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MSC Industrial Direct CoMSM +2.09%81 Debt-to-Equity is 0.39 as of May. 2026, which is 9% below its 10-year median of 0.43. GuruFocus rates MSM with a GF Score™ of 81/100 and a GF Value™ of $92.83 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 148 Industrial Distribution companies, MSC Industrial Direct Co ranks better than 54.05% on this metric.
A high debt to equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense.
The historical rank and industry rank for MSC Industrial Direct Co's Debt-to-Equity or its related term are showing as below:
MSM'
s Debt-to-Equity Range Over the Past 10 Years
Min: 0.3 Med: 0.43 Max: 0.8
Current: 0.39
During the past 13 years, the highest Debt-to-Equity Ratio of MSC Industrial Direct Co was 0.80. The lowest was 0.30. And the median was 0.43.
MSM's Debt-to-Equity is ranked better than 54.05% of 148
companies
in the Industrial Distribution industry
Industry Median: 0.5
vs MSM: 0.39
Because a company can increase its ROE % by having more financial leverage, it is important to watch the leverage ratio when investing in high ROE % companies.
MSC Industrial Direct Co Debt-to-Equity Related Terms
MSC Industrial Direct Co Debt-to-Equity Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Industrial Distribution subindustry, MSC Industrial Direct Co's Debt-to-Equity, along with its competitors' market caps and Debt-to-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
MSC Industrial Direct Co Debt-to-Equity vs Industrial Distribution Industry
For the Industrial Distribution industry and Industrials sector, MSC Industrial Direct Co's Debt-to-Equity distribution charts can be found below:
* The bar in red indicates where MSC Industrial Direct Co's Debt-to-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
MSC Industrial Direct Co (MSM) has a Debt-to-Equity of 0.39 as of May. 2026. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on MSC Industrial Direct Co and its competitors. This is near median its historical median of 0.43. Over the past decade, MSC Industrial Direct Co's Debt-to-Equity has ranged from 0.30 to 0.80. According to the industry distribution chart, MSC Industrial Direct Co ranks #68 out of 148 companies in the Industrial Distribution industry, placing it in the top 45.9%.
Is MSC Industrial Direct Co's Debt-to-Equity too high?
MSC Industrial Direct Co's current Debt-to-Equity of 0.39 is near median its 10-year median of 0.43. Over the past 10 years, this metric has ranged from a low of 0.30 to a high of 0.80. The Industrial Distribution industry median Debt-to-Equity is 0.50. MSC Industrial Direct Co's value of 0.39 is 22% below this industry median. Based on the distribution chart, MSC Industrial Direct Co ranks #68 out of 148 companies in the Industrial Distribution industry, which is above the industry midpoint. Overall, MSC Industrial Direct Co has a GF Score™ of 81/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does MSC Industrial Direct Co's Debt-to-Equity compare to POOL and CNM?
According to the Industrial Distribution industry distribution chart, MSC Industrial Direct Co ranks #68 out of 148 companies for Debt-to-Equity. This puts MSC Industrial Direct Co in the upper half of its industry. The industry median Debt-to-Equity is 0.50. MSC Industrial Direct Co's value of 0.39 is 22% below this benchmark. Historically, MSC Industrial Direct Co's own Debt-to-Equity has ranged from 0.30 to 0.80 over the past decade. While the company's 10-year median is 0.43 vs. the industry median of 0.50, MSC Industrial Direct Co has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-Equity for an Industrial Distribution company?
The median Debt-to-Equity among Industrial Distribution companies is 0.50, based on 148 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-Equity significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. MSC Industrial Direct Co's current Debt-to-Equity of 0.39 is 22% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-Equity mean?
A high Debt-to-Equity can signal that a stock is expensive relative to its fundamentals. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on MSC Industrial Direct Co and its competitors. For the Industrial Distribution industry, the median Debt-to-Equity is 0.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. MSC Industrial Direct Co's current Debt-to-Equity is 0.39, which is near median its own 10-year median of 0.43. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is MSC Industrial Direct Co stock overvalued right now?
Based on GuruFocus' analysis, MSC Industrial Direct Co (MSM) is currently considered Significantly Overvalued. The stock's GF Value™ is $92.83, compared to a current price of $123.82 — trading 33.4% above its estimated fair value. The current Debt-to-Equity is 0.39, which is near median its 10-year median of 0.43 and 22% below the Industrial Distribution industry median of 0.50. MSC Industrial Direct Co's overall GF Score™ is 81/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-Equity calculated?
Debt-to-Equity is calculated from a company's financial statements. For MSC Industrial Direct Co (MSM), the current Debt-to-Equity is 0.39 as of May. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is MSC Industrial Direct Co (MSM) Overvalued in 2026?
Based on GuruFocus' analysis, MSC Industrial Direct Co stock appears to be overvalued.
The current stock price of $123.82 is trading 33.4% above its estimated GF Value™ of $92.83.
GuruFocus considers MSC Industrial Direct Co to be Significantly Overvalued.
Key valuation signals for MSM:
Debt-to-Equity: 0.39 (near median its 10-year median of 0.43)
GF Value™: $92.83 vs. price of $123.82 (33.4% above fair value)
Industry Position: 22% below the Industrial Distribution median (#68 of 148)
No single metric tells the full story. See the MSM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Founded in 1941, MSC Industrial Direct originally manufactured and sold cutting tools to metalworking shops in New York. Through a series of acquisitions and organic expansions, MSC has grown into an industrial distribution powerhouse with a focus on specialized metalworking products and services. The firm also distributes a wide breadth of maintenance, repair, and operations supplies. MSC primarily operates in North America, where it derives over 95% of its revenue.
81GF Score
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