MSM - MSC Industrial Direct: A Mediocre MRO Play
2024-06-14 17:22:39 ET
Summary
- MSC Industrial Direct Co., Inc. operates in a fragmented market as a distributor of metalworking and MRO products.
- The company has traditionally been a modest grower, as its performance comes in a bit soft versus some (larger) peers.
- Despite reasonable valuations and modest leverage, MSC Industrial's outlook has been cut significantly, raising concerns about competitive positioning and operating performance.
- Given this observation, I am not automatically buying the dip at reasonable valuations.
In the fall of last year, I believed that shares of MSC Industrial Direct Co., Inc. ( MSM ) were getting back on their feet. The MRO (maintenance, repair & operating) business saw modest growth, nothing too impressive, but not too shabby as well....
MSC Industrial Direct: A Mediocre MRO Play