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Brady Corp

BRC

Miscellaneous Manufacturing Industries

Mkt Cap

$2.85B

PE

15.13

Debt

$48.09M

Cash

$143.9M

EV

$2.754B

FCF

$178.2M

Market Cap

$2.85B

P/E Ratio

15.13

Debt

$48.09M

Cash

$143.9M

EV

$2.754B

FCF

$178.2M
Charts data: {"Earnings":[{"time":"2014-07-30","value":-45968000},{"time":"2015-07-30","value":2987000},{"time":"2016-07-30","value":80110000},{"time":"2017-07-30","value":95645000},{"time":"2018-07-30","value":91060000},{"time":"2019-07-30","value":131258000},{"time":"2020-07-30","value":112369000},{"time":"2021-07-30","value":129659000},{"time":"2022-07-30","value":149979000},{"time":"2023-07-30","value":174857000}],"Sales":[{"time":"2014-07-30","value":1225034000},{"time":"2015-07-30","value":1171731000},{"time":"2016-07-30","value":1120625000},{"time":"2017-07-30","value":1113316000},{"time":"2018-07-30","value":1173851000},{"time":"2019-07-30","value":1160645000},{"time":"2020-07-30","value":1081299000},{"time":"2021-07-30","value":1144698000},{"time":"2022-07-30","value":1302062000},{"time":"2023-07-30","value":1331863000}],"Net Margins":[{"time":"2014-07-30","value":-0.037523856480718085},{"time":"2015-07-30","value":0.0025492199148097984},{"time":"2016-07-30","value":0.07148689347462353},{"time":"2017-07-30","value":0.08591002015600242},{"time":"2018-07-30","value":0.07757372954489113},{"time":"2019-07-30","value":0.11309056602147943},{"time":"2020-07-30","value":0.10392037724995584},{"time":"2021-07-30","value":0.11326917667367288},{"time":"2022-07-30","value":0.11518575920347879},{"time":"2023-07-30","value":0.13128752732075297}],"Assets":[{"time":"2014-07-30","value":1253665000},{"time":"2015-07-30","value":1062897000},{"time":"2016-07-30","value":1043964000},{"time":"2017-07-30","value":1050223000},{"time":"2018-07-30","value":1056931000},{"time":"2019-07-30","value":1157308000},{"time":"2020-07-30","value":1142466000},{"time":"2021-07-30","value":1377756000},{"time":"2022-07-30","value":1367332000},{"time":"2023-07-30","value":1389257000}],"Stockholders Equity":[{"time":"2014-07-30","value":733076000},{"time":"2015-07-30","value":587688000},{"time":"2016-07-30","value":603598000},{"time":"2017-07-30","value":700140000},{"time":"2018-07-30","value":752112000},{"time":"2019-07-30","value":850774000},{"time":"2020-07-30","value":863072000},{"time":"2021-07-30","value":963028000},{"time":"2022-07-30","value":911298000},{"time":"2023-07-30","value":990919000}],"ROE":[{"time":"2014-07-30","value":-0.06270564034288396},{"time":"2015-07-30","value":0.0050826288779080055},{"time":"2016-07-30","value":0.13272078436310258},{"time":"2017-07-30","value":0.13660839260719285},{"time":"2018-07-30","value":0.12107239347331249},{"time":"2019-07-30","value":0.15428069028907795},{"time":"2020-07-30","value":0.1301965537058322},{"time":"2021-07-30","value":0.13463679145362337},{"time":"2022-07-30","value":0.1645773391360455},{"time":"2023-07-30","value":0.1764594280662698}],"ROA":[{"time":"2014-07-30","value":-0.030956435730438353},{"time":"2015-07-30","value":0.034011762193326356},{"time":"2016-07-30","value":0.11291385526703986},{"time":"2017-07-30","value":0.12581708837075553},{"time":"2018-07-30","value":0.14682415408385222},{"time":"2019-07-30","value":0.144709964849461},{"time":"2020-07-30","value":0.125257119249063},{"time":"2021-07-30","value":0.12444874128655582},{"time":"2022-07-30","value":0.14133802178256635},{"time":"2023-07-30","value":0.1650054669510393}]}

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. It operates through two segments, IDS and WPS. The IDS segment offers materials, printing systems, RFID, and bar code scanners for product identification, brand protection labeling, work in process labeling, finished product identification, and industrial track and trace applications; safety signs, floor-marking tapes, pipe markers, labeling systems, spill control products, lockout/tagout device, and software and services for safety compliance auditing, procedure writing, and training; and hand-held printers, wire markers, sleeves, and tags for wire identification. Its products also comprise name tags, badges, lanyards, rigid card printing systems, and access control software for people identification; and wristbands, labels, printing systems, and other products for tracking and improving the safety of patients. This segment serves industrial and electronic manufacturing, healthcare, chemical, oil, gas, automotive, aerospace, governments, mass transit, electrical contractors, education, leisure and entertainment, telecommunications, and other industries through distributors, direct sales force, and digital channels. The WPS segment provides workplace safety, identification, and compliance products, such as safety and compliance signs, tags, labels, and markings; informational signage and markings; asset tracking labels; facility safety and personal protection equipment; first-aid products; and labor law and other compliance posters for process, government, education, construction, and utilities industries, as well as manufacturers through catalog and digital channels. It also offers stock and custom identification products; and sells related resale products. Brady Corporation was incorporated in 1914 and is headquartered in Milwaukee, Wisconsin.

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Growth

%

%

Discount

%

%

Multiple

g\r+10%+11%+12%+13%+14%
0%109887
+1%1110988
+2%13111098
+3%141311109
+4%1714121110
Years012345678910TV
FCF$178.2M$189.1M$200.5M$212.2M$224.4M$237M$250M$263.5M$277.3M$291.5M$306.1M$3.061B
DCF$164.5M$151.6M$139.5M$128.3M$117.8M$108.1M$99.04M$90.65M$82.86M$75.66M$756.6M
Value$1.915B

In the chart Earnings are multiplied by this value.

Earnings Growth 30%
Earnings Stability 52%


Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years07-201507-201607-201707-201807-201907-202007-202107-202207-2023TTM
Net Margin0.25%7.1%8.6%7.8%11%10%11%12%13%14%
ROA3.4%11%13%15%14%13%12%14%17%17%
ROE0.51%13%14%12%15%13%13%16%18%18%

What is the average Net Margin?

The average Net Margin over the past 5 years is +10.91%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is +0.81%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +14.13%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is +0.23%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +14.69%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is +0.89%.


Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years07-201507-201607-201707-201807-201907-202007-202107-202207-2023TTM
Debt FCF3.651.780.840.430.780.00-1.260.260.27
Debt Equity0.410.360.150.070.120.00-0.100.050.05
MIN
Graham Stability--100%100%100%100%100%100%100%100%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 0.27.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is 0.03.

What is the Graham’s Stability?

Graham’s Stability measure stands at 1.00.


Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years07-201607-201807-202007-2022Trend
Revenue2.5%2.6%7.2%2.3%1.4%
Net Income12%14%16%17%-210%
Stockholders Equity7.3%5.7%4.7%8.7%1.3%
FCF6.5%9.4%19%150%2.5%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +2.56%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is +1.36%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is +13.94%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is -213.98%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +5.67%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is +1.25%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is +9.39%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is +2.5%.