Updated 3/11/25
MSA Safety Incorporated (NYSE: MSA) has been around for over a century, making equipment that protects workers in industries where safety is critical. From firefighters to oil rig workers, MSA’s gear is trusted to keep people safe, and that’s not something companies take lightly.
While MSA may not be the first name that comes to mind for dividend investors, it’s quietly built a reputation for steady payouts, a healthy balance sheet, and consistent financial performance. The stock has pulled back significantly from its highs, but for long-term investors looking for reliable income and stability, it’s worth a closer look.
Key Dividend Metrics
📈 Dividend Yield: 1.31% (slightly above its 5-year average)
💰 Annual Dividend: $2.04 per share
📊 Payout Ratio: 27.74% (a comfortable level for sustainability)
📈 Dividend Growth: Historically steady increases
📆 Payment Frequency: Quarterly
📅 Ex-Dividend Date: February 14, 2025
🛠 Dividend Safety Score: Strong, supported by cash flow and earnings
Dividend Overview
MSA’s dividend yield sits at 1.31%, which isn’t sky-high but is slightly above its historical average. Investors who like a combination of stability and growth may find this appealing. The company has maintained a pattern of small but steady dividend increases, and with a payout ratio of just under 28%, it has plenty of room to continue that trend.
The next dividend payment is scheduled for March 10, 2025, for shareholders who held the stock before the February 14 ex-dividend date. For investors looking at long-term compounding, this kind of predictable payout schedule is a solid foundation for portfolio planning.
Dividend Growth and Safety
MSA isn’t a high-yield play, but it is a consistent one. The company has a habit of increasing its dividend, and the numbers suggest that trend is unlikely to change anytime soon.
Why the Dividend Looks Safe
✅ The payout ratio is low, meaning dividends are well-covered by earnings.
✅ Free cash flow is strong at $213.85 million, reinforcing the ability to sustain payouts.
✅ The company has a track record of steady, manageable increases.
✅ Debt levels are reasonable, and liquidity remains healthy.
For investors worried about dividend safety, MSA checks the right boxes. The balance sheet supports the current payout, and the business model is steady enough to avoid major disruptions.
Chart Analysis
The chart for MSA Safety Incorporated tells a clear story of a stock that has been trending downward for the past year. The price action is currently hovering near its 52-week low, showing signs of persistent weakness. There are a few key technical elements that stand out, which can give investors insight into where the stock might be heading next.
Moving Averages Indicating a Downtrend
One of the most noticeable aspects of this chart is the relationship between the 50-day moving average (orange line) and the 200-day moving average (blue line). The 50-day moving average has been trending downward since mid-2024, and it crossed below the 200-day moving average, forming what is known as a “death cross.” This is typically a bearish signal, suggesting that selling pressure has been stronger than buying momentum over the longer term.
The stock is currently trading well below both moving averages, which indicates that it remains in a firm downtrend. Until the price can reclaim the 50-day moving average and hold above it, the stock is unlikely to break out of this bearish structure.
Volume Trends Show No Clear Buying Interest
Looking at the volume section of the chart, there is no significant surge in buying activity. While there have been a few green spikes, they have not been sustained enough to suggest a strong reversal. Instead, selling volume appears to be relatively consistent, reinforcing the idea that investors have been offloading shares rather than accumulating them.
A sharp increase in green volume bars would be one of the first signs that buyers are stepping in, but so far, that hasn’t happened in any meaningful way.
Relative Strength Index (RSI) Near Oversold Levels
The RSI (Relative Strength Index) is sitting at a relatively low level, which typically suggests the stock is nearing oversold territory. When RSI falls below 30, it signals that selling momentum might be reaching exhaustion, and a bounce could be possible. However, an oversold RSI doesn’t guarantee a reversal—stocks can stay oversold for extended periods, especially in strong downtrends.
What would be more compelling is if RSI begins to rise while the stock price stabilizes. That kind of divergence often signals that selling momentum is fading.
Recent Price Action and Support Levels
The last five trading days show a clear downward movement, with the latest close at 154.73. The candlesticks have small bodies, indicating indecision, but the price continues to grind lower. There have been lower highs and lower lows, which means there’s still no sign of a trend reversal.
If the stock breaks below its current support level around 154, the next possible downside target could be closer to 150, which is the most recent significant low. If buyers step in around this level, there’s a chance for a short-term rebound. However, for a sustained uptrend, the stock would need to break above the 50-day moving average, which is still well above the current price.
Analyst Ratings
📈 MSA Safety Incorporated has recently experienced a range of analyst opinions, reflecting both optimism and caution regarding its future performance.
Upgrades
- 🎯 DA Davidson initiated coverage on December 19, 2024, assigning a “Strong Buy” rating with a price target of $195. This positive outlook stems from the firm’s confidence in MSA’s market position and growth prospects.
- 📊 Stifel has consistently maintained a “Strong Buy” rating. Notably, on July 26, 2024, analyst Stanley Elliott increased the price target from $200 to $215, indicating strong confidence in the company’s trajectory.
Downgrades
- ⚠️ Robert W. Baird analyst Richard Eastman adjusted his stance on February 18, 2025, maintaining a “Hold” rating but lowering the price target from $190 to $175. This revision reflects a more cautious view, possibly due to valuation concerns or market conditions.
- 🔍 Jefferies Financial Group initiated coverage on December 12, 2024, with a “Hold” rating and a $200 price target, suggesting a neutral outlook on the stock’s near-term potential.
Consensus Price Target
📌 The consensus among analysts points to an average price target of approximately $197, suggesting an anticipated upside of around 24% from current levels. This consensus reflects a balanced view, acknowledging both the company’s strengths and the challenges it may face in the market.
Earnings Report Summary
MSA Safety Incorporated just released its latest earnings, and the numbers tell a story of steady growth and solid financial health. The company managed to keep revenues on an upward trend while maintaining strong profitability, which is exactly what long-term investors like to see.
Fourth Quarter 2024 Highlights
- Revenue Growth: MSA pulled in $500 million in sales during the fourth quarter, a modest 1% increase from the same period last year. When adjusted for organic growth, that number climbs to 2%, showing that demand for its safety products remains strong.
- Profit Margins Holding Steady: The company maintained a solid gross profit margin of 46.9%, meaning it’s doing a good job keeping production costs under control. Operating margin came in at 24%, an improvement of 70 basis points from last year, which suggests that management is keeping expenses in check while still driving growth.
- Earnings Per Share on the Rise: Adjusted diluted EPS jumped 9% to $2.25, a healthy increase that highlights MSA’s ability to generate strong earnings despite a challenging economic environment.
Full-Year 2024 Performance
- Sales Keep Climbing: For the full year, MSA posted a 1% increase in total sales and a 2% rise in organic growth. While not explosive growth, it’s a sign of resilience in a competitive market.
- Higher Earnings: Adjusted earnings per share climbed 10% for the year, reinforcing the company’s ability to manage costs while still delivering strong profits.
- Financial Strength: With an adjusted EBITDA of $469 million and a net leverage ratio of 0.7x, MSA is in a comfortable financial position. This gives the company plenty of room to invest in future growth while keeping debt under control.
Operational and Strategic Wins
- Orders Are Rolling In: The company saw a 14% year-over-year increase in orders for the quarter and a 10% bump for the second half of the year. Demand for MSA’s safety gear remains strong, particularly in its top product categories.
- Big Contracts Secured: MSA locked in a ten-year, $33 million contract with the U.S. Coast Guard and delivered another round of orders to the U.S. Air Force. It also received its largest-ever order for MSA Plus connected portables from a major energy company.
- Looking Ahead: Innovation remains a priority, especially in fire safety and gas detection. The company’s Accelerate strategy is expected to drive low single-digit organic sales growth in 2025, despite some potential headwinds from foreign exchange and tough comparisons to last year’s large orders.
MSA wrapped up the year in good shape, showing steady growth, disciplined expense management, and a strong backlog of orders. It’s well-positioned to continue delivering value for shareholders in the years ahead.
Financial Health and Stability
Beyond the dividend, MSA’s financials suggest a well-run company with strong profitability.
- The profit margin stands at 15.76%, while the operating margin is even stronger at 24.55%.
- Return on equity is impressive at 27.01%, showing efficient use of capital.
- The company’s debt-to-equity ratio is 49.45%, which is manageable given its stable cash flow.
- Quarterly revenue growth of 0.90% year-over-year may not be flashy, but it’s steady.
With a current ratio of 2.79, MSA has more than enough assets to cover its short-term liabilities. That’s always a reassuring sign for dividend investors looking for stability.
Valuation and Stock Performance
MSA is currently trading around $152.47, which is near its 52-week low of $151.16. That’s quite a drop from its high of $200.61, and it’s also well below its 50-day and 200-day moving averages. While some investors might see this as a red flag, others may view it as an opportunity to buy a solid company at a lower price.
Looking at valuation metrics:
- The price-to-earnings ratio sits at 21.56, which is reasonable for an industrial stock.
- The price-to-book ratio is 5.35, which is a bit high but reflects the company’s strong returns.
- The enterprise value-to-EBITDA ratio is 13.64, suggesting the stock is fairly valued compared to its earnings power.
The stock’s performance over the past year has been rough, down about 16.83% compared to the S&P 500’s 8.49% gain. However, for long-term investors, price weakness could mean an opportunity to get in at a better valuation.
Risks and Considerations
Every investment has risks, and MSA is no exception. While the company is financially sound, there are a few things investors should keep in mind.
1. Economic Cycles Can Impact Demand
MSA sells safety equipment for industrial and construction-related sectors. If those industries slow down, demand for its products could take a hit.
2. Valuation Still Matters
Even after its decline, MSA isn’t necessarily cheap. Its valuation metrics suggest a fair price, but if growth stalls, the stock could have further downside.
3. Lower Dividend Yield
For income-focused investors, the 1.31% dividend yield may not be high enough compared to other industrial dividend stocks.
4. Competition and Market Pressures
The safety equipment space is competitive, and MSA needs to keep innovating to maintain its market share. Any missteps in product development or supply chain issues could impact future earnings.
5. Stock Volatility
With shares trading near their lows, there’s always the possibility of further declines if market sentiment remains negative. However, for long-term investors, this could be a chance to buy a high-quality company at a more attractive price.
Final Thoughts
MSA Safety is a well-run company with a reliable dividend, strong cash flow, and a conservative payout ratio. While the yield isn’t the highest, its track record of consistent increases makes it a good option for investors looking for stability rather than immediate high income.
With the stock trading near its 52-week low, some investors might see a buying opportunity, while others may wait for further price stabilization. Either way, MSA is the kind of stock that fits well in a long-term, dividend-focused portfolio, providing steady income along with the potential for capital appreciation.
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