Switch to:

MSC Industrial Direct Co Piotroski F-Score

: 5 (As of Today)
View and export this data going back to 1995. Start your Free Trial

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

MSC Industrial Direct Co has an F-score of 5 indicating the company's financial situation is typical for a stable company.

NYSE:MSM' s Piotroski F-Score Range Over the Past 10 Years
Min: 2   Max: 9
Current: 5

2
9

During the past 13 years, the highest Piotroski F-Score of MSC Industrial Direct Co was 9. The lowest was 2. And the median was 6.


MSC Industrial Direct Co Piotroski F-Score Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

MSC Industrial Direct Co Annual Data

Aug09 Aug10 Aug11 Aug12 Aug13 Aug14 Aug15 Aug16 Aug17 Aug18
Piotroski F-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.00 5.00 4.00 7.00 7.00

MSC Industrial Direct Co Quarterly Data

Aug14 Nov14 Feb15 May15 Aug15 Nov15 Feb16 May16 Aug16 Nov16 Feb17 May17 Aug17 Nov17 Feb18 May18 Aug18 Nov18 Feb19 May19
Piotroski F-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 7.00 7.00 6.00 5.00 5.00

Competitive Comparison
* 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.


MSC Industrial Direct Co Piotroski F-Score Distribution

* The bar in red indicates where MSC Industrial Direct Co's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (May19) TTM:Last Year (May18) TTM:
Net Income was 73.017 + 74.232 + 68.424 + 79.601 = $295 Mil.
Cash Flow from Operations was 109.421 + 76.866 + 21.712 + 88.622 = $297 Mil.
Revenue was 837.985 + 831.597 + 823.004 + 866.546 = $3,359 Mil.
Gross Profit was 359.668 + 357.985 + 351.814 + 368.655 = $1,438 Mil.
Average Total Assets from the begining of this year (May18)
to the end of this year (May19) was
(2255.732 + 2288.727 + 2264.798 + 2358.116 + 2324.348) / 5 = $2298.3442 Mil.
Total Assets at the begining of this year (May18) was $2,256 Mil.
Long-Term Debt & Capital Lease Obligation was $285 Mil.
Total Current Assets was $1,216 Mil.
Total Current Liabilities was $486 Mil.
Net Income was 60.748 + 59.585 + 117.552 + 79.069 = $317 Mil.

Revenue was 753.77 + 768.561 + 768.987 + 828.345 = $3,120 Mil.
Gross Profit was 333.45 + 335.069 + 337.223 + 361.001 = $1,367 Mil.
Average Net Income from the begining of last year (May17)
to the end of last year (May18) was
(2051.043 + 2098.912 + 2108.212 + 2165.222 + 2255.732) / 5 = $2135.8242 Mil.
Total Assets at the begining of last year (May17) was $2,051 Mil.
Long-Term Debt & Capital Lease Obligation was $251 Mil.
Total Current Assets was $1,116 Mil.
Total Current Liabilities was $528 Mil.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

MSC Industrial Direct Co's current Net Income (TTM) was 295. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

MSC Industrial Direct Co's current Cash Flow from Operations (TTM) was 297. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets(May18)
=295.274/2255.732
=0.13089942

ROA (Last Year)=Net Income/Total Assets(May17)
=316.954/2051.043
=0.15453308

MSC Industrial Direct Co's return on assets of this year was 0.13089942. MSC Industrial Direct Co's return on assets of last year was 0.15453308. ==> Last year is higher ==> Score 0.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

MSC Industrial Direct Co's current Net Income (TTM) was 295. MSC Industrial Direct Co's current Cash Flow from Operations (TTM) was 297. ==> 297 > 295 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: May19)=Long-Term Debt & Capital Lease Obligation/Total Assetsfrom May18 to May19
=284.691/2298.3442
=0.12386787

Gearing (Last Year: May18)=Long-Term Debt & Capital Lease Obligation/Total Assetsfrom May17 to May18
=251.304/2135.8242
=0.11766137

MSC Industrial Direct Co's gearing of this year was 0.12386787. MSC Industrial Direct Co's gearing of last year was 0.11766137. ==> Last year is lower than this year ==> Score 0.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: May19)=Total Current Assets/Total Current Liabilities
=1215.772/486.068
=2.50123851

Current Ratio (Last Year: May18)=Total Current Assets/Total Current Liabilities
=1116.185/528.493
=2.11201473

MSC Industrial Direct Co's current ratio of this year was 2.50123851. MSC Industrial Direct Co's current ratio of last year was 2.11201473. ==> This year's current ratio is higher. ==> Score 1.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

MSC Industrial Direct Co's number of shares in issue this year was 55.4. MSC Industrial Direct Co's number of shares in issue last year was 56.8. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=1438.122/3359.132
=0.4281231

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=1366.743/3119.663
=0.43810597

MSC Industrial Direct Co's gross margin of this year was 0.4281231. MSC Industrial Direct Co's gross margin of last year was 0.43810597. ==> Last year's gross margin is higher ==> Score 0.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (May18)
=3359.132/2255.732
=1.48915385

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (May17)
=3119.663/2051.043
=1.52101297

MSC Industrial Direct Co's asset turnover of this year was 1.48915385. MSC Industrial Direct Co's asset turnover of last year was 1.52101297. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+0+1+0+1+1+0+0
=5

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

MSC Industrial Direct Co has an F-score of 5 indicating the company's financial situation is typical for a stable company.

MSC Industrial Direct Co  (NYSE:MSM) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


MSC Industrial Direct Co Piotroski F-Score Explanation


MSC Industrial Direct Co Piotroski F-Score Headlines

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GF Chat

{{numOfNotice}}