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 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.
13.12%
0.89
25.16%
S&P 500
14.9%
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
89.67%
ROCE (avg)
22.92%
ROE (avg)
16.26%
Valuation Key Factors 
Factor
Value
P/E Ratio
21
Industry P/E
Price to Book Value
3.29
EV to EBIT
16.46
EV to EBITDA
14.12
EV to Capital Employed
3.44
EV to Sales
2.70
PEG Ratio
3.05
Dividend Yield
0.99%
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
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Bullish
Mildly Bearish
Dow Theory
Mildly Bearish
Bullish
OBV
Mildly Bearish
Mildly Bullish
Technical Movement
1What is working for the Company
RAW MATERIAL COST(Y)
Fallen by -2.44% (YoY
-5What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at USD 204.86 MM
DIVIDEND PAYOUT RATIO(Y)
Lowest at 24.34%
DEBTORS TURNOVER RATIO(HY)
Lowest at 7.05 times
Here's what is working for Brady Corp.
Raw Material Cost
Fallen by -2.44% (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 11.2 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.
Operating Cash Flow
Lowest at USD 204.86 MM and Fallen
In each year in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (USD MM)
Debtors Turnover Ratio
Lowest at 7.05 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Dividend Payout Ratio
Lowest at 24.34%
in the last five yearsMOJO Watch
Company is distributing lower proportion of profits generated as dividend
DPR (%)






