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MSC Industrial Direct

DB:98M
Snowflake Description

6 star dividend payer with excellent balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
98M
DB
$4B
Market Cap
  1. Home
  2. DE
  3. Capital Goods
Company description

MSC Industrial Direct Co., Inc., together with its subsidiaries, distributes metalworking and maintenance, repair, and operations (MRO) products in the United States, Canada, Mexico, and the United Kingdom. The last earnings update was 23 days ago. More info.


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98M Share Price and Events
7 Day Returns
-1.5%
DB:98M
-0.3%
DE Trade Distributors
0%
DE Market
1 Year Returns
-14.1%
DB:98M
8.5%
DE Trade Distributors
9.9%
DE Market
98M Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
MSC Industrial Direct (98M) -1.5% 6.3% 12.3% -14.1% -14.5% 7.8%
DE Trade Distributors -0.3% 10.2% 15.4% 8.5% -3.8% 2.3%
DE Market 0% 4.5% 13.6% 9.9% 14.6% 18.2%
1 Year Return vs Industry and Market
  • 98M underperformed the Trade Distributors industry which returned 8.5% over the past year.
  • 98M underperformed the Market in Germany which returned 9.9% over the past year.
Price Volatility
98M
Industry
5yr Volatility vs Market

98M Value

 Is MSC Industrial Direct undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of MSC Industrial Direct to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for MSC Industrial Direct.

DB:98M Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 13 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 6.3%
Perpetual Growth Rate 10-Year DE Government Bond Rate 0.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:98M
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate 0.2%
Equity Risk Premium S&P Global 6%
Trade Distributors Unlevered Beta Simply Wall St/ S&P Global 0.95
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.949 (1 + (1- 21%) (10.61%))
1.019
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.02
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.23% + (1.019 * 5.96%)
6.3%

Discounted Cash Flow Calculation for DB:98M using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for MSC Industrial Direct is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

DB:98M DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 6.3%)
2020 288.59 Analyst x7 271.48
2021 278.70 Analyst x6 246.64
2022 309.00 Analyst x2 257.24
2023 250.00 Analyst x1 195.79
2024 405.00 Analyst x1 298.38
2025 434.49 Est @ 7.28% 301.13
2026 456.93 Est @ 5.16% 297.91
2027 473.76 Est @ 3.68% 290.57
2028 486.30 Est @ 2.65% 280.58
2029 495.65 Est @ 1.92% 269.02
Present value of next 10 years cash flows $2,708.00
DB:98M DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $495.65 × (1 + 0.23%) ÷ (6.3% – 0.23%)
$8,179.79
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $8,179.79 ÷ (1 + 6.3%)10
$4,439.76
DB:98M Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $2,708.00 + $4,439.76
$7,147.76
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $7,147.76 / 55.24
$129.4
DB:98M Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:98M represents 0.89558x of NYSE:MSM
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.89558x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (USD) x Listing Adjustment Factor
= $ 129.40 x 0.89558
€115.89
Value per share (EUR) From above. €115.89
Current discount Discount to share price of €67.50
= -1 x (€67.50 - €115.89) / €115.89
41.8%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price MSC Industrial Direct is available for.
Intrinsic value
42%
Share price is €67.5 vs Future cash flow value of €115.89
Current Discount Checks
For MSC Industrial Direct to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • MSC Industrial Direct's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • MSC Industrial Direct's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for MSC Industrial Direct's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are MSC Industrial Direct's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:98M PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-08-31) in USD $5.23
NYSE:MSM Share Price ** NYSE (2019-11-15) in USD $75.37
Germany Trade Distributors Industry PE Ratio Median Figure of 7 Publicly-Listed Trade Distributors Companies 15.38x
Germany Market PE Ratio Median Figure of 399 Publicly-Listed Companies 19.43x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of MSC Industrial Direct.

DB:98M PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:MSM Share Price ÷ EPS (both in USD)

= 75.37 ÷ 5.23

14.42x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • MSC Industrial Direct is good value based on earnings compared to the DE Trade Distributors industry average.
  • MSC Industrial Direct is good value based on earnings compared to the Germany market.
Price based on expected Growth
Does MSC Industrial Direct's expected growth come at a high price?
Raw Data
DB:98M PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 14.42x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 13 Analysts
4.8%per year
Europe Trade Distributors Industry PEG Ratio Median Figure of 32 Publicly-Listed Trade Distributors Companies 1.62x
Germany Market PEG Ratio Median Figure of 252 Publicly-Listed Companies 1.36x

*Line of best fit is calculated by linear regression .

DB:98M PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 14.42x ÷ 4.8%

3x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • MSC Industrial Direct is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on MSC Industrial Direct's assets?
Raw Data
DB:98M PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-08-31) in USD $26.77
NYSE:MSM Share Price * NYSE (2019-11-15) in USD $75.37
Germany Trade Distributors Industry PB Ratio Median Figure of 10 Publicly-Listed Trade Distributors Companies 1.19x
Germany Market PB Ratio Median Figure of 573 Publicly-Listed Companies 1.84x
DB:98M PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:MSM Share Price ÷ Book Value per Share (both in USD)

= 75.37 ÷ 26.77

2.81x

* Primary Listing of MSC Industrial Direct.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • MSC Industrial Direct is overvalued based on assets compared to the DE Trade Distributors industry average.
X
Value checks
We assess MSC Industrial Direct's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Trade Distributors industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Trade Distributors industry average (and greater than 0)? (1 check)
  5. MSC Industrial Direct has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

98M Future Performance

 How is MSC Industrial Direct expected to perform in the next 1 to 3 years based on estimates from 13 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
4.8%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is MSC Industrial Direct expected to grow at an attractive rate?
  • MSC Industrial Direct's earnings growth is expected to exceed the low risk savings rate of 0.2%.
Growth vs Market Checks
  • MSC Industrial Direct's earnings growth is positive but not above the Germany market average.
  • MSC Industrial Direct's revenue growth is positive but not above the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:98M Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:98M Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 13 Analysts 4.8%
DB:98M Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 13 Analysts 2.7%
Germany Trade Distributors Industry Earnings Growth Rate Market Cap Weighted Average 14.6%
Europe Trade Distributors Industry Revenue Growth Rate Market Cap Weighted Average 3.6%
Germany Market Earnings Growth Rate Market Cap Weighted Average 12.6%
Germany Market Revenue Growth Rate Market Cap Weighted Average 4.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:98M Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 13 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:98M Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2024-08-31 3,879 472 380 2
2023-08-31 3,764 317 372 2
2022-08-31 3,594 368 329 3
2021-08-31 3,484 340 296 13
2020-08-31 3,367 357 276 13
2019-11-16
DB:98M Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-08-31 3,364 328 289
2019-06-01 3,359 297 295
2019-03-02 3,321 320 295
2018-12-01 3,267 335 344
2018-09-01 3,204 340 329
2018-06-02 3,120 318 316
2018-03-03 3,035 268 300
2017-12-02 2,970 253 236
2017-09-02 2,888 247 231
2017-06-03 2,879 274 232
2017-03-04 2,863 315 234
2016-12-03 2,843 355 230
2016-09-03 2,864 401 230

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • MSC Industrial Direct's earnings are expected to grow by 4.8% yearly, however this is not considered high growth (20% yearly).
  • MSC Industrial Direct's revenue is expected to grow by 2.7% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:98M Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 13 Analyst Estimates (S&P Global) See Below

All data from MSC Industrial Direct Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:98M Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2024-08-31 6.76 6.76 6.76 1.00
2023-08-31 6.67 6.67 6.67 1.00
2022-08-31 5.93 6.10 5.75 2.00
2021-08-31 5.42 5.80 5.15 10.00
2020-08-31 5.01 5.24 4.82 8.00
2019-11-16
DB:98M Past Financials Data
Date (Data in USD Millions) EPS *
2019-08-31 5.23
2019-06-01 5.32
2019-03-02 5.28
2018-12-01 6.12
2018-09-01 5.84
2018-06-02 5.61
2018-03-03 5.31
2017-12-02 4.18
2017-09-02 4.08
2017-06-03 4.04
2017-03-04 3.99
2016-12-03 3.85
2016-09-03 3.78

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • MSC Industrial Direct is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess MSC Industrial Direct's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Germany market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
MSC Industrial Direct has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

98M Past Performance

  How has MSC Industrial Direct performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare MSC Industrial Direct's growth in the last year to its industry (Trade Distributors).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • MSC Industrial Direct's year on year earnings growth rate has been positive over the past 5 years.
  • MSC Industrial Direct's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • MSC Industrial Direct's 1-year earnings growth is negative, it can't be compared to the DE Trade Distributors industry average.
Earnings and Revenue History
MSC Industrial Direct's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from MSC Industrial Direct Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:98M Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-08-31 3,363.82 288.75 1,000.82
2019-06-01 3,359.13 295.12 975.45
2019-03-02 3,320.93 294.55 967.52
2018-12-01 3,266.91 343.54 956.40
2018-09-01 3,203.88 328.84 942.11
2018-06-02 3,119.66 316.48 951.60
2018-03-03 3,035.24 300.16 936.11
2017-12-02 2,970.03 236.20 924.90
2017-09-02 2,887.74 230.82 907.25
2017-06-03 2,879.05 231.85 908.60
2017-03-04 2,862.62 233.72 902.12
2016-12-03 2,842.96 229.63 902.45
2016-09-03 2,863.51 230.31 912.90
2016-05-28 2,845.84 227.79 905.27
2016-02-27 2,863.82 226.48 918.20
2015-11-28 2,886.11 228.56 927.65
2015-08-29 2,910.38 229.96 932.55
2015-05-30 2,909.60 233.24 932.61
2015-02-28 2,884.59 234.24 924.55
2014-11-29 2,839.70 232.00 901.05
2014-08-30 2,787.12 234.44 885.67
2014-05-31 2,734.27 228.00 864.81
2014-03-01 2,650.72 225.63 820.86
2013-11-30 2,558.67 232.11 772.46
2013-08-31 2,457.65 236.21 721.39
2013-06-01 2,419.15 248.61 688.52
2013-03-02 2,394.19 256.37 675.08
2012-12-01 2,387.71 260.35 672.22

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • MSC Industrial Direct has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • MSC Industrial Direct used its assets more efficiently than the DE Trade Distributors industry average last year based on Return on Assets.
  • MSC Industrial Direct's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess MSC Industrial Direct's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Trade Distributors industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
MSC Industrial Direct has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

98M Health

 How is MSC Industrial Direct's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up MSC Industrial Direct's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • MSC Industrial Direct is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • MSC Industrial Direct's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of MSC Industrial Direct's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 2.7x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from MSC Industrial Direct Company Filings, last reported 2 months ago.

DB:98M Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-08-31 1,483.88 438.83 32.29
2019-06-01 1,453.88 530.99 38.77
2019-03-02 1,405.85 566.20 58.19
2018-12-01 1,376.31 522.64 11.62
2018-09-01 1,387.25 535.33 46.22
2018-06-02 1,399.05 535.52 39.99
2018-03-03 1,346.04 511.24 31.61
2017-12-02 1,260.03 492.68 20.25
2017-09-02 1,225.14 532.98 16.08
2017-06-03 1,222.99 515.15 27.58
2017-03-04 1,180.92 549.13 35.60
2016-12-03 1,134.03 543.77 32.12
2016-09-03 1,098.38 606.82 52.89
2016-05-28 1,420.62 233.75 32.33
2016-02-27 1,371.21 299.00 23.96
2015-11-28 1,358.94 324.25 37.88
2015-08-29 1,332.87 427.28 38.27
2015-05-30 1,302.54 431.75 24.86
2015-02-28 1,259.45 513.00 27.43
2014-11-29 1,252.38 466.25 46.70
2014-08-30 1,398.56 307.50 47.15
2014-05-31 1,423.95 245.63 45.36
2014-03-01 1,367.88 283.75 45.32
2013-11-30 1,325.26 321.96 48.43
2013-08-31 1,390.38 250.00 55.88
2013-06-01 1,347.11 290.00 58.02
2013-03-02 1,294.57 0.00 243.95
2012-12-01 1,247.61 0.00 233.51
  • MSC Industrial Direct's level of debt (29.6%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (22.3% vs 29.6% today).
  • Debt is well covered by operating cash flow (74.8%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 26.3x coverage).
X
Financial health checks
We assess MSC Industrial Direct's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. MSC Industrial Direct has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

98M Dividends

 What is MSC Industrial Direct's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.98%
Current annual income from MSC Industrial Direct dividends. Estimated to be 4.4% next year.
If you bought €2,000 of MSC Industrial Direct shares you are expected to receive €80 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • MSC Industrial Direct's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.33%).
  • MSC Industrial Direct's dividend is above the markets top 25% of dividend payers in Germany (3.66%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:98M Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 13 Analyst Estimates (S&P Global) See Below
Germany Trade Distributors Industry Average Dividend Yield Market Cap Weighted Average of 6 Stocks 2.7%
Germany Market Average Dividend Yield Market Cap Weighted Average of 333 Stocks 2.9%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.7%
Germany Bottom 25% Dividend Yield 25th Percentile 1.3%
Germany Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:98M Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2024-08-31 4.56 1.00
2023-08-31 4.16 1.00
2022-08-31 3.83 1.00
2021-08-31 3.26 6.00
2020-08-31 3.00 7.00
2019-11-16
DB:98M Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-10-17 3.000 4.019
2019-07-10 3.000 4.306
2019-03-26 2.520 3.286
2018-12-18 2.520 3.095
2018-10-18 2.520 3.012
2018-06-19 2.320 2.721
2018-04-05 2.320 2.549
2018-01-03 2.320 2.520
2017-10-24 1.920 2.234
2017-07-07 1.800 2.479
2017-03-30 1.800 2.043
2016-12-20 1.800 1.795
2016-10-27 1.800 2.136
2016-06-23 1.720 2.373
2016-03-31 1.720 2.305
2015-12-16 1.720 2.656
2015-10-21 1.720 2.826
2015-06-23 1.600 2.389
2015-04-06 1.600 2.245
2014-12-17 1.600 2.124
2014-10-22 1.600 1.985
2014-06-20 1.320 1.494
2014-04-04 1.320 1.457
2013-12-18 1.320 1.557
2013-10-24 1.320 1.692
2013-06-24 1.200 1.504
2013-04-04 1.200 1.490
2012-12-06 1.200 1.502
2012-10-24 1.200 1.686
2012-06-21 1.000 1.456
2012-03-26 1.000 1.362
2011-12-21 1.000 1.289
2011-10-24 1.000 1.485
2011-06-29 0.880 1.437
2011-03-30 0.880 1.278
2010-12-22 0.880 1.404
2010-10-21 0.880 1.455
2010-06-30 0.880 1.743
2010-03-31 0.800 1.510
2009-12-23 0.800 1.706
2009-10-05 0.800 1.749
2009-07-01 0.800 2.018
2009-04-01 0.800 2.155
2008-12-23 0.800 2.460

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of MSC Industrial Direct's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (2x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.5x coverage).
X
Income/ dividend checks
We assess MSC Industrial Direct's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.7%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can MSC Industrial Direct afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. MSC Industrial Direct has a total score of 6/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

98M Management

 What is the CEO of MSC Industrial Direct's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Erik Gershwind
COMPENSATION $4,461,519
AGE 48
TENURE AS CEO 6.8 years
CEO Bio

Mr. Erik David Gershwind has been the Chief Executive Officer of MSC Industrial Direct Co. Inc. since January 1, 2013. Mr. Gershwind has also been the President of MSC Industrial Direct Co. Inc. since October 24, 2011 and served as its Chief Operating Officer since October 20, 2009 until January 2013. He served as Executive Vice President of MSC Industrial Direct Co. Inc. from October 20, 2009 to October 24, 2011. Previously, Mr. Gershwind served as Senior Vice President for Product Management and Marketing of MSC Industrial Direct Co. Inc. from December, 2005 to October 20, 2009. He served as MSC Industrial Direct Co. Inc.'s Vice President of Product Management since April 2005. From August 2004 to April 2005, he served as Vice President of MRO and Inventory Management. Mr. Gershwind has held various positions of increasing responsibility in product, E-Commerce and marketing. He joined MSC Industrial Direct Co. Inc. in 1995 as Manager of its acquisition integration initiative. He has been a Director of MSC Industrial Direct Co. Inc. since October 19, 2010. He served as Director for E-Commerce of MSC Industrial Direct Co. Inc. from 1999. Mr. Gershwind graduated summa cum laude with a B.S. in Economics from the Wharton School of Business, University of Pennsylvania and magna cum laude with a J.D. from Harvard Law School.

CEO Compensation
  • Erik's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Erik's remuneration is higher than average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the MSC Industrial Direct management team in years:

6
Average Tenure
52.5
Average Age
  • The average tenure for the MSC Industrial Direct management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Erik Gershwind

TITLE
President
COMPENSATION
$4M
AGE
48
TENURE
6.8 yrs

Rustom Jilla

TITLE
Executive VP & CFO
COMPENSATION
$2M
AGE
58
TENURE
4.3 yrs

Steve Armstrong

TITLE
Senior VP
COMPENSATION
$1M
AGE
61
TENURE
11.1 yrs

Steve Baruch

TITLE
Executive VP and Chief Strategy & Marketing Officer
COMPENSATION
$988K
AGE
51
TENURE
3 yrs

Doug Jones

TITLE
Executive VP & Chief Supply Chain Officer
COMPENSATION
$1M
AGE
55
TENURE
13.9 yrs

Charles Bonomo

TITLE
Senior VP & Chief Information Officer
AGE
54
TENURE
12.3 yrs

John Chironna

TITLE
VP of Investor Relations & Treasurer
TENURE
7.1 yrs

Paul Mason

TITLE
Director of Corporate Communications
TENURE
4.8 yrs

Eddie Martin

TITLE
Senior Vice President of Sales & Customer Success
AGE
49
TENURE
0.4 yrs

Kari Heerdt

TITLE
Senior VP & Chief People Officer
COMPENSATION
$914K
AGE
51
TENURE
5.3 yrs
Board of Directors Tenure

Average tenure and age of the MSC Industrial Direct board of directors in years:

10.8
Average Tenure
66
Average Age
  • The average tenure for the MSC Industrial Direct board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Mitchell Jacobson

TITLE
Non-Executive Chairman
COMPENSATION
$429K
AGE
68
TENURE
21.8 yrs

Erik Gershwind

TITLE
President
COMPENSATION
$4M
AGE
48
TENURE
9.1 yrs

Denis Kelly

TITLE
Independent Director
COMPENSATION
$221K
AGE
70
TENURE
23.6 yrs

Philip Peller

TITLE
Lead Director
COMPENSATION
$223K
AGE
80
TENURE
11.9 yrs

Louise Goeser

TITLE
Independent Director
COMPENSATION
$213K
AGE
66
TENURE
10.8 yrs

Roger Fradin

TITLE
Independent Director
COMPENSATION
$203K
AGE
66
TENURE
21.3 yrs

Jonathan L. Byrnes

TITLE
Independent Director
COMPENSATION
$203K
AGE
71
TENURE
9.7 yrs

Mike Kaufmann

TITLE
Independent Director
COMPENSATION
$209K
AGE
56
TENURE
4.2 yrs

Steven Paladino

TITLE
Independent Director
COMPENSATION
$205K
AGE
62
TENURE
4.2 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
25. Apr 19 Sell Douglas Jones Individual 24. Apr 19 24. Apr 19 -2,126 €74.61 €-158,615
11. Feb 19 Sell Gregory Polli Individual 07. Feb 19 07. Feb 19 -2,700 €72.74 €-196,381
30. Jan 19 Sell Charles Bonomo Individual 29. Jan 19 29. Jan 19 -601 €72.65 €-43,691
22. Jan 19 Sell Steve Armstrong Individual 18. Jan 19 18. Jan 19 -5,293 €72.63 €-384,408
X
Management checks
We assess MSC Industrial Direct's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. MSC Industrial Direct has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

98M News

Simply Wall St News

98M Company Info

Description

MSC Industrial Direct Co., Inc., together with its subsidiaries, distributes metalworking and maintenance, repair, and operations (MRO) products in the United States, Canada, Mexico, and the United Kingdom. The company’s MRO products comprise 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. It offers approximately 1.7 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. The company serves through its distribution network of 99 branch offices and 12 customer fulfillment centers. It serves individual machine shops, Fortune 100 manufacturing companies, and government agencies, as well as manufacturers of various sizes. The company was founded in 1941 and is headquartered in Melville, New York.

Details
Name: MSC Industrial Direct Co., Inc.
98M
Exchange: DB
Founded: 1941
$3,768,615,379
55,238,103
Website: http://www.mscdirect.com
Address: MSC Industrial Direct Co., Inc.
75 Maxess Road,
Melville,
New York, 11747,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE MSM Class A Common Stock New York Stock Exchange US USD 15. Dec 1995
DB 98M Class A Common Stock Deutsche Boerse AG DE EUR 15. Dec 1995
Number of employees
Current staff
Staff numbers
6,700
MSC Industrial Direct employees.
Industry
Trading Companies and Distributors
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/11/16 21:28
End of day share price update: 2019/11/15 00:00
Last estimates confirmation: 2019/11/07
Last earnings filing: 2019/10/24
Last earnings reported: 2019/08/31
Last annual earnings reported: 2019/08/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.