Seeking Alpha: MSC Industrial Managing The Downturn

What do you do when your core market is contracting at a mid-teens rate? If you're MSC Industrial (NYSE:MSM) you double down on the things you can control - including tight expense control, good customer service, and expansion outside of that weak core. Those moves appear to be serving this leading metalworking MRO distributor reasonably well, as the company produced a set of fiscal first quarter results that were a bit better than expected.

I continue to believe that MSC Industrial has better days ahead. Weak markets are often an opportunity for stronger players to gain share, and while this oil/gas-driven manufacturing contraction is likely to continue through much of 2016, it won't last forever. I continue to believe that MSC Industrial can pair mid-single digit long-term revenue growth with double-digit FCF growth, supporting a fair value above $70 today.

Read the full article here:
MSC Industrial Managing The Downturn