MSC Industrial Direct Co Inc Class A

MSM: XNYS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$99.00	Stsft	Kssssrm

MSC Earnings: Industrial Demand to Continue Softening, but the Long-Term Picture Remains Positive

Dawit Woldemariam

Oct 25, 2023

We elected to raise our fair value estimate by 6% to $106 (from $100 previously), following fiscal fourth-quarter results. We attribute most of the fair value increase to rolling our cash flow model forward by one year, in addition to slight upward adjustments to our long-term forecast and changes in the time value of money since our last update. That said, management’s fiscal-year 2024 guidance led us to modestly temper our near-term outlook. MSC forecasts average daily sales growth to come in between 0%-5%, while operating margins land between 12.0%-12.8%.

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