| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 41 | 29.1x | 17.8x | Around median | |
Growth | 30 | 4.4% | 7.1% | Bottom tier | |
Quality | 72 | 13.1% | 4.5% | Top tier | |
Safety | 81 | 1.1x | 2.6x | Top tier | |
Capital Return | 25 | — | 2.12% | Bottom tier | |
Momentum | 93 | 32.3% | 2.9% | Top tier | |
Sentiment | 76 | 7 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
MSC Industrial Direct Co., Inc. distributes industrial maintenance, repair, and operations supplies, generating revenue from the sale of cutting tools, OEM fasteners, and other products through sales teams, the mscdirect.com platform, and on-site customer sales programs. It also relies on vending and in-plant solutions that place inventory and dispensing tools inside customer facilities; vending sales represented approximately 20% of net sales, while sales to customers enrolled in in-plant programs represented approximately 21% during Q3 fiscal 2026.
In Q3 fiscal 2026, sales reached $1.047 billion, up 7.8% year over year, compared with gross profit of $430.4 million and net income of $80.4 million. Gross margin was 41.1%, up 10 basis points, while reported operating margin increased to 10.2% from 8.5%, and adjusted margin reached 10.6% versus 9% in the comparable period. GAAP earnings per share were $1.44 versus $1.02, while adjusted earnings per share were $1.43, up 32%.
The growth mix was broad across customer types, with daily sales to core customers rising approximately 8%, national accounts approximately 7%, and the public sector approximately 8%, supported by increased defense activity. Daily sales through vending rose 15%, in-plant customer sales increased 16%, and OEM fastener sales grew by more than 15%; however, price remained the primary growth driver, contributing 720 basis points versus only 50 basis points from volume.
Automated analysis for informational purposes only — not investment advice.
The average analyst price target is $145, within a wide range of $130 to $155, while the consensus remains "Neutral." The average and highest targets are above the 52-week range high of $130.46, while the lowest target is close to that high, reflecting optimism about improving margins and productivity balanced by caution regarding growth's reliance on pricing and the execution risks of the cost-reduction plan.
Figures in the text are as of 2026-08-30; the live price is shown at the top of the page.
Sales increased to $1.047 billion, up 7.8% year over year. Price contributed approximately 720 basis points of growth, while volume added only 50 basis points. Daily sales to core customers rose approximately 8%, national accounts approximately 7%, and the public sector approximately 8%.
The number of vending machines reached approximately 30,800 machines in Q3 fiscal 2026, up 7% year over year, while the number of in-plant programs reached approximately 426 programs, an equivalent increase. Daily sales through vending grew 15% and represented approximately 20% of net sales. In-plant customer sales also rose 16% and represented approximately 21% of net sales, making both channels key drivers of growth and customer engagement.
Volumes returned to slightly positive growth across all customer types in Q3 fiscal 2026, after declining approximately 4% in Q2 fiscal 2026. Four of the five largest end markets recorded strong growth, and the automotive sector turned positive in June 2026. Daily sales per vending and in-plant unit also increased at a high-single-digit rate, but management acknowledged that volume growth has not yet reached a strong pace.
Management is targeting a return to a mid-teens operating margin, compared with an adjusted operating margin of 10.6% in Q3 fiscal 2026. Average sales per employee are approximately $570 thousand, versus a targeted benchmark of between $650 thousand and $670 thousand, equivalent to a gap of approximately 1,000 employees at the current sales level. The plan includes growing without a corresponding increase in headcount, reducing manual work through artificial intelligence and automation, and benefiting from the optimized commission structure and freight network.
Management expects average daily sales growth of between 6.5% and 8.5% compared with the corresponding period. It expects a price contribution of between 6.5% and 7% and volume improvement at the midpoint of the sales range, despite the volume comparison becoming approximately 300 basis points more difficult than in Q3 fiscal 2026. It also expects gross margin to decline by 40 to 50 basis points and adjusted operating margin to range between 10% and 10.8%.
The price of tungsten had increased by more than 500% as of the July 1, 2026 call, and management said supplier increases were not over and that it planned a pricing action in Q4 fiscal 2026. In contrast, net debt was approximately $433 million, or about one times earnings before interest, taxes, depreciation, and amortization, and free cash flow conversion exceeded 100% in Q3. Management lowered its fiscal 2026 capital expenditure assumption to approximately $100 million and raised its free cash flow conversion target to approximately 95%.
