(MSM) MSC Industrial Direct - Overview
Sector: Industrials | Industry: Industrial Distribution | Exchange: NYSE (USA) | Market Cap: 5.844m USD | Total Return: 40.1% in 12m
Avg Turnover: 66.8M
EPS Trend: -94.5%
Qual. Beats: 0
Rev. Trend: -83.5%
Qual. Beats: -1
Warnings
No concerns identified
Tailwinds
Shakeout, Supp Ema20, Confidence
MSC Industrial Direct Co., Inc. (MSM) is a leading North American distributor of metalworking and maintenance, repair, and operations (MRO) supplies. Founded in 1941, the company manages an extensive inventory of cutting tools, fasteners, and safety equipment, serving a diverse client base that includes independent machine shops, large-scale manufacturing firms, and government agencies.
The company operates within the industrial distribution sector, a fragmented market where competitive advantage is often derived from logistics efficiency and integrated inventory management systems. MSM utilizes a multi-channel distribution model, leveraging e-commerce platforms, customer fulfillment centers, and on-site inventory solutions to reduce lead times for essential industrial components.
For a more granular look at the companys historical performance and valuation metrics, explore the data available on ValueRay.
- Industrial production levels drive demand for metalworking and MRO product volume
- Pricing strategy adjustments impact gross margins amidst persistent raw material inflation
- Expansion of in-plant inventory management solutions secures long-term customer retention
- Shifts in manufacturing sector capital expenditure influence heavy machinery accessory sales
- E-commerce channel growth improves operational efficiency and reduces selling expenses
| Net Income: 207.0m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.09 > 0.02 and ΔFCF/TA -3.47 > 1.0 |
| NWC/Revenue: 13.59% < 20% (prev 15.24%; Δ -1.65% < -1%) |
| CFO/TA 0.12 > 3% & CFO 301.2m > Net Income 207.0m |
| Net Debt (560.1m) to EBITDA (400.6m): 1.40 < 3 |
| Current Ratio: 1.73 > 1.5 & < 3 |
| Outstanding Shares: last quarter (55.9m) vs 12m ago 0.09% < -2% |
| Gross Margin: 40.78% > 18% (prev 0.41%; Δ 4.04k% > 0.5%) |
| Asset Turnover: 156.0% > 50% (prev 152.4%; Δ 3.65% > 0%) |
| Interest Coverage Ratio: 13.36 > 6 (EBITDA TTM 400.6m / Interest Expense TTM 22.8m) |
| A: 0.21 (Total Current Assets 1.23b - Total Current Liabilities 709.0m) / Total Assets 2.45b |
| B: 0.17 (Retained Earnings 420.2m / Total Assets 2.45b) |
| C: 0.12 (EBIT TTM 304.1m / Avg Total Assets 2.46b) |
| D: 0.38 (Book Value of Equity 401.8m / Total Liabilities 1.07b) |
| Altman-Z'' = 3.18 = A |
| DSRI: 0.93 (Receivables 373.6m/395.3m, Revenue 3.83b/3.75b) |
| GMI: 1.00 (GM 40.78% / 40.88%) |
| AQI: 0.99 (AQ_t 0.34 / AQ_t-1 0.34) |
| SGI: 1.02 (Revenue 3.83b / 3.75b) |
| TATA: -0.04 (NI 207.0m - CFO 301.2m) / TA 2.45b) |
| Beneish M = -3.12 (Cap -4..+1) = AA |
As of May 23, 2026, the stock is trading at USD 105.98 with a total of 421,256 shares traded.
Over the past week, the price has changed by +1.76%,
over one month by +10.17%,
over three months by +17.10% and
over the past year by +40.11%.
MSC Industrial Direct has received a consensus analysts rating of 3.27. Therefore, it is recommended to hold MSM.
- StrongBuy: 1
- Buy: 1
- Hold: 9
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 93.5 | -11.8% |
P/E Forward = 20.202
P/S = 1.5246
P/B = 4.2082
P/EG = 2.1273
Revenue TTM = 3.83b USD
EBIT TTM = 304.1m USD
EBITDA TTM = 400.6m USD
Long Term Debt = 194.1m USD (from longTermDebt, last quarter)
Short Term Debt = 338.7m USD (from shortTermDebt, last quarter)
Debt = 606.3m USD (from shortLongTermDebtTotal, last quarter) + Leases 47.6m
Net Debt = 560.1m USD (calculated: Debt 606.3m - CCE 46.2m)
Enterprise Value = 6.40b USD (5.84b + Debt 606.3m - CCE 46.2m)
Interest Coverage Ratio = 13.36 (Ebit TTM 304.1m / Interest Expense TTM 22.8m)
EV/FCF = 29.79x (Enterprise Value 6.40b / FCF TTM 215.0m)
FCF Yield = 3.36% (FCF TTM 215.0m / Enterprise Value 6.40b)
FCF Margin = 5.61% (FCF TTM 215.0m / Revenue TTM 3.83b)
Net Margin = 5.40% (Net Income TTM 207.0m / Revenue TTM 3.83b)
Gross Margin = 40.78% ((Revenue TTM 3.83b - Cost of Revenue TTM 2.27b) / Revenue TTM)
Gross Margin QoQ = 41.14% (prev 40.66%)
Tobins Q-Ratio = 2.61 (Enterprise Value 6.40b / Total Assets 2.45b)
Interest Expense / Debt = 3.75% (Interest Expense 22.8m / Debt 606.3m)
Taxrate = 24.74% (13.9m / 56.0m)
NOPAT = 228.8m (EBIT 304.1m * (1 - 24.74%))
Current Ratio = 1.73 (Total Current Assets 1.23b / Total Current Liabilities 709.0m)
Debt / Equity = 0.44 (Debt 606.3m / totalStockholderEquity, last quarter 1.38b)
Debt / EBITDA = 1.40 (Net Debt 560.1m / EBITDA 400.6m)
Debt / FCF = 2.61 (Net Debt 560.1m / FCF TTM 215.0m)
Total Stockholder Equity = 1.38b (last 4 quarters mean from totalStockholderEquity)
RoA = 8.43% (Net Income 207.0m / Total Assets 2.45b)
RoE = 15.00% (Net Income TTM 207.0m / Total Stockholder Equity 1.38b)
RoCE = 19.32% (EBIT 304.1m / Capital Employed (Equity 1.38b + L.T.Debt 194.1m))
RoIC = 11.25% (NOPAT 228.8m / Invested Capital 2.03b)
WACC = 8.23% (E(5.84b)/V(6.45b) * Re(8.79%) + D(606.3m)/V(6.45b) * Rd(3.75%) * (1-Tc(0.25)))
Discount Rate = 8.79% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -60.0 | Cagr: -0.65%
[DCF] Terminal Value 73.10% ; FCFF base≈249.6m ; Y1≈218.9m ; Y5≈176.9m
[DCF] Fair Price = 40.81 (EV 2.84b - Net Debt 560.1m = Equity 2.28b / Shares 55.8m; r=8.35% [WACC [floored]]; 5y FCF grow -15.0% → 2.50% )
EPS Correlation: -94.50 | EPS CAGR: -20.48% | SUE: -0.36 | # QB: 0
Revenue Correlation: -83.47 | Revenue CAGR: -2.46% | SUE: -1.05 | # QB: -1
EPS current Quarter (2026-05-31): EPS=1.26 | Chg30d=+5.08% | Revisions=+67% | Analysts=8
EPS current Year (2026-08-31): EPS=4.34 | Chg30d=+1.38% | Revisions=+50% | GrowthEPS=+15.5% | GrowthRev=+4.7%
EPS next Year (2027-08-31): EPS=4.94 | Chg30d=+2.08% | Revisions=+45% | GrowthEPS=+13.8% | GrowthRev=+5.1%
[Analyst] Revisions Ratio: +67%