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1. Company Snapshot

1.a. Company Description

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.

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1.b. Last Insights on BRC

Brady Corporation's recent performance was driven by record adjusted EPS in its fiscal 2025 fourth quarter, fueled by steady growth, strong margins, and strategic resilience. The company's acquisition of Mecco Partners, LLC, for approximately $20 million, expanded its capabilities in industrial marking and inkjet technology. Additionally, Brady increased its dividend to shareholders for the 40th consecutive year, demonstrating its commitment to shareholder returns. The company's robust cash flow, low leverage, and conservative management enable flexibility for growth and shareholder returns.

1.c. Company Highlights

2. Brady Corporation's Q1 FY2026 Earnings: A Strong Start

Brady Corporation reported a solid Q1 FY2026 earnings, with organic sales growth of 2.8% and adjusted earnings per share growth of 8%. The company's gross profit margin expanded to 51.5% from 50.3% in the same quarter last year, driven by a favorable product mix and pricing. Adjusted diluted earnings per share came in at $1.13, beating estimates of $1.09. The company's net income increased 15.3% to $53.9 million, and pretax earnings rose 16.5% to $68.5 million. The Americas and Asia region saw a significant increase in sales, up 9.6% from Q1 last year, while Europe and Australia reported a decline in organic sales but an improvement in adjusted segment profit.

Publication Date: Nov -18

📋 Highlights
  • Organic Sales Growth:: 2.8% overall, with Americas/Asia up 4.7% (sales $268.9M, +9.6 YoY).
  • Adjusted EPS Growth:: 8% to $1.13, driven by 16.5% pretax earnings increase to $68.5M.
  • Margin Expansion:: Gross profit margin rose to 51.5% (vs. 50.3% prior year), with R&D up 23% to $23.3M.
  • Cash Flow Strength:: $33.4M operating cash flow, $22.4M free cash flow, ending with $66.8M net cash.
  • Segment Profit Surge:: Europe/Australia adjusted segment profit up 15%, despite 0.8% organic sales decline.

Regional Performance

The Americas and Asia region was a key driver of growth, with sales of $268.9 million, up 9.6% from Q1 last year. Europe and Australia reported sales of $136.4 million, down 0.8% organically but up 3.5% with foreign currency translation. The region's adjusted segment profit improved significantly by 15%, indicating a positive trend. As CFO Ann Thornton mentioned, "We are pleased with the cash conversion improvement in Q1, which is a reasonable expectation after a suppressed Q1 last year."

Cash Flow and Balance Sheet

The company generated $33.4 million in operating cash flow and $22.4 million in free cash flow, finishing the quarter in a net cash position of $66.8 million. This strong cash generation is a testament to the company's ability to manage its working capital effectively. With a Free Cash Flow Yield of 4.64%, the company's cash generation capabilities are attractive to investors.

Guidance and Outlook

Brady Corporation increased its adjusted diluted EPS guidance range to $4.90-$5.15 per share, representing growth of 6.5%-12% over 2025. The company expects organic sales growth in the low single-digit percentages and an income tax rate of approximately 21%. With a P/E Ratio of 17.6 and an expected revenue growth rate of 5.4% next year, the company's valuation appears reasonable. Additionally, the company's ROIC of 13.34% and ROE of 16.63% indicate a strong ability to generate returns on capital.

Valuation Metrics

The company's valuation metrics, including a P/S Ratio of 2.23 and an EV/EBITDA of 12.27, suggest that Brady Corporation is trading at a reasonable multiple. With a Dividend Yield of 1.32%, the company also offers an attractive income stream to investors. Overall, Brady Corporation's strong Q1 FY2026 earnings and guidance increase suggest a positive outlook for the company.

3. NewsRoom

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Brady Corporation elects Board of Directors and declares regular dividend to shareholders

Dec -03

Source: globenewswire.com

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Brady Corporation (BRC) Shareholder/Analyst Call Prepared Remarks Transcript

Dec -03

Source: seekingalpha.com

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Brady Corporation (BRC) Q1 2026 Earnings Call Transcript

Nov -17

Source: seekingalpha.com

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Brady Corporation Reports Fiscal 2026 First Quarter Results and Raises the Low End of its Fiscal 2026 Adjusted Diluted EPS Guidance

Nov -17

Source: globenewswire.com

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Tom Brady 1/1 NFL Shield Autograph Card Hits Fanatics Collect Premier Auction Through Medical Care Technologies Inc. (OTC PINK:MDCE) Subsidiary Infinite Auctions

Nov -14

Source: accessnewswire.com

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Brady Corporation Announces Earnings Conference Call

Nov -03

Source: globenewswire.com

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Q3 2025 Improving Fundamentals Position Portfolio For Upside

Oct -29

Source: seekingalpha.com

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6,228 Shares in Brady Corporation $BRC Purchased by Envestnet Portfolio Solutions Inc.

Oct -23

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.43%)

6. Segments

Identification Solutions

Expected Growth: 3%

Brady Corporation's Identification Solutions segment growth is driven by increasing demand for safety and compliance in industries such as healthcare, manufacturing, and oil & gas. Growing adoption of automation and digitalization in these industries fuels the need for identification and tracking solutions, resulting in a 3% growth rate.

Workplace Safety

Expected Growth: 5%

Brady Corporation's 5% growth in Workplace Safety is driven by increasing regulatory requirements, rising worker compensation claims, and growing awareness of workplace hazards. Additionally, the need for companies to maintain a positive brand image and reduce operational disruptions are contributing to the demand for safety solutions, such as identification and tracking products, and lockout/tagout procedures.

7. Detailed Products

Identification Solutions

Brady's identification solutions provide a wide range of products and services to identify and track people, products, and assets.

Labels and Signs

Brady's labels and signs provide a wide range of identification and safety solutions for industrial, commercial, and institutional applications.

Workplace Safety

Brady's workplace safety solutions provide a range of products and services to help prevent accidents and ensure compliance with safety regulations.

Lockout/Tagout

Brady's lockout/tagout solutions provide a range of products and services to help prevent accidental machine startup and ensure compliance with safety regulations.

Spill Response

Brady's spill response solutions provide a range of products and services to help respond to and clean up spills and leaks.

Absorbents

Brady's absorbents provide a range of products to absorb and clean up spills and leaks.

Sorbent Pads

Brady's sorbent pads provide a range of products to absorb and clean up spills and leaks.

Spill Containment

Brady's spill containment solutions provide a range of products and services to help contain and prevent spills and leaks.

8. Brady Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Brady Corporation operates in a niche market with limited substitutes, but there are some alternatives available. The threat of substitutes is moderate.

Bargaining Power Of Customers

Brady Corporation has a diverse customer base, and no single customer has significant bargaining power. The company's products are also critical to its customers' operations, reducing their bargaining power.

Bargaining Power Of Suppliers

Brady Corporation has a moderate level of dependence on its suppliers, but it also has some bargaining power due to its large scale of operations. The company's suppliers are also diversified, reducing their bargaining power.

Threat Of New Entrants

The barriers to entry in Brady Corporation's industry are relatively high, and new entrants would need significant investments to compete with the company's established brand and distribution network.

Intensity Of Rivalry

The industrial and safety products industry is highly competitive, with several established players competing for market share. Brady Corporation faces intense competition from its rivals, which can lead to pricing pressure and reduced margins.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 7.53%
Debt Cost 5.66%
Equity Weight 92.47%
Equity Cost 7.71%
WACC 7.56%
Leverage 8.14%

11. Quality Control: Brady Corporation passed 9 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
ADT

A-Score: 6.9/10

Value: 7.4

Growth: 6.6

Quality: 6.4

Yield: 5.0

Momentum: 8.0

Volatility: 8.0

1-Year Total Return ->

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Stock-Card
Mueller Industries

A-Score: 6.3/10

Value: 4.5

Growth: 7.1

Quality: 7.9

Yield: 2.0

Momentum: 8.5

Volatility: 8.0

1-Year Total Return ->

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Stock-Card
Brady

A-Score: 5.9/10

Value: 3.8

Growth: 6.2

Quality: 7.6

Yield: 3.0

Momentum: 6.0

Volatility: 9.0

1-Year Total Return ->

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Stock-Card
MSA Safety

A-Score: 5.3/10

Value: 2.6

Growth: 6.7

Quality: 6.6

Yield: 2.0

Momentum: 5.0

Volatility: 9.0

1-Year Total Return ->

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Stock-Card
Brinks

A-Score: 5.1/10

Value: 4.4

Growth: 6.7

Quality: 4.0

Yield: 2.0

Momentum: 6.0

Volatility: 7.7

1-Year Total Return ->

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Stock-Card
Resideo Technologies

A-Score: 5.1/10

Value: 7.3

Growth: 5.6

Quality: 3.7

Yield: 0.0

Momentum: 9.5

Volatility: 4.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

78.05$

Current Price

78.05$

Potential

-0.00%

Expected Cash-Flows