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MSC Industrial Direct CoFRA:98M +0.47%82 Return-on-Tangible-Equity is 53.75% as of May. 2026, which is 11% above its 10-year median of 48.53. GuruFocus rates FRA:98M with a GF Score™ of 82/100 and a GF Value™ of €80.15 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 155 Industrial Distribution companies, MSC Industrial Direct Co ranks better than 83.23% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. MSC Industrial Direct Co's annualized net income for the quarter that ended in May. 2026 was €275 Mil. MSC Industrial Direct Co's average shareholder tangible equity for the quarter that ended in May. 2026 was €512 Mil. Therefore, MSC Industrial Direct Co's annualized Return-on-Tangible-Equity for the quarter that ended in May. 2026 was 53.75%.
The historical rank and industry rank for MSC Industrial Direct Co's Return-on-Tangible-Equity or its related term are showing as below:
FRA:98M'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 34.79 Med: 48.53 Max: 77.02
Current: 39.69
During the past 13 years, MSC Industrial Direct Co's highest Return-on-Tangible-Equity was 77.02%. The lowest was 34.79%. And the median was 48.53%.
FRA:98M's Return-on-Tangible-Equity is ranked better than 83.23% of 155
companies
in the Industrial Distribution industry
Industry Median: 8.96
vs FRA:98M: 39.69
MSC Industrial Direct Co (FRA:98M) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
MSC Industrial Direct Co Return-on-Tangible-Equity Related Terms
MSC Industrial Direct Co Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for MSC Industrial Direct Co's Return-on-Tangible-Equity 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 Return-on-Tangible-Equity Chart
FRA:98M vs POOL, XMTR, SITE: Return-on-Tangible-Equity Comparison
For the Industrial Distribution subindustry, MSC Industrial Direct Co's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-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 Return-on-Tangible-Equity vs Industrial Distribution Industry
For the Industrial Distribution industry and Industrials sector, MSC Industrial Direct Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where MSC Industrial Direct Co's Return-on-Tangible-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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (May. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 53.75% mean?
MSC Industrial Direct Co (FRA:98M) has a Return-on-Tangible-Equity of 53.75% as of May. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on MSC Industrial Direct Co and its competitors. This is 11% above median its historical median of 48.53. Over the past decade, MSC Industrial Direct Co's Return-on-Tangible-Equity has ranged from 34.79 to 77.02. According to the industry distribution chart, MSC Industrial Direct Co ranks #26 out of 155 companies in the Industrial Distribution industry, placing it in the top 16.8%.
Is MSC Industrial Direct Co's Return-on-Tangible-Equity too high?
MSC Industrial Direct Co's current Return-on-Tangible-Equity of 53.75% is 11% above median its 10-year median of 48.53. Over the past 10 years, this metric has ranged from a low of 34.79 to a high of 77.02. The Industrial Distribution industry median Return-on-Tangible-Equity is 8.96. MSC Industrial Direct Co's value of 53.75% is 499.9% above this industry median. Based on the distribution chart, MSC Industrial Direct Co ranks #26 out of 155 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 82/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does MSC Industrial Direct Co's Return-on-Tangible-Equity compare to POOL and XMTR?
According to the Industrial Distribution industry distribution chart, MSC Industrial Direct Co ranks #26 out of 155 companies for Return-on-Tangible-Equity. This places MSC Industrial Direct Co in the top 17% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 8.96. MSC Industrial Direct Co's value of 53.75% is 499.9% above this benchmark. Historically, MSC Industrial Direct Co's own Return-on-Tangible-Equity has ranged from 34.79 to 77.02 over the past decade. While the company's 10-year median is 48.53 vs. the industry median of 8.96, 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 Return-on-Tangible-Equity for an Industrial Distribution company?
The median Return-on-Tangible-Equity among Industrial Distribution companies is 8.96, based on 155 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. MSC Industrial Direct Co's current Return-on-Tangible-Equity of 53.75% is 499.9% 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on MSC Industrial Direct Co and its competitors. For the Industrial Distribution industry, the median Return-on-Tangible-Equity is 8.96 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. MSC Industrial Direct Co's current Return-on-Tangible-Equity is 53.75%, which is 11% above median its own 10-year median of 48.53. 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 Significantly Overvalued. The stock's GF Value™ is €80.15, compared to a current price of €108.00 — trading 34.7% above its estimated fair value. The current Return-on-Tangible-Equity is 53.75%, which is 11% above median its 10-year median of 48.53 and 499.9% above the Industrial Distribution industry median of 8.96. MSC Industrial Direct Co's overall GF Score™ is 82/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For MSC Industrial Direct Co (FRA:98M), the current Return-on-Tangible-Equity is 53.75% 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 (FRA:98M) Overvalued in 2026?
Based on GuruFocus' analysis, MSC Industrial Direct Co stock appears to be overvalued.
The current stock price of €108.00 is trading 34.7% above its estimated GF Value™ of €80.15.
GuruFocus considers MSC Industrial Direct Co to be Significantly Overvalued.
Key valuation signals for FRA:98M:
Return-on-Tangible-Equity: 53.75% (11% above median its 10-year median of 48.53)
GF Value™: €80.15 vs. price of €108.00 (34.7% above fair value)
Industry Position: 499.9% above the Industrial Distribution median (#26 of 155)
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.
82GF Score
Get the complete analysis for FRA:98M
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