MSC Industrial Direct (NYSE: MSM)
QVI Research Report | Updated Coverage | December 2023
Summary:
An underfollowed small-cap, MSC Industrial Direct continues to outperform the broader market, distributing metalworking and maintenance, repair, and operations products and services with growth and profitability.
The company's current wealth analysis uncovers bullish ratings in its value proposition, returns on management, and enterprise downside risks.
The stock price's present value suggests its shares are trading at a discounted price.
QVI maintains its Expanded Portfolio coverage rating of MSC Industrial Direct in this updated research report.
When referencing this research report, access your Quality Value Investing (QVI) Glossary of Investing Terms and Metric Targets. Unless noted, all data presented is sourced from Seeking Alpha Premium as of the market close on December 5, 2023, and intended for illustration only.
The stock picks in the QVI Real-Time Model Portfolios have achieved alpha for 14 years by focusing research and analysis solely on a company’s current wealth and its share price’s present value. In other words, just the facts without unreliable predictive analysis typical of the buy-side or the business modeling overkill of the sell-side on Wall Street.
In this updated QVI Research Report, we'll look at the Expanded Stock Picks Real-Time Portfolio industrials sector holding MSC Industrial Direct Co., Inc. to see if it continues to meet Quality Value Investing's active portfolio inclusion criteria based on our checklist analysis of the business's current wealth and its stock's present value.
MSC Industrial Direct: Current Wealth
To uncover the current wealth of the company, QVI defines the value proposition, measures select returns on management, and assesses enterprise downside risks.
Value Proposition
QVI Research Report's value proposition section provides a brief synopsis of the company's business model, major-exchange listing, stock symbol, market capitalization, and dividend-paying status. In addition, it defines the competitive advantages of a company's products or services to its customers compared to the industry, including the stock's historical performance vs. the sector and market.
MSC Industrial Direct Co., Inc. MSM 0.00%↑ is a dividend-paying small-cap stock in the industrials sector's trading companies and distributors industry. MSM was added to the QVI Portfolios on November 9, 2022, at a split and dividend-adjusted $79.38 a share.
MSC Industrial Direct Co., Inc., together with its subsidiaries, distributes metalworking and maintenance, repair, and operations [MRO] products and services in the United States, Canada, Mexico, the United Kingdom, and internationally.
The company’s MRO products include cutting tools, measuring instruments, tooling components, metalworking products, fasteners, flat stock products, raw materials, abrasives, machinery hand and power tools, safety and janitorial supplies, plumbing supplies, materials handling products, power transmission components, and electrical supplies. It offers stock-keeping units through its catalogs and brochures; e-commerce channels, including its website, mscdirectdotcom; inventory management solutions; and customer care centers, customer fulfillment centers, regional inventory centers, and warehouses. 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, USA.
QVI's value proposition elevator pitch for MSC Industrial Direct Co.:
MSC Industrial Direct is an underfollowed small-cap that continues to outperform its sector and the broader market, distributing metalworking and maintenance, repair, and operations products and services with growth and profitability.
Due Diligence Resources
For a more in-depth analysis of the all-important value proposition, visit MSC Industrial Direct Co.'s investor relations webpage and its most recent Form 10-K Annual Report submitted to the US Securities and Exchange Commission or SEC.
Performance vs. Sector and Market
The chart below illustrates MSC Industrial Direct Co.'s performance against the Industrials Select Sector SPDR® Fund ETF (NYSE: XLI) and the SPDR® S&P 500 ETF Trust (NYSE: SPY) since being added to the QVI Portfolios on November 9, 2022. MSM has outperformed its sector and broader market during its first 13 months as a QVI holding.
QVI's value proposition rating for MSC Industrial Direct: Bullish.
Next, we’ll look at the company’s returns on management and enterprise downsize risks, the share price’s present value, and the investment thesis.