Fundamental analysis: Brady Corporation (BRC)

Awarener score: 7.0

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Very good), the business stability (Very good) and growth (Poor), and the company's inclination to return cash to the stockholders (Very good).

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 5.5

Business has been shrinking. It's been weak when measured against peer companies.
Brady Corporation business trend stability is very good. The higher the stability, the lower the risk. It looks slightly better than rivals.

Margins score: 7.7

BRC profit margins -on goods and services sold- are usually good. They stand well ranked against rival companies.
Business profit on sales tends to be very good. It's great when measured against competitors.
Profits on sales made -available to repay debt and purchase properties- are usually good. They remain a slight improvement compared to peers.
Earnings -before income taxes and interests on loans taken- tend to be very good in relation to total revenues. They're still well ranked against similar companies.
Profits -before income taxes- are usually very good considering total sales, and remain more than average in relation to rivals.
Total net profit tends to be very good when confronted to sales. Company stands more than average in relation to comparable firms.

Growth score: 3.9

Brady Corporation profit growth -on goods and services sold- has been almost stagnant. It's been lacking compared to competitors.
In recent years, earnings -on operations- have been growing at a very low step, which has been somewhat worse than comparable firms.
Profits -available to repay debt and purchase properties- have been growing at a very low pace, which compares almost average when measured against peer enterprises.
Earnings -before income taxes and interests on loans taken- have been growing at a very low tempo. It turns to be close to average when compared to similar stocks.
In past years, profits -before income taxes- grew at a very low speed. It was slightly worse than rivals.
In the previous years, growth on total net profit has been very low, and almost average when measured against peer companies.
Earnings per share have grown at a very low rhythm in past years. It's been lacking compared to industry peers.

Miscellaneous score: 7.0

BRC had to pay sparse income taxes in relation to profits made in the past years. It's been slightly better than peers.
Research and development expenses consume a very little portion of revenues. It's almost average when measured against competitors.
The company grows modestly in relation to research and development efforts. It stands in a very weak position compared to rival companies.

Profitability score: 9.5

Brady Corporation usually gets huge returns on the resources it controls. It proves great when measured against peer firms.
The company normally gets excellent proceeds -on the resources directly invested in the business-. They remain excellent in relation to similar companies.
There's usually excellent profitability -in relation to owned resources-. It ranks encouraging in relation to competitors.
In the past, got huge returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's great when measured against comparable enterprises.

Usage of Funds score: 6.4

BRC usually uses a portion of genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments is rather normal. It stands great when measured against rival firms.
The company is usually somewhat investing in new property, plant, and equipment, to improve its operating capabilities, which is more than average in relation to industry peers.
In the past twelve months it paid run-of-the-mill dividends, considering the current stock price. It came slightly better than competitors.
In recent years, has slightly cut back dividend payments. The company has behaved a disappointment compared to similar firms.
Dividend payments usually represent a modest portion of genuine funds generation and shouldn't be at risk. Sustainability looks slightly better than comparable companies.
The company usually neither enlarges nor reduces the pool of investors, resulting in approximately the same mouths feeding on the pie of profits. It remains a slight improvement compared to peer enterprises.
Repurchase effectiveness metric is very complex. Run again in analytical mode if you 're interested in a technical explanation. It stands in good shape compared to rivals.
The company uses a moderate portion of genuine fund generation to reward investors, which can probably be sustained for as long as business doesn't turn very sour. It still looks weak when measured against competitors.

Balance Sheet score: 5.7

Brady Corporation intangible assets (like brands and goodwill) represent a portion of resources controlled, according to accounting books. There could be difficulties in liquidating them if the company ever gets in financial distress. It happens to be almost average when measured against peer companies.
The company has roughly double short-term resources than short-term obligations. Liquidity concerns are normally not an issue. It turns to be close to average when compared to similar firms.
Very few resources controlled were provided for with financial debt. Financial strength is very solid. Company could increase debt if it wished so, to reinvest in business, to buy a smaller company or to reward stockholders. It remains slightly better than rival firms.
Most controlled resources take time to be turned into cash and equivalents, which is somewhat risky. It looks weak when measured against rivals.
For every dollar of short-term obligations, the company has enough dollars in cash and short-term receivables. It's close to average when compared to peer firms.
For every dollar of short-term obligations, the company has almost another of cash and equivalents, which is slightly worse than similar enterprises.
Usually, sales are on a two-months credit. It still ranks almost average when measured against peers.
Normally has approximately three months of sales worth in inventory. It comes up as lacking compared to competitors.
On average, it takes higher than five months from the purchase to charging customers. It happens to be somewhat worse than peers.
On average pays suppliers two months after the purchase. It ranks similar to industry peers.
The company pays its suppliers four months or more before charging its customers, so there's significant money invested in working capital. It's lacking compared to similar companies.
Net interest expenses consume a non-significant portion of usual business earnings, and are therefore extremely easily to bear. It stands well ranked against rival firms.
Business earnings have usually been great when measured against loans taken. Debt might be repaid almost as soon as desired. It ranks more than average in relation to comparable enterprises.
Revenues are quite good in relation to property, plant, and equipment required to operate. This metric is likely dependent on the industry the company operates in. The more property, plant, and equipment used, the more the company must reinvest to fight obsolescence, which usually means less available funds for the shareholders in the long run. It looks lacking compared to similar firms.
Resource exploitation is very good when yearly sales are considered. This metric is normally tied to the industry where the firm belongs. It's still slightly better than peer companies.

Valuation score: 6.6

Brady Corporation looks reasonable in relation to profits and financial position. It happens to be great when measured against competitors.
Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains in a weak position compared to peers.
In the past twelve months, the company generated some good free funds in relation to the stock price, which stands somewhat better than similar companies.
The company usually generates more than enough genuine funds to cover up for its business needs. Surplus cash may be used to repay loans, to eventually buy new businesses, or to reward investors. Considering the financial position and stock price, at the current price the share might be interesting. It's still encouraging in relation to industry firms.
In the past twelve months, the company has slightly rewarded investors, considering both dividends and share on the pie of earnings. It came up in good shape compared to peer ventures.
The company has more cash than debt. It might be poised to increase stockholder payments, or to fund new business projects. It looks slightly better than similar enterprises.
Considering the past twelve months, traditional Price-to-Earnings relation might be more or less reasonable, but hardly cheap. It ranks encouraging in relation to peer companies.
Comparing the current stock price with the past twelve-months revenues gives a three or four to one relationship. This is an important metric to check its evolution through time, and to compare to industry peers. It looks in a weak position compared to rival firms.
The relation between the stock price and accounting book value is high, which may be good or bad depending on context. Run again in analytic mode if you want to dig deeper. The company remains slightly worse than peer firms.
In the past twelve months, the operating business earned good money when compared to the current stock price and financial position. It happens to be encouraging in relation to industry peers.
In an alternate metric of bang for the buck, the company has usually shown a very good earnings power ability when measured against the current stock price and financial position. It's still a slight improvement compared to peer companies.

Total score: 6.5

Company at a glance: Brady Corporation (BRC)

Sector, industry: Industrials, Security & Protection Services

Market Cap: 2.44 billions

Revenues TTM: 1.31 billions

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