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MSA Safety Incorporated (MSA)
NYSE:MSA

MSA Safety (MSA) AI Stock Analysis

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MSA Safety

(NYSE:MSA)

Rating:78Outperform
Price Target:
$198.00
▲(12.65%Upside)
MSA Safety's strong financial performance and strategic acquisition are significant positives, supporting its position in the industry. However, high valuation and technical indicators suggest caution due to potential overbought conditions. The balanced sentiment from the earnings call and challenges such as tariff impacts and margin contraction also moderate the overall score.
Positive Factors
Acquisitions and Integration
MSA Safety announced the acquisition of M&C TechGroup, a leading provider of gas analysis systems, expanding MSA's fixed gas detection business.
Financial Performance
First-quarter adjusted EPS were above the consensus estimate, benefiting from adjusted operating margins above the consensus estimate and higher-than-expected revenue.
Product Launch and 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
Executive Changes
MSA Safety announced the resignation of CFO Lee McChesney, who has accepted a position at a larger, undisclosed public company.
Macroeconomic Factors
Management noted increased risk due to macroeconomic factors impacting the low-single-digit organic revenue growth guidance for the full year.
Regulatory Challenges
The finalization of new SCBA standards (NFPA 1852) has been delayed following administrative cuts at the regulatory body (NIOSH) earlier this year.

MSA Safety (MSA) vs. SPDR S&P 500 ETF (SPY)

MSA Safety Business Overview & Revenue Model

Company DescriptionMSA Safety (MSA) is a global leader in the development, manufacture, and supply of safety products that protect people and facility infrastructures. The company operates in sectors such as oil, gas, petrochemical, construction, mining, and fire service. MSA's core products include self-contained breathing apparatus, fixed gas and flame detection systems, portable gas detection instruments, industrial head protection products, firefighter protective apparel, and fall protection devices. Founded in 1914, MSA is committed to providing innovative safety solutions worldwide.
How the Company Makes MoneyMSA Safety makes money primarily through the sale of its safety products and solutions. The company's revenue streams are largely derived from its wide range of safety equipment designed for industrial use, including gas detection systems, respiratory protection equipment, head protection, and fall protection devices. MSA serves a diverse customer base in industries such as oil and gas, firefighting, construction, and mining. Key revenue drivers include new product innovations, the expansion of its product portfolio, and long-term service contracts for equipment maintenance and monitoring. Additionally, MSA benefits from strategic partnerships and collaborations that enhance its market reach and product offerings.

MSA Safety Earnings Call Summary

Earnings Call Date:Apr 29, 2025
(Q1-2025)
|
% Change Since: 14.33%|
Next Earnings Date:Jul 23, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong growth in the Detection segment, resilient overall demand, and strategic contract wins. However, challenges such as a decline in Fire Service sales, operating margin contraction, and tariff and FX headwinds were also noted. The sentiment reflects a balanced view, with both positive long-term trends and immediate challenges acknowledged.
Q1-2025 Updates
Positive Updates
Strong Performance in Detection Segment
The Detection segment reported mid-teens growth, supported by expansion in fixed and portable gas detection categories. The io 4 gas monitor and MSA+ offerings showed substantial growth, with over half of MSA+ customers being new.
Resilient Overall Demand and Sales Growth
The company reported sales growth of 2% or 4% organically, with adjusted earnings growth per share of 4%. Despite tariffs and macroeconomic uncertainties, demand was resilient across product categories.
New Contract Wins and Increased Backlog
MSA Safety secured a $10 million contract with the Orange County Fire Authority and saw a sequential increase in backlog in line with historical trends.
International Segment Growth
Sales in the International segment increased by 9% year-over-year or 11% organically, with double-digit organic growth driven by Detection and Fire Service.
Negative Updates
Decline in Fire Service Sales
Sales in Fire Service were down high single digits year-over-year, primarily due to challenging year-over-year comparables in the Americas segment.
Operating Margin Contraction
Operating margins declined year-over-year due to gross margin pressure from transactional foreign currency headwinds.
Challenges with Tariffs
About 15% of the cost of sales is subject to tariffs, with one-third coming from China. Tariffs are expected to impact the second half of the year.
FX Headwinds Impacting Margins
Gross margin was impacted by foreign exchange headwinds, especially from Latin American currencies, and is expected to continue in the second quarter.
Company Guidance
During the MSA Safety First Quarter 2025 Earnings Conference Call, the company provided guidance and insights into its financial performance and strategic initiatives. MSA Safety reported first-quarter sales of $421 million, reflecting a 2% increase on a reported basis and 4% organic growth, with a significant contribution from the Detection segment, which saw mid-teens growth. The company achieved an adjusted earnings per share increase of 4%, despite facing challenges such as gross margin pressure from foreign currency headwinds and tariffs, with the latter affecting about 15% of their cost of sales. The operating margin was impacted, declining by 50 basis points to 20.8%. Looking ahead, MSA Safety maintains its low single-digit full-year organic growth outlook, leveraging a strong commercial pipeline and strategic actions under its ACCELERATE strategy, which includes extending its innovation-led leadership and optimizing its supply chain to mitigate tariff impacts. The company also expanded its revolving credit facility to $1.3 billion to support future growth initiatives.

MSA Safety Financial Statement Overview

Summary
MSA Safety demonstrates strong financial health with consistent revenue growth, robust profitability, and effective cash flow generation. The improvement in leverage metrics and consistent equity growth highlight financial stability. While operational and cash flow metrics reflect efficiency, minor fluctuations in asset levels and cash flow sustainability warrant attention.
Income Statement
85
Very Positive
MSA Safety shows robust revenue growth with a consistent increase from $1.35 billion in 2020 to $1.82 billion in TTM. Gross profit margin remains strong at approximately 47.3% for TTM, indicating efficient cost management. The net profit margin for TTM is 15.8%, reflecting healthy profitability. Notably, EBIT and EBITDA margins are also solid, contributing to high operational efficiency. The consistent growth trajectory and strong margins suggest excellent financial health, though slight fluctuations in profitability should be monitored.
Balance Sheet
78
Positive
The balance sheet showcases a healthy equity position with an increasing stockholders' equity, reaching $1.19 billion in TTM. The debt-to-equity ratio has improved significantly from 0.74 in 2020 to 0.04 in TTM, indicating reduced leverage risk. ROE for TTM is strong at 24.1%, suggesting effective use of equity capital. While the equity ratio of 53.2% supports financial stability, the decrease in total assets over the years requires caution.
Cash Flow
82
Very Positive
Cash flows are strong, with operating cash flow consistently supporting net income, evidenced by an operating cash flow to net income ratio of 1.07 in TTM. Free cash flow remains positive and growing, with a TTM free cash flow of $191.75 million. The free cash flow to net income ratio of 0.67 for TTM indicates robust cash generation relative to earnings, though the decline from the previous year suggests monitoring for sustainability.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.82B1.81B1.79B1.53B1.40B1.35B
Gross Profit858.31M860.45M852.14M673.83M615.35M590.45M
EBITDA475.36M476.23M314.19M316.51M84.68M217.25M
Net Income286.43M284.97M58.58M179.63M21.34M124.08M
Balance Sheet
Total Assets2.24B2.21B2.17B2.38B2.40B1.87B
Cash, Cash Equivalents and Short-Term Investments170.62M164.56M146.44M162.90M140.90M160.67M
Total Debt547.74M554.00M646.19M572.83M597.65M351.80M
Total Liabilities1.05B1.06B1.20B1.45B1.56B1.06B
Stockholders Equity1.19B1.14B966.80M923.74M834.39M809.89M
Cash Flow
Free Cash Flow253.59M242.21M50.09M113.51M150.02M157.65M
Operating Cash Flow307.38M296.43M92.86M157.46M199.15M206.56M
Investing Cash Flow-53.30M-53.76M-39.95M-4.48M-415.47M-72.77M
Financing Cash Flow-225.22M-208.69M-52.25M-113.35M203.93M-126.53M

MSA Safety Technical Analysis

Technical Analysis Sentiment
Positive
Last Price175.77
Price Trends
50DMA
161.70
Positive
100DMA
156.60
Positive
200DMA
162.86
Positive
Market Momentum
MACD
3.15
Negative
RSI
73.49
Negative
STOCH
94.82
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MSA, the sentiment is Positive. The current price of 175.77 is above the 20-day moving average (MA) of 167.14, above the 50-day MA of 161.70, and above the 200-day MA of 162.86, indicating a bullish trend. The MACD of 3.15 indicates Negative momentum. The RSI at 73.49 is Negative, neither overbought nor oversold. The STOCH value of 94.82 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MSA.

MSA Safety Risk Analysis

MSA Safety disclosed 27 risk factors in its most recent earnings report. MSA Safety reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

MSA Safety Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
$1.07B24.5127.48%1.86%-1.05%-2.78%
MSMSA
78
Outperform
$6.82B23.9526.22%1.22%0.75%7.20%
77
Outperform
$3.58B60.922.58%14.02%-69.91%
BRBRC
76
Outperform
$3.28B17.1217.80%1.39%8.62%3.59%
ADADT
72
Outperform
$6.92B14.1516.26%2.66%-5.44%-16.05%
BCBCO
70
Neutral
$3.97B25.3454.50%1.09%1.97%41.88%
65
Neutral
$10.77B15.805.51%1.90%3.03%-26.66%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
MSA
MSA Safety
175.77
-7.46
-4.07%
BRC
Brady
69.68
4.58
7.04%
BCO
Brink's Company
94.46
-6.30
-6.25%
NSSC
Napco Security Technologies
30.14
-23.62
-43.94%
ADT
Adt
8.47
1.32
18.46%
REZI
Resideo Technologies
24.08
4.99
26.14%

MSA Safety Corporate Events

Executive/Board ChangesShareholder Meetings
MSA Safety Elects New Directors at Annual Meeting
Neutral
May 14, 2025

At the annual meeting of shareholders held on May 13, 2025, MSA Safety Incorporated elected Robert A. Bruggeworth, Gregory B. Jordan, and William R. Sperry as directors to serve until 2028. Ernst & Young LLP was selected as the independent registered public accounting firm for 2025, and the advisory vote approved the executive compensation for the company’s named executive officers.

The most recent analyst rating on (MSA) stock is a Buy with a $200.00 price target. To see the full list of analyst forecasts on MSA Safety stock, see the MSA Stock Forecast page.

M&A TransactionsBusiness Operations and Strategy
MSA Safety Completes Acquisition of M&C TechGroup
Positive
May 7, 2025

On May 6, 2025, MSA Europe Holdings GmbH, a subsidiary of MSA Safety Incorporated, completed the acquisition of M&C TechGroup Germany GmbH for approximately $200 million. This acquisition is expected to enhance MSA’s detection solutions and expand its capabilities in the gas analysis and process safety markets. M&C TechGroup, with annual revenues of about $55 million, complements MSA’s existing technology and customer base. The transaction aligns with MSA’s strategy to grow its detection business and is anticipated to be accretive to its adjusted earnings in 2025. The acquisition positions MSA as a leading provider of gas analysis solutions, leveraging M&C’s expertise and MSA’s global distribution network to optimize processes and enhance safety across various industries.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 03, 2025