MSC Industrial Direct Co Stock (NYSE: MSM)

MSC Industrial Direct Co (NYSE:MSM) Stock

MSC Industrial Direct Co

MSC Industrial Direct is one of the largest industrial distributors with a focus on metalworking and maintenance, repair, and operations products and services. The company offers over 2 million products through its distribution network, which has 14 fulfillment or regional inventory centers. Although MSC has a presence in Canada, Mexico, and the United Kingdom, it primarily operates in the United States. In fiscal 2024, 95% of the firm's $3.8 billion of sales was generated in the US.

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MSC Industrial reported Q1 results with net sales of $928.48M, beating consensus. CEO is confident in long-term growth despite soft conditions.

MSC Industrial Beats Q1 Estimates, Eyes Long-Term Growth Amid Near-Term Challenges

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MSC Industrial Direct Gears Up For Q1 Print; Here Are The Recent Forecast Changes From Wall Street&#39;s Most Accurate Analysts

MSC Industrial Direct Company, Inc. Common Stock

MSC Industrial Direct Co Inc

MIMASU SEMICNDCTR IND ORD by Mimasu Semiconductor Industry Co., Ltd.

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MATSUMOTOKIYOSHI HLDG ORD by Matsumotokiyoshi Holdings Co., Ltd.

MatsukiyoCocokara & Co

ETF Series Solutions McElhenny Sheffield Managed Risk ETF

MATSUI CONSTRUCTION CO by MATSUI CONSTRUCTION CO LTD.

MC Endeavors Inc

Wolfe Research analyst Ryan Cooke initiates coverage on MSC Industrial Direct Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MSM#NYSE">MSM</a>) with a Outperform rating and announces Price Target of $95.

Initiation

Wolfe Research Initiates Coverage On MSC Industrial Direct Co with Outperform Rating, Announces Price Target of $95

WIIM

MSC Industrial Direct shares are trading higher after the company reported better-than-expected Q1 financial results.

MSC Industrial Direct Company, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MSM#NYSE">MSM</a>) shares traded higher on Wednesday after the company reported <a target="_blank" href="https://www.benzinga.com/pressreleases/25/01/n42869296/msc-industrial-supply-co-reports-fiscal-2025-first-quarter-results" rel="noreferrer noopener">first-quarter financial results</a>.
Net sales declined 2.7% year-over-year to $928.48 million, beating the consensus of $904.604 million.
Average daily sales declined 2.7% year-over-year. Adjusted gross margin for the quarter was 40.7%, down from 41.2% a year ago.
Adjusted operating income for the quarter declined 28% year over year to $74.6 million, with an operating margin of 8%, down from 10.9% a year ago.
Adjusted EPS of $0.86, down 31.2% from the prior year, <a target="_blank" href="https://www.benzinga.com/earnings" rel="noreferrer noopener">beating the consensus of $0.73.</a>
As of November 30, the company held $57.266 million in cash and equivalents. Operating cash flow for the quarter totaled $101.686 million, up from $81.168 million a year ago.
Erik Gershwind, CEO, noted that near-term macro conditions remain soft, impacted by holiday and fiscal timing in December, but he expressed confidence in long-term growth. He highlighted self-help initiatives like the productivity pipeline and mission-critical strategy to support results as demand normalizes.
Outlook: MSC Industrial expects second-quarter ADS to decline 3%—5% and anticipates an adjusted operating margin of 6.5%- 7.5%.
For FY25, the company expects a free cash flow conversion of ~100% and capital expenditures of ~$100 million—$110 million.
Price Action: MSM shares are trading higher by 3.11% at $82.34 at the last check Wednesday.

<figure class="table"> 
<table>
<tbody>
<tr>
<td colspan="2" rowspan="1">Second Quarter Fiscal 2025 Financial Outlook</td>
</tr>
<tr>
<td colspan="1" rowspan="1">ADS Growth (YoY)</td>
<td colspan="1" rowspan="1">(5.0)% - (3.0)%</td>
</tr>
<tr>
<td colspan="1" rowspan="1">Adjusted Operating Margin1</td>
<td colspan="1" rowspan="1">6.5% - 7.5%</td>
</tr>
</tbody>
</table>
</figure>

MSC Industrial Projects Q2 Fiscal 2025 ADS Decline Of 3%-5% And Operating Margin Of 6.5%-7.5%

MSC Industrial Direct Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MSM#NYSE">MSM</a>) reported quarterly earnings of $0.86 per share which beat the analyst consensus estimate of $0.73 by 17.81 percent. This is a 31.2 percent decrease over earnings of $1.25 per share from the same period last year. The company reported quarterly sales of $928.500 million which beat the analyst consensus estimate of $904.604 million by 2.64 percent. This is a 2.67 percent decrease over sales of $953.969 million the same period last year.

Earnings Beats

MSC Industrial Direct Co Q1 2025 Adj. EPS $0.86 Beats $0.73 Estimate, Sales $928.500M Beat $904.604M Estimate

<h3>Companies Reporting Before The Bell</h3>
• UniFirst (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UNF#NYSE">UNF</a>) is estimated to report quarterly earnings at $2.21 per share on revenue of $606.60 million. 
• Simply Good Foods (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMPL#NASDAQ">SMPL</a>) is projected to report quarterly earnings at $0.46 per share on revenue of $347.32 million. 
• Helen Of Troy (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HELE#NASDAQ">HELE</a>) is likely to report quarterly earnings at $2.58 per share on revenue of $532.91 million. 
• MSC Industrial Direct Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MSM#NYSE">MSM</a>) is likely to report quarterly earnings at $0.73 per share on revenue of $904.59 million. 
• Albertsons Companies (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ACI#NYSE">ACI</a>) is estimated to report quarterly earnings at $0.66 per share on revenue of $18.82 billion. 
• Acuity Brands (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AYI#NYSE">AYI</a>) is estimated to report quarterly earnings at $3.89 per share on revenue of $956.17 million. 
• AngioDynamics (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ANGO#NASDAQ">ANGO</a>) is expected to report quarterly loss at $0.11 per share on revenue of $70.93 million. 
<h3>Companies Reporting After The Bell</h3>
• Jefferies Financial Gr (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JEF#NYSE">JEF</a>) is likely to report quarterly earnings at $1.04 per share on revenue of $1.83 billion. 
• Penguin Solutions (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PENG#NASDAQ">PENG</a>) is expected to report quarterly earnings at $0.39 per share on revenue of $319.99 million. 
• Pricesmart (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PSMT#NASDAQ">PSMT</a>) is projected to report quarterly earnings at $1.29 per share on revenue of $1.24 billion. 
• Greenbrier Companies (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GBX#NYSE">GBX</a>) is projected to report quarterly earnings at $1.15 per share on revenue of $849.51 million. 
• Franklin Covey (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FC#NYSE">FC</a>) is estimated to report quarterly earnings at $0.22 per share on revenue of $70.15 million. 
• Saratoga Investment (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SAR#NYSE">SAR</a>) is projected to report quarterly earnings at $0.84 per share on revenue of $34.90 million. 
• Pure Cycle (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PCYO#NASDAQ">PCYO</a>) is likely to report earnings for its first quarter. 
This article was generated by Benzinga's automated content engine and reviewed by an editor.

ANGO

HELE

PCYO

Penguin Solutions, Inc. - Ordinary Shares

PENG

PSMT

SMPL

Earnings Scheduled For January 8, 2025

MSC Industrial Direct Co., Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MSM#NYSE">MSM</a>) will release its first-quarter financial results, before the <a href="https://www.benzinga.com/quote/msm/earnings">opening bell, on Wednesday, Jan. 8, 2025.</a>
Analysts expect the Melville, New York-based company to report quarterly earnings at 73 cents per share, down from $1.25 per share in the year-ago period. MSC Industrial Direct projects quarterly revenue of $904.59 million, compared to $953.97 million a year earlier, according to data from <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a>.
On Dec. 18, MSC Industrial Supply announced that its board has declared a cash dividend of 85 cents per share.
MSC Industrial Direct shares fell 1.9% to close at $74.80 on Friday.
Benzinga readers can access the latest analyst ratings on the <a href="https://www.benzinga.com/analyst-ratings/analyst-color/22/09/28888638/exclusive-study-finds-benzinga-analyst-ratings-data-yields-market-beating-strategie">Analyst Stock Ratings</a> page. Readers can sort by stock ticker, company name, analyst firm, rating change or other variables.
Let's have a look at how Benzinga's most-accurate <a href="https://www.benzinga.com/quote/MSM/analyst-ratings">analysts have rated the company</a> in the recent period.
<ul>
<li>Stephens &amp; Co. analyst Tommy Moll downgraded the stock from Overweight to Equal-Weight with a price target of $85 on Dec. 4. This analyst has an accuracy rate of 79%.</li>
<li>Baird analyst David Manthey maintained a Neutral rating and increased the price target from $84 to $91 on Oct. 16. This analyst has an accuracy rate of 79%.</li>
<li>Loop Capital analyst Chris Dankert maintained a Hold rating and cut the price target from $80 to $75 on July 3. This analyst has an accuracy rate of 74%.</li>
<li>Keybanc analyst Ken Newman downgraded the stock from Overweight to Sector Weight on June 17. This analyst has an accuracy rate of 74%.</li>
</ul>
Considering buying MSM stock? Here&#8217;s what analysts think:
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MSC Industrial Direct Gears Up For Q1 Print; Here Are The Recent Forecast Changes From Wall Street's Most Accurate Analysts

Stephens &amp; Co. analyst Tommy Moll downgrades MSC Industrial Direct Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MSM#NYSE">MSM</a>) from Overweight to Equal-Weight and maintains the price target from $85 to $85.

Downgrades

Stephens & Co. Downgrades MSC Industrial Direct Co to Equal-Weight, Maintains Price Target to $85

During times of turbulence and uncertainty in the markets, many investors turn to dividend-yielding stocks. These are often companies that have high free cash flows and reward shareholders with a<a href="https://www.benzinga.com/yield-investments"> high dividend payout</a>.
Benzinga readers can review the latest analyst takes on their favorite stocks by visiting <a href="https://www.benzinga.com/analyst-stock-ratings">Analyst Stock Ratings</a> page. Traders can sort through Benzinga's extensive database of analyst ratings, including <a href="https://www.benzinga.com/analyst-ratings/analyst-color/22/09/28888638/exclusive-study-finds-benzinga-analyst-ratings-data-yields-market-beating-strategie">by analyst accuracy</a>.
Below are the ratings of the most accurate analysts for three high-yielding stocks in the industrials sector.
<h3 class="wp-block-heading">MSC Industrial Direct Co., Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MSM#NYSE">MSM</a>)</h3>
<ul>
<li>Dividend Yield: 4.04%</li>
<li>Baird analyst David Manthey maintained a Neutral rating and raised the price target from $84 to $91 on Oct. 16. This analyst has an accuracy rate of 82%.</li>
<li>Loop Capital analyst Chris Dankert maintained a Hold rating and cut the price target from $80 to $75 on July 3. This analyst has an accuracy rate of 78%.</li>
<li>Recent News: On Oct. 24, MSC Industrial Direct Company reported fourth-quarter results. Net sales declined 8.0% year-over-year to $952.3 million, missing the consensus of $959.7 million..</li>
<li>Benzinga Pro's real-time newsfeed alerted to <a href="https://www.benzinga.com/pro/?utm_source=BZprocontent112224&amp;t=be2bearmibe3na1">latest MSM news</a> </li>
</ul>
<figure class="wp-block-image size-full is-resized"><a href="https://www.benzinga.com/pro/?utm_source=BZprocontent112224&amp;t=be2bearmibe3na1"><img loading="lazy" decoding="async" width="892" height="837" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/22074709/image-242.png" alt="" class="wp-image-660841" style="width:725px;height:auto" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/22074709/image-242.png 892w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/22074709/image-242-300x282.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/22074709/image-242-768x721.png 768w" sizes="(max-width: 892px) 100vw, 892px" /></a></figure>
<h3 class="wp-block-heading">Stanley Black &amp; Decker, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SWK#NYSE">SWK</a>)</h3>
<ul>
<li>Dividend Yield: 3.74%</li>
<li>Morgan Stanley analyst Chris Snyder maintained an Equal-Weight rating and cut the price target from $107 to $98 on Oct. 30. This analyst has an accuracy rate of 74%.</li>
<li>Goldman Sachs analyst Joe Ritchie maintained a Neutral rating and raised the price target from $94 to $107 on Oct. 10. This analyst has an accuracy rate of 75%.</li>
<li>Recent News: On Nov. 20, Stanley Black &amp; Decker issued a strategic update, reaffirming its FY24 earnings guidance of $3.90-$4.30 per share.</li>
<li>Benzinga Pro's real-time newsfeed alerted to <a href="https://www.benzinga.com/pro/?utm_source=BZprocontent112224&amp;t=be2bearmibe3na1">latest SWK news</a> </li>
</ul>
<figure class="wp-block-image size-full is-resized"><a href="https://www.benzinga.com/pro/?utm_source=BZprocontent112224&amp;t=be2bearmibe3na1"><img loading="lazy" decoding="async" width="898" height="835" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/22074755/image-243.png" alt="" class="wp-image-660844" style="width:665px;height:auto" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/22074755/image-243.png 898w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/22074755/image-243-300x279.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/22074755/image-243-768x714.png 768w" sizes="(max-width: 898px) 100vw, 898px" /></a></figure>
<h3 class="wp-block-heading">United Parcel Service, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UPS#NYSE">UPS</a>)</h3>
<ul>
<li>Dividend Yield: 4.96%</li>
<li>Citigroup analyst Ariel Rosa maintained a Buy rating and cut the price target from $163 to $158 on Nov. 12. This analyst has an accuracy rate of 76%.</li>
<li>JP Morgan analyst Brian Osssenbeck maintained a Neutral rating and cut the price target from $140 to $139 on Oct. 25. This analyst has an accuracy rate of 73%.</li>
<li>Recent News: On Oct. 24, United Parcel Service reported better-than-expected third-quarter financial results.</li>
<li>Benzinga Pro&#8217;s charting tool helped identify the trend in <a href="https://www.benzinga.com/pro/?utm_source=BZprocontent112224&amp;t=be2bearmibe3na1">UPS stock</a>. </li>
</ul>
<figure class="wp-block-image size-large is-resized"><a href="https://www.benzinga.com/pro/?utm_source=BZprocontent112224&amp;t=be2bearmibe3na1"><img loading="lazy" decoding="async" width="1024" height="481" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/22074858/image-244-1024x481.png" alt="" class="wp-image-660848" style="width:645px;height:auto" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/22074858/image-244-1024x481.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/22074858/image-244-300x141.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/22074858/image-244-768x361.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/22074858/image-244-1536x721.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/22074858/image-244.png 1842w" sizes="(max-width: 1024px) 100vw, 1024px" /></a></figure>
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Dividends

Wall Street's Most Accurate Analysts Give Their Take On 3 Industrials Stocks With Over 3% Dividend Yields

Making a noteworthy insider sell on November 14, Philip Peller, Board Member at MSC Industrial Direct Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MSM#NYSE">MSM</a>), is reported in the latest SEC filing.
What Happened: According to a Form 4 filing with the <a href="https://www.sec.gov/Archives/edgar/data/0001003078/000100307824000155//Archives/edgar/data/1003078/000100307824000155/0001003078-24-000155-index.htm">U.S. Securities and Exchange Commission</a> on Thursday, Peller sold 900 shares of MSC Industrial Direct Co. The total transaction value is $80,163.
During Friday's morning session, MSC Industrial Direct Co shares down by 0.0%, currently priced at $85.45.
<h3>About MSC Industrial Direct Co</h3>
MSC Industrial Direct is one of the largest industrial distributors with a focus on metalworking and maintenance, repair, and operations products and services. The company offers over 2 million products through its distribution network, which has 11 fulfillment centers. Although MSC has a presence in Canada, Mexico, and the United Kingdom, it primarily operates in the United States. In fiscal 2023, 95% of the firm's $4.0 billion of sales was generated in the US.
<h3>MSC Industrial Direct Co: A Financial Overview</h3>
Revenue Challenges: MSC Industrial Direct Co's revenue growth over 3 months faced difficulties. As of 31 August, 2024, the company experienced a decline of approximately -8.03%. This indicates a decrease in top-line earnings. When compared to others in the Industrials sector, the company faces challenges, achieving a growth rate lower than the average among peers.
Interpreting Earnings Metrics:
<ul>
<li>
Gross Margin: The company excels with a remarkable gross margin of 41.02%, indicating superior cost efficiency and profitability compared to its industry peers.
</li>
<li>
Earnings per Share (EPS): With an EPS below industry norms, MSC Industrial Direct Co exhibits below-average bottom-line performance with a current EPS of 0.99.
</li>
</ul>
Debt Management: MSC Industrial Direct Co's debt-to-equity ratio is below the industry average at 0.41, reflecting a lower dependency on debt financing and a more conservative financial approach.
Valuation Metrics:
<ul>
<li>
Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 18.66 is lower than the industry average, indicating potential undervaluation for the stock.
</li>
<li>
Price to Sales (P/S) Ratio: The P/S ratio of 1.26 is lower than the industry average, implying a discounted valuation for MSC Industrial Direct Co's stock in relation to sales performance.
</li>
<li>
EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation &amp; Amortization): MSC Industrial Direct Co's EV/EBITDA ratio at 11.78 suggests potential undervaluation, falling below industry averages.
</li>
</ul>
Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.
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<h3>Exploring the Significance of Insider Trading</h3>
Insider transactions shouldn't be used primarily to make an investing decision, however an insider transaction can be an important factor in the investing decision. 
In the context of legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as outlined by Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are obligated to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.
Pointing towards optimism, a company insider's new purchase signals their positive anticipation for the stock to rise.
Despite insider sells not always signaling a bearish sentiment, they can be driven by various factors.
<h3>Cracking Transaction Codes</h3>
When dissecting transactions, the focal point for <a href="https://www.benzinga.com/money/investing-tools">investors</a> is often those occurring in the open market, meticulously detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C indicates the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.
<a href="https://www.benzinga.com/sec/insider-trades/search/index?company_cik=0001003078">Check Out The Full List Of MSC Industrial Direct Co's Insider Trades.</a>
Insider Buying Alert: Profit from C-Suite Moves
Benzinga Edge reveals every insider trade in real-time. Don't miss the next big stock move driven by insider confidence. Unlock this ultimate sentiment indicator now. <a href="https://www.benzinga.com/premium/ideas/benzinga-edge-checkout/?t=Be8be9arja3be22in8&amp;utm_source=benzinga-insights">Click here for access</a>.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Insider Trades

Board Member At MSC Industrial Direct Co Sells $80K Of Stock

Making a noteworthy insider sell on November 12, Erik Gershwind, Chief Executive Officer at MSC Industrial Direct Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MSM#NYSE">MSM</a>), is reported in the latest SEC filing.
What Happened: Gershwind's decision to sell 50,000 shares of MSC Industrial Direct Co was revealed in a Form 4 filing with the <a href="https://www.sec.gov/Archives/edgar/data/0001003078/000100307824000153//Archives/edgar/data/1003078/000100307824000153/0001003078-24-000153-index.htm">U.S. Securities and Exchange Commission</a> on Tuesday. The total value of the sale is $4,518,000.
The latest update on Wednesday morning shows MSC Industrial Direct Co shares up by 0.96%, trading at $89.6.
<h3>Get to Know MSC Industrial Direct Co Better</h3>
MSC Industrial Direct is one of the largest industrial distributors with a focus on metalworking and maintenance, repair, and operations products and services. The company offers over 2 million products through its distribution network, which has 11 fulfillment centers. Although MSC has a presence in Canada, Mexico, and the United Kingdom, it primarily operates in the United States. In fiscal 2023, 95% of the firm's $4.0 billion of sales was generated in the US.
<h3>Key Indicators: MSC Industrial Direct Co's Financial Health</h3>
Revenue Growth: MSC Industrial Direct Co's revenue growth over a period of 3 months has faced challenges. As of 31 August, 2024, the company experienced a revenue decline of approximately -8.03%. This indicates a decrease in the company's top-line earnings. When compared to others in the Industrials sector, the company faces challenges, achieving a growth rate lower than the average among peers.
Key Profitability Indicators:
<ul>
<li>
Gross Margin: Achieving a high gross margin of 41.02%, the company performs well in terms of cost management and profitability within its sector.
</li>
<li>
Earnings per Share (EPS): MSC Industrial Direct Co's EPS is below the industry average, signaling challenges in bottom-line performance with a current EPS of 0.99.
</li>
</ul>
Debt Management: MSC Industrial Direct Co's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.41.
Evaluating Valuation:
<ul>
<li>
Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 19.56, the stock indicates an attractive valuation, potentially presenting a buying opportunity.
</li>
<li>
Price to Sales (P/S) Ratio: The P/S ratio of 1.32 is lower than the industry average, implying a discounted valuation for MSC Industrial Direct Co's stock in relation to sales performance.
</li>
<li>
EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation &amp; Amortization): The company's EV/EBITDA ratio of 12.29 trails industry averages, indicating a potential disparity in market valuation that could be advantageous for investors.
</li>
</ul>
Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.
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<h3>Why Insider Activity Matters in Finance</h3>
It's important to note that insider transactions alone should not dictate investment decisions, but they can provide valuable insights.
Within the legal framework, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as per Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.
The initiation of a new purchase by a company insider serves as a strong indication that they expect the stock to rise.
However, insider sells may not always signal a bearish view and can be influenced by various factors.
<h3>Transaction Codes To Focus On</h3>
Navigating through the landscape of transactions, <a href="https://www.benzinga.com/money/investing-tools">investors</a> often prioritize those unfolding in the open market, precisely detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.
<a href="https://www.benzinga.com/sec/insider-trades/search/index?company_cik=0001003078">Check Out The Full List Of MSC Industrial Direct Co's Insider Trades.</a>
Insider Buying Alert: Profit from C-Suite Moves
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This article was generated by Benzinga's automated content engine and reviewed by an editor.

MSC Industrial Direct Co Recent Insider Activity

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Shares of industrial distribution companies are trading higher. Investors may be weighing the potential impact of Donald Trump's policies on the sector.

JP Morgan analyst Patrick Baumann maintains MSC Industrial Direct Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MSM#NYSE">MSM</a>) with a Neutral and lowers the price target from $87 to $73.

JP Morgan Maintains Neutral on MSC Industrial Direct Co, Lowers Price Target to $73

MSC Industrial Direct Company, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MSM#NYSE">MSM</a>) shares are trading lower on Thursday after the company reported <a target="_blank" href="https://www.benzinga.com/pressreleases/24/10/n41511871/msc-industrial-supply-co-reports-fiscal-2024-fourth-quarter-and-full-year-results" rel="noreferrer noopener">fourth-quarter results</a>.
Net sales declined 8.0%&nbsp;year-over-year to&nbsp;$952.3&nbsp;million,&nbsp;missing the&nbsp;consensus of&nbsp;$959.7 million.
Average daily sales fell&nbsp;4.7%&nbsp;for the fiscal year due to continued softness in the heavy manufacturing markets, where the company has significant exposure and headwinds from non-repeating orders in the prior year.
Adjusted operating income for the quarter declined&nbsp;27.8% to&nbsp;$94.2 million, with the operating margin compressing to&nbsp;9.9%&nbsp;from&nbsp;12.6%&nbsp;a year ago.
Adjusted EPS of&nbsp;$1.03, down&nbsp;37.2%&nbsp;from the prior year, missed&nbsp;<a target="_blank" href="https://www.benzinga.com/calendars/earnings" rel="noreferrer noopener">the consensus of&nbsp;$1.08</a>.
As of August 31, the company held $29.6 million in cash and cash equivalents. 
On October 10, MSC Industrial raised the cash dividend per share to<a href="https://www.benzinga.com/pressreleases/24/10/n41282198/msc-industrial-supply-co-declares-increase-in-regular-quarterly-dividend" target="_blank" rel="noreferrer noopener"> $0.85 from $0.83</a>. The dividend will be payable on November 27 to shareholders on record as of November 13.
Outlook: MSC Industrial expects first-quarter ADS to decline 5.5% &#8211; 4.5% and anticipates an adjusted operating margin of&nbsp;7.0% &#8211; 7.5%.
For FY25, the company expects free cash flow conversion of ~100% and capital expenditures<a target="_blank" href="https://www.benzinga.com/calendars/guidance" rel="noreferrer noopener"> of&nbsp;~$100 million &#8211; $110 million</a>.
Kristen Actis-Grande, Executive Vice President and Chief Financial Officer, said, &#8220;Near-term visibility remains limited underpinned by uncertainty stemming from the upcoming election and sluggish customer activity levels entering the holiday season. However, we witnessed various improvements for the fiscal year that are leading indicators for future profitability and growth.&#8221;
Investors can gain exposure to the stock via First Trust RBA American Industrial Renaissance ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AIRR#NASDAQ">AIRR</a>) and ALPS O&#8217;Shares U.S. Small-Cap Quality Dividend ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/OUSM#BATS">OUSM</a>).
Price Action: MSM shares are down 4.49% at $77.21 at the last check Thursday.
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MSC Industrial Q4 Misses Consensus, Net Sales Fall 8% Amid Heavy Manufacturing Weakness

<table border="0" cellpadding="1" cellspacing="0">
<tbody>
<tr>
<td colspan="2" rowspan="1">
First Quarter&nbsp;Fiscal 2025 Financial&nbsp;Outlook
</td>
</tr>
<tr>
<td colspan="1" rowspan="1">
ADS Growth (YoY)
</td>
<td colspan="1" rowspan="1">
(5.5)% - (4.5)%
</td>
</tr>
<tr>
<td colspan="1" rowspan="1">
Adjusted Operating Margin1
</td>
<td colspan="1" rowspan="1">
7.0%&nbsp;-&nbsp;7.5%
</td>
</tr>
</tbody>
</table>
Full-Year Fiscal 2025&nbsp;Outlook&nbsp;for Certain Financial Metrics
<ul>
<li>Depreciation and amortization expense of&nbsp;~$90M-$95M</li>
<li>Interest and other expense of&nbsp;~$45M</li>
<li>Capital expenditures of&nbsp;~$100M-$110M</li>
<li>Free cash flow conversion1&nbsp;of ~100%</li>
<li>Tax rate of ~24.5%-25.0%</li>
</ul>
<table border="0" cellpadding="1" cellspacing="0">
<tbody>
<tr>
<td colspan="1" rowspan="1">
(1)&nbsp;Guidance&nbsp;provided is a non-GAAP figure presented on an adjusted basis. For further details see the Non-GAAP financial measures information presented in the schedules accompanying this press release.
</td>
</tr>
</tbody>
</table>

MSC Industrial Supply For Q1 2025 Expects ADS Growth Of (5.5)% - (4.5)%;  Adjusted Operating Margin Of 7.0%-7.5%

MSC Industrial Direct Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MSM#NYSE">MSM</a>) reported quarterly earnings of $1.03 per share which missed the analyst consensus estimate of $1.08 by 4.63 percent. This is a 37.2 percent decrease over earnings of $1.64 per share from the same period last year. The company reported quarterly sales of $952.300 million which missed the analyst consensus estimate of $959.726 million by 0.77 percent. This is a 7.99 percent decrease over sales of $1.035 billion the same period last year.

Earnings Misses

MSC Industrial Direct Co Q4 2024 Adj. EPS $1.03 Misses $1.08 Estimate, Sales $952.300M Miss $959.726M Estimate

MSC Industrial Direct Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MSM#NYSE">MSM</a>) is preparing to release its quarterly earnings on Thursday, 2024-10-24. Here's a brief overview of what investors should keep in mind before the announcement.
Analysts expect MSC Industrial Direct Co to report an earnings per share (EPS) of $1.08.
MSC Industrial Direct Co bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.
New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).
<h3>Past Earnings Performance</h3>
The company's EPS missed by $0.01 in the last quarter, leading to a 1.89% drop in the share price on the following day.
Here's a look at MSC Industrial Direct Co's past performance and the resulting price change:

<table>
<thead>
<tr>
<th>Quarter</th>
<th>Q3 2024</th>
<th>Q2 2024</th>
<th>Q1 2024</th>
<th>Q4 2023</th>
</tr>
</thead>
<tbody>
<tr>
<td>EPS Estimate</td>
<td>1.34</td>
<td>1.16</td>
<td>1.31</td>
<td>1.62</td>
</tr>
<tr>
<td>EPS Actual</td>
<td>1.33</td>
<td>1.18</td>
<td>1.25</td>
<td>1.64</td>
</tr>
<tr>
<td>Price Change %</td>
<td>-2.0%</td>
<td>-2.0%</td>
<td>-0.0%</td>
<td>1.0%</td>
</tr>
</tbody>
</table>

<img src="https://www.benzinga.com/files/images/story/2024/1729695651_0_0.png" alt="eps graph" />
<h3>Performance of MSC Industrial Direct Co Shares</h3>
Shares of MSC Industrial Direct Co were trading at $80.57 as of October 22. Over the last 52-week period, shares are up 44.65%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release. 
<h3>Analyst Observations about MSC Industrial Direct Co</h3>
Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on MSC Industrial Direct Co.
The consensus rating for MSC Industrial Direct Co is Neutral, based on 1 analyst ratings. With an average one-year price target of $91.0, there's a potential 12.95% upside.
<h3>Peer Ratings Comparison</h3>
In this analysis, we delve into the analyst ratings and average 1-year price targets of Air Lease, GATX and Boise Cascade, three key industry players, offering insights into their relative performance expectations and market positioning.
<ul>
<li>The consensus outlook from analysts is an Outperform trajectory for Air Lease, with an average 1-year price target of $53.0, indicating a potential 34.22% downside.</li>
<li>As per analysts' assessments, GATX is favoring an Neutral trajectory, with an average 1-year price target of $140.0, suggesting a potential 73.76% upside.</li>
<li>Boise Cascade received a Buy consensus from analysts, with an average 1-year price target of $143.75, implying a potential 78.42% upside.</li>
</ul>
<h3>Key Findings: Peer Analysis Summary</h3>
Within the peer analysis summary, vital metrics for Air Lease, GATX and Boise Cascade are presented, shedding light on their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

<table>
<thead>
<tr>
<th>Company</th>
<th>Consensus</th>
<th>Revenue Growth</th>
<th>Gross Profit</th>
<th>Return on Equity</th>
</tr>
</thead>
<tbody>
<tr>
<td>MSC Industrial Direct Co</td>
<td>Neutral</td>
<td>-7.12%</td>
<td>$400.45M</td>
<td>5.14%</td>
</tr>
<tr>
<td>Air Lease</td>
<td>Outperform</td>
<td>-0.83%</td>
<td>$195.30M</td>
<td>1.24%</td>
</tr>
<tr>
<td>GATX</td>
<td>Neutral</td>
<td>12.67%</td>
<td>$182.60M</td>
<td>1.90%</td>
</tr>
<tr>
<td>Boise Cascade</td>
<td>Buy</td>
<td>-0.97%</td>
<td>$356.99M</td>
<td>4.92%</td>
</tr>
</tbody>
</table>

Key Takeaway:
MSC Industrial Direct Co ranks in the middle among its peers based on consensus ratings. It is at the bottom for revenue growth, with a negative percentage. In terms of gross profit, it is at the top among its peers. However, its return on equity is in the middle compared to others.
<h3>Delving into MSC Industrial Direct Co's Background</h3>
MSC Industrial Direct is one of the largest industrial distributors with a focus on metalworking and maintenance, repair, and operations products and services. The company offers over 2 million products through its distribution network, which has 11 fulfillment centers. Although MSC has a presence in Canada, Mexico, and the United Kingdom, it primarily operates in the United States. In fiscal 2023, 95% of the firm's $4.0 billion of sales was generated in the US.
<h3>MSC Industrial Direct Co's Financial Performance</h3>
Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.
Revenue Challenges: MSC Industrial Direct Co's revenue growth over 3 months faced difficulties. As of 31 May, 2024, the company experienced a decline of approximately -7.12%. This indicates a decrease in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Industrials sector.
Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 7.32%, the company showcases strong profitability and effective cost control.
Return on Equity (ROE): MSC Industrial Direct Co's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 5.14% ROE, the company effectively utilizes shareholder equity capital.
Return on Assets (ROA): MSC Industrial Direct Co's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 2.89% ROA, the company effectively utilizes its assets for optimal returns.
Debt Management: With a below-average debt-to-equity ratio of 0.41, MSC Industrial Direct Co adopts a prudent financial strategy, indicating a balanced approach to debt management.
<a href="https://www.benzinga.com/quote/MSM/earnings">To track all earnings releases for MSC Industrial Direct Co visit their earnings calendar on our site.</a>
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Earnings Preview For MSC Industrial Direct Co

Baird analyst David Manthey maintains MSC Industrial Direct Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MSM#NYSE">MSM</a>) with a Neutral and raises the price target from $84 to $91.

Baird Maintains Neutral on MSC Industrial Direct Co, Raises Price Target to $91

The&nbsp;dividend is payable on&nbsp;November 27, 2024&nbsp;to shareholders of record at the close of business on&nbsp;November 13, 2024.

MSC Industrial Supply Boosts Quarterly Cash Dividend From $0.83 To $0.85 Per Share

Martina McIsaac to assume responsibility of MSC's day-to-day operations
Erik Gershwind to sharpen focus on MSC's strategy, growth planning and organizational development
MELVILLE, N.Y. and DAVIDSON, N.C., Sept. 24, 2024 /PRNewswire/ -- MSC INDUSTRIAL SUPPLY CO. (NYSE:<a href="https://www.benzinga.com/stock/MSM#NYSE">MSM</a>),&nbsp;a premier distributor of Metalworking and Maintenance, Repair and Operations supplies to industrial customers throughout&nbsp;North America, today announced the promotion of Martina McIsaac to President and Chief Operating Officer, effective September 23, 2024.

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