A Look At Brady Corporation’s (NYSE:BRC) Exceptional Fundamentals

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Brady Corporation (NYSE:BRC) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of BRC, it is a financially-sound , dividend-paying company with a a great history of performance. Below is a brief commentary on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on Brady here.

Flawless balance sheet with solid track record and pays a dividend

BRC delivered a bottom-line expansion of 60% in the prior year, with its most recent earnings level surpassing its average level over the last five years. Not only did BRC outperformed its past performance, its growth also surpassed the Commercial Services industry expansion, which generated a 5.0% earnings growth. This is an notable feat for the company. BRC’s strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This indicates that BRC has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. BRC’s has produced operating cash levels of 3x total debt over the past year, which implies that BRC’s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.

NYSE:BRC Income Statement, June 10th 2019
NYSE:BRC Income Statement, June 10th 2019

Income investors would also be happy to know that BRC is a great dividend company, with a current yield standing at 1.8%. BRC has also been regularly increasing its dividend payments to shareholders over the past decade.

NYSE:BRC Historical Dividend Yield, June 10th 2019
NYSE:BRC Historical Dividend Yield, June 10th 2019

Next Steps:

For Brady, there are three pertinent aspects you should further research:

  1. Future Outlook: What are well-informed industry analysts predicting for BRC’s future growth? Take a look at our free research report of analyst consensus for BRC’s outlook.
  2. Valuation: What is BRC worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether BRC is currently mispriced by the market.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of BRC? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.