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

Trading at 8% below its fair value

Earnings are forecast to grow 21.2% per year

Earnings grew by 96.4% over the past year

Pays a reliable dividend of 1.32%

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

0.4%

MSA

-0.4%

US Commercial Services

0.8%

US Market


1 Year Return

26.5%

MSA

24.5%

US Commercial Services

22.0%

US Market

Return vs Industry: MSA exceeded the US Commercial Services industry which returned 24.5% over the past year.

Return vs Market: MSA exceeded the US Market which returned 22% over the past year.


Shareholder returns

MSAIndustryMarket
7 Day0.4%-0.4%0.8%
30 Day1.8%0.5%1.7%
90 Day13.1%3.6%5.2%
1 Year28.4%26.5%29.2%24.5%24.7%22.0%
3 Year94.2%84.6%55.7%46.3%46.9%37.3%
5 Year168.8%142.0%98.1%77.9%65.5%47.3%

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?

8.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MSA ($126.88) is trading below our estimate of fair value ($137.86)

Significantly Below Fair Value: MSA is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: MSA is poor value based on its PE Ratio (37.7x) compared to the Commercial Services industry average (26.6x).

PE vs Market: MSA is poor value based on its PE Ratio (37.7x) compared to the US market (18.6x).


Price to Earnings Growth Ratio

PEG Ratio: MSA is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: MSA is overvalued based on its PB Ratio (7x) compared to the US Commercial Services industry average (2x).


Next Steps

Future Growth

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

21.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MSA's forecast earnings growth (21.2% per year) is above the savings rate (1.7%).

Earnings vs Market: MSA's earnings (21.2% per year) are forecast to grow faster than the US market (14.2% per year).

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

Revenue vs Market: MSA's revenue (3.2% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: MSA's revenue (3.2% 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 (22.9%)


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 -3.1%.


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?

1.32%

Current Dividend Yield


Dividend Yield vs Market

company1.3%marketbottom25%1.4%markettop25%3.7%industryaverage1.6%forecastin3Years1.3%

Current dividend yield vs market & industry

Notable Dividend: MSA's dividend (1.32%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: MSA's dividend (1.32%) is low compared to the top 25% of dividend payers in the US market (3.71%).


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 (31.3% payout ratio).


Next Steps

Management

What is the CEO of MSA Safety's salary, the management and board of directors tenure and is there insider trading?

3.8yrs

Average management tenure


CEO

Nish Vartanian (59yo)

1.6yrs

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 ($USD2.81M) is below average for companies of similar size in the US market ($USD6.64M).

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


Management Age and Tenure

3.8yrs

Average Tenure

54yo

Average Age

Experienced Management: MSA's management team is considered experienced (3.8 years average tenure).


Board Age and Tenure

2.5yrs

Average Tenure

59yo

Average Age

Experienced Board: MSA's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.


Insider Trading

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


Recent Insider Transactions

SellUS$1,062,04906 Dec 19
Douglas McClaine
EntityIndividual
Role
Chief Legal Officer
Senior VP
Shares8,500
Max PriceUS$124.95
SellUS$678,93116 Sep 19
Douglas McClaine
EntityIndividual
Role
Chief Legal Officer
Senior VP
Shares6,000
Max PriceUS$113.16
SellUS$395,20013 Jun 19
Kenneth Krause
EntityIndividual
Role
Chief Financial Officer
Senior VP
Shares3,800
Max PriceUS$104.00
SellUS$215,87328 May 19
John Ryan
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,094
Max PriceUS$103.93
SellUS$507,95203 May 19
Steven Blanco
EntityIndividual
Role
Unit President
VP & President of Americas
Shares4,695
Max PriceUS$108.19
SellUS$880,70803 May 19
Douglas McClaine
EntityIndividual
Role
Chief Legal Officer
Senior VP
Shares8,021
Max PriceUS$109.80
SellUS$2,545,17614 Mar 19
William Lambert
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares24,592
Max PriceUS$104.02
SellUS$5,201,16528 Feb 19
L. Shaw
EntityIndividual
Shares50,000
Max PriceUS$104.42

Ownership Breakdown

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


Management Team

  • Doug McClaine (61yo)

    Senior VP

    • Tenure: 3.8yrs
    • Compensation: US$1.02m
  • Paul Uhler (60yo)

    Chief Human Resource Officer & Senior VP

    • Tenure: 3.8yrs
  • Chris Hepler

    Executive Director of Corporate Development

    • Tenure: 0yrs
  • Markus Weber (54yo)

    Chief Information Officer & VP

    • Tenure: 9.7yrs
  • Steve Blanco (52yo)

    VP & President of Americas

    • Tenure: 2.3yrs
    • Compensation: US$1.27m
  • Nish Vartanian (59yo)

    President

    • Tenure: 1.6yrs
    • Compensation: US$2.81m
  • Ken Krause (43yo)

    Senior VP

    • Tenure: 4yrs
    • Compensation: US$1.50m
  • Bob Leenen (45yo)

    VP & President of MSA International

    • Tenure: 2.3yrs
    • Compensation: US$1.05m
  • Mark Deasy

    Director of Public Relations & Strategic Communications

    • Tenure: 0yrs
  • Elyse Lorenzato

    Director of Investor Relations

    • Tenure: 0yrs

Board Members

  • Bob Bruggeworth (58yo)

    Lead Independent Director

    • Tenure: 0yrs
    • Compensation: US$225.01k
  • John Ryan (75yo)

    Independent Director

    • Tenure: 11.4yrs
    • Compensation: US$195.01k
  • Bill Lambert (61yo)

    Non-Executive Chairman

    • Tenure: 4.6yrs
    • Compensation: US$2.64m
  • Diane Pearse (61yo)

    Independent Director

    • Tenure: 15.9yrs
    • Compensation: US$200.01k
  • Tom Giacomini (53yo)

    Independent Director

    • Tenure: 2.5yrs
    • Compensation: US$195.01k
  • Greg Jordan (59yo)

    Independent Director

    • Tenure: 0.8yrs
  • Becky Roberts (66yo)

    Independent Director

    • Tenure: 6.2yrs
    • Compensation: US$207.51k
  • Bill Sperry (57yo)

    Independent Director

    • Tenure: 0.8yrs
  • Nish Vartanian (59yo)

    President

    • Tenure: 1.6yrs
    • Compensation: US$2.81m
  • Sandra Rogers (53yo)

    Independent Director

    • Tenure: 2.2yrs
    • Compensation: US$195.01k

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$4.915b
  • 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 mini ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/15 23:43
End of Day Share Price2019/12/13 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.