One-glance verdict
Not enough data
Fair value unavailable
Not enough cash-flow history to value this one with our method.
Fundamentals snapshot
MSC Industrial Direct Co., Inc.
MSM · NYQ · Industrials · Industrial Distribution
Current price
$122.92
52-week range
$78.80 - $133.95
Market cap
—
Balance sheet
Watch
17.17x Strong cushion
Net debt $463.17M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 6.4% last year.
- Reward Returns 15.6% on equity, ahead of 33% of its peers.
- Risk Stock trades 37.6% above its 5-year average P/E.
- Risk Operating margin compressed from 12.3% to 10.9% over 3 years.
What this company does
MSC Industrial Direct Co., Inc.
MSC Industrial Direct sells tools and supplies to manufacturers and other businesses, kind of like a super-sized hardware store for factories, and it makes most of its money by selling these essential items to keep businesses running smoothly. This is important because when these companies can easily get the parts and tools they need, it helps them produce more goods and stay in business, which in turn helps MSC Industrial Direct's own sales.
How the company got here
MSC Industrial Direct started in 1941 as Sid Tool Company, founded by Sidney Jacobson in New York City. Initially, it sold cutting tools and accessories to local machine shops. Over the decades, the company grew by expanding its product offerings and distribution methods, notably through its catalog, often referred to as the "Big Book." A significant turning point was going public in 1995, which provided access to capital for further expansion. The company has since grown through numerous acquisitions, broadening its reach in metalworking and maintenance, repair, and operations (MRO) supplies across North America and internationally. The Jacobson family continues to maintain voting control of the publicly traded company.
What it actually does
MSC Industrial Direct acts as a crucial link between manufacturers of industrial products and the businesses that use them. Think of them as a giant, specialized hardware store for factories and repair shops. They offer a vast catalog of products, from tiny screws to large machinery parts, and essential supplies for keeping operations running smoothly. Their main customers are other businesses, not individual consumers, and they focus on providing the tools and materials needed for manufacturing, maintenance, and repair work. They also offer services like inventory management to help businesses keep track of their supplies.
Metalworking Products
This is a core part of MSC's business, focusing on the tools and supplies used in shaping and cutting metal. This includes items like cutting tools (such as drills and saws), abrasives (like grinding wheels), measuring instruments for precision work, and fluids used in machining processes. These products are essential for manufacturers that create metal parts for everything from cars to airplanes. This segment is vital because it often requires specialized knowledge and technical support, which MSC aims to provide.
Maintenance, Repair, and Operations (MRO) Supplies
This segment covers a broad range of products needed to keep a facility running efficiently and safely. It includes everything from safety equipment (like gloves and goggles) and janitorial supplies to fasteners (screws, bolts), hand and power tools, and electrical components. Essentially, if a business needs something to maintain its building, equipment, or general operations, it's likely found in this category. This diverse offering helps MSC serve a wide array of customer needs beyond just metal fabrication.
Inventory Management and Supply Chain Solutions
Beyond just selling products, MSC helps businesses manage their inventory of industrial supplies. This can involve setting up systems like 'vending machines' within a customer's facility that dispense tools and supplies as needed, automatically tracking usage and reordering. These solutions aim to reduce a customer's costs by ensuring they have the right supplies on hand without overstocking, and by streamlining the purchasing process. This service makes MSC a more integrated partner in their customers' operations.
What management is betting on now
MSC's current strategy is focused on driving growth by enhancing sales productivity and customer engagement, with a significant emphasis on integrating artificial intelligence (AI) and automation into its operations. Management is betting that by making its sales teams more efficient and using AI to identify new sales opportunities and improve inventory management, the company can capture more market share. They are also strengthening partnerships with manufacturers and focusing resources on the most profitable customer segments. This approach aims to increase revenue and profitability without a proportional increase in headcount, positioning MSC for continued success in the industrial distribution market.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2025 Q1
$81.70M
FY2025 Q3
$24.68M
FY2025 Q4
$58.52M
FY2026 Q1
$7.41M
FY2026 Q2
$73.08M
FY2026 Q3
$80.92M
FY2026 Q4
$63.75M
Revenue
$1.08B
Net income
$47.94M
Diluted EPS
0.85
Operating cash flow
$80.97M
Free cash flow
$63.75M
Fetching…
Sources
Revenue
$1.05B
Net income
$80.36M
Diluted EPS
1.44
Operating cash flow
$101.73M
Free cash flow
$80.92M
Fetching…
Sources
Revenue
$917.77M
Net income
$42.48M
Diluted EPS
0.76
Operating cash flow
$94.40M
Free cash flow
$73.08M
Fetching…
Sources
Revenue
$965.68M
Net income
$51.80M
Diluted EPS
0.93
Operating cash flow
$29.41M
Free cash flow
$7.41M
Fetching…
Sources
Revenue
$978.17M
Net income
$56.55M
Diluted EPS
1.02
Operating cash flow
$80.26M
Free cash flow
$58.52M
Fetching…
Sources
Revenue
$891.72M
Net income
$39.31M
Diluted EPS
0.70
Operating cash flow
$54.47M
Free cash flow
$24.68M
Fetching…
Sources
Revenue
$928.48M
Net income
$46.62M
Diluted EPS
0.83
Operating cash flow
$101.87M
Free cash flow
$81.70M
Fetching…
Sources
Is it cheap or expensive?
Fair value — vs current price $122.92
We couldn't calculate a fair value right now.
Is it drowning in debt?
Watch
Net debt $463.2M. Interest coverage 17.2x.
Net debt
$463.17M
Interest coverage
17.17x
MSC Industrial Direct Co., Inc.'s profit covers its interest bill about 17.2 times over. which is stronger than most peers shown here.
Watch
Worse cushion
Baseline
Better cushion
MSM
BASELINE
MSC Industrial Direct Co., Inc.
Total debt $528.19M Interest coverage 17.17x This is the baseline the peer rows are being compared against.
Total debt $2.80B Interest coverage 30.80x +79% vs MSM Carries about 1.8x more debt cushion than MSM.
Total debt $451.70M Interest coverage 267.05x +1,455% vs MSM Carries about 15.6x more debt cushion than MSM.
Total debt $282.30M Interest coverage 31.60x +84% vs MSM Carries about 1.8x more debt cushion than MSM.
Total debt $6.71B Interest coverage 3.19x -81% vs MSM Carries about 5.4x less debt cushion than MSM.
Total debt $6.82B Interest coverage 7.43x -57% vs MSM Carries about 2.3x less debt cushion than MSM.
What you should know
The case for and against MSM
3 Rewards
2 Risks
Rewards
-
Revenue grew 6.4% last year.
-
Returns 15.6% on equity, ahead of 33% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Stock trades 37.6% above its 5-year average P/E.
-
Operating margin compressed from 12.3% to 10.9% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
30.88x
Forward P/E
18.72x
P/B
4.82x
P/S
—
EV/EBITDA
15.45x
PEG ratio
2.28x
Profitability
How much profit each dollar creates
Gross margin
40.9%
Operating margin
10.9%
Net margin
5.6%
ROE
15.6%
ROA
9.4%
Health
Liquidity and balance-sheet strength
Debt / equity
0.37x
Current ratio
1.78x
Quick ratio
0.70x
Total debt
$528.19M
Total cash
$65.03M
Growth
How the business has been compounding
Revenue TTM
$4.01B
Revenue 5Y CAGR
2.1%
EPS TTM
3.98
EPS 5Y CAGR
-13.3%
Cash flow
How much cash the business throws off
Operating CF TTM
$306.50M
Free CF TTM
$225.16M
FCF margin
5.6%
Dividend
Shareholder payout
Yield
2.9%
Payout ratio
87.4%
Last ex-div date
2026-11-10