MSC Industrial Direct CoFRA:98M +2.06%78 ROA % is 6.81% as of Feb. 2026, which is 39% below its 10-year median of 11.11. 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 157 Industrial Distribution companies, MSC Industrial Direct Co ranks better than 88.54% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. MSC Industrial Direct Co's annualizedNet Income for the quarter that ended in Feb. 2026 was €144 Mil.
MSC Industrial Direct Co's average Total Assets over the quarter that ended in Feb. 2026 was €2,112 Mil. Therefore, MSC Industrial Direct Co's annualized ROA % for the quarter that ended in Feb. 2026 was 6.81%.
The historical rank and industry rank for MSC Industrial Direct Co's ROA % or its related term are showing as below:
FRA:98M'
s ROA % Range Over the Past 10 Years
Min: 8.1 Med: 11.11 Max: 15.01
Current: 8.42
During the past 13 years, MSC Industrial Direct Co's highest ROA % was 15.01%. The lowest was 8.10%. And the median was 11.11%.
FRA:98M's ROA % is ranked better than 88.54% of 157
companies
in the Industrial Distribution industry
Industry Median: 3.76
vs FRA:98M: 8.42
MSC Industrial Direct Co (FRA:98M) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Feb. 2026) net income data. The Revenue data used here is four times the quarterly (Feb. 2026) revenue 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
* 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.
For the Industrial Distribution subindustry, MSC Industrial Direct Co's ROA %, along with its competitors' market caps and ROA % 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 ROA % vs Industrial Distribution Industry
For the Industrial Distribution industry and Industrials sector, MSC Industrial Direct Co's ROA % distribution charts can be found below:
* The bar in red indicates where MSC Industrial Direct Co's ROA % 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 ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Feb. 2026) net income data.
ROA % is displayed in the 30-year financial page.
MSC Industrial Direct Co (FRA:98M) has a ROA % of 6.81% as of Feb. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on MSC Industrial Direct Co and its competitors. This is 39% below median its historical median of 11.11. Over the past decade, MSC Industrial Direct Co's ROA % has ranged from 8.10 to 15.01. According to the industry distribution chart, MSC Industrial Direct Co ranks #18 out of 157 companies in the Industrial Distribution industry, placing it in the top 11.5%.
Is MSC Industrial Direct Co's ROA % too high?
MSC Industrial Direct Co's current ROA % of 6.81% is 39% below median its 10-year median of 11.11. Over the past 10 years, this metric has ranged from a low of 8.10 to a high of 15.01. The Industrial Distribution industry median ROA % is 3.76. MSC Industrial Direct Co's value of 6.81% is 81.1% above this industry median. Based on the distribution chart, MSC Industrial Direct Co ranks #18 out of 157 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 ROA % compare to POOL and XMTR?
According to the Industrial Distribution industry distribution chart, MSC Industrial Direct Co ranks #18 out of 157 companies for ROA %. This places MSC Industrial Direct Co in the top 12% of its industry — outperforming the majority of peers. The industry median ROA % is 3.76. MSC Industrial Direct Co's value of 6.81% is 81.1% above this benchmark. Historically, MSC Industrial Direct Co's own ROA % has ranged from 8.10 to 15.01 over the past decade. While the company's 10-year median is 11.11 vs. the industry median of 3.76, 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 ROA % for an Industrial Distribution company?
The median ROA % among Industrial Distribution companies is 3.76, based on 157 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. MSC Industrial Direct Co's current ROA % of 6.81% is 81.1% 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on MSC Industrial Direct Co and its competitors. For the Industrial Distribution industry, the median ROA % is 3.76 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. MSC Industrial Direct Co's current ROA % is 6.81%, which is 39% below median its own 10-year median of 11.11. 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 ROA % is 6.81%, which is 39% below median its 10-year median of 11.11 and 81.1% above the Industrial Distribution industry median of 3.76. 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 ROA % calculated?
ROA % is calculated from a company's financial statements. For MSC Industrial Direct Co (FRA:98M), the current ROA % is 6.81% 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:
ROA %: 6.81% (39% below median its 10-year median of 11.11)
GF Value™: €80.16 vs. price of €103.90 (29.6% above fair value)
Industry Position: 81.1% above the Industrial Distribution median (#18 of 157)
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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