Brady Corporation
Brady Corporation Fundamental Analysis
Brady Corporation (BRC) shows moderate financial fundamentals with a PE ratio of 19.60, profit margin of 13.01%, and ROE of 16.60%. The company generates $1.6B in annual revenue with strong year-over-year growth of 12.84%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 73.5/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze BRC's fundamental strength across five key dimensions:
Efficiency Score
ExcellentBRC demonstrates superior asset utilization.
Valuation Score
ModerateBRC shows balanced valuation metrics.
Growth Score
ModerateBRC shows steady but slowing expansion.
Financial Health Score
ExcellentBRC maintains a strong and stable balance sheet.
Profitability Score
ModerateBRC maintains healthy but balanced margins.
Key Financial Metrics
Is BRC Expensive or Cheap?
P/E Ratio
BRC trades at 19.60 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, BRC's PEG of 5.06 indicates potential overvaluation.
Price to Book
The market values Brady Corporation at 3.05 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 13.26 times EBITDA. This signals the market has high growth expectations.
How Well Does BRC Make Money?
Net Profit Margin
For every $100 in sales, Brady Corporation keeps $13.01 as profit after all expenses.
Operating Margin
Core operations generate 16.35 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $16.60 in profit for every $100 of shareholder equity.
ROA
Brady Corporation generates $11.18 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Brady Corporation produces operating cash flow of $204.55M, showing steady but balanced cash generation.
Free Cash Flow
Brady Corporation generates strong free cash flow of $169.50M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $3.59 in free cash annually.
FCF Yield
BRC converts 4.25% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
19.60
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
5.06
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.05
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.55
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.11
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.13
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.17
vs 25 benchmark
ROA
Return on assets percentage
0.11
vs 25 benchmark
ROCE
Return on capital employed
0.17
vs 25 benchmark
How BRC Stacks Against Its Sector Peers
| Metric | BRC Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 19.60 | 25.83 | Better (Cheaper) |
| ROE | 16.60% | 1278.00% | Weak |
| Net Margin | 13.01% | -43774.00% (disorted) | Strong |
| Debt/Equity | 0.11 | 0.80 | Strong (Low Leverage) |
| Current Ratio | 2.13 | 10.63 | Strong Liquidity |
| ROA | 11.18% | -1539613.00% (disorted) | Strong |
BRC outperforms its industry in 5 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Brady Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
55.03%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
86.53%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
42.35%
Industry Style: Cyclical, Value, Infrastructure
High Growth