BRADY CORPORATION - CL A (BRC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BRC - US1046741062 - Common Stock
80.13 USD
-0.12 (-0.15%)
80.13 USD
0 (0%)
We assign a fundamental rating of 7 out of 10 to BRC. BRC was compared to 80 industry peers in the Commercial Services & Supplies industry. BRC has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. 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.
BRC had positive earnings in each of the past 5 years.
BRC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
BRC has a Return On Assets of 10.90%. This is amongst the best in the industry. BRC outperforms 87.50% of its industry peers.
BRC has a Return On Equity of 15.72%. This is in the better half of the industry: BRC outperforms 78.75% of its industry peers.
BRC has a better Return On Invested Capital (14.00%) than 87.50% 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 10.33%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.9% | ||
| ROE | 15.72% | ||
| ROIC | 14% |
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 12.69%. This is amongst the best in the industry. BRC outperforms 91.25% of its industry peers.
BRC's Profit Margin has improved in the last couple of years.
The Operating Margin of BRC (16.79%) is better than 88.75% of its industry peers.
BRC's Operating Margin has improved in the last couple of years.
BRC has a Gross Margin of 50.59%. This is amongst the best in the industry. BRC outperforms 90.00% of its industry peers.
BRC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.79% | ||
| PM (TTM) | 12.69% | ||
| GM | 50.59% |
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.
Compared to 5 years ago, BRC has less shares outstanding
The debt/assets ratio for BRC has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 6.75 indicates that BRC is not in any danger for bankruptcy at the moment.
The Altman-Z score of BRC (6.75) is better than 88.75% of its industry peers.
The Debt to FCF ratio of BRC is 0.72, which is an excellent value as it means it would take BRC, only 0.72 years of fcf income to pay off all of its debts.
BRC's Debt to FCF ratio of 0.72 is amongst the best of the industry. BRC outperforms 85.00% of its industry peers.
A Debt/Equity ratio of 0.09 indicates that BRC is not too dependend on debt financing.
BRC has a better Debt to Equity ratio (0.09) than 73.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 0.72 | ||
| Altman-Z | 6.75 |
ROIC/WACC1.61
WACC8.7%
2.3 Liquidity
BRC has a Current Ratio of 2.07. This indicates that BRC is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 2.07, BRC is doing good in the industry, outperforming 71.25% of the companies in the same industry.
A Quick Ratio of 1.39 indicates that BRC should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.39, BRC perfoms like the industry average, outperforming 51.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.07 | ||
| Quick Ratio | 1.39 |
3. Growth
3.1 Past
BRC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.31%, which is quite good.
Measured over the past years, BRC shows a quite strong growth in Earnings Per Share. The EPS has been growing by 14.77% on average per year.
The Revenue has grown by 11.20% in the past year. This is quite good.
The Revenue has been growing slightly by 6.96% on average over the past years.
EPS 1Y (TTM)8.31%
EPS 3Y14.47%
EPS 5Y14.77%
EPS Q2Q%8.04%
Revenue 1Y (TTM)11.2%
Revenue growth 3Y5.15%
Revenue growth 5Y6.96%
Sales Q2Q%7.48%
3.2 Future
Based on estimates for the next years, BRC will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.84% on average per year.
The Revenue is expected to grow by 5.14% on average over the next years.
EPS Next Y10.77%
EPS Next 2Y9.84%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year6.46%
Revenue Next 2Y5.14%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 17.09, which indicates a rather expensive current valuation of BRC.
BRC's Price/Earnings ratio is a bit cheaper when compared to the industry. BRC is cheaper than 76.25% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.59, BRC is valued a bit cheaper.
The Price/Forward Earnings ratio is 14.44, which indicates a correct valuation of BRC.
Based on the Price/Forward Earnings ratio, BRC is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
BRC is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.03, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.09 | ||
| Fwd PE | 14.44 |
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 63.75% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, BRC is valued a bit cheaper than the industry average as 70.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.65 | ||
| EV/EBITDA | 12.36 |
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)1.59
PEG (5Y)1.16
EPS Next 2Y9.84%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.19%, BRC has a reasonable but not impressive dividend return.
BRC's Dividend Yield is a higher than the industry average which is at 0.89.
Compared to the average S&P500 Dividend Yield of 1.87, BRC is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.19% |
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
23.33% of the earnings are spent on dividend by BRC. This is a low number and sustainable payout ratio.
BRC's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP23.33%
EPS Next 2Y9.84%
EPS Next 3YN/A
80.13
-0.12 (-0.15%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners84.79%
Inst Owner Change-0.63%
Ins Owners3.2%
Ins Owner Change3.2%
Market Cap3.78B
Revenue(TTM)1.54B
Net Income(TTM)195.67M
Analysts86.67
Price TargetN/A
Short Float %0.41%
Short Ratio0.88
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.19% |
Yearly Dividend0.96
Dividend Growth(5Y)1.98%
DP23.33%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.27%
Min EPS beat(2)1.01%
Max EPS beat(2)1.53%
EPS beat(4)2
Avg EPS beat(4)-0.59%
Min EPS beat(4)-4.34%
Max EPS beat(4)1.53%
EPS beat(8)5
Avg EPS beat(8)1.11%
EPS beat(12)9
Avg EPS beat(12)2.28%
EPS beat(16)10
Avg EPS beat(16)1.5%
Revenue beat(2)2
Avg Revenue beat(2)1.81%
Min Revenue beat(2)1.68%
Max Revenue beat(2)1.94%
Revenue beat(4)2
Avg Revenue beat(4)-0.03%
Min Revenue beat(4)-2.07%
Max Revenue beat(4)1.94%
Revenue beat(8)4
Avg Revenue beat(8)-0.9%
Revenue beat(12)6
Avg Revenue beat(12)-0.63%
Revenue beat(16)8
Avg Revenue beat(16)-0.61%
PT rev (1m)1.05%
PT rev (3m)1.05%
EPS NQ rev (1m)2.76%
EPS NQ rev (3m)2.76%
EPS NY rev (1m)1.31%
EPS NY rev (3m)6.1%
Revenue NQ rev (1m)1.15%
Revenue NQ rev (3m)1.15%
Revenue NY rev (1m)1.25%
Revenue NY rev (3m)1.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.09 | ||
| Fwd PE | 14.44 | ||
| P/S | 2.45 | ||
| P/FCF | 23.65 | ||
| P/OCF | 19.78 | ||
| P/B | 3.04 | ||
| P/tB | 8.44 | ||
| EV/EBITDA | 12.36 |
EPS(TTM)4.69
EY5.85%
EPS(NY)5.55
Fwd EY6.93%
FCF(TTM)3.39
FCFY4.23%
OCF(TTM)4.05
OCFY5.06%
SpS32.68
BVpS26.38
TBVpS9.5
PEG (NY)1.59
PEG (5Y)1.16
Graham Number52.77
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.9% | ||
| ROE | 15.72% | ||
| ROCE | 17.56% | ||
| ROIC | 14% | ||
| ROICexc | 15.98% | ||
| ROICexgc | 41.71% | ||
| OM | 16.79% | ||
| PM (TTM) | 12.69% | ||
| GM | 50.59% | ||
| FCFM | 10.37% |
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%
ROICexgc growth 3Y-0.71%
ROICexgc 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-Score6
Asset Turnover0.86
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 0.72 | ||
| Debt/EBITDA | 0.39 | ||
| Cap/Depr | 75.38% | ||
| Cap/Sales | 2.03% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 63.64% | ||
| Profit Quality | 81.71% | ||
| Current Ratio | 2.07 | ||
| Quick Ratio | 1.39 | ||
| Altman-Z | 6.75 |
F-Score6
WACC8.7%
ROIC/WACC1.61
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)8.31%
EPS 3Y14.47%
EPS 5Y14.77%
EPS Q2Q%8.04%
EPS Next Y10.77%
EPS Next 2Y9.84%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)11.2%
Revenue growth 3Y5.15%
Revenue growth 5Y6.96%
Sales Q2Q%7.48%
Revenue Next Year6.46%
Revenue Next 2Y5.14%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y6.71%
EBIT growth 3Y9.09%
EBIT growth 5Y10.54%
EBIT Next Year37.08%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-26.26%
FCF growth 3Y26.83%
FCF growth 5Y6.2%
OCF growth 1Y-21.47%
OCF growth 3Y15.24%
OCF growth 5Y5.14%
BRADY CORPORATION - CL A / BRC FAQ
What is the fundamental rating for BRC stock?
ChartMill assigns a fundamental rating of 7 / 10 to BRC.
What is the valuation status for BRC stock?
ChartMill assigns a valuation rating of 5 / 10 to BRADY CORPORATION - CL A (BRC). This can be considered as Fairly Valued.
How profitable is BRADY CORPORATION - CL A (BRC) stock?
BRADY CORPORATION - CL A (BRC) has a profitability rating of 8 / 10.
Can you provide the PE and PB ratios for BRC stock?
The Price/Earnings (PE) ratio for BRADY CORPORATION - CL A (BRC) is 17.09 and the Price/Book (PB) ratio is 3.04.
What is the expected EPS growth for BRADY CORPORATION - CL A (BRC) stock?
The Earnings per Share (EPS) of BRADY CORPORATION - CL A (BRC) is expected to grow by 10.77% in the next year.