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 7 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 is not valued too expensively and it also shows a decent growth rate. These ratings could make BRC a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
BRC had positive earnings in the past year.
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
With an excellent Return On Assets value of 12.13%, BRC belongs to the best of the industry, outperforming 89.29% of the companies in the same industry.
Looking at the Return On Equity, with a value of 17.20%, BRC is in the better half of the industry, outperforming 79.76% of the companies in the same industry.
BRC has a Return On Invested Capital of 14.63%. This is amongst the best in the industry. BRC outperforms 83.33% 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 | 12.13% | ||
| ROE | 17.2% | ||
| ROIC | 14.63% |
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
Looking at the Profit Margin, with a value of 13.57%, BRC belongs to the top of the industry, outperforming 89.29% of the companies in the same industry.
In the last couple of years the Profit Margin of BRC has grown nicely.
Looking at the Operating Margin, with a value of 17.13%, BRC belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
BRC's Operating Margin has improved in the last couple of years.
BRC's Gross Margin of 50.66% is amongst the best of the industry. BRC outperforms 89.29% of its industry peers.
BRC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.13% | ||
| PM (TTM) | 13.57% | ||
| GM | 50.66% |
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
BRC has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is 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
An Altman-Z score of 7.07 indicates that BRC is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 7.07, BRC belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
BRC has a debt to FCF ratio of 0.47. This is a very positive value and a sign of high solvency as it would only need 0.47 years to pay back of all of its debts.
The Debt to FCF ratio of BRC (0.47) is better than 88.10% of its industry peers.
BRC has a Debt/Equity ratio of 0.08. This is a healthy value indicating a solid balance between debt and equity.
BRC's Debt to Equity ratio of 0.08 is fine compared to the rest of the industry. BRC outperforms 77.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | 0.47 | ||
| Altman-Z | 7.07 |
ROIC/WACC1.65
WACC8.85%
2.3 Liquidity
BRC has a Current Ratio of 1.90. 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 better Current ratio (1.90) than 71.43% 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's Quick ratio of 1.26 is in line compared to the rest of the industry. BRC outperforms 44.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.9 | ||
| Quick Ratio | 1.26 |
3. Growth
3.1 Past
BRC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.24%, 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 6.20%.
Measured over the past years, BRC shows a small growth in Revenue. The Revenue has been growing by 2.94% on average per year.
EPS 1Y (TTM)12.24%
EPS 3Y16.83%
EPS 5Y11.34%
EPS Q2Q%7.53%
Revenue 1Y (TTM)6.2%
Revenue growth 3Y5.43%
Revenue growth 5Y2.94%
Sales Q2Q%10.55%
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 10.12% on average per year.
Based on estimates for the next years, BRC will show a small growth in Revenue. The Revenue will grow by 7.80% on average per year.
EPS Next Y11.32%
EPS Next 2Y10.12%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year11.67%
Revenue Next 2Y7.8%
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
Based on the Price/Earnings ratio of 16.27, the valuation of BRC can be described as correct.
BRC's Price/Earnings ratio is a bit cheaper when compared to the industry. BRC is cheaper than 70.24% of the companies in the same industry.
BRC is valuated rather cheaply when we compare the Price/Earnings ratio to 29.35, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 14.03, BRC is valued correctly.
Based on the Price/Forward Earnings ratio, BRC is valued a bit cheaper than the industry average as 76.19% 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 22.10.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.27 | ||
| Fwd PE | 14.03 |
4.2 Price Multiples
BRC's Enterprise Value to EBITDA is on the same level as the industry average.
BRC's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. BRC is cheaper than 67.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.37 | ||
| EV/EBITDA | 12.11 |
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)1.44
PEG (5Y)1.43
EPS Next 2Y10.12%
EPS Next 3YN/A
5. Dividend
5.1 Amount
BRC has a Yearly Dividend Yield of 1.38%.
Compared to an average industry Dividend Yield of 2.36, 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 2.33.
| 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.
BRC has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)1.94%
Div Incr Years24
Div Non Decr Years24
5.3 Sustainability
BRC pays out 23.47% of its income as dividend. This is a sustainable payout ratio.
BRC's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP23.47%
EPS Next 2Y10.12%
EPS Next 3YN/A
71.61
+1.88 (+2.7%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners84.86%
Inst Owner Change1.73%
Ins Owners3.12%
Ins Owner Change3.05%
Market Cap3.42B
Analysts86.67
Price Target88.74 (23.92%)
Short Float %1.11%
Short Ratio1.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.38% |
Yearly Dividend0.94
Dividend Growth(5Y)1.94%
DP23.47%
Div Incr Years24
Div Non Decr Years24
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.76%
Min EPS beat(2)-4.34%
Max EPS beat(2)0.81%
EPS beat(4)3
Avg EPS beat(4)2.06%
Min EPS beat(4)-4.34%
Max EPS beat(4)6.47%
EPS beat(8)6
Avg EPS beat(8)3.15%
EPS beat(12)8
Avg EPS beat(12)1.89%
EPS beat(16)9
Avg EPS beat(16)1.44%
Revenue beat(2)1
Avg Revenue beat(2)0.19%
Min Revenue beat(2)-1.66%
Max Revenue beat(2)2.04%
Revenue beat(4)2
Avg Revenue beat(4)-0.72%
Min Revenue beat(4)-3.31%
Max Revenue beat(4)2.04%
Revenue beat(8)3
Avg Revenue beat(8)-1.51%
Revenue beat(12)5
Avg Revenue beat(12)-1.17%
Revenue beat(16)9
Avg Revenue beat(16)-0.22%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)-1.62%
EPS NQ rev (3m)-1.62%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-0.51%
Revenue NQ rev (3m)-0.51%
Revenue NY rev (1m)-0.59%
Revenue NY rev (3m)-0.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.27 | ||
| Fwd PE | 14.03 | ||
| P/S | 2.41 | ||
| P/FCF | 18.37 | ||
| P/OCF | 15.57 | ||
| P/B | 3.05 | ||
| P/tB | 9.76 | ||
| EV/EBITDA | 12.11 |
EPS(TTM)4.4
EY6.14%
EPS(NY)5.11
Fwd EY7.13%
FCF(TTM)3.9
FCFY5.44%
OCF(TTM)4.6
OCFY6.42%
SpS29.73
BVpS23.45
TBVpS7.34
PEG (NY)1.44
PEG (5Y)1.43
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.13% | ||
| ROE | 17.2% | ||
| ROCE | 18.63% | ||
| ROIC | 14.63% | ||
| ROICexc | 16.36% | ||
| ROICexgc | 47.99% | ||
| OM | 17.13% | ||
| PM (TTM) | 13.57% | ||
| GM | 50.66% | ||
| FCFM | 13.11% |
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 Turnover0.89
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | 0.47 | ||
| Debt/EBITDA | 0.32 | ||
| Cap/Depr | 95.77% | ||
| Cap/Sales | 2.36% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 78.96% | ||
| Profit Quality | 96.64% | ||
| Current Ratio | 1.9 | ||
| Quick Ratio | 1.26 | ||
| Altman-Z | 7.07 |
F-Score4
WACC8.85%
ROIC/WACC1.65
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)12.24%
EPS 3Y16.83%
EPS 5Y11.34%
EPS Q2Q%7.53%
EPS Next Y11.32%
EPS Next 2Y10.12%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)6.2%
Revenue growth 3Y5.43%
Revenue growth 5Y2.94%
Sales Q2Q%10.55%
Revenue Next Year11.67%
Revenue Next 2Y7.8%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y1.96%
EBIT growth 3Y12.64%
EBIT growth 5Y8.43%
EBIT Next Year27%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y59.73%
FCF growth 3Y-0.62%
FCF growth 5Y6.25%
OCF growth 1Y45.03%
OCF growth 3Y7.43%
OCF growth 5Y9.48%