MSC Industrial Direct Company Inc.
Find Ratings ReportsMSC INDUSTRIAL DIRECT's gross profit margin for the first quarter of its fiscal year 2024 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, however the growth has outpaced the average competitor within the subsector. MSC INDUSTRIAL DIRECT has weak liquidity. Currently, the Quick Ratio is 0.70 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.
During the same period, stockholders' equity ("net worth") has remained unchanged from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
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Income Statement | Q1 FY24 | Q1 FY23 |
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Net Sales ($mil) | 953.97 | 957.75 |
EBITDA ($mil) | 122.27 | 136.82 |
EBIT ($mil) | 102.48 | 118.26 |
Net Income ($mil) | 69.35 | 81.31 |
Balance Sheet | Q1 FY24 | Q1 FY23 |
---|---|---|
Cash & Equiv. ($mil) | 25.81 | 26.33 |
Total Assets ($mil) | 2493.72 | 2749.4 |
Total Debt ($mil) | 600.58 | 844.33 |
Equity ($mil) | 1385.07 | 1386.34 |
Profitability | Q1 FY24 | Q1 FY23 |
---|---|---|
Gross Profit Margin | 43.28 | 43.47 |
EBITDA Margin | 12.81 | 14.28 |
Operating Margin | 10.74 | 12.35 |
Sales Turnover | 1.61 | 1.38 |
Return on Assets | 13.28 | 12.91 |
Return on Equity | 23.92 | 25.61 |
Debt | Q1 FY24 | Q1 FY23 |
---|---|---|
Current Ratio | 2.02 | 2.14 |
Debt/Capital | 0.3 | 0.38 |
Interest Expense | 5.32 | 6.92 |
Interest Coverage | 19.26 | 17.09 |
Share Data | Q1 FY24 | Q1 FY23 |
---|---|---|
Shares outstanding (mil) | 56.41 | 55.97 |
Div / share | 0.83 | 0.79 |
EPS | 1.22 | 1.45 |
Book value / share | 24.55 | 24.77 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 428322.0 | 421213.0 |
BUY. This stock's P/E ratio indicates a discount compared to an average of 24.06 for the Merchant Wholesalers, Durable Goods subsector and a significant discount compared to the S&P 500 average of 27.95. To use another comparison, its price-to-book ratio of 3.93 indicates a discount versus the S&P 500 average of 4.68 and a significant discount versus the subsector average of 6.83. The price-to-sales ratio is well below both the S&P 500 average and the subsector average, indicating a discount. Upon assessment of these and other key valuation criteria, MSC INDUSTRIAL DIRECT proves to trade at a discount to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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MSM 16.42 | Peers 24.06 | MSM 7.61 | Peers 17.73 | |||||||||||||||||||||
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. MSM is trading at a significant discount to its peers. |
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. MSM is trading at a significant discount to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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MSM 14.52 | Peers 24.12 | MSM NM | Peers 3.31 | |||||||||||||||||||||
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations. MSM is trading at a significant discount to its peers. |
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. MSM's negative PEG ratio makes this valuation measure meaningless. |
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Price/Book |
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Earnings Growth |
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MSM 3.93 | Peers 6.83 | MSM -7.26 | Peers -19.81 | |||||||||||||||||||||
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. MSM is trading at a significant discount to its peers. |
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. MSM is expected to have an earnings growth rate that significantly exceeds its peers. |
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Price/Sales |
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Sales Growth |
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MSM 1.36 | Peers 1.87 | MSM 5.37 | Peers -0.87 | |||||||||||||||||||||
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. MSM is trading at a significant discount to its subsector on this measurement. |
Higher. A sales growth rate that exceeds the subsector implies that a company is gaining market share. MSM has a sales growth rate that significantly exceeds its peers. |
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