MSC Industrial Direct Co., Inc.
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Range $130 – $155
Price Chart
About the company
MSC Industrial Direct Co. , Inc. , along with its affiliated entities, specializes in the distribution of industrial supplies, primarily focusing on metalworking, maintenance, repair, and operations (MRO) products and services.
- CEO
- Martina McIsaac
- IPO
- 1995
- Employees
- 7,181
- HQ
- Melville, NY, US
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Similar companies
Peers in the same neighborhood.
- Market Cap
- $6.58B
- P/E
- 28.46
- Fwd P/E
- 25.54
- PEG
- 1.68
- P/S
- 1.68
- P/B
- 4.63
- EV/EBITDA
- 16.35
- Div Yield
- 2.95%
- Gross Margin
- 40.82%
- Op Margin
- 8.80%
- Net Margin
- 5.90%
- ROE
- 16.55%
- ROIC
- 12.31%
Latest fiscal year · YoY change
- Revenue
- $3.77B-1.3%
- Gross Profit
- $1.54B-2.2%
- Op Income
- $313.73M
- Net Income
- $199.33M-22.9%
- EPS
- $3.57-22.4%
- OCF Growth
- -18.7%
- FCF Growth
- -22.6%
- 52W High
- $130.46
- 52W Low
- $78.80
- 50D MA
- $121.41
- 200D MA
- $99.90
- Beta
- 0.83
- RSI (14)
- 40
- Avg Volume
- 758.79K
Earnings call summaries
Pick a quarter — each call distilled into takeaways, results, and a bull vs bear read.
MSC Industrial Direct reported a better-than-expected fiscal 3Q with 7.8% sales growth, modest margin expansion, and improving volume trends as management leaned into productivity and sales-force changes.· July 1, 2026
- Fiscal 3Q sales were $1.047 billion, up 7.8% year over year, with price contributing 720 bps and volume 50 bps.
- Adjusted operating margin was 10.6% and adjusted EPS was $1.43, both ahead of expectations and above prior-year levels.
- Core customer, national accounts, public sector, vending, and in-plant all improved, with vending/in-plant ADS up mid-teens and machines installed up 7%.
- Management said volume turned positive across customer types in the quarter and believes the sales-force realignment is now behind them.
- 4Q guidance calls for ADS growth of 6.5% to 8.5%, adjusted operating margin of 10.0% to 10.8%, and a normal 40 to 50 bps sequential gross margin decline.
Fiscal 3Q sales were $1.047 billion, up 7.8% year over year. Gross margin was 41.1%, up 10 bps year over year. Reported operating margin was 10.2% versus 8.5% last year; adjusted operating margin was 10.6% versus 9.0% last year. GAAP EPS was $1.44 versus $1.02, and adjusted EPS was $1.43 versus $1.08, up 32%. Price contributed 720 bps to growth and volume contributed 50 bps. For 4Q, management expects ADS growth of 6.5% to 8.5%, gross margin to decline 40 to 50 bps sequentially, and adjusted operating margin of 10.0% to 10.8% with incremental margins in the mid-20s. For the full year, D&A is now expected to be about $100 million, CapEx about $100 million, free cash flow conversion about 95%, interest and other expense about $30 million, and the tax rate 24.5% to 25.5%.
Martina McIsaac emphasized that the company is moving from restructuring into execution, with a focus on sales per rep, volume growth, operating margin expansion, and ROIC. She said the sales-force optimization headwind is largely behind MSC, that sales excellence and onboarding changes are starting to show up in better coverage and cross-selling, and that the business is becoming “fundamentally doing more with less.” Her tone was confident but measured, repeatedly stressing that the company is seeing “singles and doubles,” not yet home runs, while still aiming to restore MSC to a mid-teens operating margin.
Gregory Clark highlighted the quarter’s financial outperformance: sales of $1.047 billion, gross margin of 41.1%, adjusted operating margin of 10.6%, GAAP EPS of $1.44, and adjusted EPS of $1.43. He noted adjusted operating expenses were $319 million, up about $9 million year over year, but down 150 bps as a percent of sales; payroll and payroll-related costs fell to 53.7% of sales from 56.1%. On the balance sheet, net debt was about $433 million, roughly 1x EBITDA, capex was $21 million, and free cash flow conversion was above 100% in the quarter and 94% fiscal year-to-date, with a target of 95% for the year. He also said $49 million was returned to shareholders in 3Q and $160 million year-to-date through dividends and repurchases.
Analysts focused on how much of 4Q guidance was price versus volume, and management said price should be about 6.5% to 7%, implying some volume improvement despite tougher comps. Questions also centered on the sales-force realignment and the internal productivity benchmark; management said the structure work is done and the next phase is driving growth with better onboarding, management processes, and AI/automation. Analysts pressed on the lower sequential incremental margin guide, and management said it mainly reflects timing and anniversaries of prior-year actions, plus freight and D&A headwinds, not a deterioration in the core operating model.
The bull case is that MSC is showing real signs of volume recovery while still generating strong price-led growth, with core customer, national accounts, public sector, vending, and in-plant all improving. Management sounded increasingly confident that the sales-force reset is behind them and that productivity, cross-selling, and pipeline conversion can drive more durable growth and margin expansion over time.
The main bear case is that much of the current growth is still price-driven, especially from tungsten and other inflation, and management is not yet claiming a full volume rebound. 4Q incremental margins are expected to step down into the mid-20s, and management acknowledged ongoing pressure from tougher comps, freight, D&A, and the timing of prior restructuring actions. There is also still a gap between stronger and weaker customer cohorts after the sales-force transition, which management said it is still working to close.
AI summary of the company's earnings call · Paraphrased · Not investment advice
- Free Float
- 81.7%
- Shares Outstanding
- 55.85M
- Float Shares
- 45.62M
of shares held by institutions
424 13F filers
Buy/sell ratio 0.00. Sells can include pre-scheduled 10b5-1 plan sales, not just discretionary selling.
Congressional trading
Senate and House stock disclosures for MSM, newest first.
| Member | Type | Traded | |
|---|---|---|---|
| David PerdueSenate | Sell | Apr 14, 20 | Filing → |
| David PerdueSenate | Sell | Apr 14, 20 | Filing → |
| David PerdueSenate | Buy | Mar 17, 20 | Filing → |
| David PerdueSenate | Buy | Mar 20, 20 | Filing → |
| David PerdueSenate | Buy | Mar 10, 20 | Filing → |
| Greg GianforteHouse · MT00 | Buy | Jan 9, 20 | Filing → |
| David PerdueSenate | Sell | Sep 30, 19 | Filing → |
| David PerdueSenate | Buy | Jul 10, 19 | Filing → |
Source: public STOCK Act disclosures. Filed weeks after the trade — a lagging signal, not a real-time one.
Top institutional holders
Largest 13F positions, with quarter-over-quarter change.
| Holder | Shares | Δ Quarter |
|---|---|---|
| Blackrock, Inc. | 5.56M | ▲ 127.85K |
| Vanguard Group Inc | 4.22M | ▼ 233.08K |
| Vanguard Capital Management LLC | 2.03M | ▲ 24.46K |
| Fuller & Thaler Asset Management, Inc. | 1.89M | ▲ 101.82K |
| American Century Companies Inc | 1.74M | ▼ 869.01K |
| Boston Partners | 1.71M | ▲ 53.89K |
| First Trust Advisors LP | 1.68M | ▼ 96.27K |
| Sixth Street Partners Management Company, L.P. | 1.53M | ▲ 1.53M |
| Charles Schwab Investment Management Inc | 1.53M | ▲ 137.55K |
| State Street Corp | 1.46M | ▲ 52.86K |
| Dimensional Fund Advisors LP | 1.25M | ▼ 109.33K |
| Geode Capital Management, LLC | 1.17M | ▲ 60.92K |
Held by 464 ETFs
Biggest fund positions in MSM by dollar value.
Recent insider transactions
Who's buying, who's selling, and how much.
| Date | Insider | Type | Shares |
|---|---|---|---|
| Jul 20, 26 | Siegel Walter | other | 2,013 |
| Jul 20, 26 | Siegel Walter | other | 0 |
| Apr 7, 26 | JACOBSON MITCHELL | other | 14,972 |
| Mar 2, 26 | Slone Reuben E | other | 0 |
| Feb 5, 26 | PALADINO STEVEN | other | 13,960 |
| Feb 5, 26 | PALADINO STEVEN | other | 13,960 |
| Feb 2, 26 | Seseri Rudina | sell | 1,800 |
| Jan 23, 26 | JACOBSON MITCHELL | other | 1,603 |
| Jan 27, 26 | GERSHWIND ERIK | other | 69,452 |
| Jan 27, 26 | GERSHWIND ERIK | other | 69,452 |
A “Sell” may be a pre-scheduled 10b5-1 plan sale rather than a discretionary decision — read insider selling with that in mind.
Our MSM coverage
Recent articles, reports, and earnings notes.
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