Brady Corporation (BRC)
Valuation Overview•Is Brady Corporation Overvalued or Undervalued?
The market is pricing the stock in line with historical averages, assuming steady-state growth.
High-quality fundamentals with a strong composite quality score of 76/100, backed by robust profitability and solvency.
Wall Street forecasts a balanced outlook with consensus price targets near the current price.
Verdict: Solid fundamental quality, though profitability presents a headwind.
Wall Street sentiment is generally neutral alongside robust expected earnings growth. This is paired with healthy capital returns, driven predominantly by aggressive share repurchases.
BRC demonstrates strong business quality with robust profitability and healthy margins. This is backed by a fortress balance sheet, holding significant net cash ($16M) and minimal debt risk.
The company demonstrates solid revenue growth (5.1% 3Y CAGR) paired with robust earnings compounding (10.6% EPS 3Y CAGR). The company maintains healthy operational efficiency with a 16.2% operating margin.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $435.2M | +12.8% | +5.1% | +7.0% | +2.6% | |
| EBITDA | $73.2M | — | +6.9% | — | — | |
| Net Income | $57.8M | -4.0% | +8.1% | — | +51.4% | |
| EPS (Diluted) | $1.21 | -3.2% | +10.6% | +13.2% | +51.9% | |
| Free Cash Flow | $67.2M | -12.3% | +26.8% | +6.2% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 51.1% | 50.3% | 49.7% | 49.7% |
| Operating Margin | 16.2% | 16.9% | 16.0% | 14.3% |
| Net Margin | 12.9% | 13.4% | 12.6% | 10.8% |
| FCF Margin | 11.2% | 12.5% | 11.8% | 11.3% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $1.35 | $1.50 | +11.1% | ||
| Q1'26 | $1.09 | $1.09 | +0.0% | ||
| Q4'25 | $1.19 | $1.21 | +1.7% | ||
| Q3'25 | $1.17 | $1.26 | +7.7% | ||
| Q2'25 | $1.22 | $1.22 | +0.0% | ||
| Q1'25 | $1.03 | $1.00 | -2.9% | ||
| Q4'24 | $1.10 | $1.12 | +1.8% | ||
| Q3'24 | $1.11 | $1.19 | +7.2% |
Total return is +28.4% (1Y), outperforming the benchmark by +3.4%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +9.1% | -0.2% | — |
| 1Y | +28.4% | +3.4% | +1.5% |
| 3YCAGR | +21.4% | +1.0% | +5.8% |
| 5YCAGR | +10.3% | -3.2% | +8.5% |
| 10YCAGR | +11.5% | -2.2% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Brady Corporation (BRC) valuation, health, and returns.
Brady Corporation is estimated to be fair under our discounted cash flow framework. relative multiples indicate the stock is Fair versus peers compared to industry peers. trading near fair value (DCF: $94.53)
Brady Corporation has multiple valuation anchors: DCF Intrinsic Value: $94.53 | Peer Relative Fair Value: $90.47. A convergence of these signals offers higher conviction.
Brady Corporation displays good financial health with a composite quality score of 76/100, supported by a Altman Z-Score of 7.0 (safe zone), Piotroski F-Score of 3/9, Return on Invested Capital (ROIC) of 16.7%.
Brady Corporation pays a 1.1% dividend yield, covered by a 24% payout ratio with 32 years of growth, supplemented by a 1.3% buyback yield.
Brady Corporation's current growth trajectory is Accelerating. The company achieved +12.8% 1Y revenue growth and -3.2% 1Y EPS growth, compared to its 3Y revenue CAGR of +5.1%.
Wall Street consensus is Hold based on 10 analysts, beating EPS expectations in 67% of recent quarters with a 1-quarter streak. The consensus price target represents a N/A change from current levels.
Investment risks for Brady Corporation include: -26.6% 1-year max drawdown. Volatility risk is characterized by a beta of 0.52x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.