MSA Safety (MSA) AI Stock Analysis

• Market Cap: $6.60B
• Dividend Yield: 1.3%
• Average Volume (3M): 240.21K
• Price to Earnings (P/E): 24.2
• Beta (1Y): 0.97
• Revenue Growth: 3.31%
• EPS Growth: 2.58%
• Country: US
• Employees: 5,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Security & Protection Services
• EPS (TTM): 1.94
• Shares Outstanding: 39,152,060
• 10 Day Avg. Volume: 228,752
• 30 Day Avg. Volume: 240,212
• PEG Ratio: 0.06
• Price to Book (P/B): 5.71
• Price to Sales (P/S): 3.61
• P/FCF Ratio: 26.94
• Enterprise Value/Market Cap: 1.10
• Enterprise Value/Revenue: 3.90
• Enterprise Value/Gross Profit: 8.39
• Enterprise Value/Ebitda: 15.45
• 1Y Price Target: $189.33
• Price Target Upside: 10.24% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: $184.00 ▲(7.13% Upside)

MSA Safety's overall stock score reflects strong financial performance and positive earnings call highlights, including sales growth and acquisition benefits. However, technical analysis and valuation concerns, along with challenges in specific segments, moderate the score.

Positive Factors

Revenue Growth

The 8% sales growth, including 3% organic, indicates strong demand and effective market strategies, supporting long-term revenue expansion.

Cash Flow Management

Strong free cash flow generation enhances financial flexibility, enabling reinvestment in growth opportunities and debt reduction.

Product Innovation

New product launches like the ALTAIR io 6 enhance competitive positioning and address evolving customer needs, driving future growth.

Negative Factors

Fire Service Sales Decline

Declining sales in the fire service segment highlight market challenges and could impact overall revenue if not addressed.

Gross Margin Pressure

Margin decline due to inflation and tariffs could pressure profitability if cost management strategies are not effective.

Americas Segment Margin Contraction

Margin contraction in the Americas segment suggests cost pressures that may affect regional profitability and require strategic adjustments.

MSA Safety Business Overview & Revenue Model

Company Description

MSA Safety Incorporated develops, manufactures, and supplies safety products that protect people and facility infrastructures in the oil, gas, petrochemical, fire service, construction, industrial manufacturing applications, utilities, military, and mining industries in North America, Latin America, and internationally. The company's core product offerings include permanently installed fixed gas and flame detection instruments, such as permanently installed gas detection monitoring systems, and flame detectors and open-path infrared gas detectors, as well as replacement components and related services to detect the presence or absence of various gases in the air. Its core product offerings also comprise breathing apparatus products, such as self-contained breathing apparatus; hand-held portable gas detection instruments; industrial head protection products; firefighter helmets and protective apparel; and fall protection equipment, including confined space equipment, harnesses, lanyards, and self-retracting lifelines, as well as engineered systems. In addition, the company offers air-purifying respirators, eye and face protection products, ballistic helmets, and gas masks. It serves distributors and end-users through indirect and direct sales channels. The company offers its product under the V-Gard, Cairns, and Gallet brand names. MSA Safety Incorporated was founded in 1914 and is based in Cranberry Township, Pennsylvania.

How the Company Makes Money

MSA Safety generates revenue primarily through the sale of its safety products and solutions across multiple industries. The company's revenue model is built on direct sales to end-users, distribution partnerships, and maintenance contracts for its safety systems. Key revenue streams include the sale of personal protective equipment (PPE), gas detection systems, and safety management software. MSA also benefits from long-term contracts with governmental agencies and large corporations, which provide stable income sources. Strategic partnerships with distributors and safety training organizations further enhance its market reach and contribute to its earnings by expanding its customer base and service offerings.

MSA Safety Financial Statement Overview

Summary

MSA Safety shows strong financial health with consistent revenue growth and profitability. The balance sheet is robust, with low leverage and high return on equity. However, the significant drop in free cash flow growth is a concern that needs addressing to ensure sustained financial flexibility.

Income Statement

MSA Safety has demonstrated strong revenue growth with a 1.96% increase in the TTM period, supported by healthy gross and net profit margins of 46.48% and 15.02%, respectively. The EBIT margin is robust at 21.50%, indicating efficient operational management. However, there is a slight decline in EBITDA margin compared to the previous year, suggesting potential cost pressures.

Balance Sheet

The company maintains a solid balance sheet with a low debt-to-equity ratio of 0.041, reflecting prudent financial management. Return on equity is strong at 22.91%, indicating effective use of shareholder funds. The equity ratio stands at 51.00%, showcasing a stable capital structure. However, the decrease in total debt suggests a strategic deleveraging approach.

Cash Flow

MSA Safety's cash flow performance shows a significant decline in free cash flow growth by 83.61%, which could impact future investments. The operating cash flow to net income ratio is moderate at 0.37, indicating adequate cash generation relative to net income. The free cash flow to net income ratio is 0.38, suggesting room for improvement in cash flow efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.86B	1.81B	1.79B	1.53B	1.40B	1.35B
Gross Profit	866.15M	860.45M	852.14M	673.83M	615.35M	595.49M
EBITDA	470.37M	476.23M	314.19M	316.51M	84.68M	217.25M
Net Income	279.94M	284.97M	58.58M	179.63M	21.34M	124.08M
Balance Sheet
Total Assets	2.55B	2.21B	2.17B	2.38B	2.40B	1.92B
Cash, Cash Equivalents and Short-Term Investments	170.00M	164.56M	146.44M	172.81M	190.41M	236.02M
Total Debt	674.40M	565.40M	646.19M	608.18M	647.90M	351.80M
Total Liabilities	1.25B	1.06B	1.20B	1.45B	1.56B	1.07B
Stockholders Equity	1.30B	1.14B	966.80M	923.74M	834.39M	839.20M
Cash Flow
Free Cash Flow	282.91M	242.21M	50.09M	113.51M	150.02M	157.65M
Operating Cash Flow	349.42M	296.43M	92.86M	157.46M	199.15M	206.56M
Investing Cash Flow	-253.89M	-53.76M	-39.95M	-4.48M	-415.47M	-72.77M
Financing Cash Flow	-70.34M	-208.69M	-52.25M	-113.35M	203.93M	-126.53M

MSA Safety Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 171.75
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 171.75 is above the 20-day moving average (MA) of 162.94, above the 50-day MA of 160.69, and above the 200-day MA of 163.10, indicating a bullish trend. The MACD of 2.09 indicates Negative momentum. The RSI at 67.38 is Neutral, neither overbought nor oversold. The STOCH value of 92.32 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MSA.

MSA Safety Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NSSC	80 Outperform	$1.47B	34.40	25.03%	1.29%	-2.28%	-9.94%
MSA	75 Outperform	$6.60B	24.20	23.35%	1.30%	3.31%	2.58%
BRC	75 Outperform	$3.80B	20.10	16.69%	1.23%	11.20%	0.71%
BCO	74 Outperform	$4.94B	31.36	61.95%	0.85%	3.07%	48.57%
ADT	69 Neutral	$6.72B	11.78	17.24%	2.73%	4.77%	-22.78%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
REZI	51 Neutral	$5.20B	-7.88	-20.90%	―	15.45%	-488.24%

MSA Safety Corporate Events

MSA Safety Announces Planned Retirement of International President

MSA Safety announced that David J. Howells, Senior Vice President and President of MSA International, has notified the company of his intention to retire effective June 30, 2026. The company does not plan to directly replace his role and instead will redistribute his responsibilities among senior personnel within the MSA International segment, who will manage the business while reporting directly to the chief executive officer, signaling a move toward a more streamlined leadership structure for its international operations.

The most recent analyst rating on (MSA) stock is a Buy with a $184.00 price target. To see the full list of analyst forecasts on MSA Safety stock, see the MSA Stock Forecast page.