BRADY CORPORATION - CL A (BRC) Stock Fundamental Analysis
USA - NYSE:BRC - US1046741062 - Common Stock
79.35 USD
-0.53 (-0.66%)
79.35 USD
0 (0%)
BRC gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 84 industry peers in the Commercial Services & Supplies industry. Both the health and profitability get an excellent rating, making BRC a very profitable company, without any liquidiy or solvency issues. BRC is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year BRC was profitable.
In the past year BRC had a positive cash flow from operations.
In the past 5 years BRC has always been profitable.
In the past 5 years BRC always reported a positive cash flow from operatings.
1.2 Ratios
BRC's Return On Assets of 10.87% is amongst the best of the industry. BRC outperforms 88.10% of its industry peers.
Looking at the Return On Equity, with a value of 15.81%, BRC is in the better half of the industry, outperforming 79.76% of the companies in the same industry.
BRC has a better Return On Invested Capital (14.18%) than 89.29% of its industry peers.
BRC had an Average Return On Invested Capital over the past 3 years of 15.20%. This is above the industry average of 10.60%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.87% | ||
| ROE | 15.81% | ||
| ROIC | 14.18% |
ROA(3y)12.12%
ROA(5y)11.32%
ROE(3y)17.27%
ROE(5y)16.31%
ROIC(3y)15.2%
ROIC(5y)14.31%
1.3 Margins
BRC has a Profit Margin of 12.45%. This is amongst the best in the industry. BRC outperforms 85.71% of its industry peers.
In the last couple of years the Profit Margin of BRC has grown nicely.
BRC's Operating Margin of 16.51% is amongst the best of the industry. BRC outperforms 85.71% of its industry peers.
In the last couple of years the Operating Margin of BRC has grown nicely.
BRC has a Gross Margin of 50.27%. This is amongst the best in the industry. BRC outperforms 90.48% of its industry peers.
In the last couple of years the Gross Margin of BRC has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.51% | ||
| PM (TTM) | 12.45% | ||
| GM | 50.27% |
OM growth 3Y3.75%
OM growth 5Y3.35%
PM growth 3Y2.82%
PM growth 5Y3.85%
GM growth 3Y1.19%
GM growth 5Y0.56%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so BRC is still creating some value.
BRC has less shares outstanding than it did 1 year ago.
The number of shares outstanding for BRC has been reduced compared to 5 years ago.
Compared to 1 year ago, BRC has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 6.80 indicates that BRC is not in any danger for bankruptcy at the moment.
BRC has a better Altman-Z score (6.80) than 86.90% of its industry peers.
BRC has a debt to FCF ratio of 0.65. This is a very positive value and a sign of high solvency as it would only need 0.65 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.65, BRC belongs to the top of the industry, outperforming 86.90% of the companies in the same industry.
A Debt/Equity ratio of 0.08 indicates that BRC is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.08, BRC is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | 0.65 | ||
| Altman-Z | 6.8 |
ROIC/WACC1.66
WACC8.53%
2.3 Liquidity
A Current Ratio of 1.88 indicates that BRC should not have too much problems paying its short term obligations.
The Current ratio of BRC (1.88) is better than 66.67% of its industry peers.
A Quick Ratio of 1.27 indicates that BRC should not have too much problems paying its short term obligations.
BRC's Quick ratio of 1.27 is in line compared to the rest of the industry. BRC outperforms 44.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.88 | ||
| Quick Ratio | 1.27 |
3. Growth
3.1 Past
BRC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.26%, which is quite good.
The Earnings Per Share has been growing by 14.77% on average over the past years. This is quite good.
BRC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.84%.
BRC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.96% yearly.
EPS 1Y (TTM)9.26%
EPS 3Y14.47%
EPS 5Y14.77%
EPS Q2Q%5.88%
Revenue 1Y (TTM)12.84%
Revenue growth 3Y5.15%
Revenue growth 5Y6.96%
Sales Q2Q%15.69%
3.2 Future
BRC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.70% yearly.
Based on estimates for the next years, BRC will show a small growth in Revenue. The Revenue will grow by 3.88% on average per year.
EPS Next Y4.4%
EPS Next 2Y6.7%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year3.76%
Revenue Next 2Y3.88%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 17.25, the valuation of BRC can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of BRC indicates a somewhat cheap valuation: BRC is cheaper than 72.62% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of BRC to the average of the S&P500 Index (27.30), we can say BRC is valued slightly cheaper.
With a Price/Forward Earnings ratio of 16.52, BRC is valued correctly.
Based on the Price/Forward Earnings ratio, BRC is valued a bit cheaper than 73.81% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.73, BRC is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.25 | ||
| Fwd PE | 16.52 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BRC indicates a somewhat cheap valuation: BRC is cheaper than 60.71% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, BRC is valued a bit cheaper than 70.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.44 | ||
| EV/EBITDA | 12.76 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
BRC has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.92
PEG (5Y)1.17
EPS Next 2Y6.7%
EPS Next 3YN/A
5. Dividend
5.1 Amount
BRC has a Yearly Dividend Yield of 1.25%.
BRC's Dividend Yield is rather good when compared to the industry average which is at 2.27. BRC pays more dividend than 80.95% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.45, BRC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.25% |
5.2 History
The dividend of BRC has a limited annual growth rate of 1.98%.
BRC has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)1.98%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
24.16% of the earnings are spent on dividend by BRC. This is a low number and sustainable payout ratio.
The dividend of BRC is growing, but earnings are growing more, so the dividend growth is sustainable.
DP24.16%
EPS Next 2Y6.7%
EPS Next 3YN/A
79.35
-0.53 (-0.66%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners84.24%
Inst Owner Change-2.8%
Ins Owners3.14%
Ins Owner Change0.4%
Market Cap3.75B
Analysts86.67
Price Target88.74 (11.83%)
Short Float %0.74%
Short Ratio1.73
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.25% |
Yearly Dividend0.96
Dividend Growth(5Y)1.98%
DP24.16%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.22%
Min EPS beat(2)-0.58%
Max EPS beat(2)1.01%
EPS beat(4)2
Avg EPS beat(4)-0.77%
Min EPS beat(4)-4.34%
Max EPS beat(4)1.01%
EPS beat(8)5
Avg EPS beat(8)1.49%
EPS beat(12)8
Avg EPS beat(12)2.14%
EPS beat(16)9
Avg EPS beat(16)1.22%
Revenue beat(2)1
Avg Revenue beat(2)-0.2%
Min Revenue beat(2)-2.07%
Max Revenue beat(2)1.68%
Revenue beat(4)2
Avg Revenue beat(4)0%
Min Revenue beat(4)-2.07%
Max Revenue beat(4)2.04%
Revenue beat(8)3
Avg Revenue beat(8)-1.63%
Revenue beat(12)5
Avg Revenue beat(12)-0.97%
Revenue beat(16)8
Avg Revenue beat(16)-0.64%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0.41%
EPS NQ rev (3m)0.41%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.22%
Revenue NQ rev (1m)0.57%
Revenue NQ rev (3m)0.57%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.25 | ||
| Fwd PE | 16.52 | ||
| P/S | 2.48 | ||
| P/FCF | 24.44 | ||
| P/OCF | 20.72 | ||
| P/B | 3.15 | ||
| P/tB | 9.16 | ||
| EV/EBITDA | 12.76 |
EPS(TTM)4.6
EY5.8%
EPS(NY)4.8
Fwd EY6.05%
FCF(TTM)3.25
FCFY4.09%
OCF(TTM)3.83
OCFY4.83%
SpS31.99
BVpS25.19
TBVpS8.66
PEG (NY)3.92
PEG (5Y)1.17
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.87% | ||
| ROE | 15.81% | ||
| ROCE | 17.8% | ||
| ROIC | 14.18% | ||
| ROICexc | 16.19% | ||
| ROICexgc | 44.52% | ||
| OM | 16.51% | ||
| PM (TTM) | 12.45% | ||
| GM | 50.27% | ||
| FCFM | 10.15% |
ROA(3y)12.12%
ROA(5y)11.32%
ROE(3y)17.27%
ROE(5y)16.31%
ROIC(3y)15.2%
ROIC(5y)14.31%
ROICexc(3y)17.98%
ROICexc(5y)16.66%
ROICexgc(3y)51.28%
ROICexgc(5y)50.08%
ROCE(3y)19.07%
ROCE(5y)17.95%
ROICexcg growth 3Y-0.71%
ROICexcg growth 5Y2.1%
ROICexc growth 3Y1.76%
ROICexc growth 5Y-0.16%
OM growth 3Y3.75%
OM growth 5Y3.35%
PM growth 3Y2.82%
PM growth 5Y3.85%
GM growth 3Y1.19%
GM growth 5Y0.56%
F-Score4
Asset Turnover0.87
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | 0.65 | ||
| Debt/EBITDA | 0.34 | ||
| Cap/Depr | 67.86% | ||
| Cap/Sales | 1.82% | ||
| Interest Coverage | 53.66 | ||
| Cash Conversion | 62.38% | ||
| Profit Quality | 81.49% | ||
| Current Ratio | 1.88 | ||
| Quick Ratio | 1.27 | ||
| Altman-Z | 6.8 |
F-Score4
WACC8.53%
ROIC/WACC1.66
Cap/Depr(3y)131.52%
Cap/Depr(5y)125.45%
Cap/Sales(3y)3.07%
Cap/Sales(5y)2.98%
Profit Quality(3y)93.24%
Profit Quality(5y)93.76%
High Growth Momentum
Growth
EPS 1Y (TTM)9.26%
EPS 3Y14.47%
EPS 5Y14.77%
EPS Q2Q%5.88%
EPS Next Y4.4%
EPS Next 2Y6.7%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)12.84%
Revenue growth 3Y5.15%
Revenue growth 5Y6.96%
Sales Q2Q%15.69%
Revenue Next Year3.76%
Revenue Next 2Y3.88%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y2.65%
EBIT growth 3Y9.09%
EBIT growth 5Y10.54%
EBIT Next Year36.67%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-12.31%
FCF growth 3Y26.83%
FCF growth 5Y6.2%
OCF growth 1Y-28.96%
OCF growth 3Y15.24%
OCF growth 5Y5.14%