MSC Industrial reported fiscal second-quarter earnings largely in line with our expectations. The demand environment remains challenged, given flat industrial production growth. For MSC, most of its key end markets continue to experience weakness. Management commented that four of its top five end markets make up approximately 50% of revenue.
As end-market demand improves, MSC could return to mid- to high-single-digit sales growth and high-teens returns on invested capital.
MSC could continue to face gross margin pressure against a backdrop of soft demand and fierce competition.
|
Metric
|
MSM
|
GWW
|
FAST
|
|---|---|---|---|
Price/Earnings (Normalized) | 16.05 | 25.90 | 33.83 |
Price/Book Value | 3.78 | 14.54 | 11.38 |
Price/Sales | 1.32 | 2.84 | 5.29 |
Price/Cash Flow | 11.93 | 20.62 | 29.40 |
|
Metric
|
MSM
|
GWW
|
FAST
|
|---|---|---|---|
Quick Ratio | 0.72 | 1.24 | 1.98 |
Current Ratio | 2.01 | 2.19 | 4.57 |
Interest Coverage | 19.80 | 28.70 | 141.55 |
|
Metric
|
MSM
|
GWW
|
FAST
|
|---|---|---|---|
Return on Assets (Normalized) | 13.35% | 23.90% | 25.46% |
Return on Equity (Normalized) | 23.46% | 64.29% | 34.85% |
Return on Invested Capital (Normalized) | 17.42% | 33.14% | 29.44% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
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