Brady (BRC) AI Stock Analysis

• Market Cap: $4.49B
• Dividend Yield: 1.23%
• Average Volume (3M): 207.12K
• Price to Earnings (P/E): 22.3
• Beta (1Y): 0.50
• Revenue Growth: 11.20%
• EPS Growth: 0.71%
• Country: US
• Employees: 5,700
• Sector: Industrials
• Sector Strength: 72
• Industry: Security & Protection Services
• EPS (TTM): 1.09
• Shares Outstanding: 43,638,096
• 10 Day Avg. Volume: 257,902
• 30 Day Avg. Volume: 207,123
• PEG Ratio: -6.04
• Price to Book (P/B): 2.82
• Price to Sales (P/S): 2.22
• P/FCF Ratio: 21.89
• Enterprise Value/Market Cap: 0.93
• Enterprise Value/Revenue: 2.66
• Enterprise Value/Gross Profit: 5.24
• Enterprise Value/Ebitda: 13.89
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 5.05
• Revenue Forecast (FY): $1.61B

• Rating: 78 Outperform
• Price Target: $109.00 ▲(14.12% Upside)
• Action: Reiterated Date: 02/19/26
• Date: Action: Reiterated 02/19/26

The score is driven primarily by strong financial fundamentals (high margins, solid ROE, and low leverage) and a positive earnings update with raised guidance and robust cash generation. Technicals support the uptrend, but overbought signals increase near-term risk. Valuation is a modest headwind given a ~23 P/E and ~1% 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.

Conservative balance sheet & cash capacity

Net cash and low debt provide capital flexibility to fund R&D, M&A, buybacks, and dividends through cycles. A strong balance sheet reduces refinancing risk, supports disciplined capital allocation (share repurchases and 40th straight dividend increase) and cushions against macro shocks.

Consistent organic growth and product innovation

A multi-year streak of organic growth demonstrates durable customer demand and retention. Elevated R&D, new CTO and recent product launches (e.g., i4311) support sustained product differentiation and expansion into higher-value engineered offerings, improving long-term revenue mix and margin resilience.

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.

Variable operating cash conversion

Sub-1.0 cash conversion and historical variability imply working-capital timing effects that can produce quarter-to-quarter FCF swings. This undermines predictability for funding capex, buybacks or dividends and requires larger cash buffers despite positive aggregate free cash flow.

Tariff & end-market manufacturing exposure

Persistent tariff costs and exposure to cyclical manufacturing (including automotive) and commodity product pressure can compress margins and trigger revenue softness during downturns. These structural end-market risks limit margin upside and increase sensitivity to global trade shifts.

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 generates revenue primarily through the sale of its identification and safety products, which include pre-printed labels, custom labels, safety signs, and printing systems. The company operates on a direct sales model, selling products through its extensive distribution network and e-commerce platforms. Key revenue streams include product sales to industrial customers, safety compliance solutions, and professional services related to asset management and regulatory compliance. Additionally, Brady has established strategic partnerships with various industry leaders to enhance its product offerings and expand its market reach, contributing significantly to its earnings.

Brady Financial Statement Overview

Summary

High-quality financial profile: strong and steady profitability (gross margin ~49–51%, EBIT margin ~15–19%, net margin ~11–15% with ~12.7% TTM), conservative leverage (D/E ~0.08–0.14; ~0.14 TTM) and attractive ROE (~13–18%; ~16.6% TTM). Offsetting factors are uneven revenue growth and operating cash flow conversion below 1.0 (about ~0.46–0.96; ~0.60 TTM), which can create cash-flow lumpiness despite positive FCF.

Income Statement

BRC shows solid profitability with consistently strong gross margins (~49–51%) and healthy bottom-line profitability (net margin ~11–15% across the period; ~12.7% in TTM (Trailing-Twelve-Months)). Operating profitability remains steady (EBIT margin ~15–19%), indicating good pricing power and cost control. The main weakness is growth consistency: revenue growth was modest in several years and while TTM (Trailing-Twelve-Months) revenue is higher, the reported growth rate is volatile, which limits confidence in a smooth acceleration trajectory.

Balance Sheet

The balance sheet looks conservatively positioned with low leverage (debt-to-equity generally ~0.08–0.14; ~0.14 in TTM (Trailing-Twelve-Months)), providing flexibility through cycles. Equity has trended higher over time, supporting a stronger capital base. Returns on shareholder capital are also consistently attractive (return on equity ~13–18%; ~16.6% in TTM (Trailing-Twelve-Months)). A watch item is that debt levels increased versus the lower-leverage years, though still well within a prudent range.

Cash Flow

Cash generation is generally good, with positive free cash flow in every period shown and a strong rebound in TTM (Trailing-Twelve-Months) free cash flow growth. Free cash flow typically converts well relative to earnings (around ~0.69–0.91; ~0.84 in TTM (Trailing-Twelve-Months)), supporting earnings quality. The weakness is variability in cash conversion: operating cash flow relative to reported earnings is below 1.0 in all periods provided (about ~0.46–0.96; ~0.60 in TTM (Trailing-Twelve-Months)), implying working-capital or timing headwinds that can create lumpiness quarter-to-quarter.

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	301.05M	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

• Technical Analysis Sentiment: Neutral
• Last Price: 95.51
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Neutral. The current price of 95.51 is above the 20-day moving average (MA) of 90.40, above the 50-day MA of 84.86, and above the 200-day MA of 76.22, indicating a neutral trend. The MACD of 2.76 indicates Positive momentum. The RSI at 49.49 is Neutral, neither overbought nor oversold. The STOCH value of 45.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for BRC.

Brady Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BRC	78 Outperform	$4.49B	22.32	16.78%	1.23%	11.20%	0.71%
NSSC	78 Outperform	$1.55B	32.96	26.42%	1.29%	-2.28%	-9.94%
ALLE	72 Outperform	$14.01B	21.87	36.08%	1.27%	6.87%	13.53%
ADT	69 Neutral	$6.44B	11.22	17.24%	2.73%	4.77%	-22.78%
MSA	68 Neutral	$7.75B	28.19	22.22%	1.30%	3.31%	2.58%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
REZI	51 Neutral	$5.51B	-7.72	-20.90%	―	15.45%	-488.24%

Brady Corporate Events

Brady Lifts Earnings Guidance After Strong Fiscal Q2 Results

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 streak to 20 consecutive quarters of organic growth. Diluted EPS climbed 21.7% to $1.01, adjusted diluted EPS increased to $1.09, and net cash from operating activities improved to $53.3 million, reflecting stronger profitability and cash generation.

For the first half of fiscal 2026, sales grew 7.6% to $789.4 million and income before income taxes rose 17.7% to $130.5 million, while adjusted income before income taxes reached $141.0 million, underscoring improving margins in both the Americas & Asia and Europe & Australia despite modest organic declines in Europe & Australia. Management highlighted increased investment in R&D, including the recent launch of the i4311 industrial label printer with LabelSense technology, and raised the low end of both GAAP and adjusted EPS guidance for the full year ending July 31, 2026, signaling confidence in continued operational momentum and reinforcing Brady’s positioning in industrial identification solutions.

The most recent analyst rating on (BRC) stock is a Buy with a $108.00 price target. To see the full list of analyst forecasts on Brady stock, see the BRC Stock Forecast page.

Brady Corporation Elects New Board at Shareholders’ Meeting

On December 3, 2025, Brady Corporation held its Annual Shareholders’ Meeting where all 3,538,628 shares of Class B Common Stock voted unanimously to elect a new board of directors, including notable figures from various industries. Additionally, on December 2, 2025, the company declared a quarterly cash dividend of $0.245 per share for Class A and Class B Common Stock, payable on January 30, 2026, to shareholders recorded by January 9, 2026. These decisions reflect Brady’s ongoing commitment to shareholder value and stable governance, potentially impacting its industry positioning and stakeholder relations.

The most recent analyst rating on (BRC) stock is a Buy with a $89.00 price target. To see the full list of analyst forecasts on Brady stock, see the BRC Stock Forecast page.