BRADY CORPORATION - CL A (BRC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BRC - US1046741062 - Common Stock
82.21 USD
-0.11 (-0.13%)
82.21 USD
0 (0%)
We assign a fundamental rating of 7 out of 10 to BRC. BRC was compared to 80 industry peers in the Commercial Services & Supplies industry. BRC scores excellent points on both the profitability and health parts. This is a solid base for a good stock. BRC has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year BRC was profitable.
In the past year BRC had a positive cash flow from operations.
Each year in the past 5 years BRC has been profitable.
Each year in the past 5 years BRC had a positive operating cash flow.
1.2 Ratios
BRC has a better Return On Assets (10.90%) than 87.50% of its industry peers.
BRC has a better Return On Equity (15.72%) than 78.75% of its industry peers.
The Return On Invested Capital of BRC (14.00%) is better than 86.25% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BRC is above the industry average of 10.60%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.9% | ||
| ROE | 15.72% | ||
| ROIC | 14% |
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
With an excellent Profit Margin value of 12.69%, BRC belongs to the best of the industry, outperforming 91.25% of the companies in the same industry.
BRC's Profit Margin has improved in the last couple of years.
The Operating Margin of BRC (16.79%) is better than 88.75% of its industry peers.
In the last couple of years the Operating Margin of BRC has grown nicely.
BRC has a better Gross Margin (50.59%) than 91.25% 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 | 16.79% | ||
| PM (TTM) | 12.69% | ||
| GM | 50.59% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), BRC is creating some value.
BRC has less shares outstanding than it did 1 year ago.
The number of shares outstanding for BRC has been reduced compared to 5 years ago.
Compared to 1 year ago, BRC has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 6.86 indicates that BRC is not in any danger for bankruptcy at the moment.
BRC's Altman-Z score of 6.86 is amongst the best of the industry. BRC outperforms 88.75% of its industry peers.
BRC has a debt to FCF ratio of 0.72. This is a very positive value and a sign of high solvency as it would only need 0.72 years to pay back of all of its debts.
BRC has a Debt to FCF ratio of 0.72. This is amongst the best in the industry. BRC outperforms 86.25% of its industry peers.
A Debt/Equity ratio of 0.09 indicates that BRC is not too dependend on debt financing.
The Debt to Equity ratio of BRC (0.09) is better than 73.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 0.72 | ||
| Altman-Z | 6.86 |
ROIC/WACC1.61
WACC8.7%
2.3 Liquidity
A Current Ratio of 2.07 indicates that BRC has no problem at all paying its short term obligations.
The Current ratio of BRC (2.07) is better than 71.25% of its industry peers.
BRC has a Quick Ratio of 1.39. This is a normal value and indicates that BRC is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.39, BRC perfoms like the industry average, outperforming 52.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.07 | ||
| Quick Ratio | 1.39 |
3. Growth
3.1 Past
BRC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.31%, 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.
BRC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.20%.
BRC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.96% yearly.
EPS 1Y (TTM)8.31%
EPS 3Y14.47%
EPS 5Y14.77%
EPS Q2Q%8.04%
Revenue 1Y (TTM)11.2%
Revenue growth 3Y5.15%
Revenue growth 5Y6.96%
Sales Q2Q%7.48%
3.2 Future
Based on estimates for the next years, BRC will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.84% on average per year.
Based on estimates for the next years, BRC will show a small growth in Revenue. The Revenue will grow by 5.20% on average per year.
EPS Next Y10.77%
EPS Next 2Y9.84%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year6.59%
Revenue Next 2Y5.2%
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
BRC is valuated rather expensively with a Price/Earnings ratio of 17.53.
73.75% of the companies in the same industry are more expensive than BRC, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of BRC to the average of the S&P500 Index (27.19), we can say BRC is valued slightly cheaper.
A Price/Forward Earnings ratio of 14.81 indicates a correct valuation of BRC.
BRC's Price/Forward Earnings ratio is rather cheap when compared to the industry. BRC is cheaper than 81.25% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of BRC to the average of the S&P500 Index (23.88), we can say BRC is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.53 | ||
| Fwd PE | 14.81 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BRC indicates a somewhat cheap valuation: BRC is cheaper than 63.75% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BRC indicates a somewhat cheap valuation: BRC is cheaper than 68.75% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.26 | ||
| EV/EBITDA | 12.71 |
4.3 Compensation for Growth
BRC's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
BRC has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.63
PEG (5Y)1.19
EPS Next 2Y9.84%
EPS Next 3YN/A
5. Dividend
5.1 Amount
BRC has a Yearly Dividend Yield of 1.19%.
Compared to an average industry Dividend Yield of 0.90, BRC pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 1.94, BRC is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.19% |
5.2 History
The dividend of BRC has a limited annual growth rate of 1.98%.
BRC has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)1.98%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
23.33% of the earnings are spent on dividend by BRC. This is a low number and sustainable payout ratio.
The dividend of BRC is growing, but earnings are growing more, so the dividend growth is sustainable.
DP23.33%
EPS Next 2Y9.84%
EPS Next 3YN/A
82.21
-0.11 (-0.13%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners84.91%
Inst Owner Change0%
Ins Owners3.2%
Ins Owner Change3.21%
Market Cap3.88B
Revenue(TTM)1.54B
Net Income(TTM)195.67M
Analysts86.67
Price Target97.92 (19.11%)
Short Float %0.76%
Short Ratio1.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.19% |
Yearly Dividend0.96
Dividend Growth(5Y)1.98%
DP23.33%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.27%
Min EPS beat(2)1.01%
Max EPS beat(2)1.53%
EPS beat(4)2
Avg EPS beat(4)-0.59%
Min EPS beat(4)-4.34%
Max EPS beat(4)1.53%
EPS beat(8)5
Avg EPS beat(8)1.11%
EPS beat(12)9
Avg EPS beat(12)2.28%
EPS beat(16)10
Avg EPS beat(16)1.5%
Revenue beat(2)2
Avg Revenue beat(2)1.81%
Min Revenue beat(2)1.68%
Max Revenue beat(2)1.94%
Revenue beat(4)2
Avg Revenue beat(4)-0.03%
Min Revenue beat(4)-2.07%
Max Revenue beat(4)1.94%
Revenue beat(8)4
Avg Revenue beat(8)-0.9%
Revenue beat(12)6
Avg Revenue beat(12)-0.63%
Revenue beat(16)8
Avg Revenue beat(16)-0.61%
PT rev (1m)1.05%
PT rev (3m)1.05%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.76%
EPS NY rev (1m)0%
EPS NY rev (3m)1.31%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.15%
Revenue NY rev (1m)0.12%
Revenue NY rev (3m)1.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.53 | ||
| Fwd PE | 14.81 | ||
| P/S | 2.52 | ||
| P/FCF | 24.26 | ||
| P/OCF | 20.29 | ||
| P/B | 3.12 | ||
| P/tB | 8.65 | ||
| EV/EBITDA | 12.71 |
EPS(TTM)4.69
EY5.7%
EPS(NY)5.55
Fwd EY6.75%
FCF(TTM)3.39
FCFY4.12%
OCF(TTM)4.05
OCFY4.93%
SpS32.68
BVpS26.38
TBVpS9.5
PEG (NY)1.63
PEG (5Y)1.19
Graham Number52.77
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.9% | ||
| ROE | 15.72% | ||
| ROCE | 17.56% | ||
| ROIC | 14% | ||
| ROICexc | 15.98% | ||
| ROICexgc | 41.71% | ||
| OM | 16.79% | ||
| PM (TTM) | 12.69% | ||
| GM | 50.59% | ||
| FCFM | 10.37% |
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%
ROICexgc growth 3Y-0.71%
ROICexgc 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-Score6
Asset Turnover0.86
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 0.72 | ||
| Debt/EBITDA | 0.39 | ||
| Cap/Depr | 75.38% | ||
| Cap/Sales | 2.03% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 63.64% | ||
| Profit Quality | 81.71% | ||
| Current Ratio | 2.07 | ||
| Quick Ratio | 1.39 | ||
| Altman-Z | 6.86 |
F-Score6
WACC8.7%
ROIC/WACC1.61
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)8.31%
EPS 3Y14.47%
EPS 5Y14.77%
EPS Q2Q%8.04%
EPS Next Y10.77%
EPS Next 2Y9.84%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)11.2%
Revenue growth 3Y5.15%
Revenue growth 5Y6.96%
Sales Q2Q%7.48%
Revenue Next Year6.59%
Revenue Next 2Y5.2%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y6.71%
EBIT growth 3Y9.09%
EBIT growth 5Y10.54%
EBIT Next Year37.08%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-26.26%
FCF growth 3Y26.83%
FCF growth 5Y6.2%
OCF growth 1Y-21.47%
OCF growth 3Y15.24%
OCF growth 5Y5.14%
BRADY CORPORATION - CL A / BRC FAQ
What is the fundamental rating for BRC stock?
ChartMill assigns a fundamental rating of 7 / 10 to BRC.
What is the valuation status of BRADY CORPORATION - CL A (BRC) stock?
ChartMill assigns a valuation rating of 5 / 10 to BRADY CORPORATION - CL A (BRC). This can be considered as Fairly Valued.
How profitable is BRADY CORPORATION - CL A (BRC) stock?
BRADY CORPORATION - CL A (BRC) has a profitability rating of 8 / 10.
What is the financial health of BRADY CORPORATION - CL A (BRC) stock?
The financial health rating of BRADY CORPORATION - CL A (BRC) is 8 / 10.
What is the earnings growth outlook for BRADY CORPORATION - CL A?
The Earnings per Share (EPS) of BRADY CORPORATION - CL A (BRC) is expected to grow by 10.77% in the next year.