MSA  Mine Safety Appliances Company

Exchange

NYSE

Sector

Health Care

Industry

Industrial Specialties

Market Cap.

2.63B

Vuru Grade

43.33/100

Current Price

$69.89
+0.56 (+0.81%)

Growth Price

$19.68
Overvalued by 71.84%

Stability Price

$14.60
Overvalued by 79.12%

Company Metrics

  • P/E 30.22
  • P/S 2.23
  • P/B 4.64
  • EPS 2.31
  • Cash ROIC 7.57%
  • Cash Ratio 0.42
  • Dividend 1.32 / 1.9%
  • Avg. Vol. 193,858.00
  • Shares 37.63M
  • Market Cap. 2.63B

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

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 ...
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 (MSA) Moves Lower on Volume Spike for January 31
Equities.com - Jan 31, 2017
MSA Safety Incorporated (MSA) traded on unusually high volume on Jan. 31, as the stock lost 2.13% to close at $71.35. On the day, MSA Safety Incorporated saw 1.6 million shares trade hands on 4,719 trades. Considering that the stock averages only a ...
Two Stocks Attracting Analyst Attention: GameStop Corp. (NYSE:GME), MSA Safety ... - The Voice Registrar
MSA Safety Incorporated (MSA) Breaks into New 52-Week High on January 25 Session
Equities.com - Jan 25, 2017
Shares of MSA Safety Incorporated (MSA) broke into a new 52-week high yesterday, hitting a peak of $71.73. Shares closed at $71.62 after opening at $69.16 for a move of 4.98%.
Restructuring Fires Up MSA Safety Inc.'s Earnings Growth
Motley Fool - Oct 28, 2016
While MSA Safety (NYSE:MSA) continues to face challenges in several of its end markets, it is doing an admirable job battling against these issues.
MSA Establishes New Holding Company Structure Under the Name MSA Safety ...
PR Newswire (press release) - Mar 3, 2014
Among the most visible changes resulting from this action will be a formal change in the legal name of the company from Mine Safety Appliances Company to MSA Safety Incorporated. The MSA Board of Directors approved this action on February 27 and the ...
Mine Safety Appliances to change name to MSA Safety Inc. - Pittsburgh Business Times (blog)
Morgan Dempsey Capital Management Cuts Position in MSA Safety Incorporated ...
Highland Mirror - Jan 27, 2017
MSA Safety Incorporated (MSA) : In a disclosure report filed on Jan 26, 2017, The Wealth Management company Morgan Dempsey Capital Management said it has reduced its stake by selling shares in MSA Safety Incorporated by 0.79% during the most ...
MSA Safety Incorporporated (NYSE:MSA) Price-to-Earnings-Growth Ratio At 1.59 - Equities Focus
MSA Safety Inc.: MSA Schedules Fourth Quarter Earnings Webcast
The Wall Street Transcript - Feb 17, 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 Named a World's Most Ethical Company for Second Consecutive Year
PR Newswire (press release) - Mar 7, 2016
PITTSBURGH, March 7, 2016 /PRNewswire/ -- MSA Safety Incorporated (NYSE: MSA), today announced that it has been recognized by the Ethisphere Institute, the global leader in defining and advancing the standards of ethical business practices, as a 2016 ...
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.

$69.89 Current Price

$19.68 Growth Price (DCF)

Overvalued by 71.84%


Growth Rate Assumed by Market: 68.57%


Future Free Cash Flow Growth Rate: 15.0%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$14.60 Stability Price (EPV)

Overvalued by 79.12%


Discount Rate: 15.0%

$41.75 Book Price

Overvalued by 40.27%


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 $7.57 of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20112012201320142015
Free Cash Flow 54.87M 118.27M 74.26M 73.45M 19.01M
divided by
Invested Capital 883.34M 840.23M 946.44M 924.74M 1.07B
Cash ROIC 6.21% 14.08% 7.85% 7.94% 1.78%

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 $16.22 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20112012201320142015
Net Income 69.85M 91.76M 88.05M 87.93M 67.94M
divided by
Stockholders' Equity 433.67M 462.96M 566.45M 533.81M 516.50M
Return on Equity 16.11% 19.82% 15.54% 16.47% 13.15%

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
2006200720082009201020112012201320142015
Free Cash Flow 40.11M 8.46M 15.34M 95.11M 6.58M 54.87M 118.27M 74.26M 73.45M 19.01M

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
2006200720082009201020112012201320142015
Cash 61.30M 74.98M 50.89M 61.98M 59.76M 59.94M 82.72M 96.27M 106.00M 105.93M
Current Assets 416.86M 497.05M 477.78M 434.03M 477.39M 458.85M 463.55M 500.97M 497.87M 505.03M
Total Assets 898.62M 1.02B 875.81M 875.23M 1.20B 1.12B 1.11B 1.23B 1.26B 1.42B
Current Liabilities 127.44M 209.19M 219.69M 168.45M 181.74M 171.77M 188.80M 191.56M 234.06M 251.91M
Total Liabilities 460.77M 554.78M 482.04M 438.61M 745.82M 681.39M 648.79M 667.82M 730.98M 908.32M
Stockholder' Equity 437.85M 461.53M 393.77M 436.62M 451.37M 433.67M 462.96M 566.45M 533.81M 516.50M
Current Ratio 3.27 2.38 2.17 2.58 2.63 2.67 2.46 2.62 2.13 2.00
TL-to-TA 0.51 0.55 0.55 0.50 0.62 0.61 0.58 0.54 0.58 0.64

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
2006200720082009201020112012201320142015
Retained Earnings 595.85M 628.48M 665.25M 674.02M 676.20M 708.31M 747.95M 792.21M 835.13M 858.55M
Retained Earnings Growth - 5.48% 5.85% 1.32% 0.32% 4.75% 5.60% 5.92% 5.42% 2.81%

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 $6.38 of every $100 of Revenue have been profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Net Income 63.92M 67.59M 70.42M 43.30M 38.10M 69.85M 91.76M 88.05M 87.93M 67.94M
divided by
Revenue 919.10M 1.01B 1.14B 915.85M 982.67M 1.18B 1.18B 1.11B 1.13B 1.13B
Net Profit Margin 6.95% 6.71% 6.18% 4.73% 3.88% 5.93% 7.78% 7.92% 7.75% 6.01%

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.

$40.94 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
2006200720082009201020112012201320142015
Gross Profit 350.69M 391.45M 437.86M 342.59M 376.14M 475.62M 513.72M 496.67M 515.35M 500.24M
divided by
Revenue 919.10M 1.01B 1.14B 915.85M 982.67M 1.18B 1.18B 1.11B 1.13B 1.13B
Gross Margin 38.16% 38.85% 38.42% 37.41% 38.28% 40.35% 43.54% 44.67% 45.45% 44.27%

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.

48.41% 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
2006200720082009201020112012201320142015
Capital Expenditure 22.73M 32.88M 44.45M 25.74M 25.02M 30.39M 32.21M 36.52M 33.58M 36.24M
divided by
Net Income 63.92M 67.59M 70.42M 43.30M 38.10M 69.85M 91.76M 88.05M 87.93M 67.94M
Capital Expenditure Ratio 35.57% 48.65% 63.12% 59.45% 65.67% 43.51% 35.10% 41.47% 38.19% 53.34%

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
2006200720082009201020112012201320142015
Dividend Paid 24.77M 30.14M 33.65M 34.52M 35.93M 37.74M 50.99M 43.99M 45.59M 47.38M
divided by
Shares Outstanding 36.92M 36.32M 35.95M 35.88M 36.42M 36.83M 37.04M 37.45M 37.73M 37.71M
Dividend Paid Per Share 0.67 0.83 0.94 0.96 0.99 1.02 1.38 1.17 1.21 1.26
Price at Year End 31.10 44.97 20.97 25.06 30.20 32.88 41.55 50.79 53.85 44.20
Dividend Yield 2.16% 1.85% 4.46% 3.84% 3.27% 3.12% 3.31% 2.31% 2.24% 2.84%

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
2006200720082009201020112012201320142015
Shares Outstanding 36.92M 36.32M 35.95M 35.88M 36.42M 36.83M 37.04M 37.45M 37.73M 37.71M
Stock Bought Back - 1.67% 1.02% 0.20% -1.49% -1.11% -0.57% -1.09% -0.74% 0.05%
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