BRC  Brady Corporation

Exchange

NYSE

Sector

Consumer Durables

Industry

Miscellaneous manufacturing industries

Market Cap.

1.96B

Vuru Grade

36.96/100

Current Price

$38.30
-0.35 (-0.91%)

Growth Price

$22.85
Overvalued by 40.33%

Stability Price

$12.15
Overvalued by 68.28%

Company Metrics

  • P/E 20.87
  • P/S 1.77
  • P/B 3.11
  • EPS 1.84
  • Cash ROIC 10.69%
  • Cash Ratio 0.85
  • Dividend 0.82 / 2.14%
  • Avg. Vol. 182,331.00
  • Shares 51.17M
  • Market Cap. 1.96B

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 extends into luxury meal prep business
NFL.com - Mar 7, 2017
According to ESPN.com, Purple Carrot -- a plant-based meal company -- began selling Brady meals on Tuesday at $78 per week for six entrees.
Vanguard Group Inc. is Buying Brady Corp (NYSE:BRC) Shares
Small Cap Exclusive (press release) - Mar 10, 2017
For those not familiar with the company, Brady Corporation is a manufacturer and supplier of identification solutions and workplace safety products that identify and protect premises, products and people.
Brady Corporation's (BRC) CEO Michael Nauman on Q1 2017 Results - Earnings ...
Seeking Alpha - Nov 16, 2016
Good day, ladies and gentlemen, and welcome to the Quarter One 2017 Brady Corporation Earnings Conference Call. At this time, all participants are in a listen-only mode.
The Brady Corp (BRC) Position Boosted by State Street Corp
Petro Global News 24 - Mar 24, 2017
State Street Corp raised its position in shares of Brady Corp (NYSE:BRC) by 9.3% during the fourth quarter, Holdings Channel reports.
Brady Corporation (NYSE:BRC) EPS Forecast At $0.5233 - Markets Daily
Brady Corporation (BRC) Ex-Dividend Date Scheduled for January 06, 2017
Nasdaq - Jan 5, 2017
Brady Corporation ( BRC ) will begin trading ex-dividend on January 06, 2017. A cash dividend payment of $0.205 per share is scheduled to be paid on January 31, 2017.
Brady Corporation (BRC) To Go Ex-Dividend on January 6th - Sports Perspectives
Brady Corp (BRC) Position Boosted by State Street Corp
The Cerbat Gem - Mar 23, 2017
Brady Corp logo State Street Corp raised its position in shares of Brady Corp (NYSE:BRC) by 9.3% during the fourth quarter, according to its most recent filing with the SEC.
Stock Price Forecast Of Brady Corporation (NYSE:BRC) At $45 - Investor Newswire
Brady Corp. (BRC) Declares $0.205 Quarterly Dividend; 2.1% Yield
StreetInsider.com - Jan 27, 2017
Brady Corp. (NYSE: BRC) declared a quarterly dividend of $0.205 per share, or $0.82 annualized. The dividend will be payable on April 28, 2017, to stockholders of record on April 7, 2017, with an ex-dividend date of April 5, 2017.
Brady Corp (BRC): What can we expect in the future?
Simply Wall St - Nov 16, 2016
What can investors expect from Brady Corp (NYSE:BRC) in the future? Are you considering investing? Then keep reading. Today I'm going research the future of this stock in more detail.
Brady Corporation (BRC) Moves Higher on Volume Spike for March 07
Equities.com - Mar 7, 2017
Brady Corporation (BRC) traded on unusually high volume on Mar. 07, as the stock gained 0.39% to close at $38.95. On the day, Brady Corporation saw 383,871 shares trade hands on 1,708 trades. Considering that the stock averages only a daily volume of ...
Brady Corporation (BRC) Moves Lower on Volume Spike for February 27
Equities.com - Feb 27, 2017
Brady Corporation (BRC) traded on unusually high volume on Feb. 27, as the stock lost 0.38% to close at $39.05. On the day, Brady Corporation saw 330,778 shares trade hands on 2,939 trades. Considering that the stock averages only a daily volume of ...
Northcoast Research Equities Analysts Boost Earnings Estimates for Brady ... - Chaffey Breeze
The Brady Corporation (BRC) VP Bentley Curran Sells 1685 Shares of Stock - DailyQuint
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.

$38.30 Current Price

$22.85 Growth Price (DCF)

Overvalued by 40.33%


Growth Rate Assumed by Market: 13.61%


Future Free Cash Flow Growth Rate: -8.6%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$12.15 Stability Price (EPV)

Overvalued by 68.28%


Discount Rate: 15.0%

$21.21 Book Price

Overvalued by 44.61%


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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