📊 MSM Key Takeaways
Is Msc Industrial Direct Co Inc. (MSM) a Good Investment?
MSM exhibits a fortress balance sheet with minimal leverage (0.06x D/E) and strong free cash flow generation ($161.4M), but faces meaningful headwinds with declining revenue (-1.3% YoY) and significant EPS erosion (-22.1% YoY) despite flat net income growth. The company's financial health is intact, but industrial distribution weakness and cyclical pressures limit near-term upside.
MSC Industrial Direct has a financially resilient foundation, supported by low leverage, strong interest coverage, positive free cash flow, and solid gross margins. However, declining revenue, sharply lower diluted EPS despite modest net-income growth, and only moderate operating and free-cash-flow margins indicate weak growth quality and limited near-term fundamental momentum.
Msc Industrial Direct Co Inc. Key Strengths (MSM)
- Fortress balance sheet with minimal debt leverage (0.06x D/E ratio) and exceptional interest coverage (20.2x)
- Robust free cash flow generation ($161.4M FCF, 5.5% FCF margin) significantly exceeding net income
- Stable and healthy gross margins (41%) demonstrating pricing power and cost discipline in wholesale distribution
- Conservative balance sheet with debt-to-equity of 0.06x and interest coverage of 20.2x
- Strong 41.0% gross margin and continued operating profitability
- Healthy cash generation with $161.41M of free cash flow after capital expenditures
MSM Stock Risks: Msc Industrial Direct Co Inc. Investment Risks
- Revenue contraction (-1.3% YoY) indicates softening industrial demand and cyclical sector headwinds
- Significant EPS dilution (-22.1% YoY) despite flat net income growth suggests share issuance or elevated tax rates
- Liquidity constraints emerging with quick ratio below 1.0 (0.72x) and minimal cash relative to $2.5B asset base
- Revenue declined 1.3%, signaling soft demand or competitive pressure
- Diluted EPS fell 22.1% despite net income increasing 0.8%, warranting investigation into share count or period comparability
- Quick ratio of 0.72x indicates meaningful reliance on inventory to satisfy current obligations
Key Metrics to Watch
- Quarterly revenue trends and organic growth rate reversal from decline
- Free cash flow sustainability if industrial economy softens further
- Working capital efficiency and cash conversion cycle amid inventory pressures
- Organic revenue growth and operating margin
- Diluted share count and free cash flow conversion
Msc Industrial Direct Co Inc. (MSM) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Msc Industrial Direct Co Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
MSM Profit Margin, ROE & Profitability Analysis
MSM vs Industrial Sector: How Msc Industrial Direct Co Inc. Compares
How Msc Industrial Direct Co Inc. compares to Industrial sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Msc Industrial Direct Co Inc. Stock Overvalued? MSM Valuation Analysis 2026
Based on fundamental analysis, Msc Industrial Direct Co Inc. has mixed fundamental signals relative to the Industrial sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Msc Industrial Direct Co Inc. Balance Sheet: MSM Debt, Cash & Liquidity
MSM Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Msc Industrial Direct Co Inc.'s revenue has grown significantly by 19% over the 5-year period, indicating strong business expansion. The most recent EPS of $6.11 reflects profitable operations.
MSM Revenue Growth, EPS Growth & YoY Performance
MSM Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | $971.1M | $56.8M | $1.02 |
| Q2 2026 | $891.7M | $39.3M | $0.70 |
| Q1 2026 | $928.5M | $46.6M | $0.83 |
| Q3 2025 | $971.1M | $56.8M | $1.02 |
| Q2 2025 | $891.7M | $39.3M | $0.70 |
| Q1 2025 | $928.5M | $46.6M | $0.83 |
| Q3 2024 | $979.4M | $71.7M | $1.27 |
| Q2 2024 | $935.3M | $61.8M | $1.10 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Msc Industrial Direct Co Inc. Dividends, Buybacks & Capital Allocation
MSM SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Msc Industrial Direct Co Inc. (CIK: 0001003078)
📋 Recent SEC Filings
❓ Frequently Asked Questions about MSM
What is the AI rating for MSM?
Msc Industrial Direct Co Inc. (MSM) has a Combined AI Grade of B from Claude (B) and ChatGPT (B) with 74% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are MSM's key strengths?
Claude: Fortress balance sheet with minimal debt leverage (0.06x D/E ratio) and exceptional interest coverage (20.2x). Robust free cash flow generation ($161.4M FCF, 5.5% FCF margin) significantly exceeding net income. ChatGPT: Conservative balance sheet with debt-to-equity of 0.06x and interest coverage of 20.2x. Strong 41.0% gross margin and continued operating profitability.
What are the risks of investing in MSM?
Claude: Revenue contraction (-1.3% YoY) indicates softening industrial demand and cyclical sector headwinds. Significant EPS dilution (-22.1% YoY) despite flat net income growth suggests share issuance or elevated tax rates. ChatGPT: Revenue declined 1.3%, signaling soft demand or competitive pressure. Diluted EPS fell 22.1% despite net income increasing 0.8%, warranting investigation into share count or period comparability.
What is MSM's revenue and growth?
Msc Industrial Direct Co Inc. reported revenue of $2.9B.
Does MSM pay dividends?
Msc Industrial Direct Co Inc. pays dividends, with $132.5M distributed to shareholders in the trailing twelve months.
Where can I find MSM SEC filings?
Official SEC filings for Msc Industrial Direct Co Inc. (CIK: 0001003078) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is MSM's EPS?
Msc Industrial Direct Co Inc. has a diluted EPS of $3.12.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is MSM's fundamental grade?
Based on our AI fundamental analysis in August 2026, Msc Industrial Direct Co Inc. has a B grade with 74% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is MSM stock overvalued or undervalued?
Valuation metrics for MSM: ROE of 12.3% (sector avg: 15%), net margin of 6.0% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
What is MSM's AI grade for 2026?
Our dual AI analysis gives Msc Industrial Direct Co Inc. a combined B grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is MSM's free cash flow?
Msc Industrial Direct Co Inc.'s operating cash flow is $225.5M, with capital expenditures of $64.1M. FCF margin is 5.5%.
How does MSM compare to other Industrial stocks?
Vs Industrial sector averages: Net margin 6.0% (avg: 10%), ROE 12.3% (avg: 15%), current ratio 1.55 (avg: 1.8).