BRADY CORPORATION - CL A (BRC) Stock Fundamental Analysis
NYSE:BRC - New York Stock Exchange, Inc. - US1046741062 - Common Stock - Currency: USD
Taking everything into account, BRC scores 7 out of 10 in our fundamental rating. BRC was compared to 83 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. These ratings could make BRC a good candidate for quality investing.
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 Return On Assets of 11.43%. This is amongst the best in the industry. BRC outperforms 85.54% of its industry peers.
BRC has a better Return On Equity (16.62%) than 78.31% of its industry peers.
The Return On Invested Capital of BRC (14.15%) is better than 84.34% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BRC is above the industry average of 11.67%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.43% | ||
| ROE | 16.62% | ||
| ROIC | 14.15% |
ROA(3y)12.14%
ROA(5y)11.1%
ROE(3y)17.45%
ROE(5y)15.73%
ROIC(3y)14.85%
ROIC(5y)13.79%
1.3 Margins
BRC has a better Profit Margin (13.30%) than 86.75% of its industry peers.
BRC's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 17.11%, BRC belongs to the top of the industry, outperforming 84.34% of the companies in the same industry.
BRC's Operating Margin has improved in the last couple of years.
BRC has a Gross Margin of 50.53%. This is amongst the best in the industry. BRC outperforms 89.16% of its industry peers.
BRC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.11% | ||
| PM (TTM) | 13.3% | ||
| GM | 50.53% |
OM growth 3Y6.85%
OM growth 5Y5.34%
PM growth 3Y9.19%
PM growth 5Y5.44%
GM growth 3Y1.5%
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.
The number of shares outstanding for BRC has been reduced compared to 1 year ago.
Compared to 5 years ago, BRC has less shares outstanding
The debt/assets ratio for BRC is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 6.28 indicates that BRC is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.28, BRC belongs to the top of the industry, outperforming 85.54% of the companies in the same industry.
BRC has a debt to FCF ratio of 0.58. This is a very positive value and a sign of high solvency as it would only need 0.58 years to pay back of all of its debts.
BRC's Debt to FCF ratio of 0.58 is amongst the best of the industry. BRC outperforms 87.95% of its industry peers.
A Debt/Equity ratio of 0.09 indicates that BRC is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.09, BRC is doing good in the industry, outperforming 75.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 0.58 | ||
| Altman-Z | 6.28 |
ROIC/WACC1.58
WACC8.96%
2.3 Liquidity
BRC has a Current Ratio of 1.87. 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 better Current ratio (1.87) than 63.86% of its industry peers.
BRC has a Quick Ratio of 1.26. This is a normal value and indicates that BRC is financially healthy and should not expect problems in meeting its short term obligations.
BRC's Quick ratio of 1.26 is in line compared to the rest of the industry. BRC outperforms 44.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.87 | ||
| Quick Ratio | 1.26 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.58% over the past year.
The Earnings Per Share has been growing by 11.34% on average over the past years. This is quite good.
Looking at the last year, BRC shows a quite strong growth in Revenue. The Revenue has grown by 8.62% in the last year.
Measured over the past years, BRC shows a small growth in Revenue. The Revenue has been growing by 2.94% on average per year.
EPS 1Y (TTM)11.58%
EPS 3Y16.83%
EPS 5Y11.34%
EPS Q2Q%11.93%
Revenue 1Y (TTM)8.62%
Revenue growth 3Y5.43%
Revenue growth 5Y2.94%
Sales Q2Q%11.42%
3.2 Future
BRC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.55% yearly.
The Revenue is expected to grow by 6.27% on average over the next years.
EPS Next Y9.64%
EPS Next 2Y6.81%
EPS Next 3Y7.55%
EPS Next 5YN/A
Revenue Next Year11.23%
Revenue Next 2Y7.43%
Revenue Next 3Y6.27%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
The Price/Earnings ratio is 15.24, which indicates a correct valuation of BRC.
BRC's Price/Earnings ratio is a bit cheaper when compared to the industry. BRC is cheaper than 75.90% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.50. BRC is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 14.37, which indicates a correct valuation of BRC.
BRC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. BRC is cheaper than 75.90% of the companies in the same industry.
BRC is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.24 | ||
| Fwd PE | 14.37 |
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 63.86% of the companies listed in the same industry.
BRC's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. BRC is cheaper than 71.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.41 | ||
| EV/EBITDA | 11.19 |
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)1.58
PEG (5Y)1.34
EPS Next 2Y6.81%
EPS Next 3Y7.55%
5. Dividend
5.1 Amount
BRC has a Yearly Dividend Yield of 1.39%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.38, BRC pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.39, BRC pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.39% |
5.2 History
The dividend of BRC has a limited annual growth rate of 1.94%.
BRC has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)1.94%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
BRC pays out 23.39% 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.
DP23.39%
EPS Next 2Y6.81%
EPS Next 3Y7.55%
69.02
-0.24 (-0.35%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners84.55%
Inst Owner Change-0.57%
Ins Owners3.14%
Ins Owner Change-0.47%
Market Cap3.27B
Analysts86.67
Price Target88.74 (28.57%)
Short Float %0.74%
Short Ratio1.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.39% |
Yearly Dividend0.94
Dividend Growth(5Y)1.94%
DP23.39%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-2.46%
Min EPS beat(2)-4.34%
Max EPS beat(2)-0.58%
EPS beat(4)2
Avg EPS beat(4)0.59%
Min EPS beat(4)-4.34%
Max EPS beat(4)6.47%
EPS beat(8)5
Avg EPS beat(8)2.75%
EPS beat(12)8
Avg EPS beat(12)2.17%
EPS beat(16)8
Avg EPS beat(16)1.05%
Revenue beat(2)0
Avg Revenue beat(2)-1.87%
Min Revenue beat(2)-2.07%
Max Revenue beat(2)-1.66%
Revenue beat(4)1
Avg Revenue beat(4)-1.25%
Min Revenue beat(4)-3.31%
Max Revenue beat(4)2.04%
Revenue beat(8)3
Avg Revenue beat(8)-1.44%
Revenue beat(12)4
Avg Revenue beat(12)-1.39%
Revenue beat(16)8
Avg Revenue beat(16)-0.69%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.2%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.22%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.52%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.24 | ||
| Fwd PE | 14.37 | ||
| P/S | 2.24 | ||
| P/FCF | 18.41 | ||
| P/OCF | 15.79 | ||
| P/B | 2.8 | ||
| P/tB | 8.75 | ||
| EV/EBITDA | 11.19 |
EPS(TTM)4.53
EY6.56%
EPS(NY)4.8
Fwd EY6.96%
FCF(TTM)3.75
FCFY5.43%
OCF(TTM)4.37
OCFY6.33%
SpS30.85
BVpS24.67
TBVpS7.89
PEG (NY)1.58
PEG (5Y)1.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.43% | ||
| ROE | 16.62% | ||
| ROCE | 18.02% | ||
| ROIC | 14.15% | ||
| ROICexc | 15.89% | ||
| ROICexgc | 44.58% | ||
| OM | 17.11% | ||
| PM (TTM) | 13.3% | ||
| GM | 50.53% | ||
| FCFM | 12.16% |
ROA(3y)12.14%
ROA(5y)11.1%
ROE(3y)17.45%
ROE(5y)15.73%
ROIC(3y)14.85%
ROIC(5y)13.79%
ROICexc(3y)17.45%
ROICexc(5y)16.44%
ROICexgc(3y)50.85%
ROICexgc(5y)48.48%
ROCE(3y)18.91%
ROCE(5y)17.56%
ROICexcg growth 3Y1.96%
ROICexcg growth 5Y-4.62%
ROICexc growth 3Y11.59%
ROICexc growth 5Y-0.96%
OM growth 3Y6.85%
OM growth 5Y5.34%
PM growth 3Y9.19%
PM growth 5Y5.44%
GM growth 3Y1.5%
GM growth 5Y0.56%
F-Score4
Asset Turnover0.86
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 0.58 | ||
| Debt/EBITDA | 0.36 | ||
| Cap/Depr | 77.94% | ||
| Cap/Sales | 2.02% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 71.95% | ||
| Profit Quality | 91.42% | ||
| Current Ratio | 1.87 | ||
| Quick Ratio | 1.26 | ||
| Altman-Z | 6.28 |
F-Score4
WACC8.96%
ROIC/WACC1.58
Cap/Depr(3y)150.91%
Cap/Depr(5y)135.21%
Cap/Sales(3y)3.57%
Cap/Sales(5y)3.12%
Profit Quality(3y)82.9%
Profit Quality(5y)97.85%
High Growth Momentum
Growth
EPS 1Y (TTM)11.58%
EPS 3Y16.83%
EPS 5Y11.34%
EPS Q2Q%11.93%
EPS Next Y9.64%
EPS Next 2Y6.81%
EPS Next 3Y7.55%
EPS Next 5YN/A
Revenue 1Y (TTM)8.62%
Revenue growth 3Y5.43%
Revenue growth 5Y2.94%
Sales Q2Q%11.42%
Revenue Next Year11.23%
Revenue Next 2Y7.43%
Revenue Next 3Y6.27%
Revenue Next 5YN/A
EBIT growth 1Y4.43%
EBIT growth 3Y12.64%
EBIT growth 5Y8.43%
EBIT Next Year20.36%
EBIT Next 3Y14.11%
EBIT Next 5YN/A
FCF growth 1Y18.92%
FCF growth 3Y-0.62%
FCF growth 5Y6.25%
OCF growth 1Y12.97%
OCF growth 3Y7.43%
OCF growth 5Y9.48%