BRADY CORPORATION - CL A (BRC) Stock Fundamental Analysis
USA - NYSE:BRC - US1046741062 - Common Stock
81.74 USD
+1.43 (+1.78%)
81.74 USD
0 (0%)
Overall BRC gets a fundamental rating of 7 out of 10. We evaluated BRC against 84 industry peers in the Commercial Services & Supplies industry. BRC has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. BRC has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year BRC was profitable.
BRC had a positive operating cash flow in the past year.
In the past 5 years BRC has always been profitable.
BRC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
BRC has a better Return On Assets (10.87%) than 88.10% of its industry peers.
With a decent Return On Equity value of 15.81%, BRC is doing good in the industry, outperforming 79.76% of the companies in the same industry.
BRC has a Return On Invested Capital of 14.18%. This is amongst the best in the industry. BRC outperforms 89.29% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BRC is above the industry average of 10.60%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.87% | ||
| ROE | 15.81% | ||
| ROIC | 14.18% |
ROA(3y)12.12%
ROA(5y)11.32%
ROE(3y)17.27%
ROE(5y)16.31%
ROIC(3y)15.2%
ROIC(5y)14.31%
1.3 Margins
BRC has a better Profit Margin (12.45%) than 85.71% of its industry peers.
BRC's Profit Margin has improved in the last couple of years.
BRC's Operating Margin of 16.51% is amongst the best of the industry. BRC outperforms 85.71% of its industry peers.
BRC's Operating Margin has improved in the last couple of years.
The Gross Margin of BRC (50.27%) is better than 90.48% of its industry peers.
In the last couple of years the Gross Margin of BRC has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.51% | ||
| PM (TTM) | 12.45% | ||
| GM | 50.27% |
OM growth 3Y3.75%
OM growth 5Y3.35%
PM growth 3Y2.82%
PM growth 5Y3.85%
GM growth 3Y1.19%
GM growth 5Y0.56%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so BRC is still creating some value.
BRC has less shares outstanding than it did 1 year ago.
BRC has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, BRC has an improved debt to assets ratio.
2.2 Solvency
BRC has an Altman-Z score of 6.80. This indicates that BRC is financially healthy and has little risk of bankruptcy at the moment.
BRC has a Altman-Z score of 6.80. This is amongst the best in the industry. BRC outperforms 88.10% of its industry peers.
BRC has a debt to FCF ratio of 0.65. This is a very positive value and a sign of high solvency as it would only need 0.65 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.65, BRC belongs to the top of the industry, outperforming 86.90% of the companies in the same industry.
BRC has a Debt/Equity ratio of 0.08. This is a healthy value indicating a solid balance between debt and equity.
BRC has a Debt to Equity ratio of 0.08. This is in the better half of the industry: BRC outperforms 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | 0.65 | ||
| Altman-Z | 6.8 |
ROIC/WACC1.65
WACC8.58%
2.3 Liquidity
A Current Ratio of 1.88 indicates that BRC should not have too much problems paying its short term obligations.
BRC has a Current ratio of 1.88. This is in the better half of the industry: BRC outperforms 66.67% of its industry peers.
A Quick Ratio of 1.27 indicates that BRC should not have too much problems paying its short term obligations.
BRC has a Quick ratio (1.27) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.88 | ||
| Quick Ratio | 1.27 |
3. Growth
3.1 Past
BRC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.26%, which is quite good.
Measured over the past years, BRC shows a quite strong growth in Earnings Per Share. The EPS has been growing by 14.77% on average per year.
The Revenue has grown by 12.84% in the past year. This is quite good.
Measured over the past years, BRC shows a small growth in Revenue. The Revenue has been growing by 6.96% on average per year.
EPS 1Y (TTM)9.26%
EPS 3Y14.47%
EPS 5Y14.77%
EPS Q2Q%5.88%
Revenue 1Y (TTM)12.84%
Revenue growth 3Y5.15%
Revenue growth 5Y6.96%
Sales Q2Q%15.69%
3.2 Future
Based on estimates for the next years, BRC will show a small growth in Earnings Per Share. The EPS will grow by 6.70% on average per year.
BRC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.48% yearly.
EPS Next Y4.4%
EPS Next 2Y6.7%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year5.14%
Revenue Next 2Y4.48%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 17.77 indicates a rather expensive valuation of BRC.
Compared to the rest of the industry, the Price/Earnings ratio of BRC indicates a somewhat cheap valuation: BRC is cheaper than 72.62% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.41, BRC is valued a bit cheaper.
BRC is valuated rather expensively with a Price/Forward Earnings ratio of 17.02.
BRC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. BRC is cheaper than 73.81% of the companies in the same industry.
BRC's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.77 | ||
| Fwd PE | 17.02 |
4.2 Price Multiples
60.71% of the companies in the same industry are more expensive than BRC, based on the Enterprise Value to EBITDA ratio.
BRC's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. BRC is cheaper than 69.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.06 | ||
| EV/EBITDA | 12.76 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates BRC does not grow enough to justify the current Price/Earnings ratio.
BRC has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)4.04
PEG (5Y)1.2
EPS Next 2Y6.7%
EPS Next 3YN/A
5. Dividend
5.1 Amount
BRC has a Yearly Dividend Yield of 1.23%.
BRC's Dividend Yield is a higher than the industry average which is at 2.27.
With a Dividend Yield of 1.23, BRC pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.23% |
5.2 History
The dividend of BRC has a limited annual growth rate of 1.98%.
BRC has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)1.98%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
BRC pays out 24.16% of its income as dividend. This is a sustainable payout ratio.
The dividend of BRC is growing, but earnings are growing more, so the dividend growth is sustainable.
DP24.16%
EPS Next 2Y6.7%
EPS Next 3YN/A
81.74
+1.43 (+1.78%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners84.24%
Inst Owner Change-2.8%
Ins Owners3.14%
Ins Owner Change0.4%
Market Cap3.85B
Analysts86.67
Price Target96.9 (18.55%)
Short Float %0.8%
Short Ratio2.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.23% |
Yearly Dividend0.96
Dividend Growth(5Y)1.98%
DP24.16%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.22%
Min EPS beat(2)-0.58%
Max EPS beat(2)1.01%
EPS beat(4)2
Avg EPS beat(4)-0.77%
Min EPS beat(4)-4.34%
Max EPS beat(4)1.01%
EPS beat(8)5
Avg EPS beat(8)1.49%
EPS beat(12)8
Avg EPS beat(12)2.14%
EPS beat(16)9
Avg EPS beat(16)1.22%
Revenue beat(2)1
Avg Revenue beat(2)-0.2%
Min Revenue beat(2)-2.07%
Max Revenue beat(2)1.68%
Revenue beat(4)2
Avg Revenue beat(4)-0.01%
Min Revenue beat(4)-2.07%
Max Revenue beat(4)2.04%
Revenue beat(8)3
Avg Revenue beat(8)-1.63%
Revenue beat(12)5
Avg Revenue beat(12)-0.97%
Revenue beat(16)8
Avg Revenue beat(16)-0.64%
PT rev (1m)9.2%
PT rev (3m)9.2%
EPS NQ rev (1m)4.42%
EPS NQ rev (3m)0.85%
EPS NY rev (1m)0%
EPS NY rev (3m)-5.65%
Revenue NQ rev (1m)0.95%
Revenue NQ rev (3m)0.95%
Revenue NY rev (1m)1.46%
Revenue NY rev (3m)1.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.77 | ||
| Fwd PE | 17.02 | ||
| P/S | 2.54 | ||
| P/FCF | 25.06 | ||
| P/OCF | 21.24 | ||
| P/B | 3.23 | ||
| P/tB | 9.39 | ||
| EV/EBITDA | 12.76 |
EPS(TTM)4.6
EY5.63%
EPS(NY)4.8
Fwd EY5.88%
FCF(TTM)3.26
FCFY3.99%
OCF(TTM)3.85
OCFY4.71%
SpS32.14
BVpS25.32
TBVpS8.7
PEG (NY)4.04
PEG (5Y)1.2
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.87% | ||
| ROE | 15.81% | ||
| ROCE | 17.8% | ||
| ROIC | 14.18% | ||
| ROICexc | 16.19% | ||
| ROICexgc | 44.52% | ||
| OM | 16.51% | ||
| PM (TTM) | 12.45% | ||
| GM | 50.27% | ||
| FCFM | 10.15% |
ROA(3y)12.12%
ROA(5y)11.32%
ROE(3y)17.27%
ROE(5y)16.31%
ROIC(3y)15.2%
ROIC(5y)14.31%
ROICexc(3y)17.98%
ROICexc(5y)16.66%
ROICexgc(3y)51.28%
ROICexgc(5y)50.08%
ROCE(3y)19.07%
ROCE(5y)17.95%
ROICexcg growth 3Y-0.71%
ROICexcg growth 5Y2.1%
ROICexc growth 3Y1.76%
ROICexc growth 5Y-0.16%
OM growth 3Y3.75%
OM growth 5Y3.35%
PM growth 3Y2.82%
PM growth 5Y3.85%
GM growth 3Y1.19%
GM growth 5Y0.56%
F-Score4
Asset Turnover0.87
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | 0.65 | ||
| Debt/EBITDA | 0.34 | ||
| Cap/Depr | 67.86% | ||
| Cap/Sales | 1.82% | ||
| Interest Coverage | 53.66 | ||
| Cash Conversion | 62.38% | ||
| Profit Quality | 81.49% | ||
| Current Ratio | 1.88 | ||
| Quick Ratio | 1.27 | ||
| Altman-Z | 6.8 |
F-Score4
WACC8.58%
ROIC/WACC1.65
Cap/Depr(3y)131.52%
Cap/Depr(5y)125.45%
Cap/Sales(3y)3.07%
Cap/Sales(5y)2.98%
Profit Quality(3y)93.24%
Profit Quality(5y)93.76%
High Growth Momentum
Growth
EPS 1Y (TTM)9.26%
EPS 3Y14.47%
EPS 5Y14.77%
EPS Q2Q%5.88%
EPS Next Y4.4%
EPS Next 2Y6.7%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)12.84%
Revenue growth 3Y5.15%
Revenue growth 5Y6.96%
Sales Q2Q%15.69%
Revenue Next Year5.14%
Revenue Next 2Y4.48%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y2.65%
EBIT growth 3Y9.09%
EBIT growth 5Y10.54%
EBIT Next Year36.67%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-12.31%
FCF growth 3Y26.83%
FCF growth 5Y6.2%
OCF growth 1Y-28.96%
OCF growth 3Y15.24%
OCF growth 5Y5.14%