MSMMSC INDUSTRIAL DIRECT CO INC

Wholesale-Industrial Machinery & Equipment

Revenue: $4.0B; 6.4% YoY
Operating margin: 8.0%; 0.1% YoY
EBITDA: $422M; 7.6% YoY
Market cap: $6.8B
Employees: 7,028; $571K revenue each
Net debt / EBITDA: 1.0×; $411M net debt
AI in 10-K: 1.7; mentions per 10K words

Takeover score 1 of 13

Fixable underperformance 0 of 7

TSR below peersNo
—
3+ of last 5 years
High CEO pay despite TSRNo
—
Median CEO pay ≥ $15M while TSR trails
Earnings not backed by cashNo
138% of net income
Cash flow under 80% of net income
Dilutive SBCNo
0% of revenue
Over 10% of revenue
Payouts exceed cash flowNo
32% of cash flow
Buybacks + dividends over cash flow
Goodwill-heavyNo
29% of assets
Over 40% of assets
Shareholder dissentNo
99% lowest support
Any vote under 80% support

Buyer economics 1 of 4

Low revenue per employeeYes
$571K · 23rd pct
Bottom quartile of its SIC industry
Quiet on AINo
1.7 per 10K words · 50th pct
Bottom quartile of AI mentions in 10-Ks
Net cashNo
1.0× EBITDA net debt
More cash than debt, positive EBITDA
Buyout-sizedNo
$6.8B market cap
Market cap $500M–$5B

Catalysts 0 of 2

Active 13DNo
0 filings
Active-intent 13D in 18 months
Net insider sellingNo
$36M net
Net sales over $10M in 12 months

Financials

Metric	FY2022	FY2023	FY2024	FY2025	FY2026	YoY	Trend
Revenue	$3.7B	$4.0B	$3.8B	$3.8B	$4.0B	6.4%
Operating income	$469M	$484M	$390M	$302M	$321M	6.3%
Net income	$340M	$343M	$259M	$199M	$223M	12%
Operating cash flow	$246M	$700M	$411M	$334M	$307M	8.2%
Capex	$61M	$92M	$99M	$93M	$81M	12%
Stock-based comp	$19M	$19M	$19M	$13M	$19M	52%
Buybacks	$27M	$96M	$188M	$39M	$14M	64%

Deal filings

None.

13D filers

Filed	Filer	Form	Stake	Intent
Oct 5, 2023	JACOBSON MITCHELL	SC 13D/A	14.5%	Passive
Jun 21, 2023	JACOBSON MITCHELL	SC 13D/A	12.8%	Passive
Feb 6, 2023	JACOBSON MITCHELL	SC 13D	12.7%	Active

Insider trading

Open-market buys, 12 mo: $36M · 9
Open-market sells, 12 mo: $156K · 1
Net: $36M

Pay vs performance

No pay-versus-performance disclosure yet.