BRC  Brady Corporation

Exchange

NYSE

Sector

Consumer Durables

Industry

Miscellaneous manufacturing industries

Market Cap.

1.75B

Vuru Grade

36.96/100

Current Price

$34.05
-0.35 (-1.02%)

Growth Price

$22.76
Overvalued by 33.17%

Stability Price

$12.10
Overvalued by 64.47%

Company Metrics

  • P/E 18.41
  • P/S 1.60
  • P/B 2.66
  • EPS 1.85
  • Cash ROIC 10.69%
  • Cash Ratio 0.85
  • Dividend 0.82 / 2.38 %
  • Avg. Vol. 194,628.00
  • Shares 51.40M
  • Market Cap. 1.75B

Company Description

Brady Corporation manufactures and markets identification solutions and specialty products that identify and protect premises, products, and people. The company offers facility identification products, including informational signs, tags and labels, and printers used in industrial, utility, commercial, governmental, and institutional applications; warehouse identification products, such as labels,... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

Brady Corp. reports strong quarter
Milwaukee Journal Sentinel - Feb 23, 2017
Brady Corp. announced Thursday fiscal second quarter net earnings of $25.3 million, or 49 cents per share, up from $15.3 million, or 30 cents per share, in the same period a year ago.
Brady Corporation's (BRC) CEO Michael Nauman on Q2 2017 Results - Earnings ... - Seeking Alpha
Brady Corporation (BRC) Moves Lower on Volume Spike for June 27
Equities.com - 12 hours ago
Brady Corporation (BRC) traded on unusually high volume on Jun. 27, as the stock lost 1.02% to close at $34.05. On the day, Brady Corporation saw 408,539 shares trade hands on 3,280 trades. Considering that the stock averages only a daily volume of ...
Brady Corp (BRC) Needle Moving on Volume - Stock Daily Review
Analysts Expect Brady Corporation (BRC) to Disclose $0.46 Earnings Per Share - Insider Tradings
Form 4/A BRADY CORP For: Nov 18 Filed by: Nelligan Helena Regina
StreetInsider.com - 17 hours ago
Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b). 1. Name and Address of Reporting Person *. Nelligan Helena Regina. (Last), (First), (Middle). 6555 WEST GOOD HOPE ROAD. (Street) ...
Brady Corporation (BRC) & Cintas Corporation (CTAS) Head to Head Contrast
BNB Daily (blog) - 8 hours ago
Cintas Corporation (NASDAQ: CTAS) and Brady Corporation (NYSE:BRC) are both industrial products companies, but which is the better business?
Investors Are Circling Brady Corporation (NYSE:BRC), What Do the Numbers Tell Us?
Financial Newsweek - 8 hours ago
After a recent scan, we can see that Brady Corporation (NYSE:BRC) has a Shareholder Yield of 0.55% and a Shareholder Yield (Mebane Faber) of 6.24%.
BidaskClub Lowers Brady Corp (BRC) to Strong Sell
The Cerbat Gem - Jun 22, 2017
Brady Corp (NYSE:BRC) was downgraded by stock analysts at BidaskClub from a “sell” rating to a “strong sell” rating in a report released on Thursday.
Brady Corp (BRC) Raised to “Buy” at Zacks Investment Research - Sports Perspectives
Brady Corp (BRC) Position Raised by Nordea Investment Management AB - Stock Observer
Analyzing Check Point Software Technologies (CHKP) & Brady Corporation (BRC)
The Cerbat Gem - 15 hours ago
Check Point Software Technologies (NASDAQ: CHKP) and Brady Corporation (NYSE:BRC) are both computer and technology companies, but which is the superior business?
Brady Corp (BRC) Forecasted to Earn FY2017 Earnings of $1.84 Per Share
The Cerbat Gem - Jun 15, 2017
Brady Corp (NYSE:BRC) - Stock analysts at Northcoast Research upped their FY2017 earnings estimates for Brady Corp in a report issued on Friday.
How Analysts Feel About Brady Corporation (NYSE:BRC) After Increase in Sellers? - Weekly Register
Brokerages Expect Brady Corp (BRC) Will Post Quarterly Sales of $278.78 Million
The Cerbat Gem - Jun 13, 2017
Brady Corp logo Wall Street analysts expect Brady Corp (NYSE:BRC) to post sales of $278.78 million for the current quarter, Zacks Investment Research reports.
The Brady Corp (BRC) Expected to Post Quarterly Sales of $279.98 Million - BangaloreWeekly
Brady Corporation (BRC) Earns Daily Media Impact Score of 0.14 - Markets Daily
A New Kind of Stock Chart: Brady Corporation (NYSE:BRC) Critical Pivot Points
CML News - Jun 26, 2017
This is a real time view of the critical technical pivot points for Brady Corporation (NYSE:BRC) . The technical pivot points we look at all surround the stock price movement from the last 10-trading days through the last year.
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for BRC to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate BRC's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$34.05 Current Price

$22.76 Growth Price (DCF)

Overvalued by 33.17%


Growth Rate Assumed by Market: 9.52%


Future Free Cash Flow Growth Rate: -8.6%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$12.10 Stability Price (EPV)

Overvalued by 64.47%


Discount Rate: 15.0%

$21.45 Book Price

Overvalued by 37.01%


Satisfactory Cash Return on Invested Capital over the past 5 years

BRC has somewhat efficiently invested its financial resources in buildings, projects, and equipment. If CROIC is inconsistent, it's likely BRC could be benefiting from a one-time event or has a mixed history of investing capital productively. Read the company's Annual Report to determine whether this can improve.

BRC has created $10.69 of cash for every $100 invested.
Figures in USD. Fiscal year ends in July
20122013201420152016
Free Cash Flow 120.56M 107.82M 50.02M 66.68M 121.84M
divided by
Invested Capital 1.03B 1.02B 879.89M 739.16M 736.01M
Cash ROIC 11.65% 10.53% 5.69% 9.02% 16.55%

Very Poor Return on Equity over the past 5 years

BRC has shown an inability to deliver results for shareholders. This could be due to poor management, BRC operating in a highly competitive industry, or having a weak business in general.

BRC has generated a $2.24 loss for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in July
20122013201420152016
Net Income -17.91M -140.82M -48.15M 4.90M 80.11M
divided by
Stockholders' Equity 1.01B 830.80M 733.08M 587.69M 603.60M
Return on Equity -1.77% -16.95% -6.57% 0.83% 13.27%

Excellent Business Performance over the past 10 years

BRC has been able to maintain profitability in good times and bad. This could mean BRC has an extremely strong business or has the ability to scale down costs when needed. This should be a fairly resilient business, but double check for future sustainability by looking at its Risk Factors in the Annual Report.

BRC has created positive free cash flow for 9 or more of the past 10 years.
Figures in USD. Fiscal year ends in July
2007200820092010201120122013201420152016
Free Cash Flow 84.08M 199.15M 102.62M 138.94M 146.82M 120.56M 107.82M 50.02M 66.68M 121.84M

Good Balance Sheet

BRC's Total Assets double Total Liabilities. Its financial position is adequate. Remember to check Shareholders' Equity to see if it's stable or growing. It's one of the best measures of whether a company is creating value for shareholders.
Figures in USD. Fiscal year ends in July
2007200820092010201120122013201420152016
Cash 162.05M 258.36M 188.16M 314.84M 389.97M 305.90M 91.06M 81.83M 114.49M 141.23M
Current Assets 583.41M 699.09M 509.43M 668.97M 758.29M 650.85M 512.49M 463.84M 408.58M 407.42M
Total Assets 1.70B 1.85B 1.58B 1.75B 1.86B 1.61B 1.44B 1.25B 1.06B 1.04B
Current Liabilities 280.05M 308.56M 222.47M 293.79M 301.88M 267.02M 323.50M 291.95M 209.25M 166.73M
Total Liabilities 807.85M 828.71M 632.18M 741.50M 705.31M 598.37M 607.89M 520.59M 475.21M 440.37M
Stockholder' Equity 891.01M 1.02B 951.09M 1.01B 1.16B 1.01B 830.80M 733.08M 587.69M 603.60M
Current Ratio 2.08 2.27 2.29 2.28 2.51 2.44 1.58 1.59 1.95 2.44
TL-to-TA 0.48 0.45 0.40 0.42 0.38 0.37 0.42 0.42 0.45 0.42

Low or No Reinvestment of Profits over the past 10 years

BRC has either been retaining a small amount of their earnings or has done so inconsistently. A lack of consistency could be due to BRC operating at a loss or them having such a strong economic moat they feel comfortable spending profits on growth. Be wary of future prospects and if applicable, inspect the moat's sustainability.
Figures in USD. Fiscal year ends in July
2007200820092010201120122013201420152016
Retained Earnings 540.24M 639.06M 673.34M 718.51M 789.10M 732.29M 538.51M 452.06M 414.07M 453.37M
Retained Earnings Growth - 18.29% 5.36% 6.71% 9.82% -7.20% -26.46% -16.05% -8.40% 9.49%

Highly Competitive Industry over the past 10 years

It's likely that BRC is in an industry with low barriers to entry, spurring high competition. If Gross Margins are at least satisfactory, it's likely BRC invests heavily in R&D and Sales, General & Administrative expenses.

Only $2.72 of every $100 of Revenue have been profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in July
2007200820092010201120122013201420152016
Net Income 109.39M 132.19M 70.12M 81.96M 108.65M -17.91M -140.82M -48.15M 4.90M 80.11M
divided by
Revenue 1.36B 1.52B 1.21B 1.26B 1.34B 1.32B 1.15B 1.23B 1.17B 1.12B
Net Profit Margin 8.03% 8.68% 5.80% 6.51% 8.11% -1.35% -12.22% -3.93% 0.42% 7.15%

Strong Pricing Power over the past 10 years

BRC has maintained substantial gross margins, suggesting that they have been able to set prices without consideration of the cost of goods sold. This potentially leaves flexibility in inflationary environments to raise prices on consumers and maintain profitability.

$49.13 of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in July
2007200820092010201120122013201420152016
Gross Profit 657.04M 744.20M 577.58M 623.30M 656.20M 636.31M 606.08M 609.56M 558.43M 558.77M
divided by
Revenue 1.36B 1.52B 1.21B 1.26B 1.34B 1.32B 1.15B 1.23B 1.17B 1.12B
Gross Margin 48.22% 48.86% 47.79% 49.50% 48.98% 48.05% 52.61% 49.76% 47.66% 49.86%

High Capital Intensity over the past 10 years

BRC spends large amounts of capital buying new equipment or investing in new facilities to stay competitive. Over the long term, those costs may have to be fuelled by debt. Look at the growth of Shareholders' Equity to see if this strategy is having a positive or negative impact.

102.60% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in July
2007200820092010201120122013201420152016
Capital Expenditure 51.94M 26.41M 24.03M 26.30M 20.53M 24.15M 35.69M 43.40M 26.67M 17.14M
divided by
Net Income 109.39M 132.19M 70.12M 81.96M 108.65M -17.91M -140.82M -48.15M 4.90M 80.11M
Capital Expenditure Ratio 47.48% 19.98% 34.26% 32.09% 18.90% -134.82% -25.34% -90.14% 544.12% 21.40%

Very Strong Dividend History over the past 10 years

BRC has consistently distributed a dividend for at least the past 10 years. Such a long dividend history suggests BRC is very established in its market and that its dividend distribution is likely to continue for a significant period of time.
Figures in USD. Fiscal year ends in July
2007200820092010201120122013201420152016
Dividend Paid 30.14M 32.46M 35.84M 36.79M 38.06M 38.90M 39.24M 40.49M 40.98M 40.81M
divided by
Shares Outstanding 54.74M 54.87M 52.87M 52.95M 53.13M 52.45M 51.33M 51.87M 51.38M 50.77M
Dividend Paid Per Share 0.55 0.59 0.68 0.69 0.72 0.74 0.76 0.78 0.80 0.80
Price at Year End 32.67 21.45 29.14 32.00 31.39 32.73 30.81 27.16 23.50 37.55
Dividend Yield 1.69% 2.76% 2.33% 2.17% 2.28% 2.27% 2.48% 2.87% 3.39% 2.14%

History of Stock Buybacks over the past 10 years

BRC has some history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in USD. Fiscal year ends in July
2007200820092010201120122013201420152016
Shares Outstanding 54.74M 54.87M 52.87M 52.95M 53.13M 52.45M 51.33M 51.87M 51.38M 50.77M
Stock Bought Back - -0.24% 3.80% -0.15% -0.35% 1.30% 2.19% -1.03% 0.94% 1.21%
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