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Brady Corp. (BRC)
NYSE:BRC
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Brady
(NYSE:BRC)
Rating:76Outperform
Price Target:
$78.00
▲( 13.44% Upside)
Brady (BRC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.25B
Dividend Yield1.37%
Average Volume (3M)181.46K
Price to Earnings (P/E)17.0
Beta (1Y)0.47
Revenue Growth8.62%
EPS Growth3.59%
CountryUS
Employees5,700
SectorIndustrials
Sector Strength92
IndustrySecurity & Protection Services
Share Statistics
EPS (TTM)1.22
Shares Outstanding43,776,966
10 Day Avg. Volume221,353
30 Day Avg. Volume181,464
Financial Highlights & Ratios
PEG Ratio16.98
Price to Book (P/B)2.81
Price to Sales (P/S)0.00
P/FCF Ratio18.34
Enterprise Value/Market Cap1.00
Enterprise Value/Revenue0.58
Enterprise Value/Gross Profit4.42
Enterprise Value/Ebitda2.90
Forecast
1Y Price Target
$86.00Price Target Upside25.07% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Brady Business Overview & Revenue Model
Company DescriptionBrady Corporation (BRC) is a global manufacturer and marketer of complete solutions that identify and protect premises, products, and people. The company operates within the sectors of identification solutions and workplace safety, providing a comprehensive range of products including labels, signs, safety devices, printing systems, and software to enhance safety, security, productivity, and performance for customers worldwide.
How the Company Makes MoneyBrady Corporation generates revenue by selling a diverse array of products and solutions that cater to identification and workplace safety needs. The company primarily earns through the sale of its proprietary labeling systems, durable labels, signs, safety devices, and software solutions. These products are primarily marketed to industries such as electrical, telecommunications, manufacturing, construction, and utilities. Brady also benefits from long-term relationships and partnerships with distributors and resellers, expanding its reach globally. Additionally, the company invests in research and development to innovate new products and technologies that meet evolving customer needs, thereby sustaining its competitive edge and driving sales growth.
Brady Financial Statement Overview
Summary
Brady exhibits strong financial performance with solid profitability margins and revenue growth. The balance sheet is stable with low leverage, and cash flow generation is robust, though there is room for improvement in free cash flow growth.Income Statement
Brady exhibits strong income statement performance with a solid gross profit margin of 50.53% and a net profit margin of 13.35% for TTM (Trailing-Twelve-Months). Revenue growth rate from the previous year is approximately 8.81%, indicating a positive growth trajectory. The EBIT margin of 16.68% and EBITDA margin of 18.99% further highlight strong operational efficiency. The company’s consistent revenue growth and robust profitability metrics suggest a healthy financial state, though slight declines in net income compared to the previous year could indicate pressure on bottom-line growth.85
Very Positive
Balance Sheet
The balance sheet reflects a stable financial position with a low debt-to-equity ratio of 0.14, indicating minimal reliance on debt financing. The return on equity (ROE) is a strong 16.68%, suggesting efficient use of equity to generate profits. With an equity ratio of 68.73%, Brady demonstrates a solid capital structure with a significant portion of assets financed by equity. Although the company's leverage is low, further improvements in equity growth could enhance overall financial stability.80
Positive
Cash Flow
Cash flow analysis reveals a robust operating cash flow to net income ratio of 1.06, indicating strong cash generation relative to net income. The free cash flow to net income ratio is 0.91, showing good conversion of income into free cash flow. However, the free cash flow growth rate is only 1.29%, suggesting limited growth in cash generated after capital expenditures. The stability in cash flow metrics reflects steady financial management, though opportunities for enhancing free cash flow growth exist.78
Positive
| Breakdown | |||||
| TTM | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 | Sep 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 1.46B | 1.34B | 1.33B | 1.30B | 1.14B | 1.08B | Gross Profit |
| 737.65M | 687.88M | 657.27M | 631.55M | 561.45M | 528.57M | EBIT |
| 243.56M | 243.41M | 225.21M | 193.01M | 167.13M | 138.02M | EBITDA |
| 277.32M | 280.84M | 261.61M | 227.44M | 196.94M | 166.54M | Net Income Common Stockholders |
| 194.84M | 197.22M | 174.86M | 149.98M | 129.66M | 112.37M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 256.33M | 250.12M | 151.53M | 114.07M | 147.34M | 217.64M | Total Assets |
| 1.18B | 1.52B | 1.39B | 1.37B | 1.38B | 1.14B | Total Debt |
| 46.05M | 129.66M | 80.66M | 129.15M | 84.01M | 47.29M | Net Debt |
| -210.28M | -120.46M | -70.87M | 15.08M | -63.32M | -170.36M | Total Liabilities |
| 295.31M | 448.91M | 398.34M | 456.03M | 414.73M | 279.39M | Stockholders Equity |
| 880.40M | 1.07B | 990.92M | 911.30M | 963.03M | 863.07M |
| Cash Flow | Free Cash Flow | ||||
| 177.43M | 175.18M | 189.92M | 75.31M | 178.48M | 113.70M | Operating Cash Flow |
| 206.85M | 255.07M | 209.15M | 118.45M | 205.66M | 140.98M | Investing Cash Flow |
| -175.79M | -81.05M | -11.21M | -43.07M | -268.59M | -36.12M | Financing Cash Flow |
| -33.62M | -70.53M | -163.57M | -102.09M | -12.32M | -163.52M |
Brady Technical Analysis
Negative
68.76
Price Trends
70.20
Negative
71.46
Negative
72.34
Negative
Market Momentum
0.18
Positive
40.71
Neutral
6.19
Positive
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 68.76 is below the 20-day moving average (MA) of 71.88, below the 50-day MA of 70.20, and below the 200-day MA of 72.34, indicating a bearish trend. The MACD of 0.18 indicates Positive momentum. The RSI at 40.71 is Neutral, neither overbought nor oversold. The STOCH value of 6.19 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $1.00B | 22.88 | 27.48% | 1.67% | -1.05% | -2.78% | |
79 Outperform | $6.20B | 21.77 | 26.22% | 1.29% | 0.75% | 7.20% | |
76 Outperform | $3.25B | 17.00 | 17.80% | 1.37% | 8.62% | 3.59% | |
76 Outperform | $2.95B | 50.32 | 2.58% | ― | 14.02% | -69.91% | |
75 Outperform | $1.38B | ― | -21.34% | ― | 0.27% | -18.75% | |
72 Outperform | $6.88B | 14.06 | 16.26% | 2.70% | -5.44% | -16.05% | |
64 Neutral | $4.39B | 11.81 | 5.20% | 249.38% | 3.96% | -12.36% |
* Industrials Sector Average
Performance Comparison
BRC
Brady
68.76
1.40
2.08%
MSA
MSA Safety
157.75
-21.97
-12.22%
NSSC
Napco Security Technologies
28.10
-22.96
-44.97%
ADT
Adt
8.22
1.29
18.61%
ARLO
Arlo Technologies
13.30
-0.34
-2.49%
REZI
Resideo Technologies
19.89
-1.59
-7.40%
Brady Earnings Call Summary
Earnings Call Date:May 16, 2025
(Q3-2025)
| % Change Since: -9.81%|
Next Earnings Date:Sep 05, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of positive achievements and challenges. While Brady Corporation achieved record-high adjusted earnings per share and showed strong growth in certain regions, they also faced significant challenges in Europe, Australia, and China, as well as the impacts of tariffs and reduced cash flow. The acquisition strategy and increased R&D investments were notable positives, but the issues balance the overall sentiment.Q3-2025 Updates
Positive Updates
Record High Adjusted Earnings Per Share
Brady Corporation reported a new record high for adjusted earnings per share, growing by 11.9% to $1.22 per share.
Strong Growth in Americas and Asia
The Americas and Asia regions experienced excellent organic sales growth of 5.4% and adjusted operating income growth of 20.2%.
Successful Acquisition Strategy
Acquisitions contributed to a 10.5% increase in sales, including the acquisition of Funai's microfluidic business, enhancing their product portfolio.
Increased Investment in Research and Development
Investment in R&D increased by 8.5% as part of ongoing efforts to develop new products and integrate acquisitions like Gravitec and Funai.
Profitability Improvement in Challenging Regions
Despite a tough macro environment, Europe and Australia saw a 3.8% increase in adjusted operating income due to restructuring actions.
Negative Updates
Organic Sales Decline in Europe and Australia
The Europe and Australia regions faced a 5.4% decline in organic sales due to challenging economic conditions.
Impact of Tariffs
Incremental tariffs resulted in an estimated $3 million additional expense in the third quarter, with expected impacts in the fourth quarter as well.
Decrease in Gross Profit Margin
Gross profit margin decreased from 51.6% to 51%, affected by restructuring expenses.
Reduction in Operating Cash Flow
Operating cash flow decreased to $59.9 million from $72.7 million compared to the same quarter last year.
Challenges in China
Reduced economic activity in China led to headcount reductions and challenges in maintaining sales growth in the region.
Company Guidance
During the Q3 2025 earnings call, Brady Corporation provided detailed guidance on various financial metrics. The company reported a 1.6% growth in organic sales, with acquisitions contributing an additional 10.5% to sales growth. Adjusted earnings per share increased by a substantial 11.9%, reaching a new record high of $1.22 per share. The Americas and Asia regions experienced robust organic sales growth of 5.4% and adjusted operating income growth of 20.2%, while Europe and Australia saw an organic sales decline of 5.4% but managed a 3.8% increase in adjusted operating income due to restructuring efforts. The company's ongoing R&D investment rose by over 8%, driven by acquisitions like Gravitec and Funai's microfluidic business. Brady's guidance for the fiscal year ending July 31, 2025, includes expected low single-digit organic sales growth, a depreciation and amortization expense of around $40 million, capital expenditures of approximately $25 million, and a full-year income tax rate of roughly 20%. Despite uncertainties from global trade and tariffs, the company remains optimistic about sustaining its growth trajectory.Brady Corporate Events
Stock BuybackDividendsBusiness Operations and StrategyFinancial Disclosures
Brady Reports Record Q3 2025 Financial Results
Positive
May 16, 2025
On May 16, 2025, Brady Corporation reported its fiscal 2025 third quarter financial results, highlighting a record adjusted earnings per share (EPS) and a tightening of its full-year EPS guidance. The quarter saw an 11.4% increase in sales, driven by acquisitions and organic growth, despite a slight decline due to foreign currency translation. Adjusted diluted EPS rose to a record $1.22, and the company returned $44.5 million to shareholders through dividends and share repurchases. Brady’s strategic focus on research and development and new product launches contributed to strong organic sales growth in the Americas and Asia, while the company remains vigilant amid global trade uncertainties.
The most recent analyst rating on (BRC) stock is a Buy with a $84.00 price target. To see the full list of analyst forecasts on Brady stock, see the BRC Stock Forecast page.
Executive/Board Changes
Brady Appoints Anne De Greef-Safft to Board
Positive
Feb 28, 2025
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.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.