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MSC Industrial Direct CoMSM +2.09%81 Earnings Yield (Joel Greenblatt) % is 4.94% as of May. 2026, which is 34% below its 10-year median of 7.45. GuruFocus rates MSM with a GF Score™ of 81/100 and a GF Value™ of $90.99 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 161 Industrial Distribution companies, MSC Industrial Direct Co ranks worse than 64.6% on this metric.
MSC Industrial Direct Co's Enterprise Value for the quarter that ended in May. 2026 was $6,595 Mil.
MSC Industrial Direct Co's EBIT for the trailing twelve months (TTM) ended in May. 2026 was $326 Mil. MSC Industrial Direct Co's Earnings Yield (Joel Greenblatt) for the quarter that ended in May. 2026 was 4.94%.
The historical rank and industry rank for MSC Industrial Direct Co's Earnings Yield (Joel Greenblatt) % or its related term are showing as below:
MSM'
s Earnings Yield (Joel Greenblatt) % Range Over the Past 10 Years
Min: 4.34 Med: 7.45 Max: 10.95
Current: 4.41
During the past 13 years, the highest Earnings Yield (Joel Greenblatt) of MSC Industrial Direct Co was 10.95%. The lowest was 4.34%. And the median was 7.45%.
MSM's Earnings Yield (Joel Greenblatt) % is ranked worse than 64.6% of 161
companies
in the Industrial Distribution industry
Industry Median: 6.04
vs MSM: 4.41
Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.
A better indicator of the attractiveness of an investment which takes growth into account is the Forward Rate of Return (Yacktman) %. MSC Industrial Direct Co's Forward Rate of Return (Yacktman) % for the quarter that ended in May. 2026 was 2.39%. The Forward Rate of Return uses the normalized Free Cash Flow of the past five years, and considers growth. The forward rate of return can be thought of as the return that investors buying the stock today can expect from it in the future.
MSC Industrial Direct Co (NYSE:MSM) Earnings Yield (Joel Greenblatt) % Explanation
Joel Greenblatt defines the earnings yield using the above equation because it more accurately reflects the company's profitability relative to its stock price. Items like interest payment and tax etc. are not directly related to the company's operational profitability.
Enterprise Value instead of market cap (share price) is used in the calculation because it is the real price stock and bond investors together pay for the company.
Be Aware
Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.
MSC Industrial Direct Co Earnings Yield (Joel Greenblatt) % Related Terms
MSC Industrial Direct Co Earnings Yield (Joel Greenblatt) % Historical Data
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The historical data trend for MSC Industrial Direct Co's Earnings Yield (Joel Greenblatt) % can be seen below:
* 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 Earnings Yield (Joel Greenblatt) % Chart
MSM vs POOL, CNM, REZI: Earnings Yield (Joel Greenblatt) % Comparison
For the Industrial Distribution subindustry, MSC Industrial Direct Co's Earnings Yield (Joel Greenblatt) %, along with its competitors' market caps and Earnings Yield (Joel Greenblatt) % 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 Earnings Yield (Joel Greenblatt) % vs Industrial Distribution Industry
For the Industrial Distribution industry and Industrials sector, MSC Industrial Direct Co's Earnings Yield (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where MSC Industrial Direct Co's Earnings Yield (Joel Greenblatt) % falls into.
MSC Industrial Direct Co Earnings Yield (Joel Greenblatt) % Calculation
In his book, The Little That Beat the Market, hedge fund manager Joel Greenblatt defines Earnings Yield as operating income divided by enterprise value.
MSC Industrial Direct Cos Earnings Yield (Joel Greenblatt) for the fiscal year that ended in Aug. 2025 is calculated as
MSC Industrial Direct Co's EBIT for the trailing twelve months (TTM) ended in May. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $326 Mil.
What does a Earnings Yield (Joel Greenblatt) % of 4.94% mean?
MSC Industrial Direct Co (MSM) has a Earnings Yield (Joel Greenblatt) % of 4.94% as of May. 2026. Joel Greenblatt's earnings yield equals the ratio of earnings before interest and taxes to enterprise value. View historical data on MSC Industrial Direct Co and its competitors. This is 34% below median its historical median of 7.45. Over the past decade, MSC Industrial Direct Co's Earnings Yield (Joel Greenblatt) % has ranged from 4.34 to 10.95. According to the industry distribution chart, MSC Industrial Direct Co ranks #104 out of 161 companies in the Industrial Distribution industry, placing it in the top 64.6%.
Is MSC Industrial Direct Co's Earnings Yield (Joel Greenblatt) % too high?
MSC Industrial Direct Co's current Earnings Yield (Joel Greenblatt) % of 4.94% is 34% below median its 10-year median of 7.45. Over the past 10 years, this metric has ranged from a low of 4.34 to a high of 10.95. The Industrial Distribution industry median Earnings Yield (Joel Greenblatt) % is 6.04. MSC Industrial Direct Co's value of 4.94% is 18.2% below this industry median. Based on the distribution chart, MSC Industrial Direct Co ranks #104 out of 161 companies in the Industrial Distribution industry, which is below 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 Earnings Yield (Joel Greenblatt) % compare to POOL and CNM?
According to the Industrial Distribution industry distribution chart, MSC Industrial Direct Co ranks #104 out of 161 companies for Earnings Yield (Joel Greenblatt) %. This places MSC Industrial Direct Co in the lower half of its industry. The industry median Earnings Yield (Joel Greenblatt) % is 6.04. MSC Industrial Direct Co's value of 4.94% is 18.2% below this benchmark. Historically, MSC Industrial Direct Co's own Earnings Yield (Joel Greenblatt) % has ranged from 4.34 to 10.95 over the past decade. While the company's 10-year median is 7.45 vs. the industry median of 6.04, 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 Earnings Yield (Joel Greenblatt) % for an Industrial Distribution company?
The median Earnings Yield (Joel Greenblatt) % among Industrial Distribution companies is 6.04, based on 161 companies in the industry. Companies in the top quartile (top 25%) have a Earnings Yield (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, Earnings Yield (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. MSC Industrial Direct Co's current Earnings Yield (Joel Greenblatt) % of 4.94% is 18.2% 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 Earnings Yield (Joel Greenblatt) % mean?
A high Earnings Yield (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's earnings yield equals the ratio of earnings before interest and taxes to enterprise value. View historical data on MSC Industrial Direct Co and its competitors. For the Industrial Distribution industry, the median Earnings Yield (Joel Greenblatt) % is 6.04 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. MSC Industrial Direct Co's current Earnings Yield (Joel Greenblatt) % is 4.94%, which is 34% below median its own 10-year median of 7.45. 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 $90.99, compared to a current price of $123.82 — trading 36.1% above its estimated fair value. The current Earnings Yield (Joel Greenblatt) % is 4.94%, which is 34% below median its 10-year median of 7.45 and 18.2% below the Industrial Distribution industry median of 6.04. 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 Earnings Yield (Joel Greenblatt) % calculated?
Earnings Yield (Joel Greenblatt) % is calculated from a company's financial statements. For MSC Industrial Direct Co (MSM), the current Earnings Yield (Joel Greenblatt) % is 4.94% 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 36.1% above its estimated GF Value™ of $90.99.
GuruFocus considers MSC Industrial Direct Co to be Significantly Overvalued.
Key valuation signals for MSM:
Earnings Yield (Joel Greenblatt) %: 4.94% (34% below median its 10-year median of 7.45)
GF Value™: $90.99 vs. price of $123.82 (36.1% above fair value)
Industry Position: 18.2% below the Industrial Distribution median (#104 of 161)
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
Get the complete analysis for MSM
Earnings Yield (Joel Greenblatt) % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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