MSC Industrial Direct Co., Inc. (MSM) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Fastenal Co.

Applied Industrial Technologies, Inc.

Pool Corp.

Core & Main, Inc.

MSC Industrial Direct Co., Inc.

Ferguson Plc

W.W. Grainger, Inc.

WESCO International, Inc.

Genuine Parts Co.

UGI Corp.

Beacon Roofing Supply, Inc.

Why is MSC Industrial Direct Co., Inc. ?

High Management Efficiency with a high ROCE of 20.98%

Strong ability to service debt as the company has a low Debt to EBITDA ratio of 1.21 times

Poor long term growth as Operating profit has grown by an annual rate -3.78% of over the last 5 years

The company has declared Negative results for the last 3 consecutive quarters

OPERATING CASH FLOW(Y) Lowest at USD 360.73 MM
NET PROFIT(HY) At USD 99.25 MM has Grown at -30.19%
ROCE(HY) Lowest at 14.34%

With ROCE of 18.32%, it has a very expensive valuation with a 2.74 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -1.47%, its profits have fallen by -31.2%

Below par performance in long term as well as near term

Along with generating -1.47% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to MSC Industrial Direct Co., Inc. should be less than 10%
Overall Portfolio exposure to Trading & Distributors should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Trading & Distributors)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is MSC Industrial Direct Co., Inc. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

MSC Industrial Direct Co., Inc.

-1.47%

-0.07

27.93%

S&P 500

13.22%

0.65

20.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.63%

EBIT Growth (5y)

-3.78%

EBIT to Interest (avg)

20.36

Debt to EBITDA (avg)

1.21

Net Debt to Equity (avg)

0.35

Sales to Capital Employed (avg)

2.00

Tax Ratio

25.77%

Dividend Payout Ratio

72.46%

Pledged Shares

Institutional Holding

94.81%

ROCE (avg)

20.98%

ROE (avg)

21.14%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

3.41

EV to EBIT

14.98

EV to EBITDA

11.99

EV to Capital Employed

2.74

EV to Sales

1.37

PEG Ratio

Dividend Yield

4.09%

ROCE (Latest)

18.32%

ROE (Latest)

16.10%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Sideways

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

OBV

No Trend

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

4What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 83.38%

RAW MATERIAL COST(Y)

Fallen by -0.18% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 3.36 times

DIVIDEND PER SHARE(HY)

Highest at USD 9.02

-9What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 360.73 MM

NET PROFIT(HY)

At USD 99.25 MM has Grown at -30.19%

ROCE(HY)

Lowest at 14.34%

Here's what is working for MSC Industrial Direct Co., Inc.

Inventory Turnover Ratio

Highest at 3.36 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Dividend per share

Highest at USD 9.02

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Dividend Payout Ratio

Highest at 83.38%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -0.18% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for MSC Industrial Direct Co., Inc.

Operating Cash Flow

Lowest at USD 360.73 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Net Profit

At USD 99.25 MM has Grown at -30.19%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)