Stock MarketROI
Open
MSM

MSM

Industrials · Industrial Distribution

$117.88+3.20%
Mkt Cap: $6.58BDY: 3.05%

Performance

MSM (MSM) Stock Analysis 2026

Rule-based · Updated daily · Not financial advice

MSM (MSM) operates in the Industrial Distribution space within the Industrials sector. With a market cap of $6.6B, it qualifies as a small-cap company. Growth is moderate and the business remains profitable, offering a balanced risk/reward profile compared to high-multiple peers.

Bull Case3
  • Forward P/E (23.8×) is lower than trailing P/E (31.7×) — analysts expect earnings to improve
  • ROE of 15.0% shows management efficiently converts equity into profit
  • Dividend yield of 3.05% provides consistent income on top of price appreciation
Bear Case3
  • P/E of 31.7× is above average — valuation requires continued strong growth to justify
  • High debt-to-equity of 40.34× increases financial risk, especially with elevated interest rates
  • Price is near its 52-week high — limited near-term upside, higher pullback risk

Verdict

Hold

Mixed signals — strengths and risks roughly balance. Wait for a clearer catalyst.

AI Insight

Powered by Claude

AI-generated analysis for informational purposes only. Not financial advice.

Related Articles

Revenue & Results

Dividends

Current DY

3.05%

5Y Avg Annual

$2.9480

Last Payment

$0.8700

Ex-Date

04/08/2026

Annual dividends paid per share

2011
2019
2026
Ex-DatePaymentAmountEst. DY
Latest04/08/2026
04/22/2026$0.87002.95%
01/14/2026
01/28/2026$0.87002.95%
11/12/2025
11/26/2025$0.87002.95%
07/09/2025
07/23/2025$0.85002.88%
04/09/2025
04/23/2025$0.85002.88%
01/15/2025
01/29/2025$0.85002.88%
11/13/2024
11/27/2024$0.85002.88%
07/09/2024
07/23/2024$0.83002.82%

Magic Number

Shares needed to self-fund your next purchase

$117.88

Price

÷

$0.8700

Last div. (quarterly)

=

136

shares

Own 136 MSM shares ($16,031.68) and each quarterly dividend pays for 1 new share — the snowball runs on its own.

Investment target

$16,031.68

New shares / year

+4 shares

If You Had Invested…

Hypothetical return based on historical prices

$

* Dividend reinvestment calculated at ex-date price. For informational purposes only.

Earnings

Next Earnings

Jul 1, 2026

15

days

EPS (TTM)

$3.72

P/E (TTM)

31.7

Fwd P/E

23.8

Earnings History

SEC EDGAR · official filings

SEC filings

SEC Filings

Official EDGAR documents

All filings

Key Statistics

Valuation

Market Cap$6.58B
P/E Ratio31.69
Forward P/E23.79
P/B Ratio
PEG Ratio2.38
EPS (TTM)$3.72

Trading

Open
Day High
Day Low
52W High$119.13
52W Low$78.80
Volume
Avg Volume (3M)683,688
Beta0.83

Dividends

Dividend Yield3.05%
Annual Rate$3.48
Ex-Div Date2026-04-08
Payout Ratio92.47%

Profitability

Profit Margin5.42%
Operating Margin7.33%
ROE15.00%
ROA8.24%
Revenue Growth2.90%
Earnings Growth8.60%

Balance Sheet

Total Revenue$3.83B
Total Debt$558.73M
Debt / Equity40.34
Current Ratio1.73
Free Cash Flow$186.39M

Fair Value Estimates

Current price: $117.88

Graham Number

√(22.5 × EPS × Book Value)

$45.54

-61.4% downside

Benjamin Graham's intrinsic value formula. Assumes a fair stock trades at no more than 22.5× the product of EPS and book value per share.

Bazin Ceiling Price

Avg. Annual DPS (5Y) ÷ 6%

$53.33

-54.8% downside

Décio Bazin's dividend-based ceiling. The max price you should pay so that dividends alone deliver at least 6% annual yield on your cost basis.

These are simplified estimates. Not financial advice.

Buy & Hold Checklist

Quality criteria for long-term holding

9/10

90% score

Pays dividends

15Y hist.

15+ years of dividend history

Dividend consistency (5Y+)

15 yrs

Uninterrupted dividend payments for at least 5 years

ROE above 10%

15.0%

Return on equity — measures how efficiently capital is used

Positive profit margin

5.4%

Net profit margin must be positive — company earns more than it spends

Revenue growth (annual)

+2.9%

Annual revenue must be growing compared to the prior year

Earnings growth (annual)

+8.6%

Annual earnings must be growing compared to the prior year

Debt/Equity below 2×

40.34×

Low financial leverage reduces risk of distress

Current ratio above 1

1.73×

Short-term assets must cover short-term liabilities

Daily liquidity above $5M

$81M/day

High trading volume ensures easy entry and exit

Dividend yield above 0%

3.05%

Stock must distribute income to shareholders

Related Assets

Industrials

About MSM

MSC Industrial Direct Co., Inc., together with its subsidiaries, engages in the distribution of metalworking and maintenance, repair, and operations (MRO) products and services in the United States, Canada, Mexico, the United Kingdom, and internationally. The company's metalworking and MRO products include cutting tools, abrasives, machining fluids, measuring instruments, metalworking products, machinery and accessories, tooling components, fasteners, flat stock products, raw materials, machinery hand and power tools, safety and janitorial supplies, plumbing supplies, materials handling products, power transmission components, and electrical supplies. It also offers stock-keeping units through its catalogs and brochures; e-commerce channels, including its website; inventory management solutions; and customer care centers, customer fulfillment centers, regional inventory centers and warehouses. In addition, the company serves individual machine shops, manufacturing companies, and government agencies. MSC Industrial Direct Co., Inc. was founded in 1941 and is headquartered in Melville, New York.

Sector

Industrials

Industry

Industrial Distribution

Location

Melville, United States

Employees

7,000