BRADY CORPORATION - CL A (BRC) Stock Fundamental Analysis
NYSE:BRC - New York Stock Exchange, Inc. - US1046741062 - Common Stock - Currency: USD
BRC gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 84 industry peers in the Commercial Services & Supplies industry. BRC scores excellent points on both the profitability and health parts. This is a solid base for a good stock. BRC has a correct valuation and a medium growth rate. With these ratings, BRC could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
BRC had positive earnings in the past year.
BRC had a positive operating cash flow in the past year.
Each year in the past 5 years BRC has been profitable.
Each year in the past 5 years BRC had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 11.43%, BRC belongs to the top of the industry, outperforming 85.54% of the companies in the same industry.
BRC's Return On Equity of 16.62% is fine compared to the rest of the industry. BRC outperforms 78.31% of its industry peers.
With an excellent Return On Invested Capital value of 14.15%, BRC belongs to the best of the industry, outperforming 84.34% of the companies in the same industry.
BRC had an Average Return On Invested Capital over the past 3 years of 14.85%. This is above the industry average of 11.67%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.43% | ||
| ROE | 16.62% | ||
| ROIC | 14.15% |
ROA(3y)12.14%
ROA(5y)11.1%
ROE(3y)17.45%
ROE(5y)15.73%
ROIC(3y)14.85%
ROIC(5y)13.79%
1.3 Margins
The Profit Margin of BRC (13.30%) is better than 86.75% of its industry peers.
In the last couple of years the Profit Margin of BRC has grown nicely.
BRC has a better Operating Margin (17.11%) than 84.34% of its industry peers.
BRC's Operating Margin has improved in the last couple of years.
BRC has a Gross Margin of 50.53%. This is amongst the best in the industry. BRC outperforms 89.16% 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 | 17.11% | ||
| PM (TTM) | 13.3% | ||
| GM | 50.53% |
OM growth 3Y6.85%
OM growth 5Y5.34%
PM growth 3Y9.19%
PM growth 5Y5.44%
GM growth 3Y1.5%
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.
BRC has a worse debt/assets ratio than last year.
2.2 Solvency
BRC has an Altman-Z score of 6.28. This indicates that BRC is financially healthy and has little risk of bankruptcy at the moment.
BRC has a better Altman-Z score (6.28) than 85.54% of its industry peers.
The Debt to FCF ratio of BRC is 0.58, which is an excellent value as it means it would take BRC, only 0.58 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.58, BRC belongs to the top of the industry, outperforming 87.95% of the companies in the same industry.
A Debt/Equity ratio of 0.09 indicates that BRC is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.09, BRC is in the better half of the industry, outperforming 75.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 0.58 | ||
| Altman-Z | 6.28 |
ROIC/WACC1.58
WACC8.95%
2.3 Liquidity
BRC has a Current Ratio of 1.87. This is a normal value and indicates that BRC is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of BRC (1.87) is better than 65.06% of its industry peers.
BRC has a Quick Ratio of 1.26. This is a normal value and indicates that BRC is financially healthy and should not expect problems in meeting its short term obligations.
BRC has a Quick ratio of 1.26. This is comparable to the rest of the industry: BRC outperforms 44.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.87 | ||
| Quick Ratio | 1.26 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.58% over the past year.
Measured over the past years, BRC shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.34% on average per year.
Looking at the last year, BRC shows a quite strong growth in Revenue. The Revenue has grown by 8.62% in the last year.
The Revenue has been growing slightly by 2.94% on average over the past years.
EPS 1Y (TTM)11.58%
EPS 3Y16.83%
EPS 5Y11.34%
EPS Q2Q%11.93%
Revenue 1Y (TTM)8.62%
Revenue growth 3Y5.43%
Revenue growth 5Y2.94%
Sales Q2Q%11.42%
3.2 Future
BRC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.55% yearly.
The Revenue is expected to grow by 6.27% on average over the next years.
EPS Next Y9.64%
EPS Next 2Y6.81%
EPS Next 3Y7.55%
EPS Next 5YN/A
Revenue Next Year11.23%
Revenue Next 2Y7.43%
Revenue Next 3Y6.27%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
BRC is valuated correctly with a Price/Earnings ratio of 15.23.
Compared to the rest of the industry, the Price/Earnings ratio of BRC indicates a somewhat cheap valuation: BRC is cheaper than 75.90% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.30, BRC is valued a bit cheaper.
A Price/Forward Earnings ratio of 14.37 indicates a correct valuation of BRC.
Based on the Price/Forward Earnings ratio, BRC is valued a bit cheaper than the industry average as 77.11% of the companies are valued more expensively.
BRC's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.23 | ||
| Fwd PE | 14.37 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BRC is valued a bit cheaper than the industry average as 65.06% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BRC indicates a somewhat cheap valuation: BRC is cheaper than 71.08% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.4 | ||
| EV/EBITDA | 11.19 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of BRC may justify a higher PE ratio.
PEG (NY)1.58
PEG (5Y)1.34
EPS Next 2Y6.81%
EPS Next 3Y7.55%
5. Dividend
5.1 Amount
BRC has a Yearly Dividend Yield of 1.38%.
Compared to an average industry Dividend Yield of 2.45, BRC pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.38, BRC pays less dividend than the S&P500 average, which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.38% |
5.2 History
The dividend of BRC has a limited annual growth rate of 1.94%.
BRC has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)1.94%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
23.39% 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.
DP23.39%
EPS Next 2Y6.81%
EPS Next 3Y7.55%
69.01
-0.49 (-0.71%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners84.55%
Inst Owner Change-0.14%
Ins Owners3.14%
Ins Owner Change-0.47%
Market Cap3.27B
Analysts86.67
Price Target88.74 (28.59%)
Short Float %1.02%
Short Ratio2.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.38% |
Yearly Dividend0.94
Dividend Growth(5Y)1.94%
DP23.39%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-2.46%
Min EPS beat(2)-4.34%
Max EPS beat(2)-0.58%
EPS beat(4)2
Avg EPS beat(4)0.59%
Min EPS beat(4)-4.34%
Max EPS beat(4)6.47%
EPS beat(8)5
Avg EPS beat(8)2.75%
EPS beat(12)8
Avg EPS beat(12)2.17%
EPS beat(16)8
Avg EPS beat(16)1.05%
Revenue beat(2)0
Avg Revenue beat(2)-1.87%
Min Revenue beat(2)-2.07%
Max Revenue beat(2)-1.66%
Revenue beat(4)1
Avg Revenue beat(4)-1.25%
Min Revenue beat(4)-3.31%
Max Revenue beat(4)2.04%
Revenue beat(8)3
Avg Revenue beat(8)-1.44%
Revenue beat(12)4
Avg Revenue beat(12)-1.39%
Revenue beat(16)8
Avg Revenue beat(16)-0.69%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.2%
EPS NY rev (1m)-0.22%
EPS NY rev (3m)-0.22%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.52%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.23 | ||
| Fwd PE | 14.37 | ||
| P/S | 2.24 | ||
| P/FCF | 18.4 | ||
| P/OCF | 15.79 | ||
| P/B | 2.8 | ||
| P/tB | 8.75 | ||
| EV/EBITDA | 11.19 |
EPS(TTM)4.53
EY6.56%
EPS(NY)4.8
Fwd EY6.96%
FCF(TTM)3.75
FCFY5.43%
OCF(TTM)4.37
OCFY6.33%
SpS30.85
BVpS24.67
TBVpS7.89
PEG (NY)1.58
PEG (5Y)1.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.43% | ||
| ROE | 16.62% | ||
| ROCE | 18.02% | ||
| ROIC | 14.15% | ||
| ROICexc | 15.89% | ||
| ROICexgc | 44.58% | ||
| OM | 17.11% | ||
| PM (TTM) | 13.3% | ||
| GM | 50.53% | ||
| FCFM | 12.16% |
ROA(3y)12.14%
ROA(5y)11.1%
ROE(3y)17.45%
ROE(5y)15.73%
ROIC(3y)14.85%
ROIC(5y)13.79%
ROICexc(3y)17.45%
ROICexc(5y)16.44%
ROICexgc(3y)50.85%
ROICexgc(5y)48.48%
ROCE(3y)18.91%
ROCE(5y)17.56%
ROICexcg growth 3Y1.96%
ROICexcg growth 5Y-4.62%
ROICexc growth 3Y11.59%
ROICexc growth 5Y-0.96%
OM growth 3Y6.85%
OM growth 5Y5.34%
PM growth 3Y9.19%
PM growth 5Y5.44%
GM growth 3Y1.5%
GM growth 5Y0.56%
F-Score4
Asset Turnover0.86
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 0.58 | ||
| Debt/EBITDA | 0.36 | ||
| Cap/Depr | 77.94% | ||
| Cap/Sales | 2.02% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 71.95% | ||
| Profit Quality | 91.42% | ||
| Current Ratio | 1.87 | ||
| Quick Ratio | 1.26 | ||
| Altman-Z | 6.28 |
F-Score4
WACC8.95%
ROIC/WACC1.58
Cap/Depr(3y)150.91%
Cap/Depr(5y)135.21%
Cap/Sales(3y)3.57%
Cap/Sales(5y)3.12%
Profit Quality(3y)82.9%
Profit Quality(5y)97.85%
High Growth Momentum
Growth
EPS 1Y (TTM)11.58%
EPS 3Y16.83%
EPS 5Y11.34%
EPS Q2Q%11.93%
EPS Next Y9.64%
EPS Next 2Y6.81%
EPS Next 3Y7.55%
EPS Next 5YN/A
Revenue 1Y (TTM)8.62%
Revenue growth 3Y5.43%
Revenue growth 5Y2.94%
Sales Q2Q%11.42%
Revenue Next Year11.23%
Revenue Next 2Y7.43%
Revenue Next 3Y6.27%
Revenue Next 5YN/A
EBIT growth 1Y4.43%
EBIT growth 3Y12.64%
EBIT growth 5Y8.43%
EBIT Next Year20.36%
EBIT Next 3Y14.11%
EBIT Next 5YN/A
FCF growth 1Y18.92%
FCF growth 3Y-0.62%
FCF growth 5Y6.25%
OCF growth 1Y12.97%
OCF growth 3Y7.43%
OCF growth 5Y9.48%