BRADY CORPORATION - CL A (BRC)
US1046741062 - Common Stock
Taking everything into account, BRC scores 8 out of 10 in our fundamental rating. BRC was compared to 84 industry peers in the Commercial Services & Supplies industry. BRC gets an excellent profitability rating and is at the same time showing great financial health properties. BRC is not valued too expensively and it also shows a decent growth rate. Finally BRC also has an excellent dividend rating. These ratings could make BRC a good candidate for dividend and quality investing.
1. Profitability
1.1 Basic Checks
In the past year BRC was profitable.
BRC had a positive operating cash flow in the past year.
Each year in the past 5 years BRC has been profitable.
BRC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of BRC (13.33%) is better than 93.98% of its industry peers.
BRC has a better Return On Equity (18.06%) than 86.75% of its industry peers.
With an excellent Return On Invested Capital value of 15.87%, BRC belongs to the best of the industry, outperforming 90.36% of the companies in the same industry.
BRC had an Average Return On Invested Capital over the past 3 years of 13.61%. This is above the industry average of 10.10%.
The last Return On Invested Capital (15.87%) for BRC is above the 3 year average (13.61%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.33% | ||
| ROE | 18.06% | ||
| ROIC | 15.87% |
ROA(3y)10.93%
ROA(5y)10.76%
ROE(3y)15.77%
ROE(5y)15.11%
ROIC(3y)13.61%
ROIC(5y)13.39%
1.3 Margins
With an excellent Profit Margin value of 14.03%, BRC belongs to the best of the industry, outperforming 95.18% of the companies in the same industry.
BRC's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 17.84%, BRC belongs to the top of the industry, outperforming 87.95% of the companies in the same industry.
BRC's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 50.79%, BRC belongs to the best of the industry, outperforming 92.77% of the companies in the same industry.
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 | 17.84% | ||
| PM (TTM) | 14.03% | ||
| GM | 50.79% |
OM growth 3Y6.4%
OM growth 5Y5.38%
PM growth 3Y8.23%
PM growth 5Y11.21%
GM growth 3Y0.32%
GM growth 5Y-0.31%
2. Health
2.1 Basic Checks
BRC has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is 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.
The debt/assets ratio for BRC has been reduced compared to a year ago.
2.2 Solvency
BRC has an Altman-Z score of 7.46. This indicates that BRC is financially healthy and has little risk of bankruptcy at the moment.
BRC has a better Altman-Z score (7.46) than 92.77% of its industry peers.
The Debt to FCF ratio of BRC is 0.27, which is an excellent value as it means it would take BRC, only 0.27 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of BRC (0.27) is better than 89.16% of its industry peers.
BRC has a Debt/Equity ratio of 0.05. This is a healthy value indicating a solid balance between debt and equity.
With an excellent Debt to Equity ratio value of 0.05, BRC belongs to the best of the industry, outperforming 83.13% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | 0.27 | ||
| Altman-Z | 7.46 |
ROIC/WACC1.74
WACC9.12%
2.3 Liquidity
BRC has a Current Ratio of 2.13. This indicates that BRC is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 2.13, BRC is doing good in the industry, outperforming 73.49% of the companies in the same industry.
BRC has a Quick Ratio of 1.44. This is a normal value and indicates that BRC is financially healthy and should not expect problems in meeting its short term obligations.
BRC has a Quick ratio of 1.44. This is in the better half of the industry: BRC outperforms 60.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.13 | ||
| Quick Ratio | 1.44 |
3. Growth
3.1 Past
BRC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 18.91%, which is quite good.
The Earnings Per Share has been growing by 12.39% on average over the past years. This is quite good.
BRC shows a small growth in Revenue. In the last year, the Revenue has grown by 2.00%.
The Revenue has been growing slightly by 2.56% on average over the past years.
EPS 1Y (TTM)18.91%
EPS 3Y16.37%
EPS 5Y12.39%
EPS growth Q2Q14.81%
Revenue 1Y (TTM)2%
Revenue growth 3Y7.2%
Revenue growth 5Y2.56%
Revenue growth Q2Q-1.1%
3.2 Future
The Earnings Per Share is expected to grow by 10.18% on average over the next years. This is quite good.
The Revenue is expected to grow by 3.14% on average over the next years.
EPS Next Y12.1%
EPS Next 2Y10.18%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year2.48%
Revenue Next 2Y3.14%
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 stable.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
BRC is valuated correctly with a Price/Earnings ratio of 15.08.
BRC's Price/Earnings ratio is rather cheap when compared to the industry. BRC is cheaper than 81.93% of the companies in the same industry.
BRC's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.55.
Based on the Price/Forward Earnings ratio of 13.38, the valuation of BRC can be described as correct.
Based on the Price/Forward Earnings ratio, BRC is valued cheaper than 80.72% 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 20.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.08 | ||
| Fwd PE | 13.38 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BRC is valued a bit cheaper than the industry average as 62.65% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BRC indicates a somewhat cheap valuation: BRC is cheaper than 72.29% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.04 | ||
| EV/EBITDA | 10.25 |
4.3 Compensation for Growth
BRC's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of BRC may justify a higher PE ratio.
PEG (NY)1.25
PEG (5Y)1.22
EPS Next 2Y10.18%
EPS Next 3YN/A
5. Dividend
5.1 Amount
BRC has a Yearly Dividend Yield of 1.57%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.38, BRC pays a better dividend. On top of this BRC pays more dividend than 80.72% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.39, BRC is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.57% |
5.2 History
The dividend of BRC has a limited annual growth rate of 2.13%.
BRC has paid a dividend for at least 10 years, which is a reliable track record.
BRC has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)2.13%
Div Incr Years18
Div Non Decr Years18
5.3 Sustainability
24.14% of the earnings are spent on dividend by BRC. This is a low number and sustainable payout ratio.
BRC's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP24.14%
EPS Next 2Y10.18%
EPS Next 3YN/A
BRADY CORPORATION - CL A
NYSE:BRC (5/2/2024, 4:05:01 PM)
After market: 59.13 0 (0%)59.13
+0.1 (+0.17%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap2.86B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.57% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.08 | ||
| Fwd PE | 13.38 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.25
PEG (5Y)1.22
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.33% | ||
| ROE | 18.06% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 17.84% | ||
| PM (TTM) | 14.03% | ||
| GM | 50.79% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.95
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.13 | ||
| Quick Ratio | 1.44 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)18.91%
EPS 3Y16.37%
EPS 5Y
EPS growth Q2Q
EPS Next Y12.1%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)2%
Revenue growth 3Y7.2%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y