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 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


Market Performance


7 Day Return

2.6%

BRC

1.7%

US Commercial Services

0.4%

US Market


1 Year Return

34.8%

BRC

18.4%

US Commercial Services

6.9%

US Market

Return vs Industry: BRC exceeded the US Commercial Services industry which returned 18.4% over the past year.

Return vs Market: BRC exceeded the US Market which returned 6.9% over the past year.


Shareholder returns

BRCIndustryMarket
7 Day2.6%1.7%0.4%
30 Day3.0%3.1%-1.1%
90 Day10.3%2.9%-0.5%
1 Year37.2%34.8%22.9%18.4%9.3%6.9%
3 Year73.4%63.1%73.8%61.9%45.8%36.4%
5 Year183.8%150.7%103.9%83.4%62.9%45.1%

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 compared to its fair value and its price relative to the market?

5.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BRC ($55.29) is trading below our estimate of fair value ($58.69)

Significantly Below Fair Value: BRC is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: BRC is good value based on its PE Ratio (22.3x) compared to the Commercial Services industry average (25.5x).

PE vs Market: BRC is poor value based on its PE Ratio (22.3x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

PEG Ratio: BRC is poor value based on its PEG Ratio (3.6x)


Price to Book Ratio

PB vs Industry: BRC is overvalued based on its PB Ratio (3.4x) compared to the US Commercial Services industry average (1.8x).


Next Steps

Future Growth

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

6.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BRC's forecast earnings growth (6.2% per year) is above the savings rate (2.7%).

Earnings vs Market: BRC's earnings (6.2% per year) are forecast to grow slower than the US market (14.6% per year).

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

Revenue vs Market: BRC's revenue (2.1% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: BRC's revenue (2.1% 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 (15.1%).


Next Steps

Past Performance

How has Brady performed over the past 5 years?

52.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: BRC has become profitable over the past 5 years, growing earnings by 52.4% per year.

Accelerating Growth: BRC's earnings growth over the past year (44.5%) is below its 5-year average (52.4% per year).

Earnings vs Industry: BRC earnings growth over the past year (44.5%) exceeded the Commercial Services industry -2.4%.


Return on Equity

High ROE: BRC's Return on Equity (15.4%) is considered low.


Return on Assets

ROA vs Industry: BRC has a higher Return on Assets than the Commercial Services industry average last year.


Return on Capital Employed

ROCE Improving: BRC has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Brady's financial position?


Financial Position Analysis

Short Term Liabilities: BRC's short term assets ($573.3M) exceeds its short term liabilities ($241.9M)

Long Term Liabilities: BRC's short term assets (573.3M) exceeds its long term liabilities (64.6M)


Debt to Equity History and Analysis

Debt Level: BRC's debt to equity ratio (5.9%) is considered satisfactory

Reducing Debt: BRC's debt to equity ratio has reduced from 36% to 5.9% over the past 5 years.

Debt Coverage: BRC's debt is well covered by operating cash flow (323.3%).

Interest Coverage: BRC earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: BRC has a low level of unsold assets or inventory.

Debt Coverage by Assets: BRC's debt is covered by short term assets (assets are 11.427640x debt).


Next Steps

Dividend

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

1.57%

Current Dividend Yield


Dividend Yield vs Market

company1.6%marketbottom25%1.4%markettop25%3.7%industryaverage1.6%forecastin3Years1.6%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: BRC's dividend (1.57%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: BRC's dividend (1.57%) is low compared to the top 25% of dividend payers in the US market (3.73%).

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 (34.3%), 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 (31.5% payout ratio).


Next Steps

Management

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

5.2yrs

Average management tenure


CEO

J. Nauman (57yo)

5.2yrs

Tenure

US$5,240,929

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

Compensation vs. Market: J.'s total compensation ($USD5.24M) is about average for companies of similar size in the US market ($USD5.11M).

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


Management Age and Tenure

5.2yrs

Average Tenure

57yo

Average Age

Experienced Management: BRC's management team is seasoned and experienced (5.2 years average tenure).


Board Age and Tenure

7.6yrs

Average Tenure

60yo

Average Age

Experienced Board: BRC's board of directors are considered experienced (7.6 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$106,50001 Oct 19
Frank Harris
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,000
Max PriceUS$53.25
SellUS$135,83730 Sep 19
Thomas Felmer
EntityIndividual
Role
Senior Key Executive
Senior VP & President of Workplace Safety
Shares2,539
Max PriceUS$53.50
SellUS$1,241,50126 Sep 19
Thomas Felmer
EntityIndividual
Role
Senior Key Executive
Senior VP & President of Workplace Safety
Shares23,383
Max PriceUS$53.25
SellUS$831,88424 Sep 19
Thomas Felmer
EntityIndividual
Role
Senior Key Executive
Senior VP & President of Workplace Safety
Shares15,305
Max PriceUS$54.50
SellUS$684,49224 Sep 19
Elizabeth Bruno
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares12,730
Max PriceUS$53.77
SellUS$159,96224 Sep 19
Russell Shaller
EntityIndividual
Role
Senior Key Executive
Senior VP & President of Identification Solutions
Shares2,965
Max PriceUS$53.95
SellUS$162,81020 Sep 19
Frank Harris
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,000
Max PriceUS$54.27
SellUS$2,127,13020 Sep 19
Thomas Felmer
EntityIndividual
Role
Senior Key Executive
Senior VP & President of Workplace Safety
Shares39,140
Max PriceUS$54.50
SellUS$216,89220 Sep 19
Bentley Curran
EntityIndividual
Role
Chief Information Officer
VP of Digital Business & Chief Information Officer
Shares3,998
Max PriceUS$54.25
SellUS$684,85320 Sep 19
Helena Nelligan
EntityIndividual
Role
Head of Human Resources
Senior Vice President of Human Resources
Shares12,652
Max PriceUS$54.13
SellUS$279,74919 Sep 19
Bradley Richardson
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,170
Max PriceUS$54.11
SellUS$107,35601 Jul 19
Russell Shaller
EntityIndividual
Role
Senior Key Executive
Senior VP & President of Identification Solutions
Shares2,225
Max PriceUS$48.25
SellUS$880,50420 Mar 19
J. Nauman
EntityIndividual
Role
Chief Executive Officer
President
Shares18,671
Max PriceUS$47.17
SellUS$248,45604 Mar 19
Bradley Richardson
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,245
Max PriceUS$47.37
SellUS$96,07928 Feb 19
Frank Harris
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,000
Max PriceUS$48.09

Ownership Breakdown


Management Team

  • Tom Felmer (57yo)

    Senior VP & President of Workplace Safety

    • Tenure: 15.3yrs
    • Compensation: US$1.70m
  • Kathleen Johnson (65yo)

    Vice President of Finance - Identification Solutions Business

    • Tenure: 4.3yrs
  • J. Nauman (57yo)

    President

    • Tenure: 5.2yrs
    • Compensation: US$5.24m
  • Louis Bolognini (63yo)

    Senior VP

    • Tenure: 6.8yrs
    • Compensation: US$1.14m
  • Bentley Curran (57yo)

    VP of Digital Business & Chief Information Officer

    • Tenure: 7.7yrs
    • Compensation: US$802.29k
  • Aaron Pearce (48yo)

    CFO & Treasurer

    • Tenure: 5.1yrs
    • Compensation: US$1.79m
  • Helena Nelligan (53yo)

    Senior Vice President of Human Resources

    • Tenure: 5.9yrs
    • Compensation: US$1.32m
  • Russell Shaller (56yo)

    Senior VP & President of Identification Solutions

    • Tenure: 4.3yrs
    • Compensation: US$1.55m
  • Ann Thornton (37yo)

    Chief Accounting Officer & Corporate Controller

    • Tenure: 2.9yrs
  • Kathy Johnson

    Vice President of Finance & Chief Accounting Officer

    • Tenure: 0yrs

Board Members

  • Patrick Allender (72yo)

    Independent Director

    • Tenure: 12.1yrs
    • Compensation: US$214.03k
  • Conrad Goodkind (75yo)

    Chairman of the Board

    • Tenure: 4.1yrs
    • Compensation: US$271.53k
  • Frank Harris (77yo)

    Independent Director

    • Tenure: 27.9yrs
    • Compensation: US$191.03k
  • Brad Richardson (61yo)

    Independent Director

    • Tenure: 11.9yrs
    • Compensation: US$221.03k
  • Elizabeth Bruno (52yo)

    Independent Director

    • Tenure: 15.9yrs
    • Compensation: US$189.03k
  • Gary Balkema (64yo)

    Director

    • Tenure: 9.3yrs
    • Compensation: US$208.03k
  • Nancy Gioia (59yo)

    Director

    • Tenure: 5.9yrs
    • Compensation: US$201.03k
  • David Bem (50yo)

    Director

    • Tenure: 0.7yrs
    • Compensation: US$152.17k
  • J. Nauman (57yo)

    President

    • Tenure: 5.2yrs
    • Compensation: US$5.24m
  • Michelle Williams (58yo)

    Director

    • Tenure: 0.7yrs
    • Compensation: US$152.17k

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$2.930b
  • Shares outstanding: 53.00m
  • Website: https://www.bradyid.com

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 Analysis2019/10/20 23:32
End of Day Share Price2019/10/18 00:00
Earnings2019/07/31
Annual Earnings2019/07/31


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.