MSC Industrial Direct Co., Inc. (MSM) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-14.7%

$103.02

vs $120.75 price

Levered DCF

$109.77

After debt service

Piotroski score

8 / 9

Strong

Altman Z-score

6.34

Safe zone

Rating

A-

Overall 4 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
P/E	29.87×	25.27×	17.88×	16.56×	12.9×	21.94×	14.71×	12.93×
P/B	4.67×	3.63×	3.32×	3.84×	3.25×	4.13×	2.81×	2.53×
P/S	1.66×	1.34×	1.21×	1.42×	1.19×	1.47×	1.16×	1.11×
EV / EBITDA	17.14×	14.6×	11.45×	11.13×	9.36×	14.25×	9.6×	8.91×
Gross margin	40.9%	40.8%	41.1%	41.0%	42.2%	41.1%	39.9%	42.6%
Operating margin	8.0%	8.3%	10.6%	12.3%	12.9%	10.5%	11.5%	12.8%
Net margin	5.6%	5.3%	6.8%	8.6%	9.2%	6.7%	7.9%	8.6%
Current ratio	1.78×	1.68×	1.96×	2.03×	2.13×	2.34×	3.03×	2.68×
Debt / equity	0.37×	0.39×	0.41×	0.35×	0.64×	0.73×	0.51×	0.3×
Interest coverage	14.76×	13.04×	15.75×	21.83×	27.01×	23.55×	22.06×	25.53×
Dividend yield	2.9%	3.8%	4.0%	3.1%	3.8%	7.6%	12.0%	3.9%
Payout ratio	87.3%	95.1%	72.4%	51.5%	49.3%	167.2%	176.9%	50.4%

Key metrics by fiscal year

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	15.6%	14.4%	18.6%	23.2%	25.2%	18.8%	19.1%	19.5%
Return on invested capital	11.4%	11.4%	14.4%	17.2%	15.3%	12.2%	13.1%	15.9%
Return on assets	8.9%	8.1%	10.5%	13.5%	12.4%	8.8%	10.5%	12.5%
Free cash flow yield	3.4%	4.8%	6.7%	10.7%	4.2%	3.6%	9.5%	7.4%
Earnings yield	3.3%	4.0%	5.6%	6.0%	7.8%	4.6%	6.8%	7.7%
Enterprise value	$7.1B	$5.5B	$5.2B	$6.2B	$5.2B	$5.6B	$4.2B	$4.1B
Net debt / EBITDA	1.12×	1.28×	1.19×	0.85×	1.47×	2.04×	1.24×	0.88×
Cash conversion cycle (days)	111	109	110	117	153	147	136	134