Quality Investor

Brady Corporation

Rank #99Capital ReturnWatchlistCompare with other stocks

BRC · NYSE · Industrials

Brady Corporation (BRC) — Rank #99 by gross profitability (GP/assets 0.46) · ROE 15.1% · Piotroski F-Score 9 / 9.

As-of 2026-10-30 · CIK 0000746598 · all metrics point-in-time as of the filing date.

About

Brady Corporation manufactures and supplies identification solutions and workplace safety products that identify and protect premises, products, and people in the Americas, Asia, Europe, and Australia.

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The company offers safety signs, traffic signs and control products, floor-marking tapes, pipe markers, labeling systems, spill control products, lockout/tagout devices, personal protection equipment, first aid products, and software and services for safety compliance auditing, procedures writing, and training; materials, radio frequency identification and barcode scanners for product identification, direct part marking, engraving equipment, brand protection labeling, work in process labeling, finished product identification, asset tracking labels, asset tags, and industrial track and trace applications; and handheld printers, wire markers, sleeves, and tags. It also provides wristbands, labels, printing systems, and other products used in hospital, laboratory, and other healthcare settings for tracking and improving the safety of patients; and name tags, badges, lanyards, rigid card printing systems, and access control software. The company serves industrial manufacturing, electronic manufacturing, healthcare, chemical, oil, gas, alternative energy, automotive, aerospace, governments, mass transit, mechanical contractors, construction, utilities, education, leisure and entertainment, retail and telecommunications, and others. The company markets and sells its products through multiple channels, including distributors, a direct sales force, and digital channels.

Brady Corporation was incorporated in 1914 and is based in Milwaukee, Wisconsin.

Industry
Security & Protection Services
Sector
Industrials
State
WI
Filer Category
Large accelerated filer
Fiscal Year End
July 31

Company Snapshot

P/E and reverse DCF are the primary valuation lenses at this stage.

Market Cap

—

P/E (annual)

—

P/S (annual)

—

P/B

—

P/OCF (annual)

—

Shareholder Yield

—

Employees

6,325

Industry

Security & Protection Services

Exchange

NYSE

11/11

Flags passed

BRC passes 11/11 quality flags

  • PASS
    Gross margin holding
  • PASS
    Dilution within 2%
  • PASS
    FCF not negative from investment
  • PASS
    Disclosure consistent
  • PASS
    Revenue not declining
  • PASS
    Operating margin holding
  • PASS
    Free cash flow intact
  • PASS
    Passes safety gate
  • PASS
    Balance sheet stable
  • PASS
    No competitive retreat
  • PASS
    SBC not compressing margin

Strengths Operating leverage expanding · Deferred revenue growing

No data Valuation — not counted as a pass.

A count of the 12 warning flags that could be evaluated. Unweighted: colour follows the worst flag.

Quality Profile

Profitability

1/1 pass
GP / assets
0.46
Return on equity
15.1%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
0.36
Current ratio
1.94×
Net cash
$172.16M

Cash Flow

2/3 pass
Positive FCF
PASS
Cash-backed earnings
WARN
Accruals healthy
PASS
SBC / revenue
1.4%

Growth

2/2 pass
Revenue growth
9.8%
Piotroski F-Score
9 / 9
Share dilution
-0.7%

FCF yield, shareholder yield, and buyback activity are the primary reads at this stage.

Profitability

Does it make money well?

No warning flags · GP/assets 0.46

Gross profitability (GP / assets)

0.46

Primary signal (Novy-Marx).

2nd of 6 SIC 39 peers

Return on equity

15.1%

Gross margin

51.7%

2nd of 6 SIC 39 peers

Revenue growth (YoY)

9.8%

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2023202420252026
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

7.7%

Revenue CAGR (5Y)

7.7%

Earnings CAGR (3Y)

5.5%

FCF CAGR (3Y)

0.5%

Cash Flow Health

Is the cash real?

No warning flags · FCF 6% below net income

Free cash flow

$192.65M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF vs net income

-6.2%

(FCF − net income) ÷ |net income|. Positive: cash above earnings. Negative: below.

FCF not below net income

Fails when free cash flow is below net income (yellow flag).

WARN

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

1.4%

Stock-based comp intensity.

Balance Sheet Strength

Can it survive a storm?

No warning flags · net cash $172.16M, F-Score 9/9

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

0.36

2nd of 5 SIC 39 peers (best = lowest)

Current ratio

1.94×

6th of 6 SIC 39 peers

Quick ratio

1.26×

Net cash

$172.16M

Cash & equivalents minus total debt.

Piotroski F-Score

9 / 9

Fundamental-strength score (0-9).

Valuation

Is the price reasonable?

No data

Dividend safety

Composite score

4.0 / 5

Strong
Payout ratio
22.5%5/5 Strong
FCF coverage
4.18×5/5 Strong
Dividend growth streak
2 yr1/5 Weak
Balance-sheet health
D/E 0.36 · IC 27.17×5/5 Strong

Capital allocation quality

Composite score

3.0 / 5

Good
Share count trend(net buybacks)
-0.7%3/5 Good
Buyback timing
N/AN/A
Dividend growth consistency
2 yr1/5 Weak
Net debt trajectory(deleveraging)
5.3%5/5 Strong

Lifecycle Phase History

20212026
Capital Return
Value

Price History

BRC+78.8% · +12.3% CAGRSPY+82.9% · +12.8% CAGR