MSA Safety Profitability Analysis

MSA Stock  USD 176.21  1.23  0.70%   
Based on the key profitability measurements obtained from MSA Safety's financial statements, MSA Safety's profitability may be sliding down. It has an above-average probability of reporting lower numbers next quarter. Profitability indicators assess MSA Safety's ability to earn profits and add value for shareholders.
 
Net Income  
First Reported
1990-03-31
Previous Quarter
72.2 M
Current Value
66.6 M
Quarterly Volatility
22.3 M
 
Oil Shock
 
Dot-com Bubble
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
At present, MSA Safety's Price To Sales Ratio is projected to increase slightly based on the last few years of reporting. The current year's EV To Sales is expected to grow to 4.19, whereas Days Sales Outstanding is forecasted to decline to 53.90. At present, MSA Safety's Operating Income is projected to increase significantly based on the last few years of reporting. The current year's Income Before Tax is expected to grow to about 217 M, whereas Accumulated Other Comprehensive Income is forecasted to decline to (135.7 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.320.4767
Way Down
Very volatile
Net Profit Margin0.04650.0328
Significantly Up
Pretty Stable
Operating Profit Margin0.0770.1294
Way Down
Pretty Stable
Pretax Profit Margin0.07260.1156
Way Down
Very volatile
Return On Assets0.04660.027
Way Up
Slightly volatile
Return On Equity0.0960.0606
Way Up
Slightly volatile
For MSA Safety profitability analysis, we use financial ratios and fundamental drivers that measure the ability of MSA Safety to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well MSA Safety utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between MSA Safety's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of MSA Safety over time as well as its relative position and ranking within its peers.
  
Check out Correlation Analysis.
For information on how to trade MSA Stock refer to our How to Trade MSA Stock guide.
Is Commercial Services & Supplies space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of MSA Safety. If investors know MSA will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about MSA Safety listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.024
Dividend Share
1.96
Earnings Share
6.91
Revenue Per Share
45.8
Quarterly Revenue Growth
(0.03)
The market value of MSA Safety is measured differently than its book value, which is the value of MSA that is recorded on the company's balance sheet. Investors also form their own opinion of MSA Safety's value that differs from its market value or its book value, called intrinsic value, which is MSA Safety's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because MSA Safety's market value can be influenced by many factors that don't directly affect MSA Safety's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between MSA Safety's value and its price as these two are different measures arrived at by different means. Investors typically determine if MSA Safety is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, MSA Safety's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

MSA Safety Return On Asset vs. Return On Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining MSA Safety's current stock value. Our valuation model uses many indicators to compare MSA Safety value to that of its competitors to determine the firm's financial worth.
MSA Safety is regarded second in return on equity category among its peers. It is considered to be number one stock in return on asset category among its peers reporting about  0.42  of Return On Asset per Return On Equity. The ratio of Return On Equity to Return On Asset for MSA Safety is roughly  2.38 . At present, MSA Safety's Return On Equity is projected to slightly decrease based on the last few years of reporting. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the MSA Safety's earnings, one of the primary drivers of an investment's value.

MSA Safety's Earnings Breakdown by Geography

MSA Return On Asset vs. Return On Equity

Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.

MSA Safety

Return On Equity

 = 

Net Income

Total Equity

 = 
0.28
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.

MSA Safety

Return On Asset

 = 

Net Income

Total Assets

 = 
0.12
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.

MSA Return On Asset Comparison

MSA Safety is currently under evaluation in return on asset category among its peers.

MSA Safety Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in MSA Safety, profitability is also one of the essential criteria for including it into their portfolios because, without profit, MSA Safety will eventually generate negative long term returns. The profitability progress is the general direction of MSA Safety's change in net profit over the period of time. It can combine multiple indicators of MSA Safety, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-129.2 M-135.7 M
Operating Income231.3 M242.9 M
Income Before Tax206.7 M217 M
Total Other Income Expense Net-24.6 M-23.4 M
Net Income58.6 M62.9 M
Income Tax Expense148.1 M155.5 M
Net Income Applicable To Common Shares206.6 M216.9 M
Net Income From Continuing Ops33.7 M32 M
Non Operating Income Net Other24.2 M25.4 M
Interest Income8.2 M4.1 M
Net Interest Income-40.5 M-38.5 M
Change To Netincome40.4 M38.8 M
Net Income Per Share 1.49  1.08 
Income Quality 1.59  1.57 
Net Income Per E B T 0.28  0.51 

MSA Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on MSA Safety. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of MSA Safety position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the MSA Safety's important profitability drivers and their relationship over time.

MSA Safety Profitability Trends

MSA Safety profitability trend refers to the progression of profit or loss within a business. An upward trend means that MSA Safety's profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is MSA Safety's gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.

MSA Safety Profitability Drivers Correlations

One of the toughest challenges investors face today is learning how to quickly synthesize and read into endless financial statements and information provided by the company, SEC reporting, and various external parties. Understanding the correlation between MSA Safety different financial indicators related to revenue and profit generation helps investors identify and prioritize their investing strategies towards MSA Safety in a much-optimized way. Analyzing correlations between profit drivers that are directly associated with dollar figures is the most effective way to break down MSA Safety's future profitability.

Use MSA Safety in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if MSA Safety position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in MSA Safety will appreciate offsetting losses from the drop in the long position's value.

MSA Safety Pair Trading

MSA Safety Pair Trading Analysis

The ability to find closely correlated positions to MSA Safety could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace MSA Safety when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back MSA Safety - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling MSA Safety to buy it.
The correlation of MSA Safety is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as MSA Safety moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if MSA Safety moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for MSA Safety can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your MSA Safety position

In addition to having MSA Safety in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Run Global Macro ETFs Thematic Idea Now

Global Macro ETFs
Global Macro ETFs Theme
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Global Macro ETFs theme has 26 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Global Macro ETFs Theme or any other thematic opportunities.
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When determining whether MSA Safety offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of MSA Safety's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Msa Safety Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Msa Safety Stock:
Check out Correlation Analysis.
For information on how to trade MSA Stock refer to our How to Trade MSA Stock guide.
You can also try the Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
To fully project MSA Safety's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of MSA Safety at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include MSA Safety's income statement, its balance sheet, and the statement of cash flows.
Potential MSA Safety investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although MSA Safety investors may work on each financial statement separately, they are all related. The changes in MSA Safety's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on MSA Safety's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.