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MSC Industrial Direct

NYSE:MSM
Snowflake Description

6 star dividend payer with excellent balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
MSM
NYSE
$4B
Market Cap
  1. Home
  2. US
  3. Capital Goods
Company description

MSC Industrial Direct Co., Inc., together with its subsidiaries, distributes metalworking and maintenance, repair, and operations (MRO) products in the United States, Canada, and the United Kingdom. The last earnings update was 6 days ago. More info.


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MSM Share Price and Events
7 Day Returns
0.6%
NYSE:MSM
-0%
US Trade Distributors
1.1%
US Market
1 Year Returns
-11.8%
NYSE:MSM
-8.1%
US Trade Distributors
4.7%
US Market
MSM Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
MSC Industrial Direct (MSM) 0.6% 1.6% -13.2% -11.8% 1% -18.2%
US Trade Distributors -0% 2.1% -4% -8.1% 28.3% 10.2%
US Market 1.1% 4.3% 2.9% 4.7% 37.7% 43.6%
1 Year Return vs Industry and Market
  • MSM underperformed the Trade Distributors industry which returned -8.1% over the past year.
  • MSM underperformed the Market in United States of America which returned 4.7% over the past year.
Price Volatility
MSM
Industry
5yr Volatility vs Market
Related Companies

Value

 Is MSC Industrial Direct undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of MSC Industrial Direct to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for MSC Industrial Direct.

NYSE:MSM Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 14 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.8%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:MSM
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Trade Distributors Unlevered Beta Simply Wall St/ S&P Global 0.92
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.923 (1 + (1- 21%) (13.24%))
1.013
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.01
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.013 * 5.96%)
8.77%

Discounted Cash Flow Calculation for NYSE:MSM using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for MSC Industrial Direct is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:MSM DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 8.77%)
2020 288.02 Analyst x5 264.81
2021 350.00 Analyst x2 295.86
2022 337.00 Analyst x1 261.91
2023 302.00 Analyst x1 215.79
2024 281.30 Est @ -6.85% 184.80
2025 270.11 Est @ -3.98% 163.15
2026 264.80 Est @ -1.97% 147.05
2027 263.32 Est @ -0.56% 134.44
2028 264.45 Est @ 0.43% 124.14
2029 267.41 Est @ 1.12% 115.41
Present value of next 10 years cash flows $1,907.34
NYSE:MSM DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $267.41 × (1 + 2.73%) ÷ (8.77% – 2.73%)
$4,551.08
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $4,551.08 ÷ (1 + 8.77%)10
$1,964.17
NYSE:MSM Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $1,907.34 + $1,964.17
$3,871.51
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $3,871.51 / 55.20
$70.13
NYSE:MSM Discount to Share Price
Calculation Result
Value per share (USD) From above. $70.13
Current discount Discount to share price of $72.67
= -1 x ($72.67 - $70.13) / $70.13
-3.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of MSC Industrial Direct is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for MSC Industrial Direct's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are MSC Industrial Direct's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:MSM PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-06-01) in USD $5.32
NYSE:MSM Share Price ** NYSE (2019-07-16) in USD $72.67
United States of America Trade Distributors Industry PE Ratio Median Figure of 42 Publicly-Listed Trade Distributors Companies 17.31x
United States of America Market PE Ratio Median Figure of 3,084 Publicly-Listed Companies 17.98x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of MSC Industrial Direct.

NYSE:MSM PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:MSM Share Price ÷ EPS (both in USD)

= 72.67 ÷ 5.32

13.67x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • MSC Industrial Direct is good value based on earnings compared to the US Trade Distributors industry average.
  • MSC Industrial Direct is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does MSC Industrial Direct's expected growth come at a high price?
Raw Data
NYSE:MSM PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 13.67x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 14 Analysts
8.5%per year
United States of America Trade Distributors Industry PEG Ratio Median Figure of 33 Publicly-Listed Trade Distributors Companies 1.14x
United States of America Market PEG Ratio Median Figure of 2,125 Publicly-Listed Companies 1.58x

*Line of best fit is calculated by linear regression .

NYSE:MSM PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 13.67x ÷ 8.5%

1.6x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • MSC Industrial Direct is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on MSC Industrial Direct's assets?
Raw Data
NYSE:MSM PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-06-01) in USD $26.24
NYSE:MSM Share Price * NYSE (2019-07-16) in USD $72.67
United States of America Trade Distributors Industry PB Ratio Median Figure of 53 Publicly-Listed Trade Distributors Companies 1.63x
United States of America Market PB Ratio Median Figure of 5,240 Publicly-Listed Companies 1.81x
NYSE:MSM PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:MSM Share Price ÷ Book Value per Share (both in USD)

= 72.67 ÷ 26.24

2.77x

* Primary Listing of MSC Industrial Direct.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • MSC Industrial Direct is overvalued based on assets compared to the US Trade Distributors industry average.
X
Value checks
We assess MSC Industrial Direct's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Trade Distributors industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Trade Distributors industry average (and greater than 0)? (1 check)
  5. MSC Industrial Direct has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is MSC Industrial Direct expected to perform in the next 1 to 3 years based on estimates from 14 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
8.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is MSC Industrial Direct expected to grow at an attractive rate?
  • MSC Industrial Direct's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • MSC Industrial Direct's earnings growth is positive but not above the United States of America market average.
  • MSC Industrial Direct's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:MSM Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:MSM Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 14 Analysts 8.5%
NYSE:MSM Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 14 Analysts 3.9%
United States of America Trade Distributors Industry Earnings Growth Rate Market Cap Weighted Average 15.2%
United States of America Trade Distributors Industry Revenue Growth Rate Market Cap Weighted Average 5%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.1%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:MSM Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 14 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:MSM Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-08-31 3,965 368 437 2
2022-08-31 3,770 402 377 2
2021-08-31 3,606 405 331 4
2020-08-31 3,472 342 300 14
2019-08-31 3,364 302 291 14
NYSE:MSM Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-06-01 3,359 297 295
2019-03-02 3,321 320 295
2018-12-01 3,267 335 344
2018-09-01 3,204 340 329
2018-06-02 3,120 318 316
2018-03-03 3,035 268 300
2017-12-02 2,970 253 236
2017-09-02 2,888 247 231
2017-06-03 2,879 274 232
2017-03-04 2,863 315 234
2016-12-03 2,843 355 230
2016-09-03 2,864 401 230

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • MSC Industrial Direct's earnings are expected to grow by 8.5% yearly, however this is not considered high growth (20% yearly).
  • MSC Industrial Direct's revenue is expected to grow by 3.9% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:MSM Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 14 Analyst Estimates (S&P Global) See Below

All data from MSC Industrial Direct Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:MSM Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-08-31 7.82 7.82 7.82 1.00
2022-08-31 6.80 6.80 6.80 1.00
2021-08-31 6.05 6.30 5.60 3.00
2020-08-31 5.44 5.75 5.20 11.00
2019-08-31 5.24 5.26 5.21 11.00
NYSE:MSM Past Financials Data
Date (Data in USD Millions) EPS *
2019-06-01 5.32
2019-03-02 5.28
2018-12-01 6.12
2018-09-01 5.84
2018-06-02 5.61
2018-03-03 5.31
2017-12-02 4.18
2017-09-02 4.08
2017-06-03 4.04
2017-03-04 3.99
2016-12-03 3.85
2016-09-03 3.78

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if MSC Industrial Direct will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess MSC Industrial Direct's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
MSC Industrial Direct has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has MSC Industrial Direct performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare MSC Industrial Direct's growth in the last year to its industry (Trade Distributors).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • MSC Industrial Direct's year on year earnings growth rate has been positive over the past 5 years.
  • MSC Industrial Direct's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • MSC Industrial Direct's 1-year earnings growth is negative, it can't be compared to the US Trade Distributors industry average.
Earnings and Revenue History
MSC Industrial Direct's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from MSC Industrial Direct Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:MSM Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-06-01 3,359.13 295.12 975.45
2019-03-02 3,320.93 294.55 967.52
2018-12-01 3,266.91 343.54 956.40
2018-09-01 3,203.88 328.84 942.11
2018-06-02 3,119.66 316.48 951.60
2018-03-03 3,035.24 300.16 936.11
2017-12-02 2,970.03 236.20 924.90
2017-09-02 2,887.74 230.82 907.25
2017-06-03 2,879.05 231.85 908.60
2017-03-04 2,862.62 233.72 902.12
2016-12-03 2,842.96 229.63 902.45
2016-09-03 2,863.51 230.31 912.90
2016-05-28 2,845.84 227.79 905.27
2016-02-27 2,863.82 226.48 918.20
2015-11-28 2,886.11 228.56 927.65
2015-08-29 2,910.38 229.96 932.55
2015-05-30 2,909.60 233.24 932.61
2015-02-28 2,884.59 234.24 924.55
2014-11-29 2,839.70 232.00 901.05
2014-08-30 2,787.12 234.44 885.67
2014-05-31 2,734.27 228.00 864.81
2014-03-01 2,650.72 225.63 820.86
2013-11-30 2,558.67 232.11 772.46
2013-08-31 2,457.65 236.21 721.39
2013-06-01 2,419.15 248.61 688.52
2013-03-02 2,394.19 256.37 675.08
2012-12-01 2,387.71 260.35 672.22
2012-09-01 2,355.92 256.92 665.99

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • MSC Industrial Direct has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • MSC Industrial Direct used its assets more efficiently than the US Trade Distributors industry average last year based on Return on Assets.
  • MSC Industrial Direct has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess MSC Industrial Direct's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Trade Distributors industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
MSC Industrial Direct has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is MSC Industrial Direct's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up MSC Industrial Direct's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • MSC Industrial Direct is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • MSC Industrial Direct's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of MSC Industrial Direct's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 2.3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from MSC Industrial Direct Company Filings, last reported 1 month ago.

NYSE:MSM Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-06-01 1,453.88 530.99 38.77
2019-03-02 1,405.85 566.20 58.19
2018-12-01 1,376.31 522.64 11.62
2018-09-01 1,387.25 507.41 46.22
2018-06-02 1,399.05 535.52 39.99
2018-03-03 1,346.04 511.24 31.61
2017-12-02 1,260.03 492.68 20.25
2017-09-02 1,225.14 532.98 16.08
2017-06-03 1,222.99 515.15 27.58
2017-03-04 1,180.92 549.13 35.60
2016-12-03 1,134.03 543.77 32.12
2016-09-03 1,098.38 606.82 52.89
2016-05-28 1,420.62 233.75 32.33
2016-02-27 1,371.21 299.00 23.96
2015-11-28 1,358.94 324.25 37.88
2015-08-29 1,332.87 427.28 38.27
2015-05-30 1,302.54 431.75 24.86
2015-02-28 1,259.45 513.00 27.43
2014-11-29 1,252.38 466.25 46.70
2014-08-30 1,398.56 307.50 47.15
2014-05-31 1,423.95 245.63 45.36
2014-03-01 1,367.88 283.75 45.32
2013-11-30 1,325.26 321.96 48.43
2013-08-31 1,390.38 250.00 55.88
2013-06-01 1,347.11 290.00 58.02
2013-03-02 1,294.57 0.00 243.95
2012-12-01 1,247.61 0.00 233.51
2012-09-01 1,187.11 0.00 168.45
  • MSC Industrial Direct's level of debt (36.5%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (19.4% vs 36.5% today).
  • Debt is well covered by operating cash flow (55.9%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 27.8x coverage).
X
Financial health checks
We assess MSC Industrial Direct's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. MSC Industrial Direct has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is MSC Industrial Direct's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
4.13%
Current annual income from MSC Industrial Direct dividends. Estimated to be 4.12% next year.
If you bought $2,000 of MSC Industrial Direct shares you are expected to receive $83 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • MSC Industrial Direct's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.42%).
  • MSC Industrial Direct's dividend is above the markets top 25% of dividend payers in United States of America (3.73%).
Upcoming dividend payment

Purchase MSC Industrial Direct before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:MSM Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 14 Analyst Estimates (S&P Global) See Below
United States of America Trade Distributors Industry Average Dividend Yield Market Cap Weighted Average of 15 Stocks 3%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2017 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:MSM Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-08-31 4.26 1.00
2022-08-31 3.88 1.00
2021-08-31 3.55 1.00
2020-08-31 3.00 7.00
2019-08-31 2.61 7.00
NYSE:MSM Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-07-10 3.000 4.191
2019-03-26 2.520 3.286
2018-12-18 2.520 3.095
2018-10-18 2.520 3.012
2018-06-19 2.320 2.721
2018-04-05 2.320 2.549
2018-01-03 2.320 2.520
2017-10-24 1.920 2.234
2017-07-07 1.800 2.479
2017-03-30 1.800 2.043
2016-12-20 1.800 1.795
2016-10-27 1.800 2.136
2016-06-23 1.720 2.373
2016-03-31 1.720 2.305
2015-12-16 1.720 2.656
2015-10-21 1.720 2.826
2015-06-23 1.600 2.389
2015-04-06 1.600 2.245
2014-12-17 1.600 2.124
2014-10-22 1.600 1.985
2014-06-20 1.320 1.494
2014-04-04 1.320 1.457
2013-12-18 1.320 1.557
2013-10-24 1.320 1.692
2013-06-24 1.200 1.504
2013-04-04 1.200 1.490
2012-12-06 1.200 1.502
2012-10-24 1.200 1.686
2012-06-21 1.000 1.456
2012-03-26 1.000 1.362
2011-12-21 1.000 1.289
2011-10-24 1.000 1.485
2011-06-29 0.880 1.437
2011-03-30 0.880 1.278
2010-12-22 0.880 1.404
2010-10-21 0.880 1.455
2010-06-30 0.880 1.743
2010-03-31 0.800 1.510
2009-12-23 0.800 1.706
2009-10-05 0.800 1.749
2009-07-01 0.800 2.018
2009-04-01 0.800 2.155
2008-12-23 0.800 2.460
2008-10-17 0.800 2.397

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of MSC Industrial Direct's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.2x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.6x coverage).
X
Income/ dividend checks
We assess MSC Industrial Direct's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can MSC Industrial Direct afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. MSC Industrial Direct has a total score of 6/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of MSC Industrial Direct's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Erik Gershwind
COMPENSATION $4,461,519
AGE 48
TENURE AS CEO 6.5 years
CEO Bio

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 October 24, 2011 and served as its Chief Operating Officer since October 20, 2009 until January 2013. He served as Executive Vice President of MSC Industrial Direct Co. Inc. from October 20, 2009 to October 24, 2011. Previously, Mr. Gershwind served as Senior Vice President for Product Management and Marketing of MSC Industrial Direct Co. Inc. from December, 2005 to October 20, 2009. He served as MSC Industrial Direct Co. Inc.'s Vice President of Product Management since April 2005. From August 2004 to April 2005, he served as Vice President of MRO and Inventory Management. Mr. Gershwind has held various positions of increasing responsibility in product, E-Commerce and marketing. He joined MSC Industrial Direct Co. Inc. in 1995 as Manager of its acquisition integration initiative. He has been a Director of MSC Industrial Direct Co. Inc. since October 19, 2010. He served as Director for E-Commerce of MSC Industrial Direct Co. Inc. from 1999. Mr. Gershwind graduated summa cum laude with a B.S. in Economics from the Wharton School of Business, University of Pennsylvania and magna cum laude with a J.D. from Harvard Law School.

CEO Compensation
  • Erik's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Erik's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the MSC Industrial Direct management team in years:

5.7
Average Tenure
52.5
Average Age
  • The average tenure for the MSC Industrial Direct management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Erik Gershwind

TITLE
President
COMPENSATION
$4M
AGE
48
TENURE
6.5 yrs

Rustom Jilla

TITLE
Executive VP & CFO
COMPENSATION
$2M
AGE
58
TENURE
4 yrs

Steve Armstrong

TITLE
Senior VP
COMPENSATION
$1M
AGE
61
TENURE
10.8 yrs

Steve Baruch

TITLE
Executive VP and Chief Strategy & Marketing Officer
COMPENSATION
$988K
AGE
51
TENURE
2.7 yrs

Doug Jones

TITLE
Executive VP & Chief Supply Chain Officer
COMPENSATION
$1M
AGE
55
TENURE
13.6 yrs

Charles Bonomo

TITLE
Senior VP & Chief Information Officer
AGE
54
TENURE
12 yrs

John Chironna

TITLE
VP of Investor Relations & Treasurer
TENURE
6.8 yrs

Paul Mason

TITLE
Director of Corporate Communications
TENURE
4.5 yrs

Eddie Martin

TITLE
Senior Vice President of Sales & Customer Success
AGE
49
TENURE
0.1 yrs

Kari Heerdt

TITLE
Senior VP & Chief People Officer
COMPENSATION
$914K
AGE
51
TENURE
4.9 yrs
Board of Directors Tenure

Average tenure and age of the MSC Industrial Direct board of directors in years:

10.5
Average Tenure
66
Average Age
  • The average tenure for the MSC Industrial Direct board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Mitchell Jacobson

TITLE
Non-Executive Chairman
COMPENSATION
$429K
AGE
68
TENURE
21.5 yrs

Erik Gershwind

TITLE
President
COMPENSATION
$4M
AGE
48
TENURE
8.8 yrs

Denis Kelly

TITLE
Independent Director
COMPENSATION
$221K
AGE
70
TENURE
23.3 yrs

Philip Peller

TITLE
Lead Director
COMPENSATION
$223K
AGE
80
TENURE
11.6 yrs

Louise Goeser

TITLE
Independent Director
COMPENSATION
$213K
AGE
66
TENURE
10.5 yrs

Roger Fradin

TITLE
Independent Director
COMPENSATION
$203K
AGE
66
TENURE
21 yrs

Jonathan L. Byrnes

TITLE
Independent Director
COMPENSATION
$203K
AGE
71
TENURE
9.3 yrs

Mike Kaufmann

TITLE
Independent Director
COMPENSATION
$209K
AGE
56
TENURE
3.8 yrs

Steven Paladino

TITLE
Director
COMPENSATION
$205K
AGE
62
TENURE
3.8 yrs
Who owns this company?
Recent Insider Trading
  • MSC Industrial Direct individual insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
25. Apr 19 Sell Douglas Jones Individual 24. Apr 19 24. Apr 19 -2,126 $83.50 $-177,521
11. Feb 19 Sell Gregory Polli Individual 07. Feb 19 07. Feb 19 -2,700 $82.60 $-223,008
30. Jan 19 Sell Charles Bonomo Individual 29. Jan 19 29. Jan 19 -601 $83.01 $-49,922
22. Jan 19 Sell Steve Armstrong Individual 18. Jan 19 18. Jan 19 -5,293 $82.48 $-436,579
22. Aug 18 Sell Denis Kelly Individual 21. Aug 18 21. Aug 18 -1,500 $88.43 $-132,641
X
Management checks
We assess MSC Industrial Direct's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. MSC Industrial Direct has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Why I Like MSC Industrial Direct Co., Inc. (NYSE:MSM)

NYSE:MSM Historical Dividend Yield, July 15th 2019 Next Steps: For MSC Industrial Direct, I've put together three important aspects you should look at: Future Outlook: What are well-informed industry analysts predicting for MSM’s future growth? … Take a look at our free research report of analyst consensus for MSM’s outlook. … The intrinsic value infographic in our free research report helps visualize whether MSM is currently mispriced by the market.

Simply Wall St -

Is MSC Industrial Direct Co., Inc. (NYSE:MSM) Excessively Paying Its CEO?

In 2013 Erik Gershwind was appointed CEO of MSC Industrial Direct Co., Inc. … This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. … See our latest analysis for MSC Industrial Direct How Does Erik Gershwind's Compensation Compare With Similar Sized Companies?

Simply Wall St -

MSC Industrial Direct Co., Inc. (NYSE:MSM) Delivered A Better ROE Than Its Industry

The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for MSC Industrial Direct: 21% = US$295m ÷ US$1.4b (Based on the trailing twelve months to March 2019.) It's easy to understand the 'net profit' part of that equation, but 'shareholders' equity' requires further explanation. … Does MSC Industrial Direct Have A Good Return On Equity? … Combining MSC Industrial Direct's Debt And Its 21% Return On Equity MSC Industrial Direct has a debt to equity ratio of 0.42, which is far from excessive.

Simply Wall St -

Is MSC Industrial Direct Co., Inc. (NYSE:MSM) A Smart Choice For Dividend Investors?

It's positive to see that MSC Industrial Direct's dividend is covered by both profits and cash flow, since this is generally a sign that the dividend is sustainable, and a lower payout ratio usually suggests a greater margin of safety before the dividend gets cut. … Earnings growth generally bodes well for the future value of company dividend payments. … See if the 16 MSC Industrial Direct analysts we track are forecasting continued growth with our free report on analyst estimates for the company.

Simply Wall St -

MSC Industrial Direct Co., Inc. (NYSE:MSM) Is An Attractive Dividend Stock - Here's Why

MSC Industrial Direct has been paying dividends for a long time, but for the purpose of this analysis, we only examine the past 10 years of payments. … Dividend Growth Potential Dividend payments have been consistent over the past few years, but we should always check if earnings per share (EPS) are growing, as this will help maintain the purchasing power of the dividend. Earnings have grown at around 7.0% a year for the past five years, which is better than seeing them shrink! It's good to see decent earnings growth and a low payout ratio. Companies with these characteristics often display the fastest dividend growth over the long term - assuming earnings can be maintained, of course. Conclusion Dividend investors should always want to know if a) a company's dividends are affordable, b) if there is a track record of consistent payments, and c) if the dividend is capable of growing. … Earnings growth generally bodes well for the future value of company dividend payments.

Simply Wall St -

Did You Manage To Avoid MSC Industrial Direct's (NYSE:MSM) 23% Share Price Drop?

During the unfortunate half decade during which the share price slipped, MSC Industrial Direct actually saw its earnings per share (EPS) improve by 7.9% per year. … It is important to consider the total shareholder return, as well as the share price return, for any given stock. … As it happens, MSC Industrial Direct's TSR for the last 5 years was -9.9%, which exceeds the share price return mentioned earlier.

Simply Wall St -

Is Now An Opportune Moment To Examine MSC Industrial Direct Co., Inc. (NYSE:MSM)?

Let’s take a look at MSC Industrial Direct’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change. … It’s trading around 13% below my intrinsic value, which means if you buy MSC Industrial Direct today, you’d be paying a reasonable price for it. … It seems like the market has already priced in MSM’s positive outlook, with shares trading around its fair value.

Simply Wall St -

Estimating The Fair Value Of MSC Industrial Direct Co., Inc. (NYSE:MSM)

A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we discount the value of these future cash flows to their estimated value in today's dollars: 10-year free cash flow (FCF) estimate 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF ($, Millions) $262.30 $306.88 $393.00 $367.00 $339.00 $322.94 $314.88 $311.95 $312.48 $315.41 Growth Rate Estimate Source Analyst x6 Analyst x6 Analyst x3 Analyst x1 Analyst x1 Est @ -4.74% Est @ -2.5% Est @ -0.93% Est @ 0.17% Est @ 0.94% Present Value ($, Millions) Discounted @ 8.77% $241.16 $259.40 $305.41 $262.22 $222.69 $195.04 $174.84 $159.25 $146.66 $136.10 Present Value of 10-year Cash Flow (PVCF)= $2.10b "Est" = FCF growth rate estimated by Simply Wall St We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. … In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 8.8%. … NYSE:MSM Intrinsic value, May 17th 2019 Important assumptions Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows.

Simply Wall St -

Have Insiders Been Selling MSC Industrial Direct Co., Inc. (NYSE:MSM) Shares?

So shareholders might well want to know whether insiders have been buying or selling shares in MSC Industrial Direct Co., Inc. … As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.' View our latest analysis for MSC Industrial Direct The Last 12 Months Of Insider Transactions At MSC Industrial Direct The Senior VP, Steve Armstrong, made the biggest insider sale in the last 12 months. … Insiders at MSC Industrial Direct Have Sold Stock Recently The last quarter saw substantial insider selling of MSC Industrial Direct shares.

Simply Wall St -

Do You Know What MSC Industrial Direct Co., Inc.'s (NYSE:MSM) P/E Ratio Means?

The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). … MSC Industrial Direct has a price to earnings ratio of 15.49, based on the last twelve months. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

Company Info

Description

MSC Industrial Direct Co., Inc., together with its subsidiaries, distributes metalworking and maintenance, repair, and operations (MRO) products in the United States, Canada, and the United Kingdom. The company’s MRO products comprise 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. It offers approximately 1,645,000 stock-keeping units through its catalogs; brochures; e-commerce channels, including its Website, mscdirect.com; inventory management solutions; and call-centers and branches. The company serves through its distribution network of 100 branch offices and 12 customer fulfillment centers. It serves individual machine shops, Fortune 100 manufacturing companies, and government agencies. The company was founded in 1941 and is headquartered in Melville, New York.

Details
Name: MSC Industrial Direct Co., Inc.
MSM
Exchange: NYSE
Founded: 1941
$4,011,495,839
55,201,539
Website: http://www.mscdirect.com
Address: MSC Industrial Direct Co., Inc.
75 Maxess Road,
Melville,
New York, 11747,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE MSM Class A Common Stock New York Stock Exchange US USD 15. Dec 1995
DB 98M Class A Common Stock Deutsche Boerse AG DE EUR 15. Dec 1995
Number of employees
Current staff
Staff numbers
6,657
MSC Industrial Direct employees.
Industry
Trading Companies and Distributors
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/16 23:40
End of day share price update: 2019/07/16 00:00
Last estimates confirmation: 2019/07/16
Last earnings filing: 2019/07/10
Last earnings reported: 2019/06/01
Last annual earnings reported: 2018/09/01


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.