MSA  Mine Safety Appliances Company

Exchange

NYSE

Sector

Health Care

Industry

Industrial Specialties

Market Cap.

2.62B

Vuru Grade

45.45/100

Current Price

$68.61
-0.33 (-0.48%)

Growth Price

$48.38
Overvalued by 29.49%

Stability Price

$19.79
Overvalued by 71.15%

Company Metrics

  • P/E 34.56
  • P/S 2.33
  • P/B 4.42
  • EPS 1.99
  • Cash ROIC 8.48%
  • Cash Ratio 0.51
  • Dividend 1.4 / 2.02%
  • Avg. Vol. 214,830.00
  • Shares 38.19M
  • Market Cap. 2.62B

Company Description

Mine Safety Appliances Company develops, manufactures, and supplies health and safety products used by workers in the fire service, homeland security, construction, and other industries, as well as the military. It offers respiratory protection products, including self contained breathing apparatus, air-purifying respirators, gas masks, and escape hoods; and portable and permanent gas detection in... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

Why MSA Safety Incorporated Rose 10% in April
Motley Fool - May 4, 2017
Share of MSA Safety Incorporated (NYSE:MSA) rose just over 10% in April. All of that gain came in the last few days of the month, leading up to and directly after the safety equipment maker's earnings release on April 25.
MSA Declares Third Quarter Dividend
PR Newswire (press release) - Aug 1, 2017
Established in 1914, MSA Safety Incorporated is the global leader in the development, manufacture and supply of safety products that protect people and facility infrastructures.
(MSA) Shares Trading down at $79.33 MSA Declares Third Quarter Dividend - Highlight Press
MSA Promotes Steve Blanco to President of Americas Business Segment
PR Newswire (press release) - Aug 9, 2017
PITTSBURGH, Aug. 9, 2017 /PRNewswire/ -- MSA Safety Incorporated (NYSE: MSA), the leading global manufacturer of safety products that protect people and facility infrastructures, has promoted Steve Blanco to the position of President, MSA Americas.
MSA Announces Second Quarter Results
PR Newswire (press release) - Aug 3, 2017
"Our second quarter operating results reflect our ongoing focus on streamlining MSA's cost structure, expanding product margins, and generating higher levels of cash flow," Mr. Lambert continued.
Pittsburg-based MSA Safety completes acquisition of Globe Manufacturing - New Hampshire Business Review
MSA Safety Incorporated to Acquire Latchways plc
PR Newswire (press release) - Sep 1, 2015
1, 2015 /PRNewswire/ -- Global safety equipment manufacturer MSA Safety Incorporated (NYSE: MSA) today announced the terms of a proposed cash acquisition of United Kingdom-based Latchways plc (LSE: LTC), a provider of innovative fall protection ...
Latchways subject to £124m takeover bid - Insider Media
MSA Safety Incorporated Completes Acquisition of Latchways plc
PR Newswire (press release) - Oct 21, 2015
PITTSBURGH, Oct. 21, 2015 /PRNewswire/ -- Global safety equipment manufacturer MSA Safety Incorporated (NYSE: MSA) today announced that it has completed the acquisition of Latchways plc, a United Kingdom-based provider of innovative fall protection ...
MSA Safety Incorporated (NYSE:MSA) Experiences Heavy Trading Volume
Modern Readers - Aug 16, 2017
These firms have also modified their investment in MSA. As of quarter end Martin & Co Inc /tn/ had acquired a total of 115 shares growing its position 0.6%.
MSA Safety Incorporated (NYSE:MSA) Shares Sold by Anchor Capital Advisors LLC - BNB Daily (blog)
What Lies Ahead For MSA Safety Incorporated (MSA) And Celgene Corporation (CELG)? - Post Analyst
MSA to Acquire Firefighter Turnout Gear Manufacturer Globe Manufacturing Company
PR Newswire (press release) - Jun 28, 2017
PITTSBURGH, June 28, 2017 /PRNewswire/ -- MSA Safety Incorporated (NYSE: MSA) today announced that it has entered into a definitive agreement to acquire Globe Holding Company, LLC ("Globe") in an all-cash transaction valued at $215 million.
MSA Increases Quarterly Dividend
PR Newswire (press release) - May 12, 2017
Established in 1914, MSA Safety Incorporated is the global leader in the development, manufacture and supply of safety products that protect people and facility infrastructures.
MSA LLC Awarded a Total of $57.8 Million in Insurance-Related Lawsuit
PR Newswire (press release) - Feb 14, 2017
PITTSBURGH, Feb. 14, 2017 /PRNewswire/ -- Global safety equipment manufacturer MSA Safety Incorporated (NYSE: MSA) today reported that, in an order dated February 9, 2017, the Court of Common Pleas of Allegheny County awarded a subsidiary of the ...
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for MSA to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate MSA's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$68.61 Current Price

$48.38 Growth Price (DCF)

Overvalued by 29.49%


Growth Rate Assumed by Market: 26.20%


Future Free Cash Flow Growth Rate: 15.0%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$19.79 Stability Price (EPV)

Overvalued by 71.15%


Discount Rate: 15.0%

$45.07 Book Price

Overvalued by 34.31%


Poor Cash Return on Invested Capital over the past 5 years

MSA has been unable to consistently generate sufficient returns from its investments in buildings, projects and equipment. This could be due to poor management, lack of an economic moat or the capital intensive nature of the business.

MSA has only created $8.48 of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20122013201420152016
Free Cash Flow 118.27M 74.26M 73.45M 19.01M 109.37M
divided by
Invested Capital 840.23M 946.44M 924.74M 1.07B 1.02B
Cash ROIC 14.08% 7.85% 7.94% 1.78% 10.74%

Excellent Return on Equity over the past 5 years

Over the past 5 years, MSA has generated strong profits with money shareholders have invested. This is considered one of the best indicators of quality management. Beware of extremely high Return on Equity (> 50%) as this is often unsustainable.

MSA has generated $16.36 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20122013201420152016
Net Income 91.76M 88.05M 87.93M 67.94M 93.86M
divided by
Stockholders' Equity 462.96M 566.45M 533.81M 516.50M 558.17M
Return on Equity 19.82% 15.54% 16.47% 13.15% 16.82%

Excellent Business Performance over the past 10 years

MSA has been able to maintain profitability in good times and bad. This could mean MSA has an extremely strong business or has the ability to scale down costs when needed. This should be a fairly resilient business, but double check for future sustainability by looking at its Risk Factors in the Annual Report.

MSA has created positive free cash flow for 9 or more of the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Free Cash Flow 8.46M 15.34M 95.11M 6.58M 54.87M 118.27M 74.26M 73.45M 19.01M 109.37M

Weak Balance Sheet

MSA's financial position is not ideal. The key is to check whether MSA is using debt to fuel its growth and the sustainability of that tendency. Highly capital intensive businesses (see Economic Moat) follow this route, which can deeply impact the future prospects of the business.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Cash 74.98M 50.89M 61.98M 59.76M 59.94M 82.72M 96.27M 106.00M 105.93M 113.76M
Current Assets 497.05M 477.78M 434.03M 477.39M 458.85M 463.55M 500.97M 497.87M 505.03M 472.81M
Total Assets 1.02B 875.81M 875.23M 1.20B 1.12B 1.11B 1.23B 1.26B 1.42B 1.35B
Current Liabilities 209.19M 219.69M 168.45M 181.74M 171.77M 188.80M 191.56M 234.06M 251.91M 221.41M
Total Liabilities 554.78M 482.04M 438.61M 745.82M 681.39M 648.79M 667.82M 730.98M 908.32M 795.76M
Stockholder' Equity 461.53M 393.77M 436.62M 451.37M 433.67M 462.96M 566.45M 533.81M 516.50M 558.17M
Current Ratio 2.38 2.17 2.58 2.63 2.67 2.46 2.62 2.13 2.00 2.14
TL-to-TA 0.55 0.55 0.50 0.62 0.61 0.58 0.54 0.58 0.64 0.59

Low or No Reinvestment of Profits over the past 10 years

MSA has either been retaining a small amount of their earnings or has done so inconsistently. A lack of consistency could be due to MSA operating at a loss or them having such a strong economic moat they feel comfortable spending profits on growth. Be wary of future prospects and if applicable, inspect the moat's sustainability.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Retained Earnings 628.48M 665.25M 674.02M 676.20M 708.31M 747.95M 792.21M 835.13M 858.55M 901.42M
Retained Earnings Growth - 5.85% 1.32% 0.32% 4.75% 5.60% 5.92% 5.42% 2.81% 4.99%

Competitive Industry over the past 10 years

MSA is likely operating in an industry with medium to low barriers to entry. This may mean that MSA doesn't have a characteristic that's hard to replicate, such as exclusive distribution, branding or the ability to keep costs low. If Gross Margins are at least satisfactory, it's likely that MSA invests heavily in R&D and Sales, General & Administrative expenses.

Only $6.50 of every $100 of Revenue have been profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Net Income 67.59M 70.42M 43.30M 38.10M 69.85M 91.76M 88.05M 87.93M 67.94M 93.86M
divided by
Revenue 1.01B 1.14B 915.85M 982.67M 1.18B 1.18B 1.11B 1.13B 1.13B 1.15B
Net Profit Margin 6.71% 6.18% 4.73% 3.88% 5.93% 7.78% 7.92% 7.75% 6.01% 8.17%

Strong Pricing Power over the past 10 years

MSA has maintained substantial gross margins, suggesting that they have been able to set prices without consideration of the cost of goods sold. This potentially leaves flexibility in inflationary environments to raise prices on consumers and maintain profitability.

$41.68 of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Gross Profit 391.45M 437.86M 342.59M 376.14M 475.62M 513.72M 496.67M 515.35M 500.24M 523.64M
divided by
Revenue 1.01B 1.14B 915.85M 982.67M 1.18B 1.18B 1.11B 1.13B 1.13B 1.15B
Gross Margin 38.85% 38.42% 37.41% 38.28% 40.35% 43.54% 44.67% 45.45% 44.27% 45.55%

Medium Capital Intensity over the past 10 years

MSA has used a reasonable amount of their financial resources to invest in facilities and equipment required to produce its goods and services. This isn't perfect, but it shouldn't be an area of concern unless this number is strongly trending upwards.

47.57% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Capital Expenditure 32.88M 44.45M 25.74M 25.02M 30.39M 32.21M 36.52M 33.58M 36.24M 25.52M
divided by
Net Income 67.59M 70.42M 43.30M 38.10M 69.85M 91.76M 88.05M 87.93M 67.94M 93.86M
Capital Expenditure Ratio 48.65% 63.12% 59.45% 65.67% 43.51% 35.10% 41.47% 38.19% 53.34% 27.19%

Very Strong Dividend History over the past 10 years

MSA has consistently distributed a dividend for at least the past 10 years. Such a long dividend history suggests MSA is very established in its market and that its dividend distribution is likely to continue for a significant period of time.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Dividend Paid 30.14M 33.65M 34.52M 35.93M 37.74M 50.99M 43.99M 45.59M 47.38M 49.07M
divided by
Shares Outstanding 36.32M 35.95M 35.88M 36.42M 36.83M 37.04M 37.45M 37.73M 37.71M 37.99M
Dividend Paid Per Share 0.83 0.94 0.96 0.99 1.02 1.38 1.17 1.21 1.26 1.29
Price at Year End 44.97 20.97 25.06 30.20 32.88 41.55 50.79 53.85 44.20 69.33
Dividend Yield 1.85% 4.46% 3.84% 3.27% 3.12% 3.31% 2.31% 2.24% 2.84% 1.86%

History of Stock Buybacks over the past 10 years

MSA has some history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Shares Outstanding 36.32M 35.95M 35.88M 36.42M 36.83M 37.04M 37.45M 37.73M 37.71M 37.99M
Stock Bought Back - 1.02% 0.20% -1.49% -1.11% -0.57% -1.09% -0.74% 0.05% -0.73%
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