BRC  Brady Corporation

Exchange

NYSE

Sector

Consumer Durables

Industry

Miscellaneous manufacturing industries

Market Cap.

1.97B

Vuru Grade

39.00/100

Current Price

$38.30
-0.10 (-0.26%)

Growth Price

$26.17
Overvalued by 31.68%

Stability Price

$15.45
Overvalued by 59.65%

Company Metrics

  • P/E 20.99
  • P/S 1.77
  • P/B 2.82
  • EPS 1.83
  • Cash ROIC 11.89%
  • Cash Ratio 0.72
  • Dividend 0.83 / 2.15 %
  • Avg. Vol. 214,020.00
  • Shares 51.44M
  • Market Cap. 1.97B

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 Corporation Announces Earnings Conference Call
GlobeNewswire (press release) - Oct 18, 2017
Brady's products help customers increase safety, security, productivity and performance and include high-performance labels, signs, safety devices, printing systems and software.
$0.48 EPS Expected for Brady (BRC); Cboe Holdings (CBOE)'s Sentiment Is 1.74 - HuronReport
General Finance Corporation (GFN) vs. Brady Corporation (BRC) Head-To-Head Survey - TrueBlueTribune
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 Reports Fiscal 2017 Second Quarter Results and Increases its ... - GlobeNewswire (press release)
Brady Corp. net income up nearly 20% in 2017
BizTimes.com (Milwaukee) - Sep 8, 2017
This is a direct result of our organic sales growth, our consistent focus on driving efficiencies throughout our SG&A structure, and our improved manufacturing processes,” said J. Michael Nauman, Brady president and chief executive officer. Revenue for ...
BRIEF-Brady Corp reports Q3 sales of $275.9 million
Reuters - May 25, 2017
LONDON, June 17 British Prime Minister Theresa May will face an immediate leadership challenge from eurosceptic lawmakers in her party if she seeks to water down her plans for Brexit, the Sunday Telegraph reported, citing senior Conservative sources.
Ex-Dividend Reminder: Verizon Communications, AT&T and Brady Corp
Nasdaq - Jul 5, 2017
Looking at the universe of stocks we cover at Dividend Channel , on 7/6/17, Verizon Communications Inc (Symbol: VZ), AT&T Inc (Symbol: T), and Brady Corp (Symbol: BRC) will all trade ex-dividend for their respective upcoming dividends. Verizon ...
Brady Corp (BRC): Company Stock Focus
Concord Register - 14 hours ago
Taking a look at some indicators for Brady Corp (BRC), we have noted that the current 20-day moving average vs price signal is Sell.
Brady's (BRC) CEO Michael Nauman on Q4 2017 Results - Earnings Call Transcript
Seeking Alpha - Sep 8, 2017
Good day, ladies and gentlemen, and welcome to the Q4, 2017 Brady Corporation Earnings Conference Call. At this time, all participants are in a listen-only mode.
Brady Corporation (BRC) Moves Higher on Volume Spike for September 07 - Equities.com
Brady Corp Q2 2017 Institutional Investor Sentiment Better Than Expected
BZ Weekly - Oct 16, 2017
Brady Corp (NYSE:BRC) institutional sentiment increased to 1.27 in Q2 2017. Its up 0.24, from 1.03 in 2017Q1. The ratio improved, as 84 hedge funds increased or started new equity positions, while 66 sold and reduced their stakes in Brady Corp. The ...
Is Buying Brady Corporation (NYSE:BRC) Here Good Idea? - WeeklyHub
Brady Corp Stock in Q2 2017 Driven by Institutional Investors - KL Daily
Elbit Systems Ltd (ESLT) and Brady Corp (BRC) Shares Moving The Tape in Session
Rockville Register - 17 hours ago
Elbit Systems Ltd (ESLT) shares are moving today on volatility -0.79% or $-1.19 from the open. The NASDAQ listed company saw a recent bid of $150.005 and 19419 shares have traded hands in the session.
Form 4 BRADY CORP For: Oct 01 Filed by: Felmer Thomas J
StreetInsider.com - Oct 3, 2017
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 *. Felmer Thomas J. (Last), (First), (Middle). 6555 W. GOOD HOPE RD. (Street). MILWAUKEE, WI ...
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

$26.17 Growth Price (DCF)

Overvalued by 31.68%


Growth Rate Assumed by Market: 10.65%


Future Free Cash Flow Growth Rate: -6.5%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$15.45 Stability Price (EPV)

Overvalued by 59.65%


Discount Rate: 15.0%

$1.12 NCA Price

Overvalued by 97.07%

$24.08 Book Price

Overvalued by 37.12%


Growing Cash Return on Invested Capital over the past 5 years

BRC has continued to efficiently invest its financial resources in buildings, projects, and equipment, resulting in increasingly stronger returns. Look at its Annual Reports to determine future sustainability.

BRC has created $11.89 of cash for every $100 invested.
Figures in USD. Fiscal year ends in July
20132014201520162017
Free Cash Flow 107.82M 50.02M 66.68M 121.84M 128.87M
divided by
Invested Capital 1.02B 879.89M 739.16M 736.01M 729.08M
Cash ROIC 10.53% 5.69% 9.02% 16.55% 17.67%

Poor Return on Equity over the past 5 years

BRC has shown an inability to deliver strong 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 only generated $0.85 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in July
20132014201520162017
Net Income -140.82M -48.15M 4.90M 80.11M 95.65M
divided by
Stockholders' Equity 830.80M 733.08M 587.69M 603.60M 700.14M
Return on Equity -16.95% -6.57% 0.83% 13.27% 13.66%

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
2008200920102011201220132014201520162017
Free Cash Flow 199.15M 102.62M 138.94M 146.82M 120.56M 107.82M 50.02M 66.68M 121.84M 128.87M

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
2008200920102011201220132014201520162017
Cash 258.36M 188.16M 314.84M 389.97M 305.90M 91.06M 81.83M 114.49M 141.23M 133.94M
Current Assets 699.09M 509.43M 668.97M 758.29M 650.85M 512.49M 463.84M 408.58M 407.42M 407.81M
Total Assets 1.85B 1.58B 1.75B 1.86B 1.61B 1.44B 1.25B 1.06B 1.04B 1.05B
Current Liabilities 308.56M 222.47M 293.79M 301.88M 267.02M 323.50M 291.95M 209.25M 166.73M 187.20M
Total Liabilities 828.71M 632.18M 741.50M 705.31M 598.37M 607.89M 520.59M 475.21M 440.37M 350.08M
Stockholder' Equity 1.02B 951.09M 1.01B 1.16B 1.01B 830.80M 733.08M 587.69M 603.60M 700.14M
Current Ratio 2.27 2.29 2.28 2.51 2.44 1.58 1.59 1.95 2.44 2.18
TL-to-TA 0.45 0.40 0.42 0.38 0.37 0.42 0.42 0.45 0.42 0.33

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
2008200920102011201220132014201520162017
Retained Earnings 639.06M 673.34M 718.51M 789.10M 732.29M 538.51M 452.06M 414.07M 453.37M 507.14M
Retained Earnings Growth - 5.36% 6.71% 9.82% -7.20% -26.46% -16.05% -8.40% 9.49% 11.86%

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 $2.78 of every $100 of Revenue have been profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in July
2008200920102011201220132014201520162017
Net Income 132.19M 70.12M 81.96M 108.65M -17.91M -140.82M -48.15M 4.90M 80.11M 95.65M
divided by
Revenue 1.52B 1.21B 1.26B 1.34B 1.32B 1.15B 1.23B 1.17B 1.12B 1.11B
Net Profit Margin 8.68% 5.80% 6.51% 8.11% -1.35% -12.22% -3.93% 0.42% 7.15% 8.59%

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.

$49.32 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
2008200920102011201220132014201520162017
Gross Profit 744.20M 577.58M 623.30M 656.20M 636.31M 606.08M 609.56M 558.43M 558.77M 558.29M
divided by
Revenue 1.52B 1.21B 1.26B 1.34B 1.32B 1.15B 1.23B 1.17B 1.12B 1.11B
Gross Margin 48.86% 47.79% 49.50% 48.98% 48.05% 52.61% 49.76% 47.66% 49.86% 50.15%

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.

98.09% 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
2008200920102011201220132014201520162017
Capital Expenditure 26.41M 24.03M 26.30M 20.53M 24.15M 35.69M 43.40M 26.67M 17.14M 15.17M
divided by
Net Income 132.19M 70.12M 81.96M 108.65M -17.91M -140.82M -48.15M 4.90M 80.11M 95.65M
Capital Expenditure Ratio 19.98% 34.26% 32.09% 18.90% -134.82% -25.34% -90.14% 544.12% 21.40% 15.86%

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
2008200920102011201220132014201520162017
Dividend Paid 32.46M 35.84M 36.79M 38.06M 38.90M 39.24M 40.49M 40.98M 40.81M 41.88M
divided by
Shares Outstanding 54.87M 52.87M 52.95M 53.13M 52.45M 51.33M 51.87M 51.38M 50.77M 51.96M
Dividend Paid Per Share 0.59 0.68 0.69 0.72 0.74 0.76 0.78 0.80 0.80 0.81
Price at Year End 21.45 29.14 32.00 31.39 32.73 30.81 27.16 23.50 37.55 38.15
Dividend Yield 2.76% 2.33% 2.17% 2.28% 2.27% 2.48% 2.87% 3.39% 2.14% 2.11%

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
2008200920102011201220132014201520162017
Shares Outstanding 54.87M 52.87M 52.95M 53.13M 52.45M 51.33M 51.87M 51.38M 50.77M 51.96M
Stock Bought Back - 3.80% -0.15% -0.35% 1.30% 2.19% -1.03% 0.94% 1.21% -2.28%
Share your thoughts about BRC

Sign Up or Log In to start contributing!


Discussion

Nothing here yet. Be the first to post!