Why is Brady Corp. ?
1
High Management Efficiency with a high ROE of 16.26%
2
Company has a low Debt to Equity ratio (avg) at times
3
Poor long term growth as Net Sales has grown by an annual rate of 6.96% and Operating profit at 9.42% over the last 5 years
4
Flat results in Jul 25
- OPERATING CASH FLOW(Y) Lowest at USD 181.19 MM
- ROCE(HY) Lowest at 16.76%
- INTEREST(Q) At USD 1.14 MM has Grown at 22.12%
5
With ROE of 16.69%, it has a fair valuation with a 3.02 Price to Book Value
- The stock is trading at a premium compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 5.24%, its profits have risen by 1.9% ; the PEG ratio of the company is 5.6
6
High Institutional Holdings at 87.52%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
How much should you hold?
- Overall Portfolio exposure to Brady Corp. should be less than 10%
- Overall Portfolio exposure to Miscellaneous should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Miscellaneous)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Brady Corp. for you?
Low Risk, Medium Return
Absolute
Risk Adjusted
Volatility
Brady Corp.
2.46%
0.78
24.99%
S&P 500
13.22%
0.64
20.20%
Quality key factors
Factor
Value
Sales Growth (5y)
6.96%
EBIT Growth (5y)
9.42%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.03
Sales to Capital Employed (avg)
1.19
Tax Ratio
20.41%
Dividend Payout Ratio
23.12%
Pledged Shares
0
Institutional Holding
89.40%
ROCE (avg)
22.92%
ROE (avg)
16.26%
Valuation Key Factors 
Factor
Value
P/E Ratio
18
Industry P/E
Price to Book Value
3.02
EV to EBIT
14.34
EV to EBITDA
12.41
EV to Capital Employed
3.08
EV to Sales
2.39
PEG Ratio
5.64
Dividend Yield
100.68%
ROCE (Latest)
21.47%
ROE (Latest)
16.69%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Mildly Bearish
Dow Theory
Mildly Bullish
Mildly Bearish
OBV
Mildly Bullish
Mildly Bearish
Technical Movement
3What is working for the Company
RAW MATERIAL COST(Y)
Fallen by 1.81% (YoY
INVENTORY TURNOVER RATIO(HY)
Highest at 4.25 times
NET SALES(Q)
Highest at USD 397.27 MM
-10What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at USD 181.19 MM
ROCE(HY)
Lowest at 16.76%
INTEREST(Q)
At USD 1.14 MM has Grown at 22.12%
Here's what is working for Brady Corp.
Net Sales
Highest at USD 397.27 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Inventory Turnover Ratio
Highest at 4.25 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Raw Material Cost
Fallen by 1.81% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Depreciation
Highest at USD 10.36 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (USD MM)
Here's what is not working for Brady Corp.
Interest
At USD 1.14 MM has Grown at 22.12%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Operating Cash Flow
Lowest at USD 181.19 MM
in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (USD MM)






