MSC Industrial Direct Co Inc (MSM) stock analysis

P/E above its 5-year median

MSC Industrial Direct's P/E of 30.4 is above its own 5-year median of 17.1.

P/E above the industry

MSC Industrial Direct's P/E of 30.4 is above the Wholesale Trade-durable Goods median of 20.3.

EV/EBITDA above its 5-year median

MSC Industrial Direct's EV/EBITDA of 17.0 is above its 5-year median of 11.2.

P/B above the industry

MSC Industrial Direct's price-to-book of 4.74 is above the Wholesale Trade-durable Goods median of 2.15.

Trading above fair value

The share price of $120.87 is above our fair value estimate of $77.53.

Margin of safety under 20%

The price is 55.9% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 0.0% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -13.3% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 11.7% over the last twelve months, against a 5-year average of 0.5% a year.

Growing slower than the industry

Revenue grew 6.4% over the last twelve months; the Wholesale Trade-durable Goods median is 7.5%.

Guidance lowered

MSC Industrial Direct lowered its Full-Year Fiscal 2027 Interest and other expense outlook on Oct 22, 2026.

Gross margin improving

Gross margin was 40.9% over the last twelve months, against 40.8% a year earlier.

Return on equity over 15%

Return on equity was 15.8% over the last twelve months and averaged 19.9% over five years.

Return on capital over 10%

Return on invested capital was 13.2%, above the 10% that usually covers the cost of capital.

Return on equity below the industry

MSC Industrial Direct's return on equity of 15.8% is below the Wholesale Trade-durable Goods median of 17.2%.

Earnings grew over 5 years

Net income grew 0.5% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 5.6% over the last twelve months, against a 5-year average of 7.1%.

Net margin above the industry

MSC Industrial Direct's net margin of 5.6% is above the Wholesale Trade-durable Goods median of 5.0%.

Low debt

Debt is 33.4% of shareholders' equity, under the 40% we consider low.

Debt falling against equity

Debt to equity fell from 68.1% five years ago to 33.4%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 64.3% of total debt.

Interest well covered

Operating income covers interest expense 14.8 times.

Short-term assets cover short-term debts

Current assets are 1.78 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 6.29; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

MSC Industrial Direct paid dividends worth 2.9% of the share price over the last twelve months.

Yield below Treasuries

The 2.9% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; MSC Industrial Direct yields 2.9%.

Dividend stability

Fewer than five years of dividend history.

Earnings cover

Needs dividends paid and net income.

Cash-flow cover

Needs dividends paid and free cash flow.