MSM · NYSE · Industrials
MSC Industrial Direct Co., Inc. (MSM) — Rank #40 by gross profitability (GP/assets 0.65) · ROE 15.6% · Piotroski F-Score 8 / 9.
As-of 2026-10-30 · CIK 0001003078 · all metrics point-in-time as of the filing date.
About
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.
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The company offers metalworking and MRO products, including cutting tools, abrasives, machining fluids, measuring instruments, machinery and accessories, tooling components, fasteners, flat stock, raw materials, machinery hand and power tools, safety and janitorial supplies, plumbing supplies, materials handling products, power transmission components and electrical supplies, as well as stock-keeping units. It serves individual machine shops, companies, and manufacturers, as well as federal agencies, state governments, and public sector healthcare providers.
The company was founded in 1941 and is headquartered in Melville, New York.
- Industry
- Industrial Distribution
- Sector
- Industrials
- State
- NY
- Filer Category
- Large accelerated filer
- Fiscal Year End
- August 29
- Website
- mscdirect.com
Company Snapshot
P/E and dividend yield are the primary valuation lenses for mature businesses.
Market Cap
—
P/E (annual)
—
P/S (annual)
—
P/B
—
P/OCF (annual)
—
Shareholder Yield
—
Employees
6,845
Industry
Industrial Distribution
Exchange
NYSE
11/12
Flags passed
MSM fails 1 critical flag
Passes 11 of 12 quality flags
- FAILOperating margin declining
Operating margin lower than prior year
- PASSGross margin holding
- PASSDilution within 2%
- PASSFCF not negative from investment
- PASSDisclosure consistent
- PASSRevenue not declining
- PASSFree cash flow intact
- PASSPasses safety gate
- PASSBalance sheet stable
- PASSNo competitive retreat
- PASSSBC not compressing margin
- PASSNo valuation convergence
Strengths Revenue growth accelerating
A count of the 12 warning flags that could be evaluated. Unweighted: colour follows the worst flag.
Quality Profile
Profitability
1/1 passSafety
1/1 passCash Flow
3/3 passGrowth
2/2 passDividend yield and payout ratio are the primary reads at this stage (trailing P/E — see valuation above).
Profitability
Does it make money well?
Warning: Operating margin declining · GP/assets 0.65
Gross profitability (GP / assets)
0.65
Primary signal (Novy-Marx).
2nd of 9 SIC 50 peers
Return on equity
15.6%
Gross margin
40.9%
2nd of 9 SIC 50 peers
Revenue growth (YoY)
6.4%
Gross margin improving
Margin trend vs prior year.
Operating Leverage
| 2023 | 2024 | 2025 | 2026 | |
|---|---|---|---|---|
| Revenue vs COGS | ||||
| Revenue vs OpEx | ||||
| Op. Income vs Revenue |
Growth
Revenue CAGR (3Y)
0.0%
Revenue CAGR (5Y)
4.3%
Earnings CAGR (3Y)
-13.4%
FCF CAGR (3Y)
-28.2%
Cash Flow Health
Is the cash real?
No warning flags · FCF 1% above net income
Free cash flow
$225.16M
Operating cash flow minus capex.
Positive free cash flow
FCF vs net income
1.2%
(FCF − net income) ÷ |net income|. Positive: cash above earnings. Negative: below.
FCF not below net income
Fails when free cash flow is below net income (yellow flag).
Accruals healthy
Cash-backed earnings.
SBC / revenue
0.5%
Stock-based comp intensity.
Balance Sheet Strength
Can it survive a storm?
No warning flags · net debt $411.43M, F-Score 8/9
Balance-sheet safety
Composite anti-fragile check.
Debt / equity
0.76
5th of 9 SIC 50 peers (best = lowest)
Current ratio
1.78×
8th of 9 SIC 50 peers
Quick ratio
0.70×
Net cash
-$411.43M
Cash & equivalents minus total debt.
Piotroski F-Score
8 / 9
Fundamental-strength score (0-9).
Valuation
Is the price reasonable?
No warning flags
Capital allocation quality
Composite score
2.7 / 5
Lifecycle Phase History
Source filings on SEC EDGAR: 10-K annual reports · 10-Q quarterly reports