Latest Ratios: P/E Ratio 33.6x · EV/EBITDA 17.8x · ROE 14.2%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $6.7B | $5.0B | $4.6B | $5.7B | $4.4B | $4.8B | $3.7B | $3.8B | $4.8B | $3.9B | $4.5B |
| Enterprise Value | $7.2B | $5.5B | $5.2B | $6.2B | $5.2B | $5.6B | $4.3B | $4.2B | $5.3B | $4.4B | $5.0B |
| P/E Ratio → | 33.63 | 25.27 | 17.96 | 16.64 | 12.97 | 22.05 | 14.78 | 13.00 | 14.71 | 17.01 | 19.37 |
| P/S Ratio | 1.78 | 1.34 | 1.21 | 1.43 | 1.19 | 1.48 | 1.16 | 1.12 | 1.51 | 1.36 | 1.56 |
| P/B Ratio | 4.81 | 3.61 | 3.31 | 3.83 | 3.23 | 4.12 | 2.81 | 2.53 | 3.49 | 3.20 | 4.06 |
| P/FCF | 27.84 | 20.94 | 14.91 | 9.41 | 23.83 | 28.04 | 10.60 | 13.57 | 16.45 | 19.59 | 14.24 |
| P/OCF | 20.09 | 15.11 | 11.30 | 8.17 | 17.89 | 21.33 | 9.35 | 11.43 | 14.27 | 15.90 | 11.12 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 1.47 | 1.36 | 1.54 | 1.41 | 1.72 | 1.33 | 1.24 | 1.67 | 1.54 | 1.75 |
| EV / EBITDA | 17.80 | 13.68 | 10.60 | 10.92 | 9.28 | 13.03 | 9.27 | 8.39 | 11.02 | 10.06 | 11.21 |
| EV / EBIT | 22.91 | 19.21 | 14.06 | 12.92 | 11.14 | 18.43 | 12.13 | 10.41 | 12.69 | 11.68 | 13.28 |
| EV / FCF | — | 22.94 | 16.64 | 10.19 | 28.25 | 32.71 | 12.18 | 15.05 | 18.11 | 22.17 | 16.01 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 40.8% | 40.8% | 41.1% | 41.0% | 42.2% | 41.1% | 39.9% | 42.6% | 43.5% | 44.5% | 45.0% |
| Operating Margin | 8.3% | 8.3% | 10.6% | 12.3% | 12.9% | 10.5% | 11.5% | 12.8% | 13.2% | 13.1% | 13.1% |
| Net Profit Margin | 5.3% | 5.3% | 6.8% | 8.6% | 9.2% | 6.7% | 7.9% | 8.6% | 10.3% | 8.0% | 8.1% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 14.2% | 14.2% | 17.9% | 24.0% | 26.9% | 17.5% | 17.9% | 20.1% | 25.2% | 19.9% | 19.0% |
| ROA | 8.1% | 8.1% | 10.3% | 13.0% | 13.1% | 9.0% | 10.7% | 12.6% | 15.0% | 11.1% | 11.1% |
| ROIC | 12.3% | 12.3% | 15.6% | 17.8% | 17.2% | 13.4% | 14.7% | 17.2% | 17.5% | 16.7% | 16.7% |
| ROCE | 17.5% | 17.5% | 21.6% | 25.2% | 24.3% | 17.6% | 19.2% | 23.5% | 25.2% | 24.2% | 23.0% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.39 | 0.39 | 0.41 | 0.35 | 0.63 | 0.72 | 0.51 | 0.30 | 0.39 | 0.44 | 0.55 |
| Debt / EBITDA | 1.33 | 1.33 | 1.16 | 0.92 | 1.53 | 1.95 | 1.47 | 0.89 | 1.11 | 1.21 | 1.36 |
| Net Debt / Equity | — | 0.35 | 0.38 | 0.32 | 0.60 | 0.68 | 0.42 | 0.28 | 0.35 | 0.42 | 0.50 |
| Net Debt / EBITDA | 1.19 | 1.19 | 1.10 | 0.83 | 1.45 | 1.86 | 1.20 | 0.83 | 1.01 | 1.17 | 1.24 |
| Debt / FCF | — | 2.00 | 1.73 | 0.78 | 4.42 | 4.66 | 1.57 | 1.48 | 1.66 | 2.58 | 1.77 |
| Interest Coverage | 11.95 | 11.95 | 14.30 | 21.23 | 26.63 | 20.87 | 21.05 | 23.68 | 29.08 | 30.75 | 65.01 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.68 | 1.68 | 1.96 | 2.03 | 2.13 | 2.34 | 3.03 | 2.68 | 2.34 | 1.80 | 2.05 |
| Quick Ratio | 0.80 | 0.80 | 0.90 | 0.91 | 1.14 | 1.23 | 1.70 | 1.43 | 1.28 | 0.97 | 1.12 |
| Cash Ratio | 0.08 | 0.08 | 0.05 | 0.08 | 0.06 | 0.07 | 0.31 | 0.07 | 0.09 | 0.03 | 0.11 |
| Asset Turnover | — | 1.53 | 1.55 | 1.58 | 1.35 | 1.32 | 1.34 | 1.46 | 1.40 | 1.38 | 1.39 |
| Inventory Turnover | 3.47 | 3.47 | 3.49 | 3.26 | 2.98 | 3.06 | 3.53 | 3.45 | 3.49 | 3.44 | 3.54 |
| Days Sales Outstanding | — | 40.99 | 39.37 | 39.64 | 67.98 | 63.07 | 56.22 | 58.71 | 59.68 | 59.63 | 50.03 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 2.8% | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | 95.1% | 95.1% | 72.4% | 51.5% | 49.3% | 77.1% | 176.9% | 50.4% | 38.1% | 44.2% | 45.7% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 3.0% | 4.0% | 5.6% | 6.0% | 7.7% | 4.5% | 6.8% | 7.7% | 6.8% | 5.9% | 5.2% |
| FCF Yield | 3.6% | 4.8% | 6.7% | 10.6% | 4.2% | 3.6% | 9.4% | 7.4% | 6.1% | 5.1% | 7.0% |
| Buyback Yield | 0.6% | — | — | — | — | — | — | — | — | — | — |
| Total Shareholder Yield | 3.4% | — | — | — | — | — | — | — | — | — | — |
| Shares Outstanding | — | $56M | $56M | $56M | $56M | $56M | $56M | $56M | $57M | $57M | $61M |
Cyclical manufacturing demand sensitivity
According to current market data, MSM trades at a forward P/E of 27.15, which appears elevated relative to its recent historical performance and suggests that investors are pricing in a recovery that is not yet supported by the company's current earnings trajectory or industrial production trends.
The valuation premium relative to the company's own history warrants caution, as the market appears to be assigning a growth-oriented multiple to a business currently facing significant operating margin compression. Investors should monitor whether this valuation reflects an expectation of cyclical recovery or an overestimation of the company's ability to defend its margins against competitive pricing pressures.
As reported in financial statements, MSM's ROIC has trended downward from 4.2% in 2024Q3 to 2.6% in 2026Q2, indicating that the company is struggling to generate efficient returns on its invested capital base during the current period of softening U.S. manufacturing activity and operational margin contraction.
The decay in ROIC suggests that the company's capital allocation, particularly regarding its digital transformation and national account expansion, has yet to yield the expected productivity gains. This trend implies that the business is becoming more capital-intensive relative to its output, which may limit future dividend growth or share buyback capacity if the current industrial downturn persists.
Based on the provided quarterly data, MSM's cash conversion cycle has expanded to 115 days in 2026Q2, up from 112 days in 2025Q1, reflecting a persistent inefficiency in inventory management that ties up liquidity and hinders the company's ability to respond nimbly to shifting customer demand patterns.
The elevated days inventory outstanding (DIO) of 113 days suggests that the company is carrying significant stock levels that may be vulnerable to obsolescence or write-downs if manufacturing demand remains weak. This inefficiency in working capital management appears to be a structural drag on cash flow, preventing the company from achieving the lean operational profile seen in more agile distribution peers.
The P/E ratio is frequently misapplied to MSM, as it obscures the impact of LIFO inventory accounting and non-recurring digital investment costs that artificially depress reported earnings, making the company appear more expensive than its underlying cash-generating capacity would suggest to a fundamental analyst.
Investors should instead prioritize EV/EBITDA or free cash flow yield to better capture the company's true operational performance, as these metrics are less sensitive to the accounting distortions inherent in the company's inventory valuation methods. Relying solely on P/E risks misinterpreting the company's cyclical trough as a permanent state of value destruction.
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying MSM stock.
MSC Industrial Direct Co., Inc.'s current P/E ratio is 33.6x. The historical average is 21.3x. This places it at the 97th percentile of its historical range.
MSC Industrial Direct Co., Inc.'s current EV/EBITDA is 17.8x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 12.1x.
MSC Industrial Direct Co., Inc.'s return on equity (ROE) is 14.2%. The historical average is 18.2%.
Based on historical data, MSC Industrial Direct Co., Inc. is trading at a P/E of 33.6x. This is at the 97th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
MSC Industrial Direct Co., Inc.'s current dividend yield is 2.83% with a payout ratio of 95.1%.
MSC Industrial Direct Co., Inc. has 40.8% gross margin and 8.3% operating margin.
MSC Industrial Direct Co., Inc.'s Debt/EBITDA ratio is 1.3x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.