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MSA

MSA Safety NYSE:MSA Stock Report

Last Price

US$109.28

Market Cap

US$4.3b

7D

-1.9%

1Y

-26.2%

Updated

30 Sep, 2022

Data

Company Financials +
MSA fundamental analysis
Snowflake Score
Valuation0/6
Future Growth3/6
Past Performance1/6
Financial Health3/6
Dividends4/6

MSA Stock Overview

MSA Safety Incorporated develops, manufactures, and supplies safety products that protect people and facility infrastructures in the oil, gas, petrochemical, fire service, construction, industrial manufacturing applications, utilities, military, and mining industries in North America, Latin America, and internationally.

MSA Safety Competitors

Price History & Performance

Summary of all time highs, changes and price drops for MSA Safety
Historical stock prices
Current Share PriceUS$109.28
52 Week HighUS$157.29
52 Week LowUS$108.75
Beta0.91
1 Month Change-8.06%
3 Month Change-10.46%
1 Year Change-26.25%
3 Year Change1.05%
5 Year Change40.28%
Change since IPO1,704.62%

Recent News & Updates

Sep 26

MSA Safety: A Solid Firm That's Fairly Valued

Summary MSA Safety has experienced some volatility recently, but the overall trend for the business is positive. Long term, the company should do well for itself, but this doesn't mean that it's a great prospect to buy. Shares look to be more or less fairly valued, meaning that upside from here is limited. Whether we like to admit it or not, we live in a dangerous world. Fortunately, technology has made it possible to make the world a little bit safer. One company dedicated to producing and selling safety-oriented products in an effort to do well by doing good is MSA Safety (MSA). In recent years, the enterprise has seen a generally positive trend from a financial perspective. Long term, I have no doubt that the business will continue to perform well for shareholders. Ultimately, this will create value for its investors and other stakeholders. But this does not mean that the company makes sense to buy into at this moment. All things considered, I would argue that shares are more or less fairly valued, leading me to rate the enterprise a solid 'hold' at this time. Safety as a business According to the management team at MSA Safety, the company operates as a global leader in the development, manufacturing, and supply of safety products. However, just leaving the description there leaves investors wondering precisely what the enterprise makes available for its customers. A deeper dive is definitely warranted. Under the core products category of offerings, MSA Safety produces a wide array of offerings centered around personal and facility safety. The first example would be its breathing apparatus products, with the primary example being the company's SCBA (self-contained breathing apparatus). This device is used by first responders, petrochemical plant workers, and other individuals who are entering an environment that's deemed immediately dangerous to life and health. If you have ever seen a firefighter with a face mask on as they rushed into a burning building, that is precisely what we are dealing with. Another type of product that the company produces is referred to as a fixed gas and flame detection instrument. These types of offerings are used in oil, gas, petrochemical, wastewater, HVAC, and general industrial production facilities in order to detect the presence or absence of various gases in the air. The company can get rather advanced with these offerings, partially as a result of its 2019 acquisition of Sierra Monitor Corporation, a provider of fixed gas and flame detection instruments and industrial IoT (Internet of Things) solutions that connect and help protect high-value infrastructure assets. The company also produces industrial head protection gear, firefighter helmets and protective apparel, fall protection equipment like harnesses, lanyards, self-retracting lifelines, and more. Another offering that the company announced in late 2021 is MSA+. This is a new safety solutions platform that integrates safety hardware technology, cloud software solutions, and safety services. Using a prescription pricing model, the company will provide access to its solutions and facilitate the digital transformation of safety programs for its customers. All combined, these core products accounted for 89% of the company's revenue in 2021. We also have non-core products. Examples here include air-purifying respirators, eye and face protection equipment, ballistic helmets, and gas masks. Collectively, these products make up around 11% of the company's revenue. Author - SEC EDGAR Data For the most part, the financial picture for MSA Safety has looked fairly sound. Between 2017 and 2019, revenue rose year after year, climbing from $1.20 billion to $1.40 billion. In 2020, the COVID-19 pandemic pushed revenue down slightly to $1.35 billion. But that decline was short-lived, with revenue rebounding to $1.40 billion in 2021. The company has continued its long-term growth so far this year, with sales in the first half of 2022 totaling $703 million. This represents an increase of 8.2% over the $649.7 million generated the same time one year earlier. Actual organic growth for the company year over year on a constant currency basis was 5.7%. Acquisitions helped to the tune of 5.1%. However, foreign currency translation negatively affected revenue by 2.6%. From the organic side of the equation, the company saw strength across most of its core products, but it also saw some weakness in protection and firefighter helmets and protective apparel. On the bottom line, the picture for the company has been a little more volatile. Take net income as an example. Between 2017 and 2019, profits for the business rose from $26 million to $138 million. Profits then dipped slightly to $124.1 million in 2020 before dropping significantly to $21.3 million last year. Operating cash flow has been even more volatile, going from $230.3 million in 2017 to $263.9 million in 2018. In 2019, it dropped to $165 million before popping up slightly to $206.6 million in 2020. And then, in 2021, it came in at $199.1 million. If we adjust for changes in working capital, the picture looks more stable. After rising from $254.4 million in 2017 to $262 million in 2018, the metric then dropped to $203.9 million in 2019. After that, it rose consistently, hitting $211.2 million in 2021. Even more stable has been EBITDA, with the metric rising between 2017 and 2019, climbing from $230.9 million to $290.9 million. In 2020, it totaled $288 million, while in 2021 it dipped slightly to $286 million. Author - SEC EDGAR Data So far, the 2022 fiscal year has been particularly appealing from a profitability perspective. Net income in the first half, for instance, totaled $83.2 million. That compares favorably to the $61.6 million January did the same time just one year earlier. Operating cash flow did decline, dropping from $83.9 million to $40 million. But if we adjust for changes in working capital, it would have risen from $86.2 million to $116.9 million. And finally, EBITDA for the business rose nicely, going from $128.3 million to $142.9 million over the same window of time.

Sep 19
Does MSA Safety (NYSE:MSA) Have A Healthy Balance Sheet?

Does MSA Safety (NYSE:MSA) Have A Healthy Balance Sheet?

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...

Aug 29
Returns On Capital At MSA Safety (NYSE:MSA) Have Hit The Brakes

Returns On Capital At MSA Safety (NYSE:MSA) Have Hit The Brakes

What are the early trends we should look for to identify a stock that could multiply in value over the long term...

Shareholder Returns

MSAUS Commercial ServicesUS Market
7D-1.9%-2.4%-2.5%
1Y-26.2%-9.7%-23.2%

Return vs Industry: MSA underperformed the US Commercial Services industry which returned -7.6% over the past year.

Return vs Market: MSA underperformed the US Market which returned -21.5% over the past year.

Price Volatility

Is MSA's price volatile compared to industry and market?
MSA volatility
MSA Average Weekly Movement3.8%
Commercial Services Industry Average Movement7.0%
Market Average Movement6.9%
10% most volatile stocks in US Market15.6%
10% least volatile stocks in US Market2.8%

Stable Share Price: MSA is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: MSA's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19144,800Nish Vartanianhttps://www.msasafety.com

MSA Safety Incorporated develops, manufactures, and supplies safety products that protect people and facility infrastructures in the oil, gas, petrochemical, fire service, construction, industrial manufacturing applications, utilities, military, and mining industries in North America, Latin America, and internationally. The company’s core product offerings include permanently installed fixed gas and flame detection instruments, such as permanently installed gas detection monitoring systems, and flame detectors and open-path infrared gas detectors, as well as replacement components and related services to detect the presence or absence of various gases in the air. Its core product offerings also comprise breathing apparatus products, such as self-contained breathing apparatus; hand-held portable gas detection instruments; industrial head protection products; firefighter helmets and protective apparel; and fall protection equipment, including confined space equipment, harnesses, lanyards, and self-retracting lifelines, as well as engineered systems.

MSA Safety Fundamentals Summary

How do MSA Safety's earnings and revenue compare to its market cap?
MSA fundamental statistics
Market CapUS$4.28b
Earnings (TTM)US$42.88m
Revenue (TTM)US$1.45b

99.7x

P/E Ratio

2.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
MSA income statement (TTM)
RevenueUS$1.45b
Cost of RevenueUS$818.72m
Gross ProfitUS$634.75m
Other ExpensesUS$591.87m
EarningsUS$42.88m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)1.10
Gross Margin43.67%
Net Profit Margin2.95%
Debt/Equity Ratio74.4%

How did MSA perform over the long term?

See historical performance and comparison

Dividends

1.7%

Current Dividend Yield

163%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is MSA undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for MSA?

Other financial metrics that can be useful for relative valuation.

MSA key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue3.3x
Enterprise Value/EBITDA14.7x
PEG Ratio1.7x

Price to Earnings Ratio vs Peers

How does MSA's PE Ratio compare to its peers?

MSA PE Ratio vs Peers
The above table shows the PE ratio for MSA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average19.2x
HNI HNI
15.2x8.2%US$1.1b
SCS Steelcase
48.7x64.7%US$735.4m
TILE Interface
8.5x16.1%US$528.3m
ACCO ACCO Brands
4.2x8.8%US$461.9m
MSA MSA Safety
99.7x57.2%US$4.3b

Price-To-Earnings vs Peers: MSA is expensive based on its Price-To-Earnings Ratio (99.7x) compared to the peer average (19.2x).


Price to Earnings Ratio vs Industry

How does MSA's PE Ratio compare vs other companies in the US Commercial Services Industry?

Price-To-Earnings vs Industry: MSA is expensive based on its Price-To-Earnings Ratio (99.7x) compared to the US Commercial Services industry average (15.7x)


Price to Earnings Ratio vs Fair Ratio

What is MSA's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

MSA PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio99.7x
Fair PE Ratio69.5x

Price-To-Earnings vs Fair Ratio: MSA is expensive based on its Price-To-Earnings Ratio (99.7x) compared to the estimated Fair Price-To-Earnings Ratio (69.5x).


Share Price vs Fair Value

What is the Fair Price of MSA when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: MSA ($109.28) is trading above our estimate of fair value ($56.5)

Significantly Below Fair Value: MSA is trading above our estimate of fair value.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but there are not enough analysts covering the stock to determine statistical confidence in agreement.


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Future Growth

How is MSA Safety forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


57.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MSA's forecast earnings growth (57.2% per year) is above the savings rate (1.9%).

Earnings vs Market: MSA's earnings (57.2% per year) are forecast to grow faster than the US market (14.7% per year).

High Growth Earnings: MSA's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: MSA's revenue (7.5% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: MSA's revenue (7.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if MSA's Return on Equity is forecast to be high in 3 years time


Discover growth companies

Past Performance

How has MSA Safety performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


0.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: MSA has a large one-off loss of $205.3M impacting its June 30 2022 financial results.

Growing Profit Margin: MSA's current net profit margins (2.9%) are lower than last year (7.9%).


Past Earnings Growth Analysis

Earnings Trend: MSA's earnings have grown by 0.4% per year over the past 5 years.

Accelerating Growth: MSA's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: MSA had negative earnings growth (-59.5%) over the past year, making it difficult to compare to the Commercial Services industry average (23.6%).


Return on Equity

High ROE: MSA's Return on Equity (5.1%) is considered low.


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Financial Health

How is MSA Safety's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: MSA's short term assets ($844.5M) exceed its short term liabilities ($336.3M).

Long Term Liabilities: MSA's short term assets ($844.5M) do not cover its long term liabilities ($1.2B).


Debt to Equity History and Analysis

Debt Level: MSA's net debt to equity ratio (54.2%) is considered high.

Reducing Debt: MSA's debt to equity ratio has increased from 45.1% to 74.4% over the past 5 years.

Debt Coverage: MSA's debt is well covered by operating cash flow (24.9%).

Interest Coverage: MSA's interest payments on its debt are well covered by EBIT (23.2x coverage).


Balance Sheet


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Dividend

What is MSA Safety current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


1.68%

Current Dividend Yield

Dividend Yield vs Market

MSA Safety Dividend Yield vs Market
How does MSA Safety dividend yield compare to the market?
SegmentDividend Yield
Company (MSA Safety)1.7%
Market Bottom 25% (US)1.7%
Market Top 25% (US)4.7%
Industry Average (Commercial Services)1.5%
Analyst forecast in 3 Years (MSA Safety)n/a

Notable Dividend: MSA's dividend (1.68%) is higher than the bottom 25% of dividend payers in the US market (1.66%).

High Dividend: MSA's dividend (1.68%) is low compared to the top 25% of dividend payers in the US market (4.7%).


Stability and Growth of Payments

Stable Dividend: MSA's dividends per share have been stable in the past 10 years.

Growing Dividend: MSA's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its high payout ratio (162.9%), MSA's dividend payments are not well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (64.4%), MSA's dividend payments are covered by cash flows.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

5.0yrs

Average management tenure


CEO

Nish Vartanian (62 yo)

4.75yrs

Tenure

US$6,794,020

Compensation

Mr. Nishan J. Vartanian, also known as Nish, has been the President at MSA Safety Incorporated since June 4, 2017 and its Chief Executive Officer since May 15, 2018 also serves as its Chairman since May, 2...


CEO Compensation Analysis

Nish Vartanian's Compensation vs MSA Safety Earnings
How has Nish Vartanian's remuneration changed compared to MSA Safety's earnings?
DateTotal Comp.SalaryCompany Earnings
Jun 30 2022n/an/a

US$43m

Mar 31 2022n/an/a

US$20m

Dec 31 2021US$7mUS$863k

US$21m

Sep 30 2021n/an/a

US$97m

Jun 30 2021n/an/a

US$106m

Mar 31 2021n/an/a

US$117m

Dec 31 2020US$8mUS$875k

US$124m

Sep 30 2020n/an/a

US$139m

Jun 30 2020n/an/a

US$153m

Mar 31 2020n/an/a

US$157m

Dec 31 2019US$7mUS$805k

US$138m

Sep 30 2019n/an/a

US$130m

Jun 30 2019n/an/a

US$121m

Mar 31 2019n/an/a

US$115m

Dec 31 2018US$3mUS$665k

US$124m

Sep 30 2018n/an/a

US$66m

Jun 30 2018n/an/a

US$64m

Mar 31 2018n/an/a

US$44m

Dec 31 2017US$3mUS$452k

US$26m

Sep 30 2017n/an/a

US$84m

Jun 30 2017n/an/a

US$78m

Mar 31 2017n/an/a

US$94m

Dec 31 2016US$1mUS$385k

US$92m

Sep 30 2016n/an/a

US$88m

Jun 30 2016n/an/a

US$78m

Mar 31 2016n/an/a

US$73m

Dec 31 2015US$1mUS$363k

US$69m

Compensation vs Market: Nish's total compensation ($USD6.79M) is about average for companies of similar size in the US market ($USD6.85M).

Compensation vs Earnings: Nish's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: MSA's management team is seasoned and experienced (5 years average tenure).


Board Members

Experienced Board: MSA's board of directors are considered experienced (6.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: MSA insiders have only sold shares in the past 3 months.


Recent Insider Transactions

NYSE:MSA Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
08 Aug 22SellUS$63,761Rebecca RobertsIndividual500US$127.52
23 Feb 22SellUS$3,777,500John RyanIndividual27,500US$138.00
14 Dec 21SellUS$4,021,676John RyanIndividual27,500US$148.28

Ownership Breakdown

What is the ownership structure of MSA?
Owner TypeNumber of SharesOwnership Percentage
State or Government15,6180.04%
Individual Insiders2,517,4616.4%
General Public5,563,59214.2%
Institutions31,029,04879.3%

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Top 25 shareholders own 71.33% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
10.95%
Stichting Pensioenfonds ABP
4,284,863$468.2m0%0.68%
9.35%
The Vanguard Group, Inc.
3,656,828$399.6m1.83%0.01%
7.87%
BlackRock, Inc.
3,078,985$336.5m1.62%0.01%
5.68%
John Ryan
2,220,819$242.7m-0.5%no data
5.28%
State Street Global Advisors, Inc.
2,066,285$225.8m13.08%0.01%
4.81%
J.P. Morgan Asset Management, Inc.
1,882,701$205.7m0.99%0.04%
3.75%
Champlain Investment Partners, LLC
1,465,930$160.2m5.72%1.08%
3.35%
UBS Asset Management
1,311,900$143.4m0.67%0.03%
3.01%
T. Rowe Price Group, Inc.
1,178,565$128.8m-9.86%0.02%
2.1%
BNY Mellon Asset Management
820,397$89.7m0.03%0.02%
1.76%
Dimensional Fund Advisors LP
688,097$75.2m-0.78%0.02%
1.65%
Columbia Management Investment Advisers, LLC
645,524$70.5m-15.6%0.02%
1.44%
Brown Advisory Incorporated
562,985$61.5m25.67%0.11%
1.35%
Channing Capital Management, LLC
526,612$57.5m13.42%2.09%
1.19%
Geode Capital Management, LLC
466,395$51.0m-1.39%0.01%
1.09%
Principal Global Investors, LLC
424,568$46.4m11.31%0.03%
1.04%
Pictet Asset Management Limited
407,350$44.5m10.12%0.04%
0.93%
Eagle Asset Management, Inc.
365,797$40.0m21.29%0.26%
0.89%
Charles Schwab Investment Management, Inc.
348,580$38.1m3.13%0.01%
0.77%
Northern Trust Global Investments
302,605$33.1m-3.01%0.01%
0.74%
Bessemer Investment Management LLC
290,000$31.7m0%0.07%
0.73%
Norges Bank Investment Management
286,003$31.3m0%no data
0.57%
New York State Common Retirement Fund
224,633$24.5m3.87%0.03%
0.55%
WHEB Asset Management
215,843$23.6m0%2.13%
0.48%
ProShare Advisors LLC
187,895$20.5m13.9%0.07%

Company Information

MSA Safety Incorporated's employee growth, exchange listings and data sources


Key Information

  • Name: MSA Safety Incorporated
  • Ticker: MSA
  • Exchange: NYSE
  • Founded: 1914
  • Industry: Office Services and Supplies
  • Sector: Commercial Services
  • Implied Market Cap: US$4.276b
  • Shares outstanding: 39.13m
  • Website: https://www.msasafety.com

Number of Employees


Location

  • MSA Safety Incorporated
  • 1000 Cranberry Woods Drive
  • Cranberry Township
  • Pennsylvania
  • 16066-5207
  • United States


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MSANYSE (New York Stock Exchange)YesCommon StockUSUSDDec 1972
M07DB (Deutsche Boerse AG)YesCommon StockDEEURDec 1972
MNES.POTCPK (Pink Sheets LLC)PFDUSUSDOct 1990

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/30 00:00
End of Day Share Price2022/09/30 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.