NYSE:BRC

Stock Analysis Report

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.

Snowflake

Fundamentals

Flawless balance sheet with solid track record and pays a dividend.


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


Market Performance


7 Day Return

-4.2%

NYSE:BRC

-0.4%

US Commercial Services

-1.0%

US Market


1 Year Return

27.2%

NYSE:BRC

5.9%

US Commercial Services

-0.4%

US Market

BRC outperformed the Commercial Services industry which returned 4.9% over the past year.

BRC outperformed the Market in United States of America which returned -1.7% over the past year.


Share holder returns

BRCIndustryMarket
7 Day-4.2%-0.4%-1.0%
30 Day-4.2%-1.3%-3.3%
90 Day4.6%3.6%0.4%
1 Year29.5%27.2%9.9%5.9%1.8%-0.4%
3 Year58.4%48.7%64.2%53.2%39.4%30.4%
5 Year110.3%84.9%96.4%76.7%54.2%37.1%

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 based on future cash flows and its price relative to the stock market?

1%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Brady's share price is below the future cash flow value, but not at a moderate discount (< 20%).

Brady's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Brady is good value based on earnings compared to the US Commercial Services industry average.

Brady is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Brady is poor value based on expected growth next year.


Price Based on Value of Assets

Brady is overvalued based on assets compared to the US Commercial Services industry average.


Next Steps

Future Growth

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

3.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Brady's revenue is expected to grow by 1.9% yearly, however this is not considered high growth (20% yearly).

Brady's earnings are expected to grow by 3% yearly, however this is not considered high growth (20% yearly).

Brady's revenue growth is positive but not above the United States of America market average.

Brady's earnings growth is positive but not above the United States of America market average.

Brady's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Brady is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Brady performed over the past 5 years?

59.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Brady has delivered over 20% year on year earnings growth in the past 5 years.

Brady's 1-year earnings growth exceeds its 5-year average (59.9% vs 59.3%)

Brady's earnings growth has exceeded the US Commercial Services industry average in the past year (59.9% vs -2.4%).


Return on Equity

Brady has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Brady used its assets more efficiently than the US Commercial Services industry average last year based on Return on Assets.


Return on Capital Employed

Brady has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Brady's financial position?


Financial Position Analysis

Brady is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Brady's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Brady's level of debt (6.1%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (34.7% vs 6.1% today).

Debt is well covered by operating cash flow (299.6%, greater than 20% of total debt).

Brady earns more interest than it pays, coverage of interest payments is not a concern.


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 10.7x debt.


Next Steps

Dividend

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

1.80%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Brady's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.5%).

Brady's dividend is below the markets top 25% of dividend payers in United States of America (3.9%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.9x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.9x coverage).


Next Steps

Management

What is the CEO of Brady's salary, the management and board of directors tenure and is there insider trading?

5.0yrs

Average management tenure


CEO

J. Nauman (57yo)

5.0yrs

Tenure

US$5,175,425

Compensation

Mr. J. Michael Nauman has been the Chief Executive Officer and President of Brady Corp. since August 4, 2014. Mr. Nauman joined Brady after 20 years in a number of senior management positions at Lisle, Ill ...


CEO Compensation Analysis

J.'s remuneration is about average for companies of similar size in United States of America.

J.'s compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

5.0yrs

Average Tenure

57yo

Average Age

The average tenure for the Brady management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

7.4yrs

Average Tenure

62.5yo

Average Age

The tenure for the Brady board of directors is about average.


Insider Trading

Brady individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$107,35601 Jul 19
Russell Shaller
EntityIndividual
Role
Senior VP & President of Identification Solutions
Shares2,225
Max PriceUS$48.25
SellUS$880,50420 Mar 19
J. Nauman
EntityIndividual
Role
President
Member of the Board of Directors
Shares18,671
Max PriceUS$47.17
SellUS$248,45604 Mar 19
Bradley Richardson
EntityIndividual
Role
Member of the Board of Directors
Shares5,245
Max PriceUS$47.37
SellUS$96,07928 Feb 19
Frank Harris
EntityIndividual
Role
Member of the Board of Directors
Shares2,000
Max PriceUS$48.09
SellUS$162,04701 Oct 18
Thomas Felmer
EntityIndividual
Role
Senior VP & President of Workplace Safety
Shares3,703
Max PriceUS$43.90
SellUS$1,052,64025 Sep 18
Elizabeth Bruno
EntityIndividual
Role
Member of the Board of Directors
Shares24,000
Max PriceUS$43.86

Ownership Breakdown


Management Team

  • Tom Felmer (57yo)

    Senior VP & President of Workplace Safety

    • Tenure: 15.2yrs
    • Compensation: $1.70m
  • J. Nauman (57yo)

    President

    • Tenure: 5.0yrs
    • Compensation: $5.18m
  • Bentley Curran (57yo)

    VP of Digital Business & Chief Information Officer

    • Tenure: 7.5yrs
    • Compensation: $802.29k
  • Kathleen Johnson (65yo)

    Vice President of Finance - Identification Solutions Business

    • Tenure: 4.1yrs
  • Ann Thornton (37yo)

    Chief Accounting Officer & Corporate Controller

    • Tenure: 2.8yrs
  • Russell Shaller (56yo)

    Senior VP & President of Identification Solutions

    • Tenure: 4.2yrs
    • Compensation: $1.56m
  • Aaron Pearce (48yo)

    CFO & Treasurer

    • Tenure: 4.9yrs
    • Compensation: $1.83m
  • Helena Nelligan (53yo)

    Senior Vice President of Human Resources

    • Tenure: 5.8yrs
    • Compensation: $954.66k
  • Kathy Johnson

    Vice President of Finance & Chief Accounting Officer

  • Louis Bolognini (63yo)

    Senior VP

    • Tenure: 6.6yrs
    • Compensation: $1.12m

Board Members

  • J. Nauman (57yo)

    President

    • Tenure: 5.0yrs
    • Compensation: $5.18m
  • Frank Harris (77yo)

    Director

    • Tenure: 27.8yrs
    • Compensation: $179.54k
  • David Bem

    Director

    • Tenure: 0.5yrs
  • Nancy Gioia (59yo)

    Director

    • Tenure: 5.8yrs
    • Compensation: $187.04k
  • Patrick Allender (72yo)

    Director

    • Tenure: 11.9yrs
    • Compensation: $200.04k
  • Brad Richardson (61yo)

    Director

    • Tenure: 11.8yrs
    • Compensation: $206.54k
  • Michelle Williams

    Director

    • Tenure: 0.5yrs
  • Gary Balkema (64yo)

    Director

    • Tenure: 9.1yrs
    • Compensation: $196.54k
  • Elizabeth Bruno (52yo)

    Director

    • Tenure: 15.8yrs
    • Compensation: $178.04k
  • Conrad Goodkind (75yo)

    Chairman of the Board

    • Tenure: 3.9yrs
    • Compensation: $250.04k

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$2.566b
  • Shares outstanding: 52.82m
  • Website: Click here

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BRCNYSE (New York Stock Exchange)YesClass A Non-Voting Common StockUSUSDJun 1984
BRVDB (Deutsche Boerse AG)YesClass A Non-Voting Common StockDEEURJun 1984

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 Analysis2019/08/16 23:33
End of Day Share Price2019/08/16 00:00
Earnings2019/04/30
Annual Earnings2018/07/31


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.