MSC Industrial Direct CoFRA:98M +2.06%78 Gross Margin % is 41.14% as of Feb. 2026, which is 2% below its 10-year median of 42.15. GuruFocus rates FRA:98M with a GF Score™ of 78/100 and a GF Value™ of €80.16 (Modestly Overvalued). The stock has 8 warning signs investors should review. Among 153 Industrial Distribution companies, MSC Industrial Direct Co ranks better than 88.24% on this metric.
FRA:98M's Gross Margin % is ranked better than 88.24% of 153
companies
in the Industrial Distribution industry
Industry Median: 24.34
vs FRA:98M: 40.78
MSC Industrial Direct Co had a gross margin of 41.14% for the quarter that ended in Feb. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for MSC Industrial Direct Co was -0.50% per year.
MSC Industrial Direct Co (FRA:98M) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
MSC Industrial Direct Co had a gross margin of 41.14% for the quarter that ended in Feb. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
MSC Industrial Direct Co Gross Margin % Related Terms
MSC Industrial Direct Co Gross Margin % 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.
FRA:98M vs POOL, XMTR, SITE: Gross Margin % Comparison
For the Industrial Distribution subindustry, MSC Industrial Direct Co's Gross Margin %, along with its competitors' market caps and Gross Margin % 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 Gross Margin % vs Industrial Distribution Industry
For the Industrial Distribution industry and Industrials sector, MSC Industrial Direct Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where MSC Industrial Direct Co's Gross Margin % 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.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
MSC Industrial Direct Co (FRA:98M) has a Gross Margin % of 41.14% as of Feb. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on MSC Industrial Direct Co and its competitors. This is near median its historical median of 42.15. Over the past decade, MSC Industrial Direct Co's Gross Margin % has ranged from 40.75 to 45.01. According to the industry distribution chart, MSC Industrial Direct Co ranks #18 out of 153 companies in the Industrial Distribution industry, placing it in the top 11.8%.
Is MSC Industrial Direct Co's Gross Margin % too high?
MSC Industrial Direct Co's current Gross Margin % of 41.14% is near median its 10-year median of 42.15. Over the past 10 years, this metric has ranged from a low of 40.75 to a high of 45.01. The Industrial Distribution industry median Gross Margin % is 24.34. MSC Industrial Direct Co's value of 41.14% is 69% above this industry median. Based on the distribution chart, MSC Industrial Direct Co ranks #18 out of 153 companies in the Industrial Distribution industry, which is in the top quartile — a strong position relative to peers. Overall, MSC Industrial Direct Co has a GF Score™ of 78/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does MSC Industrial Direct Co's Gross Margin % compare to POOL and XMTR?
According to the Industrial Distribution industry distribution chart, MSC Industrial Direct Co ranks #18 out of 153 companies for Gross Margin %. This places MSC Industrial Direct Co in the top 12% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 24.34. MSC Industrial Direct Co's value of 41.14% is 69% above this benchmark. Historically, MSC Industrial Direct Co's own Gross Margin % has ranged from 40.75 to 45.01 over the past decade. While the company's 10-year median is 42.15 vs. the industry median of 24.34, MSC Industrial Direct Co has consistently been above 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 Gross Margin % for an Industrial Distribution company?
The median Gross Margin % among Industrial Distribution companies is 24.34, based on 153 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. MSC Industrial Direct Co's current Gross Margin % of 41.14% is 69% above 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 Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on MSC Industrial Direct Co and its competitors. For the Industrial Distribution industry, the median Gross Margin % is 24.34 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. MSC Industrial Direct Co's current Gross Margin % is 41.14%, which is near median its own 10-year median of 42.15. 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 (FRA:98M) is currently considered Modestly Overvalued. The stock's GF Value™ is €80.16, compared to a current price of €103.90 — trading 29.6% above its estimated fair value. The current Gross Margin % is 41.14%, which is near median its 10-year median of 42.15 and 69% above the Industrial Distribution industry median of 24.34. MSC Industrial Direct Co's overall GF Score™ is 78/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For MSC Industrial Direct Co (FRA:98M), the current Gross Margin % is 41.14% as of Feb. 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 (FRA:98M) Overvalued in 2026?
Based on GuruFocus' analysis, MSC Industrial Direct Co stock appears to be overvalued.
The current stock price of €103.90 is trading 29.6% above its estimated GF Value™ of €80.16.
GuruFocus considers MSC Industrial Direct Co to be Modestly Overvalued.
Key valuation signals for FRA:98M:
Gross Margin %: 41.14% (near median its 10-year median of 42.15)
GF Value™: €80.16 vs. price of €103.90 (29.6% above fair value)
Industry Position: 69% above the Industrial Distribution median (#18 of 153)
No single metric tells the full story. See the FRA:98M 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.
78GF Score
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Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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