Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified MSC Industrial Direct ( MSM) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified MSC Industrial Direct as such a stock due to the following factors:

  • MSM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $22.6 million.
  • MSM has traded 1,501 shares today.
  • MSM is trading at a new lifetime high.

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More details on MSM:

MSC Industrial Direct Co., Inc., together with its subsidiaries, markets and distributes metalworking, and maintenance, repair, and operations (MRO) supplies primarily in the United States. The stock currently has a dividend yield of 1.4%. MSM has a PE ratio of 25.7. Currently there are 6 analysts that rate MSC Industrial Direct a buy, no analysts rate it a sell, and 5 rate it a hold.

The average volume for MSC Industrial Direct has been 410,600 shares per day over the past 30 days. MSC Industrial Direct has a market cap of $4.5 billion and is part of the services sector and wholesale industry. The stock has a beta of 0.89 and a short float of 9.6% with 17.57 days to cover. Shares are up 14.8% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates MSC Industrial Direct as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins, good cash flow from operations and reasonable valuation levels. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 2.1%. Since the same quarter one year prior, revenues rose by 16.2%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • MSM's debt-to-equity ratio is very low at 0.23 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, MSM has a quick ratio of 1.62, which demonstrates the ability of the company to cover short-term liquidity needs.
  • 48.80% is the gross profit margin for MSC INDUSTRIAL DIRECT which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 7.48% trails the industry average.
  • Net operating cash flow has slightly increased to $47.10 million or 3.16% when compared to the same quarter last year. Despite an increase in cash flow, MSC INDUSTRIAL DIRECT's average is still marginally south of the industry average growth rate of 9.05%.

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