BRADY CORPORATION - CL A (BRC) Stock Fundamental Analysis
NYSE:BRC - New York Stock Exchange, Inc. - US1046741062 - Common Stock - Currency: USD
Overall BRC gets a fundamental rating of 7 out of 10. We evaluated BRC against 84 industry peers in the Commercial Services & Supplies industry. BRC gets an excellent profitability rating and is at the same time showing great financial health properties. BRC has a decent growth rate and is not valued too expensively. These ratings would make BRC suitable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year BRC was profitable.
BRC had a positive operating cash flow in the past year.
Each year in the past 5 years BRC has been profitable.
In the past 5 years BRC always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of BRC (12.04%) is better than 90.24% of its industry peers.
Looking at the Return On Equity, with a value of 17.68%, BRC belongs to the top of the industry, outperforming 82.93% of the companies in the same industry.
BRC has a Return On Invested Capital of 14.36%. This is amongst the best in the industry. BRC outperforms 85.37% of its industry peers.
BRC had an Average Return On Invested Capital over the past 3 years of 14.85%. This is above the industry average of 10.07%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.04% | ||
| ROE | 17.68% | ||
| ROIC | 14.36% |
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
BRC has a Profit Margin of 14.14%. This is amongst the best in the industry. BRC outperforms 90.24% of its industry peers.
BRC's Profit Margin has improved in the last couple of years.
BRC has a Operating Margin of 17.50%. This is amongst the best in the industry. BRC outperforms 85.37% of its industry peers.
In the last couple of years the Operating Margin of BRC has grown nicely.
BRC has a better Gross Margin (50.91%) than 87.80% of its industry peers.
BRC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.5% | ||
| PM (TTM) | 14.14% | ||
| GM | 50.91% |
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.
Compared to 1 year ago, BRC has less shares outstanding
BRC has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, BRC has a worse debt to assets ratio.
2.2 Solvency
BRC has an Altman-Z score of 6.69. This indicates that BRC is financially healthy and has little risk of bankruptcy at the moment.
BRC has a better Altman-Z score (6.69) than 90.24% of its industry peers.
BRC has a debt to FCF ratio of 0.83. This is a very positive value and a sign of high solvency as it would only need 0.83 years to pay back of all of its debts.
The Debt to FCF ratio of BRC (0.83) is better than 86.59% of its industry peers.
BRC has a Debt/Equity ratio of 0.11. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of BRC (0.11) is better than 76.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 0.83 | ||
| Altman-Z | 6.69 |
ROIC/WACC1.58
WACC9.07%
2.3 Liquidity
A Current Ratio of 1.84 indicates that BRC should not have too much problems paying its short term obligations.
BRC's Current ratio of 1.84 is fine compared to the rest of the industry. BRC outperforms 68.29% of its industry peers.
A Quick Ratio of 1.25 indicates that BRC should not have too much problems paying its short term obligations.
BRC has a Quick ratio (1.25) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.84 | ||
| Quick Ratio | 1.25 |
3. Growth
3.1 Past
BRC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.95%, which is quite good.
The Earnings Per Share has been growing by 11.34% on average over the past years. This is quite good.
BRC shows a small growth in Revenue. In the last year, the Revenue has grown by 3.38%.
BRC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.94% yearly.
EPS 1Y (TTM)13.95%
EPS 3Y16.83%
EPS 5Y11.34%
EPS Q2Q%12%
Revenue 1Y (TTM)3.38%
Revenue growth 3Y5.43%
Revenue growth 5Y2.94%
Sales Q2Q%13.58%
3.2 Future
The Earnings Per Share is expected to grow by 10.12% on average over the next years. This is quite good.
Based on estimates for the next years, BRC will show a quite strong growth in Revenue. The Revenue will grow by 8.21% on average per year.
EPS Next Y11.32%
EPS Next 2Y10.12%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year12.33%
Revenue Next 2Y8.21%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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
A Price/Earnings ratio of 17.34 indicates a rather expensive valuation of BRC.
71.95% of the companies in the same industry are more expensive than BRC, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 28.47. BRC is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 14.71, 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 78.05% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 92.74, BRC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.34 | ||
| Fwd PE | 14.71 |
4.2 Price Multiples
BRC's Enterprise Value to EBITDA ratio is in line with the industry average.
BRC's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.56 | ||
| EV/EBITDA | 12.86 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
BRC has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.53
PEG (5Y)1.53
EPS Next 2Y10.12%
EPS Next 3YN/A
5. Dividend
5.1 Amount
BRC has a Yearly Dividend Yield of 1.28%.
Compared to an average industry Dividend Yield of 2.06, BRC pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.28, BRC pays less dividend than the S&P500 average, which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.28% |
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.
BRC has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)1.94%
Div Incr Years24
Div Non Decr Years24
5.3 Sustainability
BRC pays out 23.04% of its income as dividend. This is a sustainable payout ratio.
The dividend of BRC is growing, but earnings are growing more, so the dividend growth is sustainable.
DP23.04%
EPS Next 2Y10.12%
EPS Next 3YN/A
BRADY CORPORATION - CL A
NYSE:BRC (2/5/2025, 10:46:55 AM)
75.09
+0.42 (+0.56%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners82.72%
Inst Owner Change-0.32%
Ins Owners3.17%
Ins Owner Change2.96%
Market Cap3.59B
Analysts86.67
Price Target88.74 (18.18%)
Short Float %1.1%
Short Ratio1.72
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.28% |
Yearly Dividend0.94
Dividend Growth(5Y)1.94%
DP23.04%
Div Incr Years24
Div Non Decr Years24
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.64%
Min EPS beat(2)0.81%
Max EPS beat(2)6.47%
EPS beat(4)3
Avg EPS beat(4)2.81%
Min EPS beat(4)-1.34%
Max EPS beat(4)6.47%
EPS beat(8)7
Avg EPS beat(8)3.72%
EPS beat(12)8
Avg EPS beat(12)2.2%
EPS beat(16)9
Avg EPS beat(16)1.47%
Revenue beat(2)1
Avg Revenue beat(2)-0.64%
Min Revenue beat(2)-3.31%
Max Revenue beat(2)2.04%
Revenue beat(4)2
Avg Revenue beat(4)-1.78%
Min Revenue beat(4)-5.9%
Max Revenue beat(4)2.04%
Revenue beat(8)4
Avg Revenue beat(8)-0.93%
Revenue beat(12)6
Avg Revenue beat(12)-0.8%
Revenue beat(16)9
Avg Revenue beat(16)-0.28%
PT rev (1m)0%
PT rev (3m)1.16%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.48%
EPS NY rev (1m)0%
EPS NY rev (3m)1.09%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)7.19%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.34 | ||
| Fwd PE | 14.71 | ||
| P/S | 2.59 | ||
| P/FCF | 25.56 | ||
| P/OCF | 16.59 | ||
| P/B | 3.23 | ||
| P/tB | 11.18 | ||
| EV/EBITDA | 12.86 |
EPS(TTM)4.33
EY5.77%
EPS(NY)5.11
Fwd EY6.8%
FCF(TTM)2.94
FCFY3.91%
OCF(TTM)4.53
OCFY6.03%
SpS29.03
BVpS23.22
TBVpS6.72
PEG (NY)1.53
PEG (5Y)1.53
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.04% | ||
| ROE | 17.68% | ||
| ROCE | 18.29% | ||
| ROIC | 14.36% | ||
| ROICexc | 16.14% | ||
| ROICexgc | 48.52% | ||
| OM | 17.5% | ||
| PM (TTM) | 14.14% | ||
| GM | 50.91% | ||
| FCFM | 10.12% |
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-Score5
Asset Turnover0.85
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 0.83 | ||
| Debt/EBITDA | 0.42 | ||
| Cap/Depr | 233.21% | ||
| Cap/Sales | 5.47% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 78.57% | ||
| Profit Quality | 71.58% | ||
| Current Ratio | 1.84 | ||
| Quick Ratio | 1.25 | ||
| Altman-Z | 6.69 |
F-Score5
WACC9.07%
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)13.95%
EPS 3Y16.83%
EPS 5Y11.34%
EPS Q2Q%12%
EPS Next Y11.32%
EPS Next 2Y10.12%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)3.38%
Revenue growth 3Y5.43%
Revenue growth 5Y2.94%
Sales Q2Q%13.58%
Revenue Next Year12.33%
Revenue Next 2Y8.21%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y3.9%
EBIT growth 3Y12.64%
EBIT growth 5Y8.43%
EBIT Next Year27%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y68.63%
FCF growth 3Y-0.62%
FCF growth 5Y6.25%
OCF growth 1Y81.82%
OCF growth 3Y7.43%
OCF growth 5Y9.48%