSM's forecast earnings growth (14.8% per year) is above the savings rate (2%).
Earnings vs Market: MSM's earnings (14.8% per year) are forecast to grow slower than the US market (14.9% per year).
High Growth Earnings: MSM's earnings are forecast to grow, but not significantly.
Revenue vs Market: MSM's revenue (5.7% per year) is forecast to grow slower than the US market (9.7% per year).
High Growth Revenue: MSM's revenue (5.7% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: MSM's Return on Equity is forecast to be high in 3 years time (27.2%)
How has MSC Industrial Direct performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: MSM has a large one-off loss of $74.1M impacting its May 29 2021 financial results.
Growing Profit Margin: MSM's current net profit margins (6.4%) are lower than last year (8.1%).
Past Earnings Growth Analysis
Earnings Trend: MSM's earnings have declined by 0.2% per year over the past 5 years.
Accelerating Growth: MSM's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: MSM had negative earnings growth (-23.3%) over the past year, making it difficult to compare to the Trade Distributors industry average (73.5%).
Return on Equity
High ROE: MSM's Return on Equity (17.8%) is considered low.
How is MSC Industrial Direct's financial position?
Financial Position Analysis
Short Term Liabilities: MSM's short term assets ($1.3B) exceed its short term liabilities ($768.8M).
Long Term Liabilities: MSM's short term assets ($1.3B) exceed its long term liabilities ($503.6M).
Debt to Equity History and Analysis
Debt Level: MSM's debt to equity ratio (65.7%) is considered high.
Reducing Debt: MSM's debt to equity ratio has increased from 17% to 65.7% over the past 5 years.
Debt Coverage: MSM's debt is well covered by operating cash flow (42.5%).
Interest Coverage: MSM's interest payments on its debt are well covered by EBIT (23.8x coverage).
What is MSC Industrial Direct current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: MSM's dividend (3.77%) is higher than the bottom 25% of dividend payers in the US market (1.34%).
High Dividend: MSM's dividend (3.77%) is in the top 25% of dividend payers in the US market (3.58%)
Stability and Growth of Payments
Stable Dividend: MSM's dividends per share have been stable in the past 10 years.
Growing Dividend: MSM's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: At its current payout ratio (82.2%), MSM's payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: MSM's dividends in 3 years are forecast to be covered by earnings (57.4% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Erik Gershwind (50 yo)
Mr. Erik David Gershwind has been the Chief Executive Officer of MSC Industrial Direct Co. Inc. since January 1, 2013. Mr. Gershwind has also been the President of MSC Industrial Direct Co. Inc. since Octo...
CEO Compensation Analysis
Compensation vs Market: Erik's total compensation ($USD4.34M) is about average for companies of similar size in the US market ($USD5.25M).
Compensation vs Earnings: Erik's compensation has been consistent with company performance over the past year.
Experienced Management: MSM's management team is seasoned and experienced (6.7 years average tenure).
Experienced Board: MSM's board of directors are seasoned and experienced ( 11.5 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: MSM insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
MSC Industrial Direct Co., Inc.'s employee growth, exchange listings and data sources
- Name: MSC Industrial Direct Co., Inc.
- Ticker: MSM
- Exchange: NYSE
- Founded: 1941
- Industry: Trading Companies and Distributors
- Sector: Capital Goods
- Market Cap: US$4.423b
- Shares outstanding: 55.65m
- Website: https://www.mscdirect.com
Number of Employees
- MSC Industrial Direct Co., Inc.
- 75 Maxess Road
- New York
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/09/16 22:48|
|End of Day Share Price||2021/09/16 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.