Brady (BRC) AI Stock Analysis

• Market Cap: $3.67B
• Dividend Yield: 1.23%
• Average Volume (3M): 201.89K
• Price to Earnings (P/E): 19.0
• Beta (1Y): 0.52
• Revenue Growth: 11.20%
• EPS Growth: 0.71%
• Country: US
• Employees: 5,700
• Sector: Industrials
• Sector Strength: 72
• Industry: Security & Protection Services
• EPS (TTM): 1.21
• Shares Outstanding: 43,638,096
• 10 Day Avg. Volume: 192,360
• 30 Day Avg. Volume: 201,892
• 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: 0.99
• Enterprise Value/Revenue: 2.35
• Enterprise Value/Gross Profit: 4.64
• Enterprise Value/Ebitda: 12.35
• 1Y Price Target: $96.00
• Price Target Upside: 26.22% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 5
• Revenue Forecast (FY): $1.58B

• Rating: 77 Outperform
• Price Target: $88.00 ▲(15.70% Upside)

Brady Corporation's overall stock score reflects strong financial performance and a positive earnings outlook, supported by strategic investments and growth in key regions. Technical indicators and valuation suggest stability, while recent corporate events enhance confidence in governance and strategic direction. However, challenges in Europe and Australia and tariff headwinds present risks that need monitoring.

Positive Factors

Revenue Growth

The consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion.

R&D Investment

Increased R&D investment underscores a commitment to innovation, enhancing product offerings and competitive positioning over time.

Cash Flow Management

Strong cash flow management provides financial flexibility for strategic investments and shareholder returns, supporting sustainable growth.

Negative Factors

Tariff Headwinds

Tariff-related expenses can pressure margins and profitability, potentially affecting pricing strategies and competitive dynamics.

Organic Sales Decline

Declining sales in key regions indicate market challenges, which could hinder overall growth and require strategic adjustments.

Challenging Macro Conditions

Adverse macroeconomic conditions can impact demand and operational efficiency, posing risks to sustained growth and profitability.

Brady Business Overview & Revenue Model

Company Description

Brady Corporation (BRC) is a global leader in identification solutions and workplace safety products, specializing in providing innovative solutions for a variety of industries including manufacturing, healthcare, and logistics. The company offers a wide range of products such as labels, signs, and printing systems designed to enhance safety and efficiency in the workplace. Brady's core services also include asset tracking and compliance solutions, emphasizing their commitment to supporting businesses in regulatory adherence and operational excellence.

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

Brady demonstrates strong financial health with robust revenue growth, profitability, and cash flow generation. The balance sheet is solid with low leverage, although there are minor concerns about increasing debt and slight margin pressures.

Income Statement

Brady demonstrates strong revenue growth with a TTM revenue increase of 1.87% and consistent profitability. The gross profit margin is robust at 50.59%, and the net profit margin is healthy at 12.74%. EBIT and EBITDA margins are solid, indicating efficient operations. However, there is a slight decline in EBIT margin from the previous year, which could be monitored.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio of 0.14, indicating conservative leverage. Return on equity is commendable at 16.63%, reflecting effective use of equity. The equity ratio is stable, suggesting a solid capital structure. However, the slight increase in debt levels over the past year should be observed.

Cash Flow

Brady's cash flow position is strong, with a positive free cash flow growth rate of 4.07% TTM. The operating cash flow to net income ratio is 0.60, indicating good cash generation relative to net income. The free cash flow to net income ratio is high at 0.84, suggesting efficient cash utilization. Despite a previous decline in free cash flow growth, the recent recovery is promising.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.51B	1.34B	1.33B	1.30B	1.14B
Gross Profit	760.82M	687.88M	657.27M	631.55M	561.45M
EBITDA	282.48M	280.84M	261.61M	227.44M	196.94M
Net Income	189.26M	197.22M	174.86M	149.98M	129.66M
Balance Sheet
Total Assets	1.73B	1.52B	1.39B	1.37B	1.38B
Cash, Cash Equivalents and Short-Term Investments	174.35M	250.12M	151.53M	114.07M	147.34M
Total Debt	158.56M	129.66M	80.66M	129.15M	84.01M
Total Liabilities	542.04M	448.91M	398.34M	456.03M	414.73M
Stockholders Equity	1.19B	1.07B	990.92M	911.30M	963.03M
Cash Flow
Free Cash Flow	153.62M	175.18M	189.92M	75.31M	178.48M
Operating Cash Flow	181.20M	255.07M	209.15M	118.45M	205.66M
Investing Cash Flow	-171.25M	-81.05M	-11.21M	-43.07M	-268.59M
Financing Cash Flow	-83.87M	-70.53M	-163.57M	-102.09M	-12.32M

Brady Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 76.06
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 76.06 is below the 20-day moving average (MA) of 77.09, below the 50-day MA of 76.46, and above the 200-day MA of 72.45, indicating a bullish trend. The MACD of 0.63 indicates Negative momentum. The RSI at 52.55 is Neutral, neither overbought nor oversold. The STOCH value of 26.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BRC.

Brady Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NSSC	78 Outperform	$1.47B	33.63	25.03%	1.28%	-2.28%	-9.94%
BRC	77 Outperform	$3.67B	19.00	16.69%	1.23%	11.20%	0.71%
MSA	75 Outperform	$6.36B	22.87	23.35%	1.29%	3.31%	2.58%
ALLE	72 Outperform	$13.69B	21.53	36.41%	1.23%	6.87%	13.53%
ADT	71 Outperform	$6.71B	11.68	17.24%	2.69%	4.77%	-22.78%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
REZI	51 Neutral	$5.06B	―	-20.90%	―	15.45%	-488.24%

Brady Corporate Events

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.

Brady Reports Strong Q1 2026 Sales Growth

On November 17, 2025, Brady Corporation reported a 7.5% increase in sales for the first quarter of fiscal 2026, with organic sales rising by 2.8%. The company also raised the low end of its adjusted diluted EPS guidance for the full year. The quarter saw a significant 42.5% increase in cash flow from operating activities and a 16.5% rise in diluted EPS. Brady’s strategic acquisitions, including Mecco, contributed to its growth, and the company remains in a strong financial position to pursue further investments and return value to shareholders.

Brady Updates Executive Change of Control Agreement

On September 16, 2025, Brady Corporation updated its Change of Control Agreement with Andrew T. Gorman, aligning it with agreements for other executive officers. This move ensures Mr. Gorman receives compensation in the event of a qualifying termination following a change of control, reflecting the company’s commitment to consistent executive agreements.