MSC Industrial Direct Co., Inc.
- Open
- 125.56
- Day high
- 125.97
- Day low
- 123.69
- Prev close
- 124.77
- Volume
- 448K
- Mkt cap
- $6.9B
- P/E (TTM)
- 30.0
- EPS (TTM)
- $4.14
- P/B
- 4.9
- P/S
- 1.8
- Yield
- 2.80%
- Per share
- $3.48
MSC Industrial Direct Co., Inc. (MSM) is a Industrials company listed on NYSE. The stock is up 44% over the past year.
MSC Industrial Direct Co., Inc. (MSM) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 3 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
MSM earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Jul 1, 2026 | $1.28 | $1.43 | +11.7% | $1.0B | +1.4% |
| Apr 1, 2026 | $0.84 | $0.82 | -2.4% | $918M | -1.5% |
| Jan 7, 2026 | $0.95 | $0.99 | +4.2% | $966M | +3.6% |
| Oct 23, 2025 | $1.02 | $1.09 | +6.9% | $978M | +1.4% |
| Jul 1, 2025 | $1.03 | $1.08 | +4.9% | $971M | +0.2% |
| Apr 3, 2025 | $0.68 | $0.72 | +5.7% | $892M | -0.9% |
| Jan 8, 2025 | $0.73 | $0.86 | +17.8% | $928M | +2.4% |
| Oct 24, 2024 | $1.08 | $1.03 | -4.6% | $952M | -0.8% |
| Jul 2, 2024 | $1.33 | $1.33 | +0.0% | $979M | +2.0% |
| Jan 9, 2024 | $1.31 | $1.25 | -4.6% | $954M | -1.9% |
| Oct 25, 2023 | $1.62 | $1.64 | +1.2% | $1.0B | +2.9% |
| Apr 4, 2023 | $1.34 | $1.45 | +8.2% | $962M | +3.0% |
MSM insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Feb 2, 2026 | Seseri Rudinadirector | Sell | 1,800 | $86.83 |
| Jan 27, 2026 | PALADINO STEVENdirector | Option | 50 | — |
| Jan 27, 2026 | GERSHWIND ERIKdirector | Grant | 1,603 | — |
| Jan 27, 2026 | PALADINO STEVENdirector | Grant | 1,603 | — |
| Jan 27, 2026 | JACOBSON MITCHELLdirector, 10 percent owner: | Grant | 1,603 | — |
| Jan 27, 2026 | PALADINO STEVENdirector | Option | 695 | — |
| Jan 26, 2026 | Purcell Rahqueldirector | Option | 50 | — |
| Jan 26, 2026 | Purcell Rahqueldirector | Option | 799 | — |
| Jan 26, 2026 | Aarnes Robert Bdirector | Grant | 1,603 | — |
| Jan 26, 2026 | Seseri Rudinadirector | Option | 695 | — |
| Jan 26, 2026 | Kaufmann Michael Cdirector | Option | 695 | — |
| Jan 26, 2026 | Purcell Rahqueldirector | Grant | 1,603 | — |
| Jan 26, 2026 | Purcell Rahqueldirector | Option | 24 | — |
| Jan 26, 2026 | Seseri Rudinadirector | Grant | 1,603 | — |
| Jan 26, 2026 | PALADINO STEVENdirector | Option | 24 | — |
Source: MSM SEC Form 4 filings, latest Feb 2, 2026. For informational purposes only — not investment advice.
See the full MSM insider & 13F page →MSC Industrial Direct Co., Inc. company profile
Overview
MSC Industrial Direct Co., Inc. (NYSE:MSM) is a leading North American distributor of maintenance, repair, and operations (MRO) products and metalworking supplies. Founded in 1941 and headquartered in Melville, New York, the company went public in 1995. MSC serves a diverse customer base ranging from individual machine shops to Fortune 1000 manufacturing companies and government agencies across the United States, Canada, Mexico, and the United Kingdom. The company operates through an extensive distribution network of 28 branch offices, 11 customer fulfillment centers, and seven regional inventory centers, offering approximately 1.9 million stock-keeping units through multiple channels including catalogs, e-commerce platforms, and direct sales.
Business
MSC Industrial Direct operates in the industrial distribution sector, serving as a critical intermediary between manufacturers and end-users of industrial supplies. The company specializes in two primary product categories that are essential for manufacturing operations. Metalworking Products represent a core segment, encompassing cutting tools, measuring instruments, tooling components, abrasives, and raw materials used in machining and manufacturing processes. These products are essential for companies that shape, cut, or form metal components in their production processes. Maintenance, Repair, and Operations (MRO) Products form the other major segment, including fasteners, machinery tools, safety supplies, janitorial supplies, plumbing supplies, materials handling products, power transmission components, and electrical supplies. MRO products are consumable items that keep manufacturing facilities and equipment running efficiently but are not directly incorporated into the final manufactured product. The company serves three distinct customer segments: National Accounts (large Fortune 1000 manufacturers), Core and Other Customers (small to medium-sized businesses and individual shops), and Public Sector (government agencies). Based on recent earnings data, National Accounts and Core Customers each represent roughly 40-45% of revenue, while Public Sector accounts for approximately 10-15% of total sales. The company has been particularly successful in growing its high-touch solutions, with vending programs and in-plant services each representing approximately 17-18% of total sales.
Revenue model
MSC Industrial Direct operates on a traditional distribution business model, generating revenue primarily through product sales with markup pricing. The company purchases industrial products from manufacturers and sells them to end-users at a markup, typically achieving gross margins around 40-41%. Revenue is generated through multiple channels including direct sales, e-commerce platforms, catalog sales, and specialized service programs. The company's vending and in-plant programs represent higher-margin service offerings where MSC installs automated dispensing machines or manages inventory directly at customer facilities. These programs command premium pricing due to the convenience and inventory management services provided, though they require upfront investment and longer payback periods. Several factors significantly impact MSC's profitability margins. Commodity price inflation creates margin pressure when the company cannot immediately pass through supplier cost increases to customers. Product mix heavily influences margins, with metalworking products and specialized solutions typically commanding higher margins than commodity MRO items. Customer concentration affects pricing power, as large national accounts often negotiate volume discounts while smaller core customers may accept standard pricing. Competitive dynamics in industrial distribution are intensifying, with both traditional distributors and e-commerce platforms pressuring margins. Supplier relationships impact both cost structure and product availability, while operational efficiency in logistics and inventory management directly affects the cost to serve customers. The company's ongoing productivity initiatives target $10-15 million in annual savings through network optimization and technology improvements.
Competitive moat
MSC Industrial Direct possesses a moderate competitive moat built primarily on operational scale, customer relationships, and specialized expertise, though this moat faces increasing pressure from digital disruption. The company's extensive distribution network and inventory breadth create significant barriers to entry, as competitors would need substantial capital investment to replicate MSC's 28 branches and 11 fulfillment centers serving 1.9 million SKUs. Customer switching costs provide some protection, particularly for vending and in-plant programs where MSC integrates deeply into customer operations. These programs create operational dependencies that make switching distributors disruptive and costly for customers. The company's technical expertise in metalworking applications also creates value that pure commodity distributors cannot easily replicate. However, MSC's moat is not particularly strong compared to other industries. E-commerce platforms like Amazon Business are increasingly competitive in standard MRO products, offering superior convenience and often better pricing for commodity items. Direct manufacturer sales represent another threat, as suppliers may choose to bypass distributors for large customers. Digital natives in industrial distribution are leveraging technology to offer more efficient ordering and inventory management solutions. The company's competitive position is strongest in complex metalworking applications requiring technical expertise and in high-touch service programs. However, for commodity MRO products that represent a significant portion of sales, the moat is relatively narrow and vulnerable to price-based competition and digital disruption.
Risks & safety
MSC Industrial Direct demonstrates a moderate margin of safety with stable but not exceptional financial metrics. • Liquidity and Solvency: Current ratio of 1.92 and quick ratio of 0.88 indicate adequate short-term liquidity. Cash position of $41 million is relatively modest but supported by strong operating cash flow generation of $410 million annually. • Debt Management: Debt-to-equity ratio of 0.43 represents manageable leverage levels. The company maintains investment-grade credit metrics with no immediate solvency concerns. • Valuation Metrics: Trading at 28.5x P/E ratio and 15.5x EV/EBITDA, indicating full valuation relative to current earnings. Price-to-book ratio of 3.3x suggests limited asset-based downside protection. • Profitability Trends: Operating margins have compressed from over 12% to approximately 7-8% due to competitive pressures and macro headwinds. Return on equity of 2.9% is well below historical levels. • Cash Generation: Free cash flow of $311 million annually provides financial flexibility, though this has declined from peak levels of over $600 million in fiscal 2023.
Recent development
Over the past few years, MSC has executed a comprehensive strategic transformation called the "Mission-Critical" program focused on three key pillars: maintaining momentum in high-touch solutions, re-energizing core customer growth, and optimizing operational costs. The company has significantly expanded its vending and in-plant programs, growing the installed vending machine base to over 27,000 units and increasing in-plant program locations by 29% to 342 sites. These programs now represent approximately 35% of total sales and command premium margins due to their integrated service model. Digital transformation initiatives have been a major focus, though implementation has faced challenges. The company completed a comprehensive website overhaul in early 2025, improving product discovery, streamlining the customer buying journey, and reducing checkout clicks by 50%. However, earlier web pricing realignment efforts in 2024 created temporary gross margin disruptions that required corrective action. Network optimization represents another key initiative, with MSC closing underperforming distribution centers and streamlining supply chain operations to generate $10-15 million in annual cost savings. The company has also redesigned sales territories and expanded customer coverage to improve sales effectiveness. In response to potential tariff impacts, MSC has developed a comprehensive preparedness strategy including inventory pre-positioning, expanding its portfolio of Made in USA products (over 200,000 SKUs), and developing 40,000 exclusive branded products to differentiate from competitors.
MSM company profile · for informational purposes only — not investment advice.
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