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MSC Industrial Direct Co., Inc.
🏹 Trader: 🚀 Stage 2 + Near High 📈 Stage 2 🎯 Near 52W High | BRS 69 Forming View all →
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$6.7B
Market Cap
25.3
P/E
1.41
PEG
11.9%
ROCE
14.1%
ROE
0.14
D/E
8.0%
OPM
-5.3%
% from 52W High
74
α RS
🔍 MSM is showing a near-52W-high setup because it's within 5.3% of its 52-week high, it matches 2 of 39 tracked screener presets, and Sector RRG has Industrials in the Improving quadrant with the trail still strengthening. Net: Broad signal stack, not a recommendation. ? 52W High Conviction RRG
Sources
5.3% from 52W high · Conviction 2/39 · Industrials in Improving quadrant
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🌏 Global Investor Returns
Currency-adjusted total returns for MSM including FX impact
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📈 Price History
Ratio Health
Excellent
Good
Average
Poor
By Category
📊 Sector Averages
About

MSC Industrial Direct Co., Inc., together with its subsidiaries, engages in the distribution of metalworking and maintenance, repair, and operations (MRO) products and services in the United States, Canada, Mexico, the United Kingdom, and internationally. The company’s metalworking and MRO products include cutting tools, abrasives, machining fluids, measuring instruments, metalworking products, machinery and accessories, tooling components, fasteners, flat stock products, raw materials, machinery hand and power tools, safety and janitorial supplies, plumbing supplies, materials handling products, power transmission components, and electrical supplies. It also offers stock-keeping units through its catalogs and brochures; e-commerce channels, including its website; inventory management solutions; and customer care centers, customer fulfillment centers, regional inventory centers and warehouses. In addition, the company serves individual machine shops, manufacturing companies, and government agencies. MSC Industrial Direct Co., Inc. was founded in 1941 and is headquartered in Melville, New York.

Key Ratios Snapshot
📈 Growth Pattern
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⭐ Superinvestors Holding MSM
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Manager Shares Value % of Fund Period
Steve Cohen Point72 Asset Management 531.4K $49.0M 0.06% Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

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3-Statement Financial Model
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🎙 Management Tone Confident Specific ~ Volatile 4 quarters Full tone analysis in Intelligence →
📊 MIXED MSC Industrial Supply Q2 2026: ADS up 2.9% but below outlook, gross margin expands 10bps to 41.1%, guides Q3 ADS growth 5-7%.
Revenue & Profitability
Fiscal Q2 2026 revenue was $918 million, up 2.9% year-over-year. GAAP EPS was $0.76, adjusted EPS $0.82 (up 14% YoY). Adjusted operating margin was 7.5%, within the guidance range of 7.3%-7.9%. Gross margin improved 10 basis points to 41.1%. Operating cash flow conversion was 224%, free cash flow conversion 173%. Net debt stood at approximately $466 million, or 1.2x EBITDA.
Outlook
Management described the macro environment as 'a tale of two realities.' Positive signs include improving IP readings across top manufacturing end markets and the MBI above 50 for two consecutive months (first time in a multi-year period). However, geopolitical tensions, the war with Iran, and rising fuel costs create uncertainty. For Q3, MSC expects ADS growth of 5%-7% and adjusted operating margin of 9.7%-10.3%, implying volume recovery from sales force changes.
Growth Drivers
Key growth drivers include the ongoing expansion of vending (8% year-over-year ADS growth) and in-plant programs (8% ADS growth). Core customer daily sales grew approximately 6% year-over-year, and National Accounts showed improvement (low-single-digit growth in February, mid-single-digit in March month-to-date). The OEM fastener business grew mid-teens in February and higher in March. Price contributed about 6.5% to daily sales, and the Supplier Growth Forum identified ~$500 million in near- and long-term opportunities.
Balance Sheet & CapEx
Full-year fiscal 2026 capital expenditures (including cloud computing) are expected to be $100-$110 million. Q2 CapEx was ~$21 million, down ~$9 million year-over-year. The company is investing in digital/e-commerce enhancements (noted in depreciation increase), network optimization, and AI to improve planning and procurement. Inventory was proactively built during the quarter.
Margins
Gross margin improved 10 basis points year-over-year to 41.1% in Q2, driven by pricing actions and professionalized pricing. Adjusted operating margin was 7.5%, up 40 basis points YoY. Adjusted operating expenses improved 20 basis points as a percentage of sales, benefiting from headcount reductions and network optimization. For Q3, gross margin is expected ~41%, with adjusted operating margin of 9.7%-10.3% and implied incremental margins of ~25% at the midpoint. Full-year incremental margin target remains ~20%.
Key Risks
Management flagged risks from the sales force restructuring, which caused higher-than-expected attrition and a temporary volume headwind (estimated ~150 bps in Q2). Geopolitical risks include the war with Iran and rising fuel costs, which may lead to supply constraints. Tungsten prices have increased 7%-15% with further pressure expected, and scrap carbide prices rose 500%. The macro recovery remains uncertain, though no demand destruction has been observed yet.
Generated by AI · Q2 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q3 2026 Q3 2026 2026-07-01
Fiscal Q3 saw 7.8% sales growth, margin expansion, and strong gains in vending and implant programs, driven by pricing and early volume recovery. Cost structure improvements and sales force optimization supported higher profitability, with positive industrial trends expected to continue.
Q2 2026 Q2 2026 2026-04-01
Q2 sales grew 2.9% year-over-year, with gross margin up to 41.1% and adjusted EPS rising 14%. Sales force restructuring and pricing actions drove margin gains, while Q3 guidance anticipates 5%-7% sales growth and continued margin expansion.
Q1 2026 Q1 2026 2026-01-07
Fiscal Q1 saw 4% sales growth driven by price, stable gross margins, and strong core customer performance. Guidance calls for continued margin strength and mid-single-digit growth, with cost optimization and supplier partnerships supporting future gains.
Q4 2025 Q4 2025 2025-10-23
Q4 saw a return to sales growth, with core customer and public sector strength offsetting margin pressure from tariffs. Leadership transitions and productivity initiatives position the company for improved margins and mid-single-digit revenue growth in FY26.
Q3 2025 Q3 2025 2025-07-01
Fiscal Q3 saw a 0.8% YoY sales decline but strong sequential growth, with gross margin at 41% and adjusted operating margin at 9%. Growth initiatives and digital enhancements drove improved customer engagement, while tariff and cost pressures remain key risks.
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📊 Analysis Methodology

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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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Information Sources:
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