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olivLaw · US equity research

MSC Industrial Direct Co., Inc. MSM

Wholesale-Industrial Machinery & Equipment · SIC 5084 · Vertical: Wholesale — durable goods (SIC 508x)

116.06USD−3.52% · 1 dayClose 04 Nov 2026

MSC Industrial is a North American distributor of metalworking, maintenance, repair and operations (MRO) and production fastener products, serving customers with inventory management and technical support. In fiscal 2026 net sales rose 6.4%, and in the fourth quarter average daily sales grew 8.6%, a sign that industrial demand has firmed.

At the close of 04 Nov 2026, MSC Industrial Direct Co., Inc. (MSM) stock was 116.06 USD (−3.52% on the day), with market capitalisation 6.5 bn USD, P/E 29.2 on diluted EPS of 3.98 USD over the last 12 months, dividend yield 2.09%, beta 0.84, 52-week range 81.08–132.82 USD. Latest reported quarter (Q4 2026): revenue of 1.1 bn USD (+10.3% YoY), net income of 47.9 m USD (−15.2% YoY), diluted EPS 0.85 USD.

Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.

Market cap
6.5 bn USD
shares as of 01 Oct 2026
P/E (TTM)
29.2
Diluted EPS TTM 3.98 · TTM to 29 Aug 2026
E/P (TTM)
3.43%
TTM to 29 Aug 2026
Dividend yield
2.09%
DPS 12m 2.42
Beta (2y)
0.84
Volatility (1y) 32%
52-week range
81.08132.82

Price history

Loading chart…

Technical reading

RSI (14)
39.4
weak (30–45)
Bollinger (20, 2)
111.60 – 137.34
in the lower half of the band · %B 0.17 · band width 20.7%
SMA 50 / 200
123.16 / 109.90
mixed trend
MACD (12, 26, 9)
-1.82 / -0.93
MACD below signal

Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).

Performance

CompanyS&P 500vs S&P 500Vertical median
1 month−10.8%−1.1%−9.7 pp—
3 months−7.6%−0.5%−7.1 pp—
6 months+10.5%+4.4%+6.1 pp—
Year to date+38.0%+12.3%+25.7 pp—
1 year+34.3%+13.5%+20.8 pp+26.2%
3 years+18.7%+76.4%−57.7 pp+35.6%
5 years+36.6%+63.7%−27.1 pp—
Max drawdown (1y)
−15.4%
21 Oct 2026 → 22 Oct 2026
Max drawdown (5y)
−33.2%
12 Oct 2023 → 07 Apr 2025
Compound annual growth (5y)
+6.4%
S&P 500 +10.4%

Price returns, dividends excluded.

Quarterly results

Latest quarter: Q4 2026 · 29 Aug 2026

Revenue
1.1 bn USD
+10.3% YoY
Net income
47.9 m USD
−15.2% YoY
Diluted EPS
0.85
−15.5% YoY
net / operating
4.4% / 6.7%

Quarterly margins

Quarterly statements · USD

Fiscal yearQ1 '25Q2 '25Q3 '25Q4 '25Q1 '26Q2 '26Q3 '26Q4 '26
Revenue928.5 m891.7 m971.1 m978.2 m965.7 m917.8 m1.0 bn1.1 bn
Cost of revenue550.3 m526.5 m573.4 m583.2 m573.0 m540.2 m616.7 m640.6 m
Gross profit378.2 m365.2 m397.7 m395.0 m392.7 m377.6 m430.4 m438.6 m
Operating income72.3 m62.2 m82.7 m84.3 m76.2 m64.8 m106.7 m72.8 m
Depreciation & amortisation21.7 m23.0 m ≈22.8 m ≈23.1 m25.1 m25.3 m ≈25.4 m ≈25.6 m
Interest expense6.1 m6.2 m6.0 m5.7 m5.4 m5.6 m5.4 m5.3 m
Pre-tax income60.6 m51.7 m75.1 m76.1 m67.5 m56.0 m104.2 m64.3 m
Income tax14.9 m12.6 m18.3 m20.0 m16.4 m13.9 m25.5 m16.3 m
Net income46.6 m39.3 m56.8 m56.5 m51.8 m42.5 m80.4 m47.9 m
Diluted EPS0.830.701.021.01 ≈0.930.761.440.85 ≈
Operating cash flow101.9 m54.5 m ≈97.1 m ≈80.3 m29.4 m94.4 m ≈101.7 m ≈81.0 m
Capex20.2 m29.8 m ≈21.2 m ≈21.7 m22.0 m21.3 m ≈20.8 m ≈17.2 m
Dividends paid47.5 m47.4 m ≈47.3 m ≈47.4 m48.6 m48.5 m ≈48.6 m ≈48.6 m
Share repurchases18.1 m12.5 m ≈8.6 m ≈179.0 k13.0 m764.0 k ≈171.0 k ≈73.0 k

≈ derived quarter (cumulative difference / share-days average)

E/P over time

E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.

Today's P/E sits at the 97 percentile of its own 36-quarter history (min 12.8, median 17.5, max 29.9; quarters with earnings only).

Fiscal years

Fiscal year20192020202120222023202420252026
Revenue3.4 bn3.2 bn3.2 bn3.7 bn4.0 bn3.8 bn3.8 bn4.0 bn
Revenue YoY+5.0%−5.1%+1.6%+13.8%+8.6%−4.7%−1.3%+6.4%
Net income288.9 m251.1 m216.9 m339.8 m343.2 m258.6 m199.3 m222.6 m
Net income YoY−12.3%−13.1%−13.6%+56.7%+1.0%−24.7%−22.9%+11.7%
Diluted EPS5.204.513.876.066.114.583.573.98
Diluted EPS YoY−10.3%−13.3%−14.2%+56.6%+0.8%−25.0%−22.1%+11.5%
net %8.6%7.9%6.7%9.2%8.6%6.8%5.3%5.6%
Free cash flow276.7 m349.7 m170.7 m184.8 m607.1 m311.3 m240.9 m225.2 m

Reported results vs expectations

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Balance sheet & financial health

Fiscal year 2026 · 29 Aug 2026

Cash
65.0 m USD
Financial debt
476.5 m USD
Net debt
411.4 m USD
Equity
1.4 bn USD
Total assets
2.5 bn USD
Debt / equity
0.33x
Current ratio
1.78x
ROE
15.8%
ROA
9.0%
FCF margin
5.6%

Financial statements (source on every figure)

Revenue and net income (USD)

Margins

Income statement · USD

Revenue
2024
3.8 bn
2025
3.8 bn
2026
4.0 bn

SEC (XBRL)· 22 Oct 2026verified

Cost of revenue
2024
2.2 bn
2025
2.2 bn
2026
2.4 bn

SEC (XBRL)· 22 Oct 2026verified

Gross profit
2024
1.6 bn
2025
1.5 bn
2026
1.6 bn

SEC (XBRL)· 22 Oct 2026verified

Operating income
2024
390.4 m
2025
301.6 m
2026
320.6 m

SEC (XBRL)· 22 Oct 2026verified

Depreciation & amortisation
2024
80.9 m
2025
90.6 m
2026
101.4 m

SEC (XBRL)· 22 Oct 2026verified

EBITDA
2024
471.3 m ≈
2025
392.2 m ≈
2026
422.0 m ≈

SEC (XBRL)· 22 Oct 2026derived

Interest expense
2024
25.8 m
2025
24.1 m
2026
21.7 m

SEC (XBRL)· 22 Oct 2026verified

Pre-tax income
2024
342.7 m
2025
263.6 m
2026
292.0 m

SEC (XBRL)· 22 Oct 2026verified

Income tax
2024
86.8 m
2025
65.7 m
2026
72.1 m

SEC (XBRL)· 22 Oct 2026verified

Net income
2024
258.6 m
2025
199.3 m
2026
222.6 m

SEC (XBRL)· 22 Oct 2026verified

Diluted EPS
2024
4.58
2025
3.57
2026
3.98

SEC (XBRL)· 22 Oct 2026verified

Weighted average diluted shares
2024
56.4 m
2025
55.9 m
2026
56.0 m

SEC (XBRL)· 22 Oct 2026verified

Balance sheet · USD

Cash
2024
29.6 m
2025
56.2 m
2026
65.0 m

SEC (XBRL)· 22 Oct 2026verified

Receivables
2024
412.1 m
2025
423.3 m
2026
451.6 m

SEC (XBRL)· 22 Oct 2026verified

Inventories
2024
643.9 m
2025
644.1 m
2026
688.7 m

SEC (XBRL)· 22 Oct 2026verified

Current assets
2024
1.2 bn
2025
1.2 bn
2026
1.3 bn

SEC (XBRL)· 22 Oct 2026verified

Property, plant & equipment, net
2024
360.3 m
2025
346.7 m
2026
339.0 m

SEC (XBRL)· 22 Oct 2026verified

Goodwill
2024
723.9 m
2025
723.7 m
2026
724.0 m

SEC (XBRL)· 22 Oct 2026verified

Intangibles (excl. goodwill)
2024
101.1 m
2025
85.5 m
2026
69.9 m

SEC (XBRL)· 22 Oct 2026verified

Total assets
2024
2.5 bn
2025
2.5 bn
2026
2.5 bn

SEC (XBRL)· 22 Oct 2026verified

Accounts payable
2024
205.9 m
2025
225.2 m
2026
238.0 m

SEC (XBRL)· 22 Oct 2026verified

Short-term debt
2024
229.7 m
2025
316.7 m
2026
317.0 m

SEC (XBRL)· 22 Oct 2026verified

Long-term debt
2024
278.4 m
2025
168.6 m
2026
159.4 m

SEC (XBRL)· 22 Oct 2026verified

Current liabilities
2024
605.4 m
2025
729.3 m
2026
740.3 m

SEC (XBRL)· 22 Oct 2026verified

Total liabilities
2024
1.1 bn
2025
1.1 bn
2026
1.1 bn

SEC (XBRL)· 22 Oct 2026verified

Equity
2024
1.4 bn
2025
1.4 bn
2026
1.4 bn

SEC (XBRL)· 22 Oct 2026verified

Cash flow · USD

Operating cash flow
2024
410.7 m
2025
333.7 m
2026
306.5 m

SEC (XBRL)· 22 Oct 2026verified

Capex
2024
99.4 m
2025
92.8 m
2026
81.3 m

SEC (XBRL)· 22 Oct 2026verified

Free cash flow
2024
311.3 m ≈
2025
240.9 m ≈
2026
225.2 m ≈

SEC (XBRL)· 22 Oct 2026derived

Investing cash flow
2024
-123.4 m
2025
-63.3 m
2026
-80.5 m

SEC (XBRL)· 22 Oct 2026verified

Financing cash flow
2024
-307.4 m
2025
-243.6 m
2026
-217.1 m

SEC (XBRL)· 22 Oct 2026verified

Dividends paid
2024
187.3 m
2025
189.7 m
2026
194.3 m

SEC (XBRL)· 22 Oct 2026verified

Share repurchases
2024
187.7 m
2025
39.3 m
2026
14.0 m

SEC (XBRL)· 22 Oct 2026verified

Computed indicators

Growth

Revenue growth (YoY)
6.4%
computed by olivLawFY 2026
Revenue CAGR 3Y
0.0%
computed by olivLawFY 2023 → FY 2026
Revenue CAGR 5Y
4.3%
computed by olivLawFY 2021 → FY 2026
EBIT growth (YoY)
6.3%
computed by olivLawFY 2026
Net income growth (YoY)
11.7%
computed by olivLawFY 2026
Net income CAGR 3Y
-13.4%
computed by olivLawFY 2023 → FY 2026
Net income CAGR 5Y
0.5%
computed by olivLawFY 2021 → FY 2026
EPS growth (YoY)
11.5%
computed by olivLawFY 2026
EPS CAGR 3Y
-13.3%
computed by olivLawFY 2023 → FY 2026
EPS CAGR 5Y
0.6%
computed by olivLawFY 2021 → FY 2026
FCF growth (YoY)
-6.5%
computed by olivLawFY 2026

Profitability

Gross margin
40.9%
computed by olivLawFY 2026
EBITDA margin
10.5%
computed by olivLawFY 2026
EBIT margin
8.0%
computed by olivLawFY 2026
Net margin
5.6%
computed by olivLawFY 2026
FCF margin
5.6%
computed by olivLawFY 2026

Returns

ROE
15.8%
computed by olivLawFY 2026 · balance sheet at 29 Aug 2026
ROA
9.0%
computed by olivLawFY 2026 · balance sheet at 29 Aug 2026
ROIC
13.2%
computed by olivLawFY 2026 · balance sheet at 29 Aug 2026
ROCE
18.1%
computed by olivLawFY 2026 · balance sheet at 29 Aug 2026
Payout ratio (EPS)
unavailable
input data missing
Payout ratio (FCF)
86.3%
computed by olivLawFY 2026

Balance sheet

Net debt
411.4 m USD
computed by olivLawbalance sheet at 29 Aug 2026
Net debt / EBITDA
1.0x
computed by olivLawFY 2026 · balance sheet at 29 Aug 2026
Debt / equity
0.3x
computed by olivLawbalance sheet at 29 Aug 2026
Interest coverage
14.8x
computed by olivLawFY 2026

Liquidity

Current ratio
1.8x
computed by olivLawbalance sheet at 29 Aug 2026
Quick ratio
0.9x
computed by olivLawbalance sheet at 29 Aug 2026
Cash ratio
0.1x
computed by olivLawbalance sheet at 29 Aug 2026

Cash

Operating cash flow
306.5 m USD
computed by olivLawFY 2026
Capital expenditure
81.3 m USD
computed by olivLawFY 2026
Free cash flow
225.2 m USD
computed by olivLawFY 2026
FCF conversion
101.2%
computed by olivLawFY 2026
Cash conversion
72.6%
computed by olivLawFY 2026

Efficiency

Days sales outstanding
40 days
computed by olivLawFY 2026 · balance sheet at 29 Aug 2026
Days inventory outstanding
103 days
computed by olivLawFY 2026 · balance sheet at 29 Aug 2026
Days payables outstanding
36 days
computed by olivLawFY 2026 · balance sheet at 29 Aug 2026
Cash conversion cycle
107 days
computed by olivLawFY 2026 · balance sheet at 29 Aug 2026

Market and valuation

Market capitalisation
6.5 bn USD
computed by olivLawbalance sheet at 29 Aug 2026
Enterprise value
6.9 bn USD
computed by olivLawbalance sheet at 29 Aug 2026
Market cap / net income TTM
29.1x
computed by olivLawFY 2026
P/E (TTM)
29.2x
computed by olivLawFY 2026
Earnings yield
3.4%
computed by olivLawFY 2026
P/B
4.5x
computed by olivLawbalance sheet at 29 Aug 2026
P/S
1.6x
computed by olivLawFY 2026 · balance sheet at 29 Aug 2026
EV/EBITDA
16.3x
computed by olivLawFY 2026 · balance sheet at 29 Aug 2026
EV/EBIT
21.5x
computed by olivLawFY 2026 · balance sheet at 29 Aug 2026
EV/Sales
1.7x
computed by olivLawFY 2026 · balance sheet at 29 Aug 2026
P/FCF
28.8x
computed by olivLawFY 2026 · balance sheet at 29 Aug 2026
FCF yield
3.5%
computed by olivLawFY 2026 · balance sheet at 29 Aug 2026
Dividend yield
2.1%
computed by olivLawFY 2026
Shareholder yield (distributions)
3.2%
computed by olivLawFY 2026 · balance sheet at 29 Aug 2026

1 indicators that do not apply to the sector.

Valuation

olivLaw classification

Unattractive profile

Score: 49 / 100

A scoring methodology on indicators and valuation, not investment advice.

(margin_of_safety <= -0.25 & agreement in ['high', 'medium'])

Closing price

116.06 USD

04 Nov 2026Source: olivLaw, closing series

Market cap: 6.5 bn USD

Key indicators

Market capitalisation
6.5 bn USD
computed by olivLawbalance sheet at 29 Aug 2026
P/E (TTM)
29.2x
computed by olivLawFY 2026
P/B
4.5x
computed by olivLawbalance sheet at 29 Aug 2026
EV/EBITDA
16.3x
computed by olivLawFY 2026 · balance sheet at 29 Aug 2026
ROE
15.8%
computed by olivLawFY 2026 · balance sheet at 29 Aug 2026
Net margin
5.6%
computed by olivLawFY 2026
Revenue growth (YoY)
6.4%
computed by olivLawFY 2026
Dividend yield
2.1%
computed by olivLawFY 2026

Coverage and freshness

33/37 reporting lines present
Latest full fiscal year: 2026
Latest reported period: 29 Aug 2026
Latest balance sheet date: 29 Aug 2026
Share count (cover of the latest filing), as of: 01 Oct 2026
Source: SEC (XBRL)published 22 Oct 2026
verified 2713derived 202

Score by group

  • Balance sheet90
  • Growth0
  • Quality80
  • Returns47
  • Valuation23

Estimated value range

Low
63.24
USD per share
Mid
76.21
USD per share
High
92.37
USD per share
Price: 116.06 USD
The price is above the range
Potential to the central value: -34.3% (value / price − 1)
Margin of safety: -52.3% (1 − price / value)
Agreement between methods: medium · 4 methods used · 3 independent bases

The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 29.17 – 116.06 USD.

Valuation assumptions are editorial choices, not measured; beta is not measured.

Method ranges (USD per share)

— — Mid · ▏ Price

Valuation methods

  • DCF (discounted cash flow)45.99 – 75.24 (Mid 57.25)
    WACC 9.0% · starting FCFF 241.5 m USD · terminal value share of EV 73%
    The WACC × g sensitivity gives the method's bounds; these are not probabilities.
    Reverse DCF: starting growth implied by the price (fading linearly to terminal growth, everything else fixed): 30.5%
  • Peers: EV/EBITDA86.17 – 116.06 (Mid 110.58)
    4 companies used · median multiple 15.6x · quartiles 12.4x – 16.3x
    ALTG, ASLE, DSGR, WLFC
  • Peers: P/E80.48 – 109.49 (Mid 95.17)
    6 companies used · median multiple 23.9x · quartiles 20.2x – 27.5x
    AIT, DXPE, GIC, HDSN, TLIH, WLFC
  • Dividend discount (DDM)29.17 – 39.23 (Mid 33.46)
Multiple comparisons use the SIC vertical: Wholesale — durable goods (SIC 508x)

Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.

Assumptions (illustrative, editorial)

Risk-free rate
4.3%
Equity risk premium
5.0%
Beta (default)
1.00
Cost of equity
9.3%
Terminal growth
2.5%

Factor scorecard

Unattractive profile · Score 49/100

FactorValueScoreWeight used
ROIC · Quality13.2%83 (vs peers)10%
Net margin · Quality5.6%56 (vs peers)6%
FCF conversion · Quality101.2%100 (on a fixed band)6%
Revenue CAGR 3Y · Growth0.0%0 (on a fixed band)8%
EPS CAGR 3Y · Growth-13.3%0 (on a fixed band)8%
Net debt / EBITDA · Balance sheet1.0x86 (on a fixed band)10%
Interest coverage · Balance sheet14.8x100 (on a fixed band)6%
Current ratio · Balance sheet1.8x82 (on a fixed band)4%
P/E (TTM) · Valuation29.2x29 (vs peers)10%
EV/EBITDA · Valuation16.3x0 (on a fixed band)10%
FCF yield · Valuation3.5%43 (on a fixed band)8%
Shareholder yield (distributions) · Returns3.2%46 (on a fixed band)6%
Payout ratio (FCF) · Returns86.3%48 (on a fixed band)4%

Score groups

  • Balance sheet90/100 · 3/3 factors with a value
  • Growth0/100 · 2/2 factors with a value
  • Quality80/100 · 3/3 factors with a value
  • Returns47/100 · 2/2 factors with a value
  • Valuation23/100 · 3/3 factors with a value

Memo

MSC INDUSTRIAL DIRECT CO., INC. (MSM). Latest full fiscal year: 2026; data up to 2026-08-29.

Figures computed from the financial statements: revenue 4.0 bn USD in 2026; YoY growth 6.4%; net margin 5.6%; ROE 15.8%; net debt/EBITDA 1.0x.

The estimated value range is 63.24–92.37 USD per share (median of 4 methods, agreement: medium); assumptions are illustrative. Against the central value of 76.21 USD, the price of 116.06 USD leaves a potential of -34.3% (value / price − 1) and a margin of safety of -52.3% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.

olivLaw score 49/100, methodological classification: unattractive profile (score, margin of safety and method agreement together; not a judgement of the right price). Not investment advice.

Text generated deterministically from the figures shown; no language model. Not investment advice.

What supports the thesis

  • ROIC: 13.2%
  • FCF conversion: 101.2%
  • Net debt / EBITDA: 1.0x
  • Interest coverage: 14.8x
  • Current ratio: 1.8x

What contradicts it

  • Revenue CAGR 3Y: 0.0%
  • EPS CAGR 3Y: -13.3%
  • P/E (TTM): 29.2x
  • EV/EBITDA: 16.3x
  • The price is above the estimated value range

Versus the vertical median

Wholesale — durable goods (SIC 508x) · same industry group (3-digit SIC) · compared with 9 companies

Multiples and returns vs the median

P/E
29.2x
vertical median 26.4x
above median (+10.5%)
EV/EBITDA
16.3x
vertical median 15.6x
at median
P/S
1.6x
vertical median 1.1x
above median (+40.7%)
P/B
4.5x
vertical median 3.5x
above median (+29.6%)
ROE
15.8%
vertical median 11.5%
above median (+38.0%)
Net margin
5.6%
vertical median 4.4%
above median (+27.5%)
EBIT margin
8.0%
vertical median 8.3%
at median
Revenue YoY
6.4%
vertical median 8.8%
below median (−27.9%)
Net debt/EBITDA
1.0x
vertical median 5.3x
below median (−81.5%)
Dividend yield
2.1%
vertical median 1.7%
above median (+26.0%)

Price rebased to 100 (monthly, 5 years)

Companies in the vertical

Market capP/EROENet marginRevenue YoY1A / 3A
AITApplied Industrial Technologies, Inc.10.9 bn26.422.5%8.4%+8.8%+15% / +86%
MSMMsc Industrial Direct Co., Inc.6.5 bn29.215.8%5.6%+6.4%+34% / +19%
DXPEDXP Enterprises, Inc.2.5 bn27.918.5%4.4%+11.9%+69% / +441%
GICGlobal Industrial Co1.8 bn19.827.6%6.3%+4.8%+66% / +34%
DSGRDistribution Solutions Group, Inc.1.6 bn180.01.4%0.4%+9.8%+26% / +38%
WLFCWillis Lease Finance Corp1.0 bn12.711.5%9.6%+28.3%+16% / +213%
ASLEAerSale Corporation237.2 m—-0.9%-1.2%−2.8%−23% / −64%
ALTGAlta Equipment Group Inc.225.1 m—-2,085.7%-4.4%−2.2%+41% / −28%
HDSNHudson Technologies Inc185.6 m21.43.6%3.5%+4.0%−35% / −64%
TLIHTen-League International Holdings Limited167.1 m37.949.6%7.3%+38.4%+59% / unavailable

1- and 3-year price returns: for MSM from daily closes (the same as the performance table), for the other companies from month-end closes.

olivLaw engine forecast

The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.

The engine has no published run for this company yet.

Valuation scenarios (editable assumptions)

Illustrative scenarios

Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.

Bear
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Base
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Bull
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
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Estimated price (USD)

Estimated priceBearBaseBull
1 years
65.58
Total return -43% · Per year -43%
116.21
Total return 0% · Per year 0%
175.40
Total return 51% · Per year 51%
3 years
58.03
Total return -50% · Per year -21%
116.21
Total return 0% · Per year 0%
193.39
Total return 67% · Per year 19%
5 years
51.34
Total return -56% · Per year -15%
116.22
Total return 0% · Per year 0%
213.23
Total return 84% · Per year 13%
What moves the 3-year price the most
  • Exit P/E± 29.05
  • Net margin± 20.34
  • Annual revenue growth± 17.45
  • Annual dilution± 1.71

AI analysis

AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

In brief

MSC Industrial is a North American distributor of metalworking, maintenance, repair and operations (MRO) and production fastener products, serving customers with inventory management and technical support. In fiscal 2026 net sales rose 6.4% 1, and in the fourth quarter average daily sales grew 8.6% 2, a sign that industrial demand has firmed.

SWOT

Strengths

  • An extensive distribution network with same-day shipping for core products and a very broad product portfolio 1.
  • Technical expertise and inventory solutions such as vending and in-plant programs that build customer loyalty 1.

Weaknesses

  • Dependence on manufacturing demand, which is cyclical and sensitive to economic conditions 1.
  • Margins under pressure from lower pricing for national account customers and vending sales 1.
  • Restructuring costs and asset impairment linked to the digital core implementation and sales force reorganization 1.

Opportunities

  • Growth in core and national account customers could support further sales expansion 2.
  • Use of artificial intelligence for productivity and customer experience could open further efficiency gains 1.
  • If manufacturing demand keeps firming, volumes could grow faster than previously expected 2.

Threats

  • Uncertain tariffs and trade policies could weigh on industrial activity and raise purchasing costs 1.
  • Aggressive online competition and industry consolidation could pressure prices and margins 1.
  • Rising energy, fuel and labor costs could affect profitability if they cannot be passed on to customers 1.

Risks

  • Dependence on the economic cyclehigh

    Demand from manufacturing customers is shaped by overall economic conditions and industrial activity levels 1.

  • Pressure on gross marginsmedium

    Shifts in customer and product mix, combined with rising supplier costs, could reduce margins 1.

  • Competition and industry consolidationmedium

    Rivals with lower-cost models or greater resources could reduce the company's market share 1.

  • Customer credit riskmedium

    The company generally does not require collateral from customers, which exposes it to non-payment during downturns 1.

  • Supply chain interruptionslow

    Transport disruptions, labor shortages or severe weather could affect deliveries and customer relationships 1.

Investment thesis

What would need to be true (bull case)

  • Growth from core customers was the strongest in more than three years, which points to commercial momentum building 2.
  • Adjusted operating margin exceeded the high end of the outlook, suggesting that cost measures are delivering results 2.
  • The model of digital sales and inventory solutions could support long-term customer retention 1.

What would break the thesis

  • The company warns of inflationary pressures and tougher year-over-year comparisons ahead 2.
  • Tariffs and trade policy uncertainty could persist and weigh on purchasing costs 1.
  • Online competition and industry consolidation could force price cuts and lower profitability 1.

What to watch

  • Delivery of first-quarter ADS growth guidance (9.5% to 10.5%)Q1 2027
  • Adjusted operating margin in the first quarter (9.5% to 10.1%)Q1 2027
  • Evolution of tariffs and refunds for IEEPA tariffs2027
  • Pace of growth in core and national account customersnext 10-K

Products, market & competition

AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

The business

MSC is a North American distributor of metalworking, MRO and production fastener products, with more than 80 years of experience 1. It offers approximately 2.5 million active SKUs 1, sourced directly from more than 3,000 suppliers 1, and aims to be a mission-critical partner for customers from individual machine shops to Fortune 1000 companies and government agencies. Its model combines a network of distribution centers with technical services and inventory solutions such as vending and in-plant programs. Most products are third-party manufactured, and MSC exclusive brands represented about 15% of net sales 1.

Digital channels are central to the model: sales through E-commerce platforms represented 63.7% of consolidated net sales in fiscal 2026 1. The company had 31,078 vending machines in service as of August 29, 2026 1, a segment that supports customer relationships through on-site presence and automatic replenishment.

The operating footprint includes five customer fulfillment centers, eight regional inventory centers, 37 warehouses and five manufacturing locations 1. The company guarantees same-day shipping of its core metalworking and MRO products and offers next-day delivery nationwide in the United States for qualifying orders placed by 8 p.m. Eastern Time 1.

Segments

Manufacturing customers

Manufacturing customers accounted for about 67% of revenue in fiscal 2026 1, and their ADS grew 5.5% 1. Their activity has correlated with the Industrial Production Index, which rose in the fourth quarter 1.

Market context

The industry is consolidating, which could make the market more competitive if rivals gain scale or adopt lower-cost models 1. Margin pressure can also come from the growing weight of national account customers and vending, which carry lower pricing 1.

Trends

  • Recovery in industrial demandtailwind

    Industrial production rose in the fourth quarter of fiscal 2026, and the heavy manufacturing sector and aerospace showed signs of expansion 1. If this trend continues, volumes from manufacturing customers could support sales growth.

  • Tariffs and trade uncertaintyheadwind

    Tariffs pressured pricing and industrial activity, and after the Supreme Court ruling on IEEPA tariffs, new tariffs were introduced under other authorities 1. Uncertainty about their scope and duration could affect costs and margins.

  • Artificial intelligence and digitalizationmixed

    The company uses AI for recommendations, order error processing and product classification 1. These tools could improve productivity and customer experience, but they may also lower barriers for new entrants with lower costs 1.

  • Energy and freight costsheadwind

    Higher fuel costs linked to the conflict in Iran could raise freight expense and cost pressure on products offered 1. Persistent inflation may limit the ability to pass these costs on to customers.

Competitive position

Competition includes traditional distributors, online distributors, large warehouse stores and manufacturers' direct sales forces 1. Some competitors offer a wider product range, greater financial resources or additional services 1. Online competition with price transparency and fast delivery is a constant pressure on prices 1.

The company says it differentiates through technical expertise, inventory management solutions and customer experience, criteria it considers effective in competing with other distributors 1. Companies from outside the industry that can enter the market quickly are an additional risk 1.

  • National and regional industrial distributors

    Distributors with direct sales forces that compete on product range and services, named generically in the source 1.

  • Large warehouse stores

    Large stores with broad assortments of industrial and maintenance products, cited as a source of competition 1.

  • Online and direct mail distributors

    Online platforms with transparent pricing and fast delivery that put pressure on prices 1.

  • Manufacturers with direct sales forces

    Manufacturers of MRO products that sell directly, sometimes reaching customers without intermediaries 1.

News & filings

In the press

No news in our archive over the last 180 days.

SEC filings

Sources

  1. [1] Form 10-K, fiscal year ended 2026-08-29 · SEC / MSC Industrial Direct Co., Inc. · 22 Oct 2026
  2. [2] Form 8-K, results release (exhibit 99.1) · SEC / MSC Industrial Direct Co., Inc. · 22 Oct 2026

Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.