Zacks Investment Research·1 day ago
Are You Looking for a Top Momentum Pick? Why MSC Industrial (MSM) is a Great ChoiceDoes MSC Industrial (MSM) have what it takes to be a top stock pick for momentum investors? Let's find out.
MSC Industrial Direct Co., Inc.(MSM)Earnings, Financials & Key Ratios
MSM•NYSE
$120.07
33.6× P/E·Price updated Jul 7, 2026
AboutMSC Industrial Direct Co., Inc., together with its subsidiaries, distributes metalworking and maintenance, repair, and operations (MRO) products and services in the United States, Canada, Mexico, and the United Kingdom. Its MRO products include cutting tools, measuring instruments, tooling components, metalworking products, fasteners, flat stock products, raw materials, abrasives, machinery hand and power tools, safety and janitorial supplies, plumbing supplies, materials handling products, power transmission components, and electrical supplies. The company offers approximately 1.9 million stock-keeping units through its catalogs and brochures; e-commerce channels, including its Website, mscdirect.com; inventory management solutions; and call-centers and branches. It operates through a distribution network of 28 branch offices, 11 customer fulfilment centers, and seven regional inventory centers. The company serves individual machine shops, Fortune 1000 manufacturing companies, and government agencies, as well as manufacturers of various sizes. MSC Industrial Direct Co., Inc. was founded in 1941 and is headquartered in Melville, New York.Show more
- Revenue$3.77B-1.3%
- EBITDA$404M-17.3%
- Net Income$199M-22.9%
- EPS (Diluted)3.57-22.1%
- Gross Margin40.75%-0.9%
- EBITDA Margin10.72%-16.2%
- Operating Margin8.32%-21.7%
- Net Margin5.29%-21.9%
- ROE14.25%-20.3%
MSM Price & Volume
MSC Industrial Direct Co., Inc. (MSM) stock price & volume — 10-year historical chart
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Cyclical Margin Compression Challenges Industrial Distribution Outlook
Investment Thesis • Updated 2026Q2
VerdictNeutral
Growth:Mixed
Profitability:Strained
Financial:Healthy
Cash Flow:Mixed
Primary Risk:Cyclical manufacturing demand sensitivity
Key Thesis Takeaways
- MSC Industrial Direct faces significant headwinds as operating margins have contracted from 11.4% in 2024Q3 to 7.3% in 2026Q2, reflecting persistent difficulties in managing SG&A expenses amidst volatile revenue growth.
- While the company maintains a conservative debt-to-equity ratio between 0.39 and 0.44, the reliance on $724.5 million in goodwill suggests potential valuation risks if core metalworking demand remains stagnant.
- Investors should monitor whether the company can stabilize its FCF margin, which fluctuated from 11.6% in 2024Q3 to 0.8% in 2026Q1, before committing to the current 33.10 P/E valuation.
Verdict Logic
while the company maintains a healthy current ratio of 1.73, the persistent decline in operating margins to 7.3% and high valuation multiples warrant caution regarding near-term earnings quality.
MSM Growth Metrics
MSC Industrial Direct Co., Inc. (MSM) revenue, earnings & EPS growth — 3, 5 & 10-year CAGR
Revenue CAGR
10 Years2.62%
5 Years3.38%
3 Years0.7%
TTM4.41%
Profit CAGR
10 Years-1.48%
5 Years-4.51%
3 Years-16.29%
TTM16.16%
EPS CAGR
10 Years-0.46%
5 Years-4.57%
3 Years-16.17%
TTM16.95%
Return on Capital
10 Years22.16%
5 Years21.27%
3 Years21.46%
Last Year17.48%
MSM Recent Earnings
MSC Industrial Direct Co., Inc. (MSM) EPS & revenue vs analyst estimates — last 4 quarters
●Beat EPS 8/12 qtrs (67%)●Beat Revenue 7/12 qtrs (58%)
Q3 2026Latest
Jul 1, 2026Metric
Actual
Est
EPS
$1.43+11.7%
$1.28
Rev
$1.0B+1.4%
$1.0B
Q2 2026
Apr 1, 2026Metric
Actual
Est
EPS
$0.82-2.0%
$0.84
Rev
$918M-1.5%
$932M
Q1 2026
Jan 7, 2026Metric
Actual
Est
EPS
$0.99+4.2%
$0.95
Rev
$966M+0.3%
$963M
Q4 2025
Oct 23, 2025Metric
Actual
Est
EPS
$1.09+6.9%
$1.02
Rev
$978M+1.4%
$964M
| Quarter | Date | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|---|
| Q3 2026Latest | Jul 1, 2026 | $1.43vs $1.28+11.7% | $1.0Bvs $1.0B+1.4% |
| Q2 2026 | Apr 1, 2026 | $0.82vs $0.84-2.0% | $918Mvs $932M-1.5% |
| Q1 2026 | Jan 7, 2026 | $0.99vs $0.95+4.2% | $966Mvs $963M+0.3% |
| Q4 2025 | Oct 23, 2025 | $1.09vs $1.02+6.9% | $978Mvs $964M+1.4% |
Based on last 12 quarters of dataView full earnings history →
Latest MSM News
Recent stock market news and headlines for MSC Industrial Direct Co., Inc. (MSM)
Seeking Alpha·4 days ago
MSC Industrial Direct: Recent Momentum Doesn't Seem SustainableMSC Industrial Direct Co., Inc. reported strong Q3 earnings, boosted by temporary industry tailwinds. MSM has a much more modest long-term outlook. GWW and FAST have a better industry position, while overall market growth is expected to be slow. I estimate MSM stock to have a -28% downside to $89.3.
Zacks Investment Research·5 days ago
What Makes MSC Industrial (MSM) a New Buy StockMSC Industrial (MSM) might move higher on growing optimism about its earnings prospects, which is reflected by its upgrade to a Zacks Rank #2 (Buy).
Zacks Investment Research·5 days ago
MSC Industrial Q3 Earnings Beat on Price Gains & Volume GrowthMSM beats Q3 earnings and sales estimates as price gains and a return to volume growth lift revenues and expand margins.
Benzinga·5 days ago
MSC Industrial Analysts Boost Their Forecasts After Upbeat Q3 ResultsMSC Industrial Direct Company, Inc. (NYSE:MSM) on Wednesday reported upbeat fiscal third-quarter 2026 results.
Peers Comparison
Key metrics vs top competitors for MSC Industrial Direct Co., Inc. (MSM)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $120.07 | $6.71B | 33.63 | -1.35% | 5.29% | 14.25% | 2.83% | |
| $1356.43 | $64.04B | 38.32 | 4.51% | 9.7% | 43.13% | — | |
| $47.11 | $54.08B | 43.22 | 8.67% | 15.39% | 33.25% | — | |
| $109.99 | $4.87B | 32.64 | 3.62% | 3.24% | 9.09% | — | |
| $389.44 | $15.83B | 31.79 | -4.98% | 6.85% | 15.31% | — | |
| $12.66 | $1.49B | -16.88 | 18.84% | -4.55% | -9.21% | — |
Compare MSM vs Peers
MSC Industrial Direct Co., Inc. (MSM) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
MSM SEC Filings & Documents
MSC Industrial Direct Co., Inc. (MSM) SEC filings — annual & quarterly reports (10-K, 10-Q)
8-K Announcements
6Material company update
Jul 1, 2026·SEC
Material company update
Jun 16, 2026·SEC
Material company update
Apr 15, 2026·SEC
10-K Annual Reports
210-Q Quarterly Reports
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MSM Frequently Asked Questions
MSC Industrial Direct Co., Inc. (MSM) stock FAQ — growth, dividends, profitability & financials explained
Growth & Financials
What is MSC Industrial Direct Co., Inc.'s revenue?
MSC Industrial Direct Co., Inc. (MSM) reported $3.91B in revenue for fiscal year 2025. This represents a 1180% increase from $305.3M in 1996.
How fast is MSC Industrial Direct Co., Inc. growing?
MSC Industrial Direct Co., Inc. (MSM) saw revenue decline by 1.3% over the past year.
Is MSM profitable?
Yes, MSC Industrial Direct Co., Inc. (MSM) is profitable, generating $230.5M in net income for fiscal year 2025 (5.3% net margin).
Dividend & Returns
Does MSM pay dividends?
Yes, MSC Industrial Direct Co., Inc. (MSM) pays a dividend with a yield of 2.83%. This makes it attractive for income-focused investors.
What is MSM's return on equity?
MSC Industrial Direct Co., Inc. (MSM) has a return on equity (ROE) of 14.2%. This is reasonable for most industries.
What is MSC Industrial Direct Co., Inc.'s free cash flow?
MSC Industrial Direct Co., Inc. (MSM) generated $219.9M in free cash flow for fiscal year 2025. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.