MSA Safety (MSA) AI Stock Analysis

• Market Cap: $5.64B
• Dividend Yield: 1.53%
• Average Volume (3M): 210.70K
• Price to Earnings (P/E): 19.9
• Beta (1Y): 0.93
• Revenue Growth: 1.15%
• EPS Growth: 388.76%
• Country: US
• Employees: 5,200
• Sector: Industrials
• Sector Strength: 61
• Industry: Security & Protection Services
• EPS (TTM): 7.21
• Shares Outstanding: 39,260,624
• 10 Day Avg. Volume: 237,839
• 30 Day Avg. Volume: 210,703
• PEG Ratio: 0.05
• Price to Book (P/B): N/A
• Price to Sales (P/S): 3.25
• Price to Cash Flow (P/CF): 13.60
• P/FCF Ratio: 15.70
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $181.50
• Price Target Upside: 27.93% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

MSA Safety showcases robust financial performance with strong revenue growth and profitability, supported by a debt-free balance sheet. Despite technical weakness and valuation concerns, the company's strategic focus and resilience in demand contribute positively. Challenges in sales growth and margin contraction outlined in the earnings call are notable, but are offset by strong financial positioning and strategic initiatives.

Positive Factors

Market Expansion

MSA appears uniquely positioned to expand into adjacent markets, suggesting an edge in the wider pursuit of a ubiquitous connected worker platform.

Recurring Revenue

Recurring revenue through software and parts & services represents approximately 15% of MSA’s revenue and is increasing.

Technology Innovation

Advancements in connected worker technology have reached a tipping point within portable gas detection, as the benefits of enhanced safety and productivity now justify a return on investment.

Negative Factors

Leadership Change

MSA Safety announced the resignation of CFO Lee McChesney, who has accepted a position at a larger, undisclosed public company.

Market Challenges

Fire Safety (-9% Y/Y) and Industrial PPE (-4% Y/Y) were softer but faced tough comps/EMEA macro.

Sales Performance

3Q sales timing/lumpiness caused a -4% shortfall, but expense discipline insulated margins better than forecast, delivering EPS in line.

MSA Safety Business Overview & Revenue Model

Company Description

MSA Safety Incorporated (MSA) is a global leader in the development, manufacture, and supply of safety products that protect people and facility infrastructures. Founded in 1914 and headquartered in Cranberry Township, Pennsylvania, MSA operates in sectors such as industrial safety, construction, mining, and firefighting. The company's core products include advanced safety equipment and solutions like self-contained breathing apparatus, fixed gas and flame detection systems, portable gas detection instruments, industrial head protection products, and fall protection devices.

How the Company Makes Money

MSA Safety generates revenue through the sale of its wide range of safety products and solutions primarily to industrial and commercial customers. The company's key revenue streams include direct sales to end-users, distribution through third-party distributors, and comprehensive service offerings including maintenance and training. MSA's earnings are bolstered by its strong global presence and strategic partnerships, which enable the company to effectively reach diverse markets and customer bases. Additionally, investments in research and development help MSA to continuously innovate and maintain its competitive edge, further driving sales and revenue growth.

MSA Safety Financial Statement Overview

Summary

MSA Safety exhibits strong financial health with consistent revenue growth, high profitability, and a robust balance sheet with no debt. The company's efficient cost management and impressive cash flow generation support its solid financial position.

Income Statement

MSA Safety has demonstrated a strong performance with consistent revenue growth. The Gross Profit Margin for TTM (Trailing-Twelve-Months) is approximately 47.6%, indicating effective cost management. The Net Profit Margin has significantly improved to 15.8% TTM, showcasing enhanced profitability. EBIT and EBITDA margins are also robust at 21.9% and 25.0% respectively, reflecting operational efficiency and strong earnings before and after depreciation.

Balance Sheet

The balance sheet is strong with a Debt-to-Equity Ratio of 0.0 TTM, indicating zero debt and a healthy equity base. The Return on Equity (ROE) has significantly increased to 24.9% TTM, reflecting high profitability relative to equity. Additionally, the Equity Ratio is sound at 51.8%, suggesting a stable financial structure with substantial shareholder equity backing the total assets.

Cash Flow

MSA Safety's cash flow generation is solid with a Free Cash Flow growth of 168% TTM. The Operating Cash Flow to Net Income Ratio is 0.66, indicating efficient cash conversion from earnings. The Free Cash Flow to Net Income Ratio stands at 0.47, demonstrating a strong ability to generate cash from operations after capital expenditures.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.81B	1.79B	1.53B	1.40B	1.35B
	Gross Profit
860.45M	852.14M	673.83M	615.35M	590.45M
	EBIT
389.18M	231.32M	239.14M	51.01M	166.85M
	EBITDA
476.23M	314.19M	316.51M	84.68M	217.25M
	Net Income Common Stockholders
284.97M	58.58M	179.63M	21.34M	124.08M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
164.56M	146.44M	162.90M	140.90M	160.67M
	Total Assets
2.21B	2.17B	2.38B	2.40B	1.87B
	Total Debt
72.38M	646.19M	572.83M	597.65M	351.80M
	Net Debt
-92.19M	499.75M	409.93M	456.76M	191.12M
	Total Liabilities
1.06B	1.20B	1.45B	1.56B	1.06B
	Stockholders Equity
1.14B	966.80M	923.74M	834.39M	809.89M
Cash Flow		Free Cash Flow
242.21M	50.09M	113.51M	150.02M	157.65M
	Operating Cash Flow
296.43M	92.86M	157.46M	199.15M	206.56M
	Investing Cash Flow
-53.76M	-39.95M	-4.48M	-415.47M	-72.77M
	Financing Cash Flow
-208.69M	-52.25M	-113.35M	203.93M	-126.53M

MSA Safety Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 141.87
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MSA, the sentiment is Negative. The current price of 141.87 is below the 20-day moving average (MA) of 146.98, below the 50-day MA of 155.33, and below the 200-day MA of 169.65, indicating a bearish trend. The MACD of -2.93 indicates Positive momentum. The RSI at 32.41 is Neutral, neither overbought nor oversold. The STOCH value of 12.16 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MSA.

MSA Safety Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ADT	78 Outperform	$6.74B	15.30	14.41%	2.92%	-13.19%	10.03%
BRC	74 Outperform	$3.25B	16.96	17.92%	1.48%	6.20%	5.12%
MSA	73 Outperform	$5.64B	19.92	27.01%	1.53%	1.15%	388.76%
BCO	71 Outperform	$3.81B	24.24	55.57%	1.17%	2.82%	95.64%
REZI	70 Outperform	$2.40B	22.94	3.83%	―	8.31%	-49.90%
NSSC	68 Neutral	$737.49M	15.53	29.13%	1.76%	5.14%	12.03%
Sector *	62 Neutral	$7.67B	13.25	3.04%	3.47%	3.63%	-13.99%

MSA Safety Corporate Events

MSA Safety Announces CFO Resignation and Interim Appointment

On March 13, 2025, MSA Safety Incorporated announced the resignation of its Chief Financial Officer, Lee B. McChesney, effective March 21, 2025, as he leaves to pursue a similar role at another public company. Elyse L. Brody, the Executive Director of Financial Planning and Analysis and Strategy, has been appointed as interim CFO while the company conducts a comprehensive search for a permanent replacement. The transition is not due to any disagreements with the company, and adjustments have been made to Brody’s compensation in her interim role.