As I've discussed (and lamented) on more than one occasion, MSC Industrial's (MSM) track record over the past couple of years has not been up to snuff, with the company underperforming other distributors like Fastenal (FAST) and Grainger (GWW)
in both operational and stock performance terms. Although MSC's fiscal
fourth-quarter results weren't all that great, expectations had
ratcheted down going into the quarter, and it looks as though a long and
surprisingly disruptive sales force restructuring/retraining process
should start leading to better results in the coming quarters.
Valuation
on these shares is mixed, and I don't think they're a screaming
bargain, though I can support an argument that the company's
profitability and return on capital (and assets) justify a price into
the mid-to-high $90s. The biggest issue for the stock, though, is
whether MSC can start delivering better organic sales growth and drive
some of the long-awaited incremental operating leverage that investors
have been waiting on for some time now.
Click here for more:
MSC Industrial Looking To A Restructured Sales Effort To Drive Better Results
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