NYSE:BRC

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Market Cap

US$2.8b

Last Updated

2021/08/05 22:52 UTC

Data Sources

Company Financials +

Executive Summary

Brady Corporation manufactures and supplies identification solutions (IDS) and workplace safety (WPS) products to identify and protect premises, products, and people in the United States and internationally. More Details


Snowflake Analysis

Flawless balance sheet established dividend payer.


Similar Companies

Share Price & News

How has Brady's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BRC is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: BRC's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

-0.9%

BRC

1.3%

US Commercial Services

0.02%

US Market


1 Year Return

13.6%

BRC

30.2%

US Commercial Services

33.2%

US Market

Return vs Industry: BRC underperformed the US Commercial Services industry which returned 30.2% over the past year.

Return vs Market: BRC underperformed the US Market which returned 33.2% over the past year.


Shareholder returns

BRCIndustryMarket
7 Day-0.9%1.3%0.02%
30 Day-1.9%3.3%-0.1%
90 Day-3.6%4.6%4.1%
1 Year15.6%13.6%31.7%30.2%35.3%33.2%
3 Year51.0%43.1%52.8%43.0%61.4%51.3%
5 Year83.2%66.1%128.0%106.2%122.2%97.7%

Long-Term Price Volatility Vs. Market

How volatile is Brady's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Brady undervalued compared to its fair value and its price relative to the market?

33.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BRC ($53.73) is trading below our estimate of fair value ($80.24)

Significantly Below Fair Value: BRC is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: BRC is good value based on its PE Ratio (21.7x) compared to the US Commercial Services industry average (31.7x).

PE vs Market: BRC is poor value based on its PE Ratio (21.7x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: BRC is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: BRC is overvalued based on its PB Ratio (2.9x) compared to the US Commercial Services industry average (2.6x).


Future Growth

How is Brady forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

16.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BRC's forecast earnings growth (16.1% per year) is above the savings rate (2%).

Earnings vs Market: BRC's earnings (16.1% per year) are forecast to grow faster than the US market (14.9% per year).

High Growth Earnings: BRC's earnings are forecast to grow, but not significantly.

Revenue vs Market: BRC's revenue (10% per year) is forecast to grow faster than the US market (9.1% per year).

High Growth Revenue: BRC's revenue (10% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BRC's Return on Equity is forecast to be low in 3 years time (17%).


Past Performance

How has Brady performed over the past 5 years?

12.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BRC has high quality earnings.

Growing Profit Margin: BRC's current net profit margins (11.8%) are higher than last year (10.7%).


Past Earnings Growth Analysis

Earnings Trend: BRC's earnings have grown by 12.9% per year over the past 5 years.

Accelerating Growth: BRC's earnings growth over the past year (6.7%) is below its 5-year average (12.9% per year).

Earnings vs Industry: BRC earnings growth over the past year (6.7%) underperformed the Commercial Services industry 14.2%.


Return on Equity

High ROE: BRC's Return on Equity (13.6%) is considered low.


Financial Health

How is Brady's financial position?


Financial Position Analysis

Short Term Liabilities: BRC's short term assets ($621.1M) exceed its short term liabilities ($221.1M).

Long Term Liabilities: BRC's short term assets ($621.1M) exceed its long term liabilities ($87.4M).


Debt to Equity History and Analysis

Debt Level: BRC is debt free.

Reducing Debt: BRC has no debt compared to 5 years ago when its debt to equity ratio was 40.7%.

Debt Coverage: BRC has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: BRC has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Brady current dividend yield, its reliability and sustainability?

1.64%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BRC's dividend (1.64%) is higher than the bottom 25% of dividend payers in the US market (1.32%).

High Dividend: BRC's dividend (1.64%) is low compared to the top 25% of dividend payers in the US market (3.57%).


Stability and Growth of Payments

Stable Dividend: BRC's dividends per share have been stable in the past 10 years.

Growing Dividend: BRC's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (35.5%), BRC's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BRC's dividends in 3 years are forecast to be well covered by earnings (25.8% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.5yrs

Average management tenure


CEO

J. Nauman (59 yo)

7yrs

Tenure

US$4,511,943

Compensation

Mr. J. Michael Nauman serves as Independent Director at Commercial Vehicle Group, Inc. since July 1, 2021. He has been the Chief Executive Officer and President of Brady Corp. since August 4, 2014. Mr. Nau...


CEO Compensation Analysis

Compensation vs Market: J.'s total compensation ($USD4.51M) is about average for companies of similar size in the US market ($USD5.37M).

Compensation vs Earnings: J.'s compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: BRC's management team is seasoned and experienced (6.5 years average tenure).


Board Members

Experienced Board: BRC's board of directors are considered experienced (7.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: BRC insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Brady Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Brady Corporation
  • Ticker: BRC
  • Exchange: NYSE
  • Founded: 1914
  • Industry: Commercial Printing
  • Sector: Commercial Services
  • Market Cap: US$2.797b
  • Shares outstanding: 52.06m
  • Website: https://www.bradyid.com

Number of Employees


Location

  • Brady Corporation
  • 6555 West Good Hope Road
  • Milwaukee
  • Wisconsin
  • 53223
  • United States

Listings


Biography

Brady Corporation manufactures and supplies identification solutions (IDS) and workplace safety (WPS) products to identify and protect premises, products, and people in the United States and internationall...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/08/05 22:52
End of Day Share Price2021/08/05 00:00
Earnings2021/04/30
Annual Earnings2020/07/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.