NYSE:MSA

Stock Analysis Report

Executive Summary

MSA Safety Incorporated develops, manufactures, and supplies safety products that protect people and facility infrastructures in the oil, gas, petrochemical, fire service, construction, utilities, and mining industries worldwide.

Rewards

Earnings are forecast to grow 20.55% per year

Earnings grew by 96.4% over the past year

Pays a reliable dividend of 1.19%

Risk Analysis

Has a high level of debt



Snowflake Analysis

Solid track record with reasonable growth potential and pays a dividend.


Similar Companies

Share Price & News

How has MSA Safety's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MSA has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.5%

MSA

2.1%

US Commercial Services

1.5%

US Market


1 Year Return

37.9%

MSA

22.4%

US Commercial Services

20.1%

US Market

Return vs Industry: MSA exceeded the US Commercial Services industry which returned 22.4% over the past year.

Return vs Market: MSA exceeded the US Market which returned 20.1% over the past year.


Shareholder returns

MSAIndustryMarket
7 Day0.5%2.1%1.5%
30 Day2.7%3.8%1.4%
90 Day13.7%9.1%8.7%
1 Year39.9%37.9%26.9%22.4%22.7%20.1%
3 Year111.4%101.3%67.4%56.2%50.1%40.5%
5 Year210.8%180.9%106.4%84.3%73.1%54.1%

Price Volatility Vs. Market

How volatile is MSA Safety's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is MSA Safety undervalued compared to its fair value and its price relative to the market?

41.77x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MSA ($140.7) is trading above our estimate of fair value ($139.13)

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


Price To Earnings Ratio

PE vs Industry: MSA is poor value based on its PE Ratio (41.8x) compared to the Commercial Services industry average (26.4x).

PE vs Market: MSA is poor value based on its PE Ratio (41.8x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: MSA is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: MSA is overvalued based on its PB Ratio (7.8x) compared to the US Commercial Services industry average (1.8x).


Next Steps

Future Growth

How is MSA Safety forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

20.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MSA's forecast earnings growth (20.6% per year) is above the savings rate (1.7%).

Earnings vs Market: MSA's earnings (20.6% per year) are forecast to grow faster than the US market (14.5% per year).

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

Revenue vs Market: MSA's revenue (4.3% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: MSA's revenue (4.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MSA's Return on Equity is forecast to be high in 3 years time (23%)


Next Steps

Past Performance

How has MSA Safety performed over the past 5 years?

6.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MSA has high quality earnings.

Growing Profit Margin: MSA's current net profit margins (9.4%) are higher than last year (4.9%).


Past Earnings Growth Analysis

Earnings Trend: MSA's earnings have grown by 6% per year over the past 5 years.

Accelerating Growth: MSA's earnings growth over the past year (96.4%) exceeds its 5-year average (6% per year).

Earnings vs Industry: MSA earnings growth over the past year (96.4%) exceeded the Commercial Services industry 0.2%.


Return on Equity

High ROE: MSA's Return on Equity (18.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is MSA Safety's financial position?


Financial Position Analysis

Short Term Liabilities: MSA's short term assets ($686.4M) exceed its short term liabilities ($262.2M).

Long Term Liabilities: MSA's short term assets ($686.4M) do not cover its long term liabilities ($728.6M).


Debt to Equity History and Analysis

Debt Level: MSA's debt to equity ratio (52.5%) is considered high.

Reducing Debt: MSA's debt to equity ratio has increased from 47% to 52.5% over the past 5 years.

Debt Coverage: MSA's debt is well covered by operating cash flow (44.6%).

Interest Coverage: MSA's interest payments on its debt are well covered by EBIT (23.4x coverage).


Balance Sheet

Inventory Level: MSA has a high level of physical assets or inventory.

Debt Coverage by Assets: MSA's debt is covered by short term assets (assets are 1.8x debt).


Next Steps

Dividend

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

1.19%

Current Dividend Yield


Dividend Yield vs Market

company1.2%marketbottom25%1.4%markettop25%3.7%industryaverage1.5%forecastin3Years1.2%

Current dividend yield vs market & industry

Notable Dividend: MSA's dividend (1.19%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: MSA's dividend (1.19%) is low compared to the top 25% of dividend payers in the US market (3.69%).


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.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (47.5%), MSA's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MSA's dividends in 3 years are forecast to be well covered by earnings (30.7% payout ratio).


Next Steps

Management

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

2.5yrs

Average management tenure


CEO

Nish Vartanian (59yo)

1.8yrs

Tenure

US$2,813,553

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 and served as its Senior Vice President  ...


CEO Compensation Analysis

Compensation vs Market: Nish's total compensation ($USD2.81M) is below average for companies of similar size in the US market ($USD6.26M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Nishan Vartanian
President1.8yrsUS$2.81m0.11% $5.8m
Kenneth Krause
Senior VP4.2yrsUS$1.50m0.041% $2.2m
Steven Blanco
VP & President of Americas2.5yrsUS$1.27m0.029% $1.6m
Bob Leenen
VP & President of MSA International2.4yrsUS$1.05m0.015% $791.4k
Markus Weber
Chief Information Officer & VP9.8yrsno datano data
Elyse Lorenzato
Director of Investor Relations0yrsno datano data
Stephanie Sciullo
VP & Chief Legal Officer0.08yrsno data0.012% $641.5k
Mark Deasy
Director of Public Relations & Strategic Communications0yrsno datano data
Chris Hepler
Executive Director of Corporate Development0yrsno datano data
Paul Uhler
Chief Human Resource Officer & Senior VP3.9yrsno datano data

2.5yrs

Average Tenure

53yo

Average Age

Experienced Management: MSA's management team is considered experienced (2.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Nishan Vartanian
President1.8yrsUS$2.81m0.11% $5.8m
Robert Bruggeworth
Lead Independent Director0yrsUS$225.01k0.072% $3.9m
John Ryan
Independent Director11.6yrsUS$195.01k5.49% $299.4m
William Lambert
Non-Executive Chairman4.8yrsUS$2.64m0.22% $12.3m
Diane Pearse
Independent Director16.1yrsUS$200.01k0.070% $3.8m
Thomas Giacomini
Independent Director2.7yrsUS$195.01k0.011% $585.4k
Gregory Jordan
Independent Director1yrsno data0.0039% $213.7k
Rebecca Roberts
Independent Director6.3yrsUS$207.51k0.028% $1.5m
William Sperry
Independent Director1yrsno data0.0042% $227.3k
Sandra Rogers
Independent Director2.3yrsUS$195.01k0.0086% $468.2k

2.7yrs

Average Tenure

59yo

Average Age

Experienced Board: MSA's board of directors are not considered experienced ( 2.7 years average tenure), which suggests a new board.


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

Ownership Breakdown

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


Top Shareholders

Company Information

MSA Safety Incorporated's company bio, 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
  • Market Cap: US$5.450b
  • Shares outstanding: 38.74m
  • Website: https://www.msasafety.com

Number of Employees


Location

  • MSA Safety Incorporated
  • 1000 Cranberry Woods Drive
  • Cranberry Township
  • Pennsylvania
  • 16066
  • 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

Biography

MSA Safety Incorporated develops, manufactures, and supplies safety products that protect people and facility infrastructures in the oil, gas, petrochemical, fire service, construction, utilities, and mining industries worldwide. It operates through Americas and International segments. 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 consist of breathing apparatus products, such as self-contained breathing apparatus, face masks, and respirators; hand-held portable gas detection instruments; industrial head protection products; firefighter helmets and protective apparel; and fall protection equipment comprising confined space equipment, harnesses, lanyards, and lifelines. In addition, the company offers respirators, eye and face protection products, ballistic helmets, and gas masks. It serves distributors, and industrial or military end-users through indirect and direct sales channels. The company was founded in 1914 and is based in Cranberry Township, Pennsylvania. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/16 23:47
End of Day Share Price2020/02/14 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.