MSC Industrial Direct Co (FRA:98M) 5-Year Yield-on-Cost %: 3.10 (As of Jul. 25, 2026) — 23% Below Median

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
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.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
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.

FRA:98M MSC Industrial Direct Co Inc FRA:98M
80 GF Score
Price €109.80
GF Value €80.65
Valuation Significantly Overvalued
! 8 Warning Signs
View Full Analysis

What is MSC Industrial Direct Co 5-Year Yield-on-Cost %?

MSC Industrial Direct Co FRA:98M -0.54% 80 5-Year Yield-on-Cost % is 3.10 as of Jul. 25, 2026, which is 23% below its 10-year median of 4.02. GuruFocus rates FRA:98M with a GF Score™ of 80/100 and a GF Value™ of €80.65 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 102 Industrial Distribution companies, MSC Industrial Direct Co ranks worse than 57.84% on this metric.

MSC Industrial Direct Co's yield on cost for the quarter that ended in May. 2026 was 3.10.


The historical rank and industry rank for MSC Industrial Direct Co's 5-Year Yield-on-Cost % or its related term are showing as below:

FRA:98M' s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 1.91   Med: 4.02   Max: 6.88
Current: 3.1


During the past 13 years, MSC Industrial Direct Co's highest Yield on Cost was 6.88. The lowest was 1.91. And the median was 4.02.


FRA:98M's 5-Year Yield-on-Cost % is ranked worse than
57.84% of 102 companies
in the Industrial Distribution industry
Industry Median: 3.84 vs FRA:98M: 3.10

MSC Industrial Direct Co  (FRA:98M) 5-Year Yield-on-Cost % Explanation

Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.


MSC Industrial Direct Co 5-Year Yield-on-Cost % Related Terms


FRA:98M vs POOL, XMTR, SITE: 5-Year Yield-on-Cost % Comparison

For the Industrial Distribution subindustry, MSC Industrial Direct Co's 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % 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 5-Year Yield-on-Cost % vs Industrial Distribution Industry

For the Industrial Distribution industry and Industrials sector, MSC Industrial Direct Co's 5-Year Yield-on-Cost % distribution charts can be found below:

* The bar in red indicates where MSC Industrial Direct Co's 5-Year Yield-on-Cost % falls into.


FRA:98M
80GF Score
MSC Industrial Direct Co Inc FRA:98M
5-Year Yield-on-Cost % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

MSC Industrial Direct Co 5-Year Yield-on-Cost % Calculation

Dividend Yield % and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A's future dividend yield might be much higher than Company B's even if their yields are the same now and their stock prices do not change.

Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.

Therefore, Yield-on-Cost of MSC Industrial Direct Co is calculated as

Yield-on-Cost=Dividend Yield %*(1+Dividend Growth Rate)^5
Frequently Asked Questions Learn more about 5-Year Yield-on-Cost % →
What does a 5-Year Yield-on-Cost % of 3.10 mean?
MSC Industrial Direct Co (FRA:98M) has a 5-Year Yield-on-Cost % of 3.10 as of Jul. 25, 2026. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on MSC Industrial Direct Co and its competitors. This is 23% below median its historical median of 4.02. Over the past decade, MSC Industrial Direct Co's 5-Year Yield-on-Cost % has ranged from 1.91 to 6.88. According to the industry distribution chart, MSC Industrial Direct Co ranks #59 out of 102 companies in the Industrial Distribution industry, placing it in the top 57.8%.
Is MSC Industrial Direct Co's 5-Year Yield-on-Cost % too high?
MSC Industrial Direct Co's current 5-Year Yield-on-Cost % of 3.10 is 23% below median its 10-year median of 4.02. Over the past 10 years, this metric has ranged from a low of 1.91 to a high of 6.88. The Industrial Distribution industry median 5-Year Yield-on-Cost % is 3.84. MSC Industrial Direct Co's value of 3.10 is 19.3% below this industry median. Based on the distribution chart, MSC Industrial Direct Co ranks #59 out of 102 companies in the Industrial Distribution industry, which is below the industry midpoint. 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 5-Year Yield-on-Cost % compare to POOL and XMTR?
According to the Industrial Distribution industry distribution chart, MSC Industrial Direct Co ranks #59 out of 102 companies for 5-Year Yield-on-Cost %. This places MSC Industrial Direct Co in the lower half of its industry. The industry median 5-Year Yield-on-Cost % is 3.84. MSC Industrial Direct Co's value of 3.10 is 19.3% below this benchmark. Historically, MSC Industrial Direct Co's own 5-Year Yield-on-Cost % has ranged from 1.91 to 6.88 over the past decade. While the company's 10-year median is 4.02 vs. the industry median of 3.84, MSC Industrial Direct Co has consistently been below 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 5-Year Yield-on-Cost % for an Industrial Distribution company?
The median 5-Year Yield-on-Cost % among Industrial Distribution companies is 3.84, based on 102 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year Yield-on-Cost % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year Yield-on-Cost % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. MSC Industrial Direct Co's current 5-Year Yield-on-Cost % of 3.10 is 19.3% below 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 5-Year Yield-on-Cost % mean?
A high 5-Year Yield-on-Cost % can signal that a stock is expensive relative to its fundamentals. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on MSC Industrial Direct Co and its competitors. For the Industrial Distribution industry, the median 5-Year Yield-on-Cost % is 3.84 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. MSC Industrial Direct Co's current 5-Year Yield-on-Cost % is 3.10, which is 23% below median its own 10-year median of 4.02. 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 €80.65, compared to a current price of €109.80 — trading 36.1% above its estimated fair value. The current 5-Year Yield-on-Cost % is 3.10, which is 23% below median its 10-year median of 4.02 and 19.3% below the Industrial Distribution industry median of 3.84. 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 5-Year Yield-on-Cost % calculated?
5-Year Yield-on-Cost % is calculated from a company's financial statements. For MSC Industrial Direct Co (FRA:98M), the current 5-Year Yield-on-Cost % is 3.10 as of Jul. 25, 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 €109.80 is trading 36.1% above its estimated GF Value™ of €80.65. GuruFocus considers MSC Industrial Direct Co to be Significantly Overvalued.

Key valuation signals for FRA:98M:

  • 5-Year Yield-on-Cost %: 3.10 (23% below median its 10-year median of 4.02)
  • GF Value™: €80.65 vs. price of €109.80 (36.1% above fair value)
  • GF Score™: 80/100 with 8 warning signs
  • Industry Position: 19.3% below the Industrial Distribution median (#59 of 102)

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.


MSC Industrial Direct Co Business Description

Other Exchanges MSM:USA98M:Germany
Address 515 Broadhollow Road, Suite 1000, Melville, NY, USA, 11747
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

5-Year Yield-on-Cost % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€109.80
Price
€80.65
GF Value