Spotlight On MSC Industrial Direct Co Inc.’s (NYSE:MSM) Fundamentals
I’ve been keeping an eye on MSC Industrial Direct Co Inc. (NYSE:MSM) because I’m attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe MSM has a lot to offer. Basically, it is a financially-sound , dividend-paying company with a a strong history of performance. Below, I’ve touched on some key aspects you should know on a high level. If you’re interested in understanding beyond my high-level commentary, read the full report on MSC Industrial Direct here.
Solid track record with excellent balance sheet and pays a dividend
MSM delivered a bottom-line expansion of 28.45% in the prior year, with its most recent earnings level surpassing its average level over the last five years. The strong earnings growth is reflected in impressive double-digit 22.34% return to shareholders, which is an optimistic signal for the future. MSM’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This indicates that MSM has sufficient cash flows and proper cash management in place, which is a key determinant of the company’s health. MSM seems to have put its debt to good use, generating operating cash levels of 0.52x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.
MSM is also a dividend company, with ample net income to cover its dividend payout, which has been consistently growing over the past decade, keeping income investors happy.
Next Steps:
For MSC Industrial Direct, there are three essential aspects you should further examine:
Future Outlook: What are well-informed industry analysts predicting for MSM’s future growth? Take a look at our free research report of analyst consensus for MSM’s outlook.
Valuation: What is MSM worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether MSM is currently mispriced by the market.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of MSM? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
