Brady Corporation (BRC)
NYSE:BRC
Want to see BRC full AI Analyst Report?
Top Page
Brady
(NYSE:BRC)
Select Model
Select Model
Rating:77Outperform
Price Target:
$96.00
▲(0.51% Upside)
Action:Reiterated
Date:05/19/26
Score is supported mainly by strong financial quality (profitability, low leverage, and solid cash generation) and a constructive earnings outlook with raised guidance and an accretive acquisition narrative. The score is held back by weak technical momentum/oversold indicators and added execution and leverage risk tied to the Honeywell PSS acquisition financing.
Positive Factors
Recurring consumables & installed base
Brady's core business sells durable labels, printers and consumables that are frequently reordered. An installed-base of printers creates recurring, sticky consumable sales, supporting predictable revenue and pricing power over multiple years, and reducing sensitivity to single-quarter demand swings.
Negative Factors
Acquisition financing increases near-term leverage
Funding the Honeywell PSS acquisition materially raises leverage and interest expense near term, constraining financial flexibility. Achieving the targeted deleveraging depends on rapid cash conversion and synergies; failure could pressure investment, ratings, or shareholder returns over the next 2–3 years.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring consumables & installed base
Brady's core business sells durable labels, printers and consumables that are frequently reordered. An installed-base of printers creates recurring, sticky consumable sales, supporting predictable revenue and pricing power over multiple years, and reducing sensitivity to single-quarter demand swings.
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
$4.04B
Dividend Yield1.23%
Average Volume (3M)313.49K
Price to Earnings (P/E)16.8
Beta (1Y)0.52
Revenue Growth11.11%
EPS Growth8.52%
CountryUS
Employees5,700
SectorIndustrials
Sector Strength72
IndustrySecurity & Protection Services
Share Statistics
EPS (TTM)4.41
Shares Outstanding43,689,410
10 Day Avg. Volume411,123
30 Day Avg. Volume313,486
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 Cap0.98
Enterprise Value/Revenue2.43
Enterprise Value/Gross Profit4.76
Enterprise Value/Ebitda13.13
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)5.02
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 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 | 300.10M | 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
81.76
Positive
84.44
Positive
80.43
Positive
Market Momentum
-0.56
Negative
60.31
Neutral
84.88
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 79.77, above the 50-day MA of 81.76, and above the 200-day MA of 80.43, indicating a bullish trend. The MACD of -0.56 indicates Negative momentum. The RSI at 60.31 is Neutral, neither overbought nor oversold. The STOCH value of 84.88 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $4.04B | 16.76 | 16.46% | 1.23% | 11.11% | 8.52% | |
74 Outperform | $6.52B | 22.35 | 22.02% | 1.30% | 5.56% | 2.16% | |
71 Outperform | $1.31B | -861.44 | 20.86% | 1.29% | 8.83% | -16.34% | |
70 Outperform | $5.51B | 7.97 | 16.74% | 2.73% | 3.29% | 22.63% | |
68 Neutral | $11.11B | 22.65 | 32.08% | 1.27% | 8.87% | 2.90% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
47 Neutral | $4.38B | 34.41 | -17.64% | ― | 8.08% | -1039.66% |
* Industrials Sector Average
BRC
Brady
85.51
16.26
23.48%
MSA
MSA Safety
168.96
13.35
8.58%
NSSC
Napco Security Technologies
36.72
8.84
31.72%
ALLE
Allegion
129.25
-10.80
-7.71%
ADT
Adt
6.98
-1.24
-15.12%
REZI
Resideo Technologies
28.93
8.89
44.36%
Brady Corporate Events
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...
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.