MSC Industrial Direct CoFRA:98M +2.06%78 Interest Coverage is 12.04 as of Feb. 2026, which is 49% below its 10-year median of 23.73. 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 131 Industrial Distribution companies, MSC Industrial Direct Co ranks better than 65.65% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. MSC Industrial Direct Co's
Operating Income
for the
three
months ended in Feb. 2026 was €57 Mil. MSC Industrial Direct Co's Interest Expense for the
three
months ended in Feb. 2026 was €-5 Mil.
MSC Industrial Direct Co's interest coverage for the quarter that ended in Feb. 2026 was 12.04.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for MSC Industrial Direct Co's Interest Coverage or its related term are showing as below:
FRA:98M'
s Interest Coverage Range Over the Past 10 Years
Min: 12.99 Med: 23.73 Max: 64.74
Current: 14.17
FRA:98M's Interest Coverage is ranked better than 65.65% of 131
companies
in the Industrial Distribution industry
Industry Median: 6.74
vs FRA:98M: 14.17
MSC Industrial Direct Co (FRA:98M) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
MSC Industrial Direct Co Interest Coverage Related Terms
MSC Industrial Direct Co Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
FRA:98M vs POOL, XMTR, SITE: Interest Coverage Comparison
For the Industrial Distribution subindustry, MSC Industrial Direct Co's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Industrial Distribution Industry
For the Industrial Distribution industry and Industrials sector, MSC Industrial Direct Co's Interest Coverage distribution charts can be found below:
* The bar in red indicates where MSC Industrial Direct Co's Interest Coverage falls into.
MSC Industrial Direct Co Interest Coverage Calculation
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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 (FRA:98M) has a Interest Coverage of 12.04 as of Feb. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on MSC Industrial Direct Co and its competitors. This is 49% below median its historical median of 23.73. Over the past decade, MSC Industrial Direct Co's Interest Coverage has ranged from 12.99 to 64.74. According to the industry distribution chart, MSC Industrial Direct Co ranks #45 out of 131 companies in the Industrial Distribution industry, placing it in the top 34.4%.
Is MSC Industrial Direct Co's Interest Coverage too high?
MSC Industrial Direct Co's current Interest Coverage of 12.04 is 49% below median its 10-year median of 23.73. Over the past 10 years, this metric has ranged from a low of 12.99 to a high of 64.74. The Industrial Distribution industry median Interest Coverage is 6.74. MSC Industrial Direct Co's value of 12.04 is 78.6% above this industry median. Based on the distribution chart, MSC Industrial Direct Co ranks #45 out of 131 companies in the Industrial Distribution industry, which is above the industry midpoint. 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 Interest Coverage compare to POOL and XMTR?
According to the Industrial Distribution industry distribution chart, MSC Industrial Direct Co ranks #45 out of 131 companies for Interest Coverage. This puts MSC Industrial Direct Co in the upper half of its industry. The industry median Interest Coverage is 6.74. MSC Industrial Direct Co's value of 12.04 is 78.6% above this benchmark. Historically, MSC Industrial Direct Co's own Interest Coverage has ranged from 12.99 to 64.74 over the past decade. While the company's 10-year median is 23.73 vs. the industry median of 6.74, 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 Interest Coverage for an Industrial Distribution company?
The median Interest Coverage among Industrial Distribution companies is 6.74, based on 131 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. MSC Industrial Direct Co's current Interest Coverage of 12.04 is 78.6% 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on MSC Industrial Direct Co and its competitors. For the Industrial Distribution industry, the median Interest Coverage is 6.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. MSC Industrial Direct Co's current Interest Coverage is 12.04, which is 49% below median its own 10-year median of 23.73. 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 Interest Coverage is 12.04, which is 49% below median its 10-year median of 23.73 and 78.6% above the Industrial Distribution industry median of 6.74. 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 Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For MSC Industrial Direct Co (FRA:98M), the current Interest Coverage is 12.04 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:
Interest Coverage: 12.04 (49% below median its 10-year median of 23.73)
GF Value™: €80.16 vs. price of €103.90 (29.6% above fair value)
Industry Position: 78.6% above the Industrial Distribution median (#45 of 131)
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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