MSC Industrial Direct Co., Inc.
MSC Industrial Direct Co., Inc. Fundamental Analysis
MSC Industrial Direct Co., Inc. (MSM) shows weak financial fundamentals with a PE ratio of 25.60, profit margin of 5.40%, and ROE of 15.00%. The company generates $3.8B in annual revenue with weak year-over-year growth of -1.35%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 48.1/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze MSM's fundamental strength across five key dimensions:
Efficiency Score
WeakMSM struggles to generate sufficient returns from assets.
Valuation Score
WeakMSM trades at a premium to fair value.
Growth Score
WeakMSM faces weak or negative growth trends.
Financial Health Score
ExcellentMSM maintains a strong and stable balance sheet.
Profitability Score
ModerateMSM maintains healthy but balanced margins.
Key Financial Metrics
Is MSM Expensive or Cheap?
P/E Ratio
MSM trades at 25.60 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, MSM's PEG of 15.62 indicates potential overvaluation.
Price to Book
The market values MSC Industrial Direct Co., Inc. at 3.83 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 11.96 times EBITDA. This signals the market has high growth expectations.
How Well Does MSM Make Money?
Net Profit Margin
For every $100 in sales, MSC Industrial Direct Co., Inc. keeps $5.40 as profit after all expenses.
Operating Margin
Core operations generate 8.45 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $15.00 in profit for every $100 of shareholder equity.
ROA
MSC Industrial Direct Co., Inc. generates $8.45 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
MSC Industrial Direct Co., Inc. generates limited operating cash flow of $301.33M, signaling weaker underlying cash strength.
Free Cash Flow
MSC Industrial Direct Co., Inc. produces free cash flow of $215.08M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $3.85 in free cash annually.
FCF Yield
MSM converts 4.03% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
25.60
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
15.62
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.83
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.38
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.40
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.73
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.15
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.19
vs 25 benchmark
How MSM Stacks Against Its Sector Peers
| Metric | MSM Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 25.60 | 26.39 | Neutral |
| ROE | 15.00% | 1286.00% | Weak |
| Net Margin | 5.40% | -37140.00% (disorted) | Weak |
| Debt/Equity | 0.40 | 0.73 | Strong (Low Leverage) |
| Current Ratio | 1.73 | 10.39 | Neutral |
| ROA | 8.45% | -1500982.00% (disorted) | Weak |
MSM outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews MSC Industrial Direct Co., Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
17.42%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
-21.06%
Industry Style: Cyclical, Value, Infrastructure
DecliningFCF CAGR
-16.35%
Industry Style: Cyclical, Value, Infrastructure
Declining