Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
MSC Industrial Direct CoFRA:98M +0.93%80 3-Year ROIIC % is 42.76 as of Aug. 2025, which is 34% above its 10-year median of 31.84. GuruFocus rates FRA:98M with a GF Score™ of 80/100 and a GF Value™ of €79.87 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 150 Industrial Distribution companies, MSC Industrial Direct Co ranks better than 86% on this metric.
3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
MSC Industrial Direct Co's 3-Year ROIIC % for the quarter that ended in Aug. 2025 was 42.76%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for MSC Industrial Direct Co's 3-Year ROIIC % or its related term are showing as below:
FRA:98M's 3-Year ROIIC % is ranked better than 86% of 150
companies
in the Industrial Distribution industry
Industry Median: 3.35
vs FRA:98M: 42.76
MSC Industrial Direct Co (FRA:98M) 3-Year ROIIC % Explanation
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
MSC Industrial Direct Co 3-Year ROIIC % Related Terms
MSC Industrial Direct Co 3-Year ROIIC % 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: 3-Year ROIIC % Comparison
For the Industrial Distribution subindustry, MSC Industrial Direct Co's 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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 3-Year ROIIC % vs Industrial Distribution Industry
For the Industrial Distribution industry and Industrials sector, MSC Industrial Direct Co's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where MSC Industrial Direct Co's 3-Year ROIIC % 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.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
MSC Industrial Direct Co (FRA:98M) has a 3-Year ROIIC % of 42.76 as of Aug. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on MSC Industrial Direct Co and its competitors. This is 34% above median its historical median of 31.84. According to the industry distribution chart, MSC Industrial Direct Co ranks #21 out of 150 companies in the Industrial Distribution industry, placing it in the top 14%.
Is MSC Industrial Direct Co's 3-Year ROIIC % too high?
MSC Industrial Direct Co's current 3-Year ROIIC % of 42.76 is 34% above median its 10-year median of 31.84. The Industrial Distribution industry median 3-Year ROIIC % is 3.35. MSC Industrial Direct Co's value of 42.76 is 1176.4% above this industry median. Based on the distribution chart, MSC Industrial Direct Co ranks #21 out of 150 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 80/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does MSC Industrial Direct Co's 3-Year ROIIC % compare to POOL and XMTR?
According to the Industrial Distribution industry distribution chart, MSC Industrial Direct Co ranks #21 out of 150 companies for 3-Year ROIIC %. This places MSC Industrial Direct Co in the top 14% of its industry — outperforming the majority of peers. The industry median 3-Year ROIIC % is 3.35. MSC Industrial Direct Co's value of 42.76 is 1176.4% above this benchmark. While the company's 10-year median is 31.84 vs. the industry median of 3.35, 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 3-Year ROIIC % for an Industrial Distribution company?
The median 3-Year ROIIC % among Industrial Distribution companies is 3.35, based on 150 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. MSC Industrial Direct Co's current 3-Year ROIIC % of 42.76 is 1176.4% 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 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on MSC Industrial Direct Co and its competitors. For the Industrial Distribution industry, the median 3-Year ROIIC % is 3.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. MSC Industrial Direct Co's current 3-Year ROIIC % is 42.76, which is 34% above median its own 10-year median of 31.84. 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 €79.87, compared to a current price of €108.20 — trading 35.5% above its estimated fair value. The current 3-Year ROIIC % is 42.76, which is 34% above median its 10-year median of 31.84 and 1176.4% above the Industrial Distribution industry median of 3.35. MSC Industrial Direct Co's overall GF Score™ is 80/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For MSC Industrial Direct Co (FRA:98M), the current 3-Year ROIIC % is 42.76 as of Aug. 2025. 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 €108.20 is trading 35.5% above its estimated GF Value™ of €79.87.
GuruFocus considers MSC Industrial Direct Co to be Significantly Overvalued.
Key valuation signals for FRA:98M:
3-Year ROIIC %: 42.76 (34% above median its 10-year median of 31.84)
GF Value™: €79.87 vs. price of €108.20 (35.5% above fair value)
Industry Position: 1176.4% above the Industrial Distribution median (#21 of 150)
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.
80GF Score
Get the complete analysis for FRA:98M
3-Year ROIIC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
FRA:98M has been successfully added to your 
