BRADY CORPORATION - CL A (BRC) Stock Fundamental Analysis
USA - NYSE:BRC - US1046741062 - Common Stock
72.5 USD
-1.3 (-1.76%)
72.5 USD
0 (0%)
BRC gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals 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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
BRC had positive earnings in the past year.
BRC had a positive operating cash flow in the past year.
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's Return On Assets of 10.87% is amongst the best of the industry. BRC outperforms 89.29% of its industry peers.
BRC has a Return On Equity of 15.81%. This is in the better half of the industry: BRC outperforms 79.76% of its industry peers.
With an excellent Return On Invested Capital value of 14.18%, BRC belongs to the best of the industry, outperforming 89.29% of the companies in the same industry.
BRC had an Average Return On Invested Capital over the past 3 years of 15.20%. This is above the industry average of 10.21%.
| 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
The Profit Margin of BRC (12.45%) is better than 88.10% of its industry peers.
In the last couple of years the Profit Margin of BRC has grown nicely.
BRC has a better Operating Margin (16.51%) than 88.10% of its industry peers.
BRC's Operating Margin has improved in the last couple of years.
BRC has a better Gross Margin (50.27%) 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
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.
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 6.39. This indicates that BRC is financially healthy and has little risk of bankruptcy at the moment.
BRC has a Altman-Z score of 6.39. This is amongst the best in the industry. BRC outperforms 88.10% of its industry peers.
The Debt to FCF ratio of BRC is 0.65, which is an excellent value as it means it would take BRC, only 0.65 years of fcf income to pay off all of its debts.
BRC's Debt to FCF ratio of 0.65 is amongst the best of the industry. BRC outperforms 86.90% of its industry peers.
BRC has a Debt/Equity ratio of 0.08. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.08, BRC is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | 0.65 | ||
| Altman-Z | 6.39 |
ROIC/WACC1.64
WACC8.64%
2.3 Liquidity
BRC has a Current Ratio of 1.88. 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 decent Current ratio value of 1.88, BRC is doing good in the industry, outperforming 65.48% of the companies in the same industry.
BRC has a Quick Ratio of 1.27. 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 1.27 is in line compared to the rest of the industry. BRC outperforms 45.24% of 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.
The Revenue has been growing slightly by 6.96% on average over the past years.
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
BRC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.09% yearly.
BRC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.48% yearly.
EPS Next Y9.34%
EPS Next 2Y9.09%
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
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 15.76, BRC is valued correctly.
Based on the Price/Earnings ratio, BRC is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.70. BRC is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 14.41 indicates a correct valuation of BRC.
Based on the Price/Forward Earnings ratio, BRC is valued a bit cheaper than 77.38% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.15. BRC is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.76 | ||
| Fwd PE | 14.41 |
4.2 Price Multiples
BRC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. BRC is cheaper than 61.90% of the companies in the same industry.
69.05% of the companies in the same industry are more expensive than BRC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.22 | ||
| EV/EBITDA | 11.5 |
4.3 Compensation for Growth
The 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)1.69
PEG (5Y)1.07
EPS Next 2Y9.09%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.25%, BRC has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.34, BRC pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.25, BRC pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.25% |
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
24.16% 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.
DP24.16%
EPS Next 2Y9.09%
EPS Next 3YN/A
72.5
-1.3 (-1.76%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners84.56%
Inst Owner Change0%
Ins Owners3.13%
Ins Owner Change0.67%
Market Cap3.41B
Analysts86.67
Price Target96.9 (33.66%)
Short Float %0.59%
Short Ratio1.39
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.25% |
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)4.42%
EPS NY rev (1m)4.73%
EPS NY rev (3m)4.73%
Revenue NQ rev (1m)0.31%
Revenue NQ rev (3m)0.95%
Revenue NY rev (1m)1.46%
Revenue NY rev (3m)1.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.76 | ||
| Fwd PE | 14.41 | ||
| P/S | 2.26 | ||
| P/FCF | 22.22 | ||
| P/OCF | 18.84 | ||
| P/B | 2.86 | ||
| P/tB | 8.33 | ||
| EV/EBITDA | 11.5 |
EPS(TTM)4.6
EY6.34%
EPS(NY)5.03
Fwd EY6.94%
FCF(TTM)3.26
FCFY4.5%
OCF(TTM)3.85
OCFY5.31%
SpS32.14
BVpS25.32
TBVpS8.7
PEG (NY)1.69
PEG (5Y)1.07
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 | 6.39 |
F-Score4
WACC8.64%
ROIC/WACC1.64
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 Y9.34%
EPS Next 2Y9.09%
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 Year37.08%
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%