MSC Industrial Direct Co., Inc. (MSM) AI Stock Analysis

MSC Industrial Direct Co., Inc., founded in 1941 and based in Melville, New York, distributes metalworking and maintenance, repair, and operations (MRO) products and services. Serving clients ranging from local machine shops to Fortune 1000 manufacturers and government agencies, the company maintains an inventory of roughly 2.1 million stock-keeping units. Offerings include cutting tools, measuring instruments, fasteners, safety gear, plumbing, and electrical supplies. MSC reaches customers through catalogs, digital channels such as mscdirect.com, and inventory management programs. Operations are supported by 6 customer fulfillment centers, 10 regional inventory centers, and 38 warehouses across the United States, Canada, Mexico, and the United Kingdom.

Between FY2021 and FY2025, MSC grew revenue at a 5-year CAGR of 3.4%, peaking at $4.01B in FY2023. Revenue subsequently fell 4.7% in FY2024 to $3.82B and fell 1.3% in FY2025 to $3.77B. Operating margin narrowed from 12.9% in FY2022 to 8.3% in FY2025, while net margin declined to 5.3% as net income settled at $199.3M. However, trailing twelve month revenue reached $3.91B with operating margin at 10.2%. For the latest quarter ended May 31, 2026, quarterly revenue grew 7.8% year-over-year and quarterly earnings rose 41.1%, supported by diluted EPS of $4.14 over the trailing twelve months.

As of May 31, 2026, MSC held $74.1M in cash and short-term investments against total debt of $555.4M, resulting in net debt of $481.3M. The company maintains a current ratio of 1.55 and a debt-to-equity ratio of 0.39 on shareholders' equity of $1.42B. In FY2025, the company generated $333.7M in operating cash flow and $240.9M in free cash flow. Capital allocation in FY2025 included $92.8M in capital expenditures, $39.3M in share buybacks, and $189.7M paid in dividends.

At $130.38 per share, MSC trades at a trailing P/E of 31.5x and a forward P/E of 23.5x, compared to medians of 24.8x and 17.2x, respectively, for US-listed Industrials peers. Its enterprise value of $7.26B reflects an EV to EBITDA multiple of 17.0x, above the peer group median of 13.9x, while its price-to-sales ratio stands at 1.9x versus the 1.5x median. Over the past year, MSM returned 58.4%, outpacing the S&P 500 return of 16.8%. Over five years, the stock gained 86.6% compared to 83.0% for the S&P 500.

MSC pays a quarterly dividend totaling an annualized $3.56 per share, representing a dividend yield of 2.73%. The company has paid dividends for 24 consecutive years, though its 5-year annualized dividend growth rate stands at -21.5%. Its payout ratio is 108.0%, and its last ex-dividend date is listed as November 10, 2026.

Wall Street coverage includes 3 Strong Buy, 1 Buy, 6 Hold, 0 Sell, and 1 Strong Sell recommendations. The mean price target of $134.25 suggests a 3.0% upside relative to the last close of $130.38. For the fiscal year ending August 31, 2026, consensus estimates project EPS of $4.61 on revenue of $3.99B. For the subsequent fiscal year, 11 analysts expect EPS to reach $5.53 on revenue of $4.27B. MSC exceeded EPS estimates in 3 of the last 4 quarters, with next earnings scheduled for October 22, 2026.

This page is an AI-written research summary of MSC Industrial Direct Co., Inc. (MSM). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: MSM income statement, MSM balance sheet, MSM key metrics, MSM analyst forecast, MSM chart. See the MSM stock overview for the latest quote and news.