Latest Ratios: P/E Ratio 34.8x · EV/EBITDA 18.4x · ROE 14.2%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $6.9B | $5.0B | $4.6B | $5.7B | $4.4B | $4.8B | $3.7B | $3.8B | $4.8B | $3.9B | $4.5B |
| Enterprise Value | $7.4B | $5.5B | $5.2B | $6.2B | $5.2B | $5.6B | $4.3B | $4.2B | $5.3B | $4.4B | $5.0B |
| P/E Ratio → | 34.76 | 25.27 | 17.96 | 16.64 | 12.97 | 22.05 | 14.78 | 13.00 | 14.71 | 17.01 | 19.37 |
| P/S Ratio | 1.84 | 1.34 | 1.21 | 1.43 | 1.19 | 1.48 | 1.16 | 1.12 | 1.51 | 1.36 | 1.56 |
| P/B Ratio | 4.97 | 3.61 | 3.31 | 3.83 | 3.23 | 4.12 | 2.81 | 2.53 | 3.49 | 3.20 | 4.06 |
| P/FCF | 28.77 | 20.94 | 14.91 | 9.41 | 23.83 | 28.04 | 10.60 | 13.57 | 16.45 | 19.59 | 14.24 |
| P/OCF | 20.77 | 15.11 | 11.30 | 8.17 | 17.89 | 21.33 | 9.35 | 11.43 | 14.27 | 15.90 | 11.12 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 1.47 | 1.36 | 1.54 | 1.41 | 1.72 | 1.33 | 1.24 | 1.67 | 1.54 | 1.75 |
| EV / EBITDA | 18.35 | 13.68 | 10.60 | 10.92 | 9.28 | 13.03 | 9.27 | 8.39 | 11.02 | 10.06 | 11.21 |
| EV / EBIT | 23.63 | 19.21 | 14.06 | 12.92 | 11.14 | 18.43 | 12.13 | 10.41 | 12.69 | 11.68 | 13.28 |
| EV / FCF | — | 22.94 | 16.64 | 10.19 | 28.25 | 32.71 | 12.18 | 15.05 | 18.11 | 22.17 | 16.01 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 40.8% | 40.8% | 41.1% | 41.0% | 42.2% | 41.1% | 39.9% | 42.6% | 43.5% | 44.5% | 45.0% |
| Operating Margin | 8.3% | 8.3% | 10.6% | 12.3% | 12.9% | 10.5% | 11.5% | 12.8% | 13.2% | 13.1% | 13.1% |
| Net Profit Margin | 5.3% | 5.3% | 6.8% | 8.6% | 9.2% | 6.7% | 7.9% | 8.6% | 10.3% | 8.0% | 8.1% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 14.2% | 14.2% | 17.9% | 24.0% | 26.9% | 17.5% | 17.9% | 20.1% | 25.2% | 19.9% | 19.0% |
| ROA | 8.1% | 8.1% | 10.3% | 13.0% | 13.1% | 9.0% | 10.7% | 12.6% | 15.0% | 11.1% | 11.1% |
| ROIC | 12.3% | 12.3% | 15.6% | 17.8% | 17.2% | 13.4% | 14.7% | 17.2% | 17.5% | 16.7% | 16.7% |
| ROCE | 17.5% | 17.5% | 21.6% | 25.2% | 24.3% | 17.6% | 19.2% | 23.5% | 25.2% | 24.2% | 23.0% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.39 | 0.39 | 0.41 | 0.35 | 0.63 | 0.72 | 0.51 | 0.30 | 0.39 | 0.44 | 0.55 |
| Debt / EBITDA | 1.33 | 1.33 | 1.16 | 0.92 | 1.53 | 1.95 | 1.47 | 0.89 | 1.11 | 1.21 | 1.36 |
| Net Debt / Equity | — | 0.35 | 0.38 | 0.32 | 0.60 | 0.68 | 0.42 | 0.28 | 0.35 | 0.42 | 0.50 |
| Net Debt / EBITDA | 1.19 | 1.19 | 1.10 | 0.83 | 1.45 | 1.86 | 1.20 | 0.83 | 1.01 | 1.17 | 1.24 |
| Debt / FCF | — | 2.00 | 1.73 | 0.78 | 4.42 | 4.66 | 1.57 | 1.48 | 1.66 | 2.58 | 1.77 |
| Interest Coverage | 11.95 | 11.95 | 14.30 | 21.23 | 26.63 | 20.87 | 21.05 | 23.68 | 29.08 | 30.75 | 65.01 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.68 | 1.68 | 1.96 | 2.03 | 2.13 | 2.34 | 3.03 | 2.68 | 2.34 | 1.80 | 2.05 |
| Quick Ratio | 0.80 | 0.80 | 0.90 | 0.91 | 1.14 | 1.23 | 1.70 | 1.43 | 1.28 | 0.97 | 1.12 |
| Cash Ratio | 0.08 | 0.08 | 0.05 | 0.08 | 0.06 | 0.07 | 0.31 | 0.07 | 0.09 | 0.03 | 0.11 |
| Asset Turnover | — | 1.53 | 1.55 | 1.58 | 1.35 | 1.32 | 1.34 | 1.46 | 1.40 | 1.38 | 1.39 |
| Inventory Turnover | 3.47 | 3.47 | 3.49 | 3.26 | 2.98 | 3.06 | 3.53 | 3.45 | 3.49 | 3.44 | 3.54 |
| Days Sales Outstanding | — | 40.99 | 39.37 | 39.64 | 67.98 | 63.07 | 56.22 | 58.71 | 59.68 | 59.63 | 50.03 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 2.7% | 3.8% | 4.0% | 3.1% | 3.8% | 3.5% | 12.0% | 3.9% | 2.6% | 2.6% | 2.4% |
| Payout Ratio | 95.1% | 95.1% | 72.4% | 51.5% | 49.3% | 77.1% | 176.9% | 50.4% | 38.1% | 44.2% | 45.7% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 2.9% | 4.0% | 5.6% | 6.0% | 7.7% | 4.5% | 6.8% | 7.7% | 6.8% | 5.9% | 5.2% |
| FCF Yield | 3.5% | 4.8% | 6.7% | 10.6% | 4.2% | 3.6% | 9.4% | 7.4% | 6.1% | 5.1% | 7.0% |
| Buyback Yield | 0.6% | 0.8% | 4.0% | 1.7% | 0.6% | 1.5% | 0.1% | 2.3% | 1.7% | 1.3% | 8.6% |
| Total Shareholder Yield | 3.3% | 4.5% | 8.1% | 4.8% | 4.4% | 5.0% | 12.1% | 6.1% | 4.3% | 3.9% | 11.0% |
| Shares Outstanding | — | $56M | $56M | $56M | $56M | $56M | $56M | $56M | $57M | $57M | $61M |
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying MSM stock.
MSC Industrial Direct Co., Inc.'s current P/E ratio is 34.8x. The historical average is 21.3x. This places it at the 97th percentile of its historical range.
MSC Industrial Direct Co., Inc.'s current EV/EBITDA is 18.4x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 12.1x.
MSC Industrial Direct Co., Inc.'s return on equity (ROE) is 14.2%. The historical average is 18.2%.
Based on historical data, MSC Industrial Direct Co., Inc. is trading at a P/E of 34.8x. This is at the 97th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
MSC Industrial Direct Co., Inc.'s current dividend yield is 2.73% with a payout ratio of 95.1%.
MSC Industrial Direct Co., Inc. has 40.8% gross margin and 8.3% operating margin.
MSC Industrial Direct Co., Inc.'s Debt/EBITDA ratio is 1.3x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
Manufacturing demand cyclicality
Metrics are mathematically derived from official filings.
Margin Compression Reflects Mix Shift
Gross margin held at 41.1% in 2026Q3, but operating margin fell to 10.2% from 11.4% a year earlier, as per reported financials. This suggests pricing power is eroding amid a shift toward national accounts.
The stability in gross margin masks a deterioration in operating efficiency, with SG&A expenses rising 12% over two years while revenue declined. This implies that the company's technical service model is becoming costlier to maintain, potentially due to increased investment in digital capabilities and a higher proportion of large, price-sensitive customers. Investors should monitor whether this is a temporary investment phase or a structural change in the competitive landscape.
Return on Capital Stuck in Low Single Digits
ROIC has hovered between 2.5% and 4.2% over the past ten quarters, with 2026Q3 at 4.2%, as reported in financial statements. This suggests the company is not compounding returns on invested capital, reflecting margin pressure and a high asset base.
The low and volatile ROIC, despite a stable balance sheet, indicates that the company's investments in vending machines and technical sales force are not yet generating incremental returns. The recent uptick in ROIC to 4.2% from 2.5% in 2025Q2 may signal early benefits from cost controls, but it remains far below the cost of capital. This suggests that the market's premium valuation is not supported by current return generation, and investors should question the efficiency of capital deployment.
Working Capital Cycle Lengthens Slightly
Cash conversion cycle rose to 101 days in 2026Q3 from 113 days in 2026Q2, but remains elevated versus historical levels, based on reported figures. This indicates that inventory and receivables are tying up more cash relative to payables.
The slight improvement in CCC is driven by a reduction in DSO to 34 days and DIO to 100 days, but DPO remains low at 33 days, suggesting limited supplier leverage. The company's inventory levels are high relative to sales, which is typical for a distributor but may expose it to obsolescence risks in a soft demand environment. The efficiency gains in receivables collection are positive, but the overall cycle remains long, implying that working capital management is not a source of competitive advantage.
Leverage Comfortable but Rising
Debt-to-EBITDA increased to 4.19x in 2026Q3 from 4.32x a year earlier, while interest coverage improved to 20.37x, as per recent filings. This suggests that debt service remains comfortable, but leverage is elevated for a distributor.
The absolute level of debt is stable, but the decline in EBITDA has pushed the leverage ratio higher, though it remains manageable. Interest coverage of 20x provides ample cushion, but the trend in D/EBITDA warrants monitoring if operating margins continue to compress. The company's moderate leverage, with a D/E of 0.39, indicates a conservative capital structure, but the rising ratio suggests that earnings are not growing fast enough to offset debt.
Liquidity Buffer Thins as Current Ratio Declines
Current ratio fell to 1.55 in 2026Q3 from 2.08 in 2024Q3, while quick ratio dropped to 0.72, as reported in financial statements. This suggests a reduced ability to cover short-term obligations without relying on inventory sales.
The declining current ratio, driven by a rise in current liabilities relative to current assets, indicates a tightening liquidity position. The quick ratio below 1.0 implies that the company would struggle to meet immediate obligations if inventory became illiquid. However, the company's stable cash flow generation and access to credit lines may mitigate this risk, but investors should monitor the trend as it could signal increased financial stress in a prolonged downturn.
P/E Misleads on Cyclical Earnings
The trailing P/E of 34.57 appears expensive, but it is distorted by depressed earnings at the trough of the cycle, as per current valuation data. Investors should use normalized earnings or EV/EBITDA to assess value.
The P/E ratio is commonly misapplied to cyclical companies like MSM because earnings are currently suppressed by the manufacturing downturn, making the multiple artificially high. A more appropriate metric is EV/EBITDA, which at 18.26x still appears rich relative to peers like GWW at 23.03x, but it better reflects the company's operating performance. Additionally, the forward P/E of 26.75 suggests the market expects earnings recovery, but if the cyclical downturn persists, this multiple could expand further. Investors should focus on the sustainability of margins and the potential for operating leverage recovery rather than the trailing P/E.