Brady Corporation (BRC)
NYSE:BRC
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Brady
(NYSE:BRC)
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Rating:71Outperform
Price Target:
$92.00
▼(-3.68% Downside)
Action:ReiteratedDate:03/20/26
The score is driven primarily by strong financial quality (high margins, conservative leverage, solid ROE and positive free cash flow) and a supportive earnings update (raised guidance, strong cash generation). These strengths are partially offset by weak technical momentum (bearish MACD, RSI near 31, price below short-term moving averages) and a valuation that looks reasonable rather than clearly cheap (P/E ~21, ~1.17% yield).
Positive Factors
High margins & consistent profitability
Sustained high gross and operating margins indicate durable pricing power and efficient cost structure across product lines. Persistent mid- to high-teens EBIT margins and double-digit ROE support reinvestment, dividend increases and strategic initiatives without needing structural margin recovery.
Negative Factors
Regional concentration risk (Asia dependency)
Heavy reliance on Asia for meaningful organic growth increases exposure to single-region cycles, policy shifts, or supply-chain disruptions. If Asian markets slow, company-wide top-line momentum and ability to offset weakness in Americas/Europe could deteriorate, raising growth volatility.
Read all positive and negative factors
Positive Factors
Negative Factors
High margins & consistent profitability
Sustained high gross and operating margins indicate durable pricing power and efficient cost structure across product lines. Persistent mid- to high-teens EBIT margins and double-digit ROE support reinvestment, dividend increases and strategic initiatives without needing structural margin recovery.
Read all positive factors
Brady (BRC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.94B
Dividend Yield1.23%
Average Volume (3M)212.71K
Price to Earnings (P/E)21.3
Beta (1Y)0.54
Revenue Growth11.20%
EPS Growth0.71%
CountryUS
Employees5,700
SectorIndustrials
Sector Strength72
IndustrySecurity & Protection Services
Share Statistics
EPS (TTM)1.09
Shares Outstanding43,689,410
10 Day Avg. Volume180,091
30 Day Avg. Volume212,712
Financial Highlights & Ratios
PEG Ratio-6.04
Price to Book (P/B)2.82
Price to Sales (P/S)2.22
P/FCF Ratio21.89
Enterprise Value/Market Cap0.99
Enterprise Value/Revenue2.49
Enterprise Value/Gross Profit4.89
Enterprise Value/Ebitda12.86
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)5.05
Revenue Forecast (FY)$1.61B
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, fl...
How the Company Makes Money
Brady makes money primarily by selling identification and safety products and solutions to businesses and institutions, with revenue generated from both (1) hardware/equipment and (2) ongoing consumables and related solutions.
Key revenue streams...
Brady Key Performance Indicators (KPIs)
Any
Net Sales By Geography
Shows sales performance in various regions, indicating where the company excels and where it might encounter challenges or opportunities for expansion.
Shows sales performance in various regions, indicating where the company excels and where it might encounter challenges or opportunities for expansion.
Data provided by:
The Fly
The FlyBrady Earnings Call Summary
Earnings Call Date:Feb 19, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:May 21, 2026
Earnings Call Sentiment Positive
The call presented multiple strong financial highlights: consistent organic growth milestone (20 consecutive quarters), margin expansion, double-digit improvements in GAAP pretax and net income, robust cash generation, net cash position, increased R&D investment with new CTO hire, and an upward adjustment to the bottom end of EPS guidance. Regional performance was mixed — Asia (particularly India) and engineered product lines drove growth and profitability, while Americas showed soft organic momentum and Europe & Australia faced manufacturing-driven weakness. Management emphasized long-term R&D-driven strategy, disciplined capital allocation, and modest risks from tariffs, currency, inflation, and certain end-market softness. Overall, operational and financial momentum, healthy cash generation, and improved guidance outweighed the regional and macro headwinds.Positive Updates
20th Consecutive Quarter of Organic Sales Growth
Organic sales increased 1.6% this quarter, marking Brady's 20th straight quarter of organic sales growth (five years of consecutive quarterly growth).
Negative Updates
Soft Organic Growth in Americas
Americas region organic growth was weak at 1.4% (management noted November softness and manufacturing headwinds). Company ties growth to U.S. manufacturing capacity utilization (~77–78%), below stimulative ~80% level.
Read all updates
Q2-2026 Updates
Positive
Negative
20th Consecutive Quarter of Organic Sales Growth
Organic sales increased 1.6% this quarter, marking Brady's 20th straight quarter of organic sales growth (five years of consecutive quarterly growth).
Read all positive updates
Company Guidance
Management raised the bottom end of fiscal 2026 guidance, increasing adjusted diluted EPS to $4.95–$5.15 (from $4.90–$5.15) and GAAP EPS to $4.62–$4.82 (from $4.57–$4.82), which implies adjusted EPS growth of about 7.6%–12% versus 2025; they expect organic sales growth in the low single-digit range for the year ending July 31, 2026, depreciation & amortization of approximately $44 million, capital expenditures of about $45 million, and a full-year tax rate of ~21%, with R&D targeted around 5.5% of sales in H2 (slightly below 6% for the full year). Management also highlighted capital allocation capacity (net cash of $97.8M as of Jan. 31 and 121,000 shares repurchased YTD for $9M at an average $74.23) and noted risks to guidance including a stronger U.S. dollar, inflationary pressure, and an economic slowdown.Brady Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
86
Very Positive
Cash Flow
74
Positive
| Breakdown | TTM | Jul 2025 | Jul 2024 | Jul 2023 | Jul 2022 | Jul 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.57B | 1.51B | 1.34B | 1.33B | 1.30B | 1.14B |
| Gross Profit | 798.52M | 760.82M | 687.88M | 657.27M | 631.55M | 561.45M |
| EBITDA | 303.57M | 282.48M | 280.84M | 261.61M | 227.44M | 196.94M |
| Net Income | 204.13M | 189.26M | 197.22M | 174.86M | 149.98M | 129.66M |
Balance Sheet | ||||||
| Total Assets | 1.83B | 1.73B | 1.52B | 1.39B | 1.37B | 1.38B |
| Cash, Cash Equivalents and Short-Term Investments | 176.49M | 174.35M | 250.12M | 151.53M | 114.07M | 147.34M |
| Total Debt | 144.90M | 158.56M | 129.66M | 80.66M | 129.15M | 84.01M |
| Total Liabilities | 512.18M | 542.04M | 448.91M | 398.34M | 456.03M | 414.73M |
| Stockholders Equity | 1.31B | 1.19B | 1.07B | 990.92M | 911.30M | 963.03M |
Cash Flow | ||||||
| Free Cash Flow | 169.76M | 153.62M | 175.18M | 189.92M | 75.31M | 178.48M |
| Operating Cash Flow | 204.87M | 181.20M | 255.07M | 209.15M | 118.45M | 205.66M |
| Investing Cash Flow | -60.86M | -171.25M | -81.05M | -11.21M | -43.07M | -268.59M |
| Financing Cash Flow | -109.43M | -83.87M | -70.53M | -163.57M | -102.09M | -12.32M |
Brady Technical Analysis
Positive
95.51
Price Trends
87.73
Negative
83.78
Negative
78.76
Positive
Market Momentum
-1.82
Negative
47.63
Neutral
41.18
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BRC, the sentiment is Positive. The current price of 95.51 is above the 20-day moving average (MA) of 82.94, above the 50-day MA of 87.73, and above the 200-day MA of 78.76, indicating a neutral trend. The MACD of -1.82 indicates Negative momentum. The RSI at 47.63 is Neutral, neither overbought nor oversold. The STOCH value of 41.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BRC.
Brady Risk Analysis
Brady disclosed 14 risk factors in its most recent earnings report. Brady reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Brady Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $1.52B | 27.53 | 27.45% | 1.29% | -2.28% | -9.94% | |
72 Outperform | $12.45B | 21.24 | 34.76% | 1.27% | 6.87% | 13.53% | |
72 Outperform | $6.64B | 22.52 | 21.82% | 1.30% | 3.31% | 2.58% | |
71 Outperform | $3.94B | 21.28 | 16.60% | 1.23% | 11.20% | 0.71% | |
70 Outperform | $5.61B | 10.53 | 16.19% | 2.73% | 4.77% | -22.78% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
56 Neutral | $5.54B | 9.68 | -18.10% | ― | 15.45% | -488.24% |
* Industrials Sector Average
BRC
Brady
83.34
16.01
23.77%
MSA
MSA Safety
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29.53
20.83%
NSSC
Napco Security Technologies
42.59
21.02
97.43%
ALLE
Allegion
144.49
21.51
17.49%
ADT
Adt
6.84
-0.90
-11.59%
REZI
Resideo Technologies
36.60
20.40
125.93%
Brady Corporate Events
Executive/Board Changes
Brady Announces Resignation of Board Member Christopher Hix
Negative
Mar 20, 2026
On March 18, 2026, Brady Corporation announced that Christopher M. Hix had informed the company of his decision to resign from its Board of Directors, effective March 31, 2026. Hix, who served as a member of the board’s Audit Committee, will...
Business Operations and StrategyFinancial Disclosures
Brady Lifts Earnings Guidance After Strong Fiscal Q2 Results
Positive
Feb 19, 2026
Brady Corporation reported solid results for its fiscal 2026 second quarter ended January 31, 2026, with sales rising 7.7% to $384.1 million, driven by 1.6% organic growth, contributions from acquisitions and favorable currency, and extending its ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.