MSC Industrial Direct CoFRA:98M -0.48%78 Altman Z-Score is 6.31 as of Jun. 30, 2026, which is 15% above its 10-year median of 5.49. GuruFocus rates FRA:98M with a GF Score™ of 78/100 and a GF Value™ of €80.81 (Modestly Overvalued). The stock has 8 warning signs investors should review. Among 153 Industrial Distribution companies, MSC Industrial Direct Co ranks better than 88.24% on this metric.
The Altman Z-Score is a model designed to predict the likelihood of a company going bankrupt within the next two years. Created by American finance professor Edward Altman in 1968, the model is specifically designed for publicly traded manufacturing companies with assets greater than $1 million.
Good Sign:
Altman Z-score of 6.13 is strong.
MSC Industrial Direct Co has a Altman Z-Score of 6.31, indicating it is in Safe Zones. This implies the Altman Z-Score is strong.
The zones of discrimination were as such:
When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.
The historical rank and industry rank for MSC Industrial Direct Co's Altman Z-Score or its related term are showing as below:
FRA:98M'
s Altman Z-Score Range Over the Past 10 Years
Min: 4.11 Med: 5.49 Max: 7.92
Current: 6.13
During the past 13 years, MSC Industrial Direct Co's highest Altman Z-Score was 7.92. The lowest was 4.11. And the median was 5.49.
MSC Industrial Direct Co (FRA:98M) Altman Z-Score Explanation
X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.
X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.
X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.
X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.
X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.
* 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: Altman Z-Score Comparison
For the Industrial Distribution subindustry, MSC Industrial Direct Co's Altman Z-Score, along with its competitors' market caps and Altman Z-Score 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 Altman Z-Score vs Industrial Distribution Industry
For the Industrial Distribution industry and Industrials sector, MSC Industrial Direct Co's Altman Z-Score distribution charts can be found below:
* The bar in red indicates where MSC Industrial Direct Co's Altman Z-Score falls into.
MSC Industrial Direct Co Altman Z-Score Calculation
Altman Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
* 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. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.
MSC Industrial Direct Co (FRA:98M) has a Altman Z-Score of 6.31 as of Jun. 30, 2026. The Altman Z-score measures a company's bankruptcy risk. View historical data on MSC Industrial Direct Co and its competitors. This is 15% above median its historical median of 5.49. Over the past decade, MSC Industrial Direct Co's Altman Z-Score has ranged from 4.11 to 7.92. According to the industry distribution chart, MSC Industrial Direct Co ranks #18 out of 153 companies in the Industrial Distribution industry, placing it in the top 11.8%.
Is MSC Industrial Direct Co's Altman Z-Score too high?
MSC Industrial Direct Co's current Altman Z-Score of 6.31 is 15% above median its 10-year median of 5.49. Over the past 10 years, this metric has ranged from a low of 4.11 to a high of 7.92. The Industrial Distribution industry median Altman Z-Score is 3.30. MSC Industrial Direct Co's value of 6.31 is 91.2% above this industry median. Based on the distribution chart, MSC Industrial Direct Co ranks #18 out of 153 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 Altman Z-Score compare to POOL and XMTR?
According to the Industrial Distribution industry distribution chart, MSC Industrial Direct Co ranks #18 out of 153 companies for Altman Z-Score. This places MSC Industrial Direct Co in the top 12% of its industry — outperforming the majority of peers. The industry median Altman Z-Score is 3.30. MSC Industrial Direct Co's value of 6.31 is 91.2% above this benchmark. Historically, MSC Industrial Direct Co's own Altman Z-Score has ranged from 4.11 to 7.92 over the past decade. While the company's 10-year median is 5.49 vs. the industry median of 3.30, 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 Altman Z-Score for an Industrial Distribution company?
The median Altman Z-Score among Industrial Distribution companies is 3.30, based on 153 companies in the industry. Companies in the top quartile (top 25%) have a Altman Z-Score significantly above this median, while those in the bottom quartile fall well below. However, Altman Z-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. MSC Industrial Direct Co's current Altman Z-Score of 6.31 is 91.2% 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 Altman Z-Score mean?
A high Altman Z-Score can signal that a stock is expensive relative to its fundamentals. The Altman Z-score measures a company's bankruptcy risk. View historical data on MSC Industrial Direct Co and its competitors. For the Industrial Distribution industry, the median Altman Z-Score is 3.30 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. MSC Industrial Direct Co's current Altman Z-Score is 6.31, which is 15% above median its own 10-year median of 5.49. 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 €80.81, compared to a current price of €103.40 — trading 28% above its estimated fair value. The current Altman Z-Score is 6.31, which is 15% above median its 10-year median of 5.49 and 91.2% above the Industrial Distribution industry median of 3.30. 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 Altman Z-Score calculated?
Altman Z-Score is calculated from a company's financial statements. For MSC Industrial Direct Co (FRA:98M), the current Altman Z-Score is 6.31 as of Jun. 30, 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 €103.40 is trading 28% above its estimated GF Value™ of €80.81.
GuruFocus considers MSC Industrial Direct Co to be Modestly Overvalued.
Key valuation signals for FRA:98M:
Altman Z-Score: 6.31 (15% above median its 10-year median of 5.49)
GF Value™: €80.81 vs. price of €103.40 (28% above fair value)
Industry Position: 91.2% above the Industrial Distribution median (#18 of 153)
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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