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MSC Industrial Direct Co., Inc. (NYSE:MSM), together with its subsidiaries, operates as a direct marketer and distributor of metalworking and maintenance, repair, and operations (MRO) products to industrial customers in the United States. It offers approximately 600,000 stock-keeping units representing a range of MRO products, including cutting tools; measuring instruments; tooling components; metalworking products; fasteners; flat stock; raw materials; abrasives; machinery hand and power tools; safety and janitorial supplies; plumbing supplies; materials handling products; power transmission components; and electrical supplies.

It is scheduled to report its Q3 2012 results on June 28, 2012, before the market opens.

Technical Overview


Key Metrics

  • Market Cap: 4.14B
  • 52-week trading range: 49.72 - 84.76
  • Trailing P/E: 17.27
  • Forward P/E: 13.97
  • Price/Sales: 1.90
  • Price/Book: 3.73
  • PEG Ratio: 1.05
  • Total Debt: 4.16M
  • Annual dividend yield: 1.50%
  • Return on Equity: 23.55%
  • Return on Assets: 19.31%

Recent EPS Actuals vs. Estimates

The company has met or beaten analysts' estimates in the last four quarters. In the last quarter it reported $0.95 EPS, in-line with analyst estimates.

The consensus EPS is $1.11 based on 12 analysts' estimates, up from $0.97 a year ago. Revenue estimates are $618.19M, up from $532.37M a year ago. The median target price by analysts for the stock is $87.00.

Average recommendation: Overweight

Source: Marketwatch

Analyst Upgrades and Downgrades

  • On June 17, 2012, Longbow initiated Buy rating for the company.
  • On June 12, 2012, Wunderlich reiterated Buy rating for the company.
  • On May 24, 2012, Wunderlich initiated Buy rating for the company.
  • On April 5, 2012, Barclays reiterated Overweight rating for the company.
  • On January 6, 2012, Barclays Capital reiterated Overweight rating for the company.

Latest Developments

  • On June 19, 2012, MSC Industrial Direct, Co., Inc. announced that the maintenance, repair, and operations distributors has teamed up with Ariba, Inc. to create an efficient, consumer-like shopping experience that enables its customers around the world to quickly find, buy and receive the goods they need.
  • On April 4, 2012, MSC Industrial Direct, Co., Inc. announced that for the third quarter of 2012, it expects net sales to be between $610 million and $622 million, and diluted earnings per share (EPS) to be between $1.08 and $1.12.
  • On January 24, 2012, MSC Industrial Direct, Co., Inc. announced that it has signed a definitive agreement to acquire the assets and assume certain liabilities of ATS Industrial Supply, Inc.

Competitors

MSC Industrial Direct Co. Inc. operates in Industrial Equipment Wholesale industry. The company could be compared to Fastenal Company (NASDAQ:FAST), W.W. Grainger, Inc. (NYSE:GWW), United Rentals, Inc. (NYSE:URI), and WESCO International Inc. (NYSE:WCC). Below is the table comparison of the most important ratios between these companies and the industry.

Below is the chart comparison with the stock price changes as a percentage for the selected companies and S&P 500 index for the last one year period.

(click to enlarge)MSM Chart

MSM data by YCharts

Competitors' Latest Development

  • On June 12, 2012, W.W. Grainger, Inc. announced that for fiscal 2012, it expects 17% of earnings per share growth on that of 13% sales growth. The Company reported EPS of $9.04 and revenues of $8.078 billion in fiscal 2011.
  • On June 7, 2012, Wesco International Inc announced that WESCO Distribution, Inc., through its wholly owned Canadian subsidiary, has entered into a definitive agreement to acquire Trydor Industries (Canada), Ltd., headquartered in Surrey, British Columbia.
  • On May 8, 2012, W.W. Grainger, Inc. reaffirmed its fiscal 2012 revenue guidance and expects sales growth to be between 12% to 14% and expects EPS of $10.40 to $10.80. The Company reported revenues of $8.078 billion in fiscal 2011.
  • On April 19, 2012, Wesco International Inc announced that for fiscal 2012, it raises sales guidance to 8% to 12% growth. The Company reported revenue of $6.125 billion in fiscal 2011.
  • On April 17, 2012, W.W. Grainger, Inc. announced that it is increasing fiscal 2012 guidance to reflect 12% to 14% sales growth and earnings per share of $10.40 to $10.80.
  • On April 3, 2012, W.W. Grainger, Inc. announced that it has acquired 100% of the shares of AnFreixo S.A., effective April 2, 2012. With 2011 sales of approximately $37M USD, AnFreixo is a leading broad line distributor of maintenance, repair and operating supplies in Brazil.
  • On March 9, 2012, United Rentals, Inc. announced that its subsidiary, UR Financing Escrow Corporation, has completed offerings of $1,325 million aggregate principal amount of its 7.625% senior unsecured notes due 2022, $750 million aggregate principal amount of its 7.375% senior unsecured notes due 2020 and $750 million aggregate principal amount of its 5.75% senior secured notes due 2018.
  • On March 5, 2012, W.W. Grainger, Inc. announced that it is fiscal 2012 sales of between $8.8 billion and $9.2 billion and earnings per share of between $9.90 to $10.65 a share.
  • On February 24, 2012, United Rentals, Inc. announced that its subsidiary, UR Financing Escrow Corporation has priced offerings of $1,325 million aggregate principal amount of its 7.625% senior unsecured notes due 2022, $750 million aggregate principal amount of its 7.375% senior unsecured notes due 2020 and $750 million aggregate principal amount of its 5.75% senior secured notes due 2018.
  • On February 21, 2012, United Rentals, Inc. announced that its subsidiary, UR Financing Escrow Corporation (UR Financing) is offering $1,550 million aggregate principal amount of senior unsecured notes and $650 million aggregate principal amount of senior secured notes, in each case to qualified institutional buyers in accordance with Rule 144A under the Securities Act of 1933, as amended (Securities Act) and outside the United States in accordance with Regulation S under the Securities Act.
  • On February 15, 2012, United Rentals, Inc. announced that it has acquired the assets of Coble Trench Safety, a company in specialty rentals, with 11 locations in the Mid-Atlantic and Southeast region.
  • On February 6, 2012, Wesco International Inc announced that Richard P. Heyse is no longer Vice President, Chief Financial Officer (NASDAQ:CFO) of WESCO International Inc (Company) effective February 3, 2012.
  • On January 26, 2012, WESCO International, Inc. announced that for fiscal 2012, it expects sales growth to be in the range of 7%-11%. The Company reported revenue of $6.125 billion in fiscal 2011.
  • On January 25, 2012, W.W. Grainger, Inc. reiterated fiscal 2012 sales and earnings guidance issued on November 16, 2011. For fiscal 2012, the Company is forecasting sales growth of 10% to 14% and earnings per share of $9.90 to $10.65.
  • On January 4, 2012, WESCO International, Inc. announced that a subsidiary of WESCO Distribution, Inc., has completed the previously announced acquisition of RS Electronics.

Sources: Yahoo Finance, Google Finance, Marketwatch, Finviz, Reuters.

Source: Earnings Preview: MSC Industrial Direct