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Brady
(NYSE:BRC)
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Rating:80Outperform
Price Target:
$96.00
▲(0.51% Upside)
Action:Reiterated
Date:06/19/26
The score is driven primarily by strong financial quality (healthy profitability, low leverage, and solid returns) and a constructive earnings update with raised guidance. Offsetting factors are the near-term leverage and integration risk tied to the Honeywell PSS acquisition and a largely neutral technical backdrop.
Positive Factors
Recurring Consumables Revenue
Brady's consumables-led model creates durable recurring revenue streams: once customers standardize on labels, tapes and supplies they reorder repeatedly. This lowers customer churn, supports predictable demand, and underpins long-term revenue visibility and cash flow resilience across cycles.
Negative Factors
Near-Term Leverage from PSS Acquisition
The Honeywell PSS acquisition materially increases Brady's leverage to roughly 2.5x pro forma, raising interest expense and reducing balance-sheet flexibility during integration. Higher leverage constrains capital allocation and increases execution risk if cash flows underperform near-term expectations.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring Consumables Revenue
Brady's consumables-led model creates durable recurring revenue streams: once customers standardize on labels, tapes and supplies they reorder repeatedly. This lowers customer churn, supports predictable demand, and underpins long-term revenue visibility and cash flow resilience across cycles.
Read all positive factors
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 (BRC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.25B
Dividend Yield1.23%
Average Volume (3M)480.32K
Price to Earnings (P/E)20.5
Beta (1Y)0.50
Revenue Growth11.11%
EPS Growth8.52%
CountryUS
Employees5,700
SectorIndustrials
Sector Strength72
IndustrySecurity & Protection Services
Share Statistics
EPS (TTM)4.41
Shares Outstanding43,574,160
10 Day Avg. Volume673,168
30 Day Avg. Volume480,318
Financial Highlights & Ratios
PEG Ratio-6.06
Price to Book (P/B)2.82
Price to Sales (P/S)2.22
P/FCF Ratio21.89
Enterprise Value/Market Cap0.90
Enterprise Value/Revenue2.37
Enterprise Value/Gross Profit4.64
Enterprise Value/Ebitda12.29
Forecast
1Y Price Target
$103.00Price Target Upside7.84% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)5.02
Revenue Forecast (FY)$1.65B
Brady Business Overview & Revenue Model
Company Description
Brady Corporation, established in 1914 and based in Milwaukee, Wisconsin, operates as a global supplier of specialized identification and workplace safety products. The company’s core focus is on delivering solutions that facilitate the identifica...
How the Company Makes Money
Brady makes money primarily by selling identification and safety products and related systems to businesses and institutions. Key revenue streams include (1) consumable identification materials such as labels, tapes, tag stock, and other specialty...
Brady Earnings Call Summary
Earnings Call Date:May 18, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Sep 03, 2026
Earnings Call Sentiment Positive
The call presents a strong operational and financial quarter with record adjusted EPS, robust organic growth, improved margins, high cash generation, raised guidance, and strategic expansion via the Honeywell PSS acquisition. Counterbalancing these positives are governance optics from recent board resignations, acquisition execution and integration risks, modest recent softness in PSS historical sales, higher absolute SG&A, and external macro/FX and inflation risks. On balance, the positive performance, growth drivers (data centers, Wire ID, new printers), and near-term accretive acquisition narrative outweigh the identifiable risks.Positive Updates
Record Adjusted EPS and Strong Earnings Growth
Adjusted diluted EPS of $1.50 in Q3, a new quarterly record and up 23% year-over-year. GAAP diluted EPS was $1.21 versus $1.09 prior year.
Negative Updates
Board Resignations and Market Reaction
Two board members resigned recently, announced on a Friday; resulted in negative optics and a stock drop (~10% reported). Management attributes resignations to inability to commit required time for acquisition-related workload, but governance concerns and optics remain a potential risk.
Read all updates
Q3-2026 Updates
Positive
Negative
Record Adjusted EPS and Strong Earnings Growth
Adjusted diluted EPS of $1.50 in Q3, a new quarterly record and up 23% year-over-year. GAAP diluted EPS was $1.21 versus $1.09 prior year.
Read all positive updates
Company Guidance
Brady raised fiscal 2026 guidance, increasing full‑year adjusted EPS to $5.20–$5.30 (from $4.95–$5.15) and GAAP EPS to $4.66–$4.76 (from $4.62–$4.82), implying adjusted EPS growth of roughly 13%–15.2% versus FY2025; it expects mid‑single‑digit organic sales growth for the year ending 7/31/2026, depreciation & amortization of about $44 million, capital expenditures of about $45 million, and a full‑year tax rate of ~21% (with Q4 usually slightly lower); to finance the Honeywell PSS acquisition Brady plans $500 million of term loan bank debt and $800 million of private placement debt with expected interest below 6%, a pro forma net leverage of ~2.5x at close and a target to delever to below 2.0x within two years, and management expects the PSS business to be immediately accretive by roughly $0.80 of adjusted EPS in year one (target close ~Aug. 1), while calling out risks such as a stronger U.S. dollar, unoffset inflationary pressures, or an economic slowdown.Brady Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
88
Very Positive
Cash Flow
79
Positive
| Breakdown | TTM | Jul 2025 | Jul 2024 | Jul 2023 | Jul 2022 | Jul 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.62B | 1.51B | 1.34B | 1.33B | 1.30B | 1.14B |
| Gross Profit | 828.93M | 760.82M | 687.88M | 657.27M | 631.55M | 561.45M |
| EBITDA | 312.87M | 282.48M | 280.84M | 261.61M | 227.44M | 196.94M |
| Net Income | 209.66M | 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 | 175.49M | 174.35M | 250.12M | 151.53M | 114.07M | 147.34M |
| Total Debt | 88.51M | 158.56M | 129.66M | 80.66M | 129.15M | 84.01M |
| Total Liabilities | 487.97M | 542.04M | 448.91M | 398.34M | 456.03M | 414.73M |
| Stockholders Equity | 1.34B | 1.19B | 1.07B | 990.92M | 911.30M | 963.03M |
Cash Flow | ||||||
| Free Cash Flow | 181.34M | 153.62M | 175.18M | 189.92M | 75.31M | 178.48M |
| Operating Cash Flow | 223.22M | 181.20M | 255.07M | 209.15M | 118.45M | 205.66M |
| Investing Cash Flow | -49.74M | -171.25M | -81.05M | -11.21M | -43.07M | -268.59M |
| Financing Cash Flow | -157.26M | -83.87M | -70.53M | -163.57M | -102.09M | -12.32M |
Brady Technical Analysis
Positive
95.51
Price Trends
82.90
Positive
85.10
Positive
81.78
Positive
Market Momentum
1.46
Negative
63.05
Neutral
93.92
Negative
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 84.87, above the 50-day MA of 82.90, and above the 200-day MA of 81.78, indicating a bullish trend. The MACD of 1.46 indicates Negative momentum. The RSI at 63.05 is Neutral, neither overbought nor oversold. The STOCH value of 93.92 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BRC.
Brady Risk Analysis
Brady disclosed 15 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 |
|---|---|---|---|---|---|---|---|
80 Outperform | $4.25B | 20.47 | 16.46% | 1.23% | 11.11% | 8.52% | |
74 Outperform | $6.58B | 22.94 | 22.02% | 1.30% | 5.56% | 2.16% | |
71 Outperform | $12.01B | 18.96 | 32.08% | 1.27% | 8.87% | 2.90% | |
70 Outperform | $5.05B | 8.30 | 16.74% | 2.73% | 3.29% | 22.63% | |
68 Neutral | $1.33B | 36.20 | 20.86% | 1.29% | 8.83% | -16.34% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
47 Neutral | $4.69B | -8.65 | -17.64% | ― | 8.08% | -1039.66% |
* Industrials Sector Average
BRC
Brady
90.00
22.89
34.12%
MSA
MSA Safety
172.06
6.56
3.96%
NSSC
Napco Security Technologies
37.29
8.02
27.41%
ALLE
Allegion
139.71
-2.41
-1.70%
ADT
Adt
6.39
-1.83
-22.26%
REZI
Resideo Technologies
30.96
8.90
40.34%
Brady Corporate Events
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
Brady Secures New Credit Facility to Fund Acquisition
Positive
Jun 18, 2026
On June 12, 2026, Brady Corporation entered into a new $1.0 billion credit agreement with a syndicate of banks, comprising a $500 million term loan and a $500 million revolving credit facility, to support its pending acquisition of Honeywell Inter...
Business Operations and StrategyExecutive/Board ChangesM&A Transactions
Brady Appoints New CEO to Lead Transformative Acquisition
Positive
Jun 11, 2026
On June 8, 2026, Brady Corporation announced that President and CEO Russell R. Shaller retired from his executive and board roles after an 11-year tenure marked by strategic investments, five consecutive years of organic sales growth and record EP...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Brady Posts Strong Q3 Results, Raises 2026 EPS Outlook
Positive
May 18, 2026
Brady Corporation, a world leader in identification solutions, reported strong fiscal 2026 third quarter results for the period ended April 30, 2026, with sales rising 13.8% to $435.2 million, driven by 8.2% organic growth, acquisitions and favora...
Executive/Board Changes
Brady Announces Resignations of Two Board Directors
Neutral
May 8, 2026
On May 6, 2026, Brady Corporation announced that directors Deidre E. Cusack and Anne De Greef-Safft submitted their resignations from the company’s Board of Directors, effective May 8, 2026. Cusack served on the Technology Committee, while D...
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
Brady to Acquire Honeywell Productivity Solutions Business
Positive
Apr 21, 2026
On April 20, 2026, Brady Corporation and its subsidiary Brady Worldwide, Inc. agreed to acquire Honeywell International Inc.’s Productivity Solutions and Services business for $1.4 billion in cash, a deal valued at roughly 8 times 2025 EBITD...
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...
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.