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 6.13%, 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 sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Miscellaneous)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Brady Corp. for you?
Low Risk, Medium Return
Absolute
Risk Adjusted
Volatility
Brady Corp.
6.22%
0.89
25.16%
S&P 500
15.76%
0.70
20.15%
Quality key factors
Factor
Value
Sales Growth (5y)
8.15%
EBIT Growth (5y)
11.50%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.03
Sales to Capital Employed (avg)
1.17
Tax Ratio
20.41%
Dividend Payout Ratio
24.39%
Pledged Shares
0
Institutional Holding
100.00%
ROCE (avg)
22.92%
ROE (avg)
16.26%
Valuation Key Factors 
Factor
Value
P/E Ratio
20
Industry P/E
Price to Book Value
3.09
EV to EBIT
15.43
EV to EBITDA
13.24
EV to Capital Employed
3.22
EV to Sales
2.53
PEG Ratio
2.87
Dividend Yield
1.06%
ROCE (Latest)
20.89%
ROE (Latest)
15.55%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bullish
No Trend
OBV
Mildly Bearish
Mildly Bearish
Technical Movement
2What is working for the Company
RAW MATERIAL COST(Y)
Fallen by -4.59% (YoY
NET SALES(Q)
Highest at USD 436.9 MM
-21What is not working for the Company
ROCE(HY)
Lowest at 16.11%
INTEREST COVERAGE RATIO(Q)
Lowest at 1,137.03
INVENTORY TURNOVER RATIO(HY)
Lowest at 3.77 times
DEBTORS TURNOVER RATIO(HY)
Lowest at 6.74 times
INTEREST(Q)
Highest at USD 6.23 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 16.22 %
PRE-TAX PROFIT(Q)
Lowest at USD 55.57 MM
NET PROFIT(Q)
Lowest at USD 45.59 MM
EPS(Q)
Lowest at USD 0.96
Here's what is working for Brady Corp.
Net Sales
Highest at USD 436.9 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Raw Material Cost
Fallen by -4.59% (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
Here's what is not working for Brady Corp.
Interest
At USD 6.23 MM has Grown at 391.1%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Interest Coverage Ratio
Lowest at 1,137.03
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Interest
Highest at USD 6.23 MM
in the last five periods and Increased by 391.1% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Operating Profit Margin
Lowest at 16.22 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Pre-Tax Profit
Lowest at USD 55.57 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (USD MM)
Net Profit
Lowest at USD 45.59 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (USD MM)
EPS
Lowest at USD 0.96
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (USD)
Inventory Turnover Ratio
Lowest at 3.77 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Debtors Turnover Ratio
Lowest at 6.74 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
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