Brady (BRC) AI Stock Analysis

• Market Cap: $3.23B
• Dividend Yield: 1.41%
• Average Volume (3M): 273.36K
• Price to Earnings (P/E): 16.8
• Beta (1Y): 0.50
• Revenue Growth: 6.20%
• EPS Growth: 5.12%
• Country: US
• Employees: 5,700
• Sector: Industrials
• Sector Strength: 66
• Industry: Security & Protection Services
• EPS (TTM): 4.01
• Shares Outstanding: 44,241,600
• 10 Day Avg. Volume: 236,369
• 30 Day Avg. Volume: 273,359
• PEG Ratio: 3.29
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.37
• Price to Cash Flow (P/CF): 21.30
• P/FCF Ratio: 25.20
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $84.00
• Price Target Upside: 24.39% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

Brady Corporation's overall stock score is driven by its robust financial performance and strategic investments highlighted in the earnings call. While the valuation is fair and provides some investor appeal, technical indicators suggest caution due to weak momentum. The company faces challenges in certain geographic markets, but a strong performance in other regions and a positive guidance outlook support an optimistic view.

Brady Business Overview & Revenue Model

Company Description

Brady Corporation manufactures and supplies identification solutions (IDS) and workplace safety (WPS) products to identify and protect premises, products, and people in the United States and internationally. The IDS segment offers safety signs, floor-marking tapes, pipe markers, labeling systems, spill control products, and lockout/tagout devices for facility identification and protection; materials, printing systems, RFID and bar code scanners for product identification, brand protection labeling, work in process labeling, and finished product identification; and hand-held printers, wire markers, sleeves, and tags for wire identification, as well as software and services for safety compliance auditing, procedure writing, and training. Its products also comprise name tags, badges, lanyards, rigid card printing systems, and access control software for people identification; wristbands and labels for tracking and enhancing the safety of patients; and custom wristbands. This segment serves customers in various industries, such as industrial and electronic manufacturing, healthcare, chemical, oil, gas, automotive, aerospace, governments, mass transit, electrical contractors, education, leisure and entertainment, telecommunications, and others through distributors, direct sales, catalog marketing, and digital channels. The WPS segment provides workplace safety and compliance products, such as safety and compliance signs, tags, labels, and markings; informational signage and markings; asset tracking labels; first aid products; facility safety and personal protection equipment; and labor law and other compliance posters for various industries, including process, government, education, construction, and utilities, as well as manufacturers through catalog and digital channels. It also offers stock and custom identification products, as well as sells related resale products. Brady Corporation was incorporated in 1914 and is headquartered in Milwaukee, Wisconsin.

How the Company Makes Money

Brady Corporation generates revenue through the sale of its wide array of identification and safety products across multiple industries. Key revenue streams include the sale of consumable products like labels and signs that are frequently reordered by customers, and capital equipment like printing systems and software which often require ongoing service and support. Additionally, Brady's focus on innovation and customization allows the company to charge premium prices for tailored solutions that meet specific customer needs. Significant partnerships with distributors and direct relationships with end-users also play a crucial role in expanding its market reach and driving sales. The company’s revenue is further bolstered by its global presence, enabling it to capitalize on diverse market demands.

Brady Financial Statement Overview

Summary

Brady's financial performance is strong, with notable revenue growth and robust profitability metrics. The company's balance sheet is stable, characterized by low financial leverage and a high equity ratio. Cash flow management is efficient, with healthy operating and free cash flow ratios. Overall, Brady is financially well-positioned within its industry.

Income Statement

Brady has shown strong revenue growth with a TTM revenue of $1.42 billion, reflecting a growth rate of 5.91% from the previous annual period. The company maintains robust profitability metrics with a gross profit margin of 50.62% and a net profit margin of 13.62% in the TTM. The EBIT margin is solid at 16.88%, and the EBITDA margin stands at 19.05%, indicating efficient operational management. Overall, the income statement suggests a healthy and growing financial performance.

Balance Sheet

The balance sheet displays a strong equity position with a debt-to-equity ratio of 0.12, indicating low financial leverage. The return on equity is a healthy 17.26% in the TTM, showcasing effective management of shareholder capital. The equity ratio is high at 71.65%, revealing a conservative capital structure with substantial equity backing. While the balance sheet is stable, continued monitoring of debt levels is advisable to maintain financial flexibility.

Cash Flow

Brady's cash flow analysis highlights a strong operating cash flow to net income ratio of 1.14, indicating efficient cash generation from operations. The free cash flow to net income ratio is 0.96, reflecting healthy cash flow management. The free cash flow growth rate is 6.31% from the previous annual period, demonstrating positive cash flow dynamics. Overall, the cash flow statement suggests robust liquidity and effective cash management strategies.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
1.42B	1.34B	1.33B	1.30B	1.14B	1.08B
	Gross Profit
718.93M	687.88M	657.27M	631.55M	561.45M	528.57M
	EBIT
239.74M	243.41M	225.21M	193.01M	167.13M	138.02M
	EBITDA
270.61M	280.84M	261.61M	227.44M	196.94M	166.54M
	Net Income Common Stockholders
193.46M	197.22M	174.86M	149.98M	129.66M	112.37M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
326.10M	250.12M	151.53M	114.07M	147.34M	217.64M
	Total Assets
1.81B	1.52B	1.39B	1.37B	1.38B	1.14B
	Total Debt
450.92M	129.66M	80.66M	129.15M	84.01M	47.29M
	Net Debt
124.82M	-120.46M	-70.87M	15.08M	-63.32M	-170.36M
	Total Liabilities
748.03M	448.91M	398.34M	456.03M	414.73M	279.39M
	Stockholders Equity
1.06B	1.07B	990.92M	911.30M	963.03M	863.07M
Cash Flow		Free Cash Flow
186.24M	175.18M	189.92M	75.31M	178.48M	113.70M
	Operating Cash Flow
219.72M	255.07M	209.15M	118.45M	205.66M	140.98M
	Investing Cash Flow
-171.93M	-81.05M	-11.21M	-43.07M	-268.59M	-36.12M
	Financing Cash Flow
-49.91M	-70.53M	-163.57M	-102.09M	-12.32M	-163.52M

Brady Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 67.53
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BRC, the sentiment is Negative. The current price of 67.53 is below the 20-day moving average (MA) of 68.77, below the 50-day MA of 70.56, and below the 200-day MA of 71.94, indicating a bearish trend. The MACD of -1.06 indicates Positive momentum. The RSI at 45.23 is Neutral, neither overbought nor oversold. The STOCH value of 65.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BRC.

Brady Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ADT	78 Outperform	$6.67B	15.13	14.41%	2.79%	-13.19%	10.03%
MSA	76 Outperform	$5.66B	19.99	27.01%	1.42%	1.15%	388.76%
BRC	74 Outperform	$3.23B	16.84	17.92%	1.41%	6.20%	5.12%
NSSC	74 Outperform	$789.55M	16.63	29.13%	1.61%	5.14%	12.03%
REZI	70 Outperform	$2.33B	22.33	3.83%	―	8.31%	-49.90%
ARLO	68 Neutral	$943.45M	―	-29.88%	―	4.01%	-27.92%
Sector *	63 Neutral	$4.29B	11.05	5.73%	232.30%	4.75%	-5.69%

Brady Corporate Events

Brady Appoints Anne De Greef-Safft to Board

On February 25, 2025, Brady Corporation announced the election of Anne De Greef-Safft to its Board of Directors, effective immediately. Ms. De Greef-Safft, with extensive experience in strategic and operational consulting, and leadership roles in global industrial companies, is expected to bring valuable insights to Brady’s leadership team. Her appointment underscores Brady’s commitment to enhancing its board with high-quality, experienced leaders. The announcement highlights the company’s focus on driving global growth through innovation and maintaining long-term shareholder value.

Brady Reports Strong Q2 2025 Sales Growth

On February 21, 2025, Brady Corporation reported its fiscal 2025 second quarter results, showing a 10.6% increase in sales compared to the previous year, attributed to organic growth and acquisitions, despite a foreign currency translation decline. While net income decreased, adjusted net income and adjusted EPS showed improvement, reflecting the company’s strategic focus on operational efficiency and innovation. Brady raised the low end of its adjusted diluted EPS guidance for the fiscal year, highlighting confidence in its financial outlook. The announcement underscores Brady’s commitment to leveraging research and development for product innovation and maintaining a strong financial position to support growth opportunities and shareholder returns.