BRADY CORPORATION - CL A (BRC) Stock Fundamental Analysis
NYSE:BRC - New York Stock Exchange, Inc. - US1046741062 - Common Stock - Currency: USD
BRC gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 83 industry peers in the Commercial Services & Supplies industry. Both the health and profitability get an excellent rating, making BRC a very profitable company, without any liquidiy or solvency issues. BRC is not valued too expensively and it also shows a decent growth rate. These ratings would make BRC suitable for quality investing!
1. Profitability
1.1 Basic Checks
BRC had positive earnings in the past year.
In the past year BRC had a positive cash flow from operations.
BRC had positive earnings in each of the past 5 years.
In the past 5 years BRC always reported a positive cash flow from operatings.
1.2 Ratios
BRC's Return On Assets of 11.43% is amongst the best of the industry. BRC outperforms 84.34% of its industry peers.
BRC's Return On Equity of 16.62% is fine compared to the rest of the industry. BRC outperforms 77.11% of its industry peers.
BRC has a better Return On Invested Capital (14.15%) than 85.54% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BRC is above the industry average of 10.89%.
| 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
Looking at the Profit Margin, with a value of 13.30%, BRC belongs to the top of the industry, outperforming 86.75% 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 17.11%, BRC belongs to the top of the industry, outperforming 85.54% 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 50.53%, BRC belongs to the best of the industry, outperforming 87.95% 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 | 17.11% | ||
| 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
BRC has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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
Compared to 1 year ago, BRC has a worse debt to assets ratio.
2.2 Solvency
BRC has an Altman-Z score of 6.27. This indicates that BRC is financially healthy and has little risk of bankruptcy at the moment.
BRC has a better Altman-Z score (6.27) than 90.36% of its industry peers.
The Debt to FCF ratio of BRC is 0.58, which is an excellent value as it means it would take BRC, only 0.58 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.58, BRC belongs to the top of the industry, outperforming 89.16% of the companies in the same industry.
BRC has a Debt/Equity ratio of 0.09. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.09, BRC is in the better half of 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 | 6.27 |
ROIC/WACC1.57
WACC9.03%
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.
Looking at the Current ratio, with a value of 1.87, BRC is in the better half of the industry, outperforming 66.27% of the companies in the same industry.
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 45.78% 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.
Measured over the past years, BRC shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.34% on average per year.
BRC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.62%.
The Revenue has been growing slightly by 2.94% on average over the past years.
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
Based on estimates for the next years, BRC will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.96% on average per year.
The Revenue is expected to grow by 7.80% on average over the next years.
EPS Next Y9.88%
EPS Next 2Y9.96%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year11.67%
Revenue Next 2Y7.8%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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
Based on the Price/Earnings ratio of 15.18, the valuation of BRC can be described as correct.
Based on the Price/Earnings ratio, BRC is valued a bit cheaper than 73.49% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 25.82. BRC is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 13.51, BRC is valued correctly.
75.90% of the companies in the same industry are more expensive than BRC, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of BRC to the average of the S&P500 Index (21.76), we can say BRC is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.18 | ||
| Fwd PE | 13.51 |
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.
BRC's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. BRC is cheaper than 69.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.34 | ||
| EV/EBITDA | 11.15 |
4.3 Compensation for Growth
The 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)1.54
PEG (5Y)1.34
EPS Next 2Y9.96%
EPS Next 3YN/A
5. Dividend
5.1 Amount
BRC has a Yearly Dividend Yield of 1.37%.
BRC's Dividend Yield is a higher than the industry average which is at 2.55.
With a Dividend Yield of 1.37, BRC pays less dividend than the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.37% |
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.
BRC has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)1.94%
Div Incr Years24
Div Non Decr Years24
5.3 Sustainability
23.39% 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.
DP23.39%
EPS Next 2Y9.96%
EPS Next 3YN/A
68.76
-1.07 (-1.53%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners84.86%
Inst Owner Change2.98%
Ins Owners3.12%
Ins Owner Change-0.45%
Market Cap3.25B
Analysts86.67
Price Target88.74 (29.06%)
Short Float %1.23%
Short Ratio2.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.37% |
Yearly Dividend0.94
Dividend Growth(5Y)1.94%
DP23.39%
Div Incr Years24
Div Non Decr Years24
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)-1.2%
EPS NQ rev (3m)-1.2%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.29%
Revenue NQ rev (1m)-0.52%
Revenue NQ rev (3m)-0.97%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.18 | ||
| Fwd PE | 13.51 | ||
| P/S | 2.23 | ||
| P/FCF | 18.34 | ||
| P/OCF | 15.73 | ||
| P/B | 2.79 | ||
| P/tB | 8.72 | ||
| EV/EBITDA | 11.15 |
EPS(TTM)4.53
EY6.59%
EPS(NY)5.09
Fwd EY7.4%
FCF(TTM)3.75
FCFY5.45%
OCF(TTM)4.37
OCFY6.36%
SpS30.85
BVpS24.67
TBVpS7.89
PEG (NY)1.54
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 | 6.27 |
F-Score4
WACC9.03%
ROIC/WACC1.57
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 Y9.88%
EPS Next 2Y9.96%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)8.62%
Revenue growth 3Y5.43%
Revenue growth 5Y2.94%
Sales Q2Q%11.42%
Revenue Next Year11.67%
Revenue Next 2Y7.8%
Revenue Next 3YN/A
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%