BRADY CORPORATION - CL A (BRC) Stock Fundamental Analysis
USA - NYSE:BRC - US1046741062 - Common Stock
74.74 USD
-1.28 (-1.68%)
74.74 USD
0 (0%)
We assign a fundamental rating of 7 out of 10 to BRC. BRC was compared to 82 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.
In the past year BRC had a positive cash flow from operations.
BRC had positive earnings in each of the past 5 years.
BRC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 10.87%, BRC belongs to the top of the industry, outperforming 87.80% of the companies in the same industry.
BRC has a Return On Equity of 15.81%. This is in the better half of the industry: BRC outperforms 78.05% of its industry peers.
With an excellent Return On Invested Capital value of 14.18%, BRC belongs to the best of the industry, outperforming 89.02% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for BRC is above the industry average of 10.49%.
| 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
BRC's Profit Margin of 12.45% is amongst the best of the industry. BRC outperforms 87.80% of its industry peers.
In the last couple of years the Profit Margin of BRC has grown nicely.
The Operating Margin of BRC (16.51%) is better than 89.02% 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 90.24% of its industry peers.
BRC's Gross Margin has been stable in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so BRC is still 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
BRC has an Altman-Z score of 6.58. This indicates that BRC is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 6.58, BRC belongs to the best of the industry, outperforming 87.80% of the companies in the same industry.
BRC has a debt to FCF ratio of 0.65. This is a very positive value and a sign of high solvency as it would only need 0.65 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 0.65, BRC belongs to the best of the industry, outperforming 86.59% of the companies in the same industry.
BRC has a Debt/Equity ratio of 0.08. This is a healthy value indicating a solid balance between debt and equity.
BRC's Debt to Equity ratio of 0.08 is fine compared to the rest of the industry. BRC outperforms 73.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | 0.65 | ||
| Altman-Z | 6.58 |
ROIC/WACC1.63
WACC8.68%
2.3 Liquidity
A Current Ratio of 1.88 indicates that BRC should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.88, BRC is in the better half of the industry, outperforming 68.29% of the companies in the same industry.
A Quick Ratio of 1.27 indicates that BRC should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.27, BRC perfoms like the industry average, outperforming 46.34% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.88 | ||
| Quick Ratio | 1.27 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 9.26% over the past year.
The Earnings Per Share has been growing by 14.77% 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 12.84% in the last year.
Measured over the past years, BRC shows a small growth in Revenue. The Revenue has been growing by 6.96% on average per year.
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
Based on estimates for the next years, BRC will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.09% on average per year.
The Revenue is expected to grow by 4.48% on average over the next years.
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
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
A Price/Earnings ratio of 16.25 indicates a correct valuation of BRC.
Based on the Price/Earnings ratio, BRC is valued a bit cheaper than the industry average as 70.73% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of BRC to the average of the S&P500 Index (25.67), we can say BRC is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 14.86, the valuation of BRC can be described as correct.
BRC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. BRC is cheaper than 75.61% of the companies in the same industry.
BRC is valuated cheaply when we compare the Price/Forward Earnings ratio to 31.86, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.25 | ||
| Fwd PE | 14.86 |
4.2 Price Multiples
BRC's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BRC indicates a somewhat cheap valuation: BRC is cheaper than 67.07% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.91 | ||
| EV/EBITDA | 12.07 |
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)1.74
PEG (5Y)1.1
EPS Next 2Y9.09%
EPS Next 3YN/A
5. Dividend
5.1 Amount
BRC has a Yearly Dividend Yield of 1.29%. Purely for dividend investing, there may be better candidates out there.
BRC's Dividend Yield is a higher than the industry average which is at 2.60.
Compared to an average S&P500 Dividend Yield of 2.40, BRC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.29% |
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
BRC pays out 24.16% 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.
DP24.16%
EPS Next 2Y9.09%
EPS Next 3YN/A
74.74
-1.28 (-1.68%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners84.56%
Inst Owner Change-0.22%
Ins Owners3.13%
Ins Owner Change4.85%
Market Cap3.52B
Revenue(TTM)1.51B
Net Income(TTM)188.51M
Analysts86.67
Price Target96.9 (29.65%)
Short Float %0.59%
Short Ratio1.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.29% |
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)0%
PT rev (3m)9.2%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.42%
EPS NY rev (1m)0%
EPS NY rev (3m)4.73%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.95%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.25 | ||
| Fwd PE | 14.86 | ||
| P/S | 2.33 | ||
| P/FCF | 22.91 | ||
| P/OCF | 19.42 | ||
| P/B | 2.95 | ||
| P/tB | 8.59 | ||
| EV/EBITDA | 12.07 |
EPS(TTM)4.6
EY6.15%
EPS(NY)5.03
Fwd EY6.73%
FCF(TTM)3.26
FCFY4.36%
OCF(TTM)3.85
OCFY5.15%
SpS32.14
BVpS25.32
TBVpS8.7
PEG (NY)1.74
PEG (5Y)1.1
Graham Number51.19
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%
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-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 | 6.58 |
F-Score4
WACC8.68%
ROIC/WACC1.63
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%
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 for 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.
Can you provide the PE and PB ratios for BRC stock?
The Price/Earnings (PE) ratio for BRADY CORPORATION - CL A (BRC) is 16.25 and the Price/Book (PB) ratio is 2.95.
What is the expected EPS growth for BRADY CORPORATION - CL A (BRC) stock?
The Earnings per Share (EPS) of BRADY CORPORATION - CL A (BRC) is expected to grow by 9.34% in the next year.