Quality Investor

Brady Corporation

Rank #94Hypergrowth

BRC · NYSE · Industrials

Brady Corporation (BRC) — Rank #94 by gross profitability (GP/assets 0.46) · ROE 15.1% · Piotroski F-Score N/A.

As-of 2026-09-15 · 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.

Show more

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 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

Price History

BRC+81.6% · +12.7% CAGRSPY+80.5% · +12.5% CAGR

Company Snapshot

P/S is the primary valuation lens — earnings are reinvested, not available for P/E.

Market Cap

$3.99B

P/E (annual)

P/S (annual)

2.4

P/B

2.9

P/OCF (annual)

16.3

Shareholder Yield

11.5%

Employees

6,325

Industry

Security & Protection Services

Exchange

NYSE

Signal Flags

3 green
Revenue growth acceleratingGrowth rate increasing year over year
Operating leverage expandingOperating income growing faster than revenue
Deferred revenue growingRevenue and deferred revenue both growing — retention signal

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
53.7%
Piotroski F-Score
N/A
Share dilution
-10.3%

Terry Smith quality gate

Passes 3/5 Terry Smith thresholds

What Growth Is Priced In

Implied revenue growth (10Y)

8.4%

incredible deal

The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).

Buyback tailwind: -10.3% — per-share value needs a total required return of -1.9% once share-count change is priced in.

vs. own 6-year median revenue growth: -1.1%

Cost-of-equity sensitivity (implied growth at different discount rates)

r = 8%

4.1%

r = 10% (base)

8.4%

r = 12%

12.2%

Net debt / market cap: -4.2%

Note: current FCF margin is 1.8σ above its historical mean — implied growth may understate valuation risk if the margin reverts.

Base FCF: $192.7M3Y mean FCF: $140.5M

Valuation History

Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.

P / S

Price / revenue per share

2.4xExpensive
2.1xmed 2.3x2.4x

P / B

Price / book value per share

2.9xCheap
2.7xmed 3.2x3.8x

P / GP

Price / gross profit per share

4.9xExpensive
4.4xmed 4.7x4.9x

P / FCF

Price / free cash flow per share

15.4xCheap
15.4xmed 20.6x22.1x

Revenue growth and the path to profitability (margin trend) are the primary reads at this stage.

Profitability

Gross profitability (GP / assets)

0.46

Primary signal (Novy-Marx).

2nd of 7 SIC 39 peers

Return on equity

15.1%

Gross margin

51.7%

2nd of 7 SIC 39 peers

Revenue growth (YoY)

53.7%

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2018201920202021
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

Revenue CAGR (5Y)

7.7%

Earnings CAGR (3Y)

5.5%

FCF CAGR (3Y)

Anti-fragile safety

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

0.36

2nd of 6 SIC 39 peers (best = lowest)

Current ratio

1.94×

7th of 7 SIC 39 peers

Quick ratio

1.26×

Net cash

$172.16M

Cash & equivalents minus total debt.

Cash-flow health

Free cash flow

$192.65M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF / net income

-0.06

Cash-backing of earnings.

FCF/NI divergence

Unfavorable divergence (yellow flag).

WARN

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

1.4%

Stock-based comp intensity.

Dividend safety

Composite score

3.8 / 5

Good
Payout ratio
22.5%5/5 Strong
FCF coverage
4.18×5/5 Strong
Dividend growth streak
0 yr0/5 Weak
Balance-sheet health
D/E 0.36 · IC 27.17×5/5 Strong

Piotroski F-Score

F-Score

N/A

Only 8/9 components determinable.

Lifecycle Phase History

20172021
Value
Decline
Capital Return