Brady Corporation
Find Ratings ReportsBRADY CORP's gross profit margin for the second quarter of its fiscal year 2024 is essentially unchanged when compared to the same period a year ago. Even though sales decreased, the net income has increased, representing an increase to the bottom line. BRADY CORP has average liquidity. Currently, the Quick Ratio is 1.39 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.
During the same period, stockholders' equity ("net worth") has increased by 7.37% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.
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Income Statement | Q2 FY24 | Q2 FY23 |
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Net Sales ($mil) | 322.62 | 326.25 |
EBITDA ($mil) | 61.47 | 57.23 |
EBIT ($mil) | 53.93 | 48.78 |
Net Income ($mil) | 43.63 | 37.99 |
Balance Sheet | Q2 FY24 | Q2 FY23 |
---|---|---|
Cash & Equiv. ($mil) | 143.86 | 108.21 |
Total Assets ($mil) | 1407.6 | 1372.27 |
Total Debt ($mil) | 73.36 | 110.51 |
Equity ($mil) | 1038.73 | 967.4 |
Profitability | Q2 FY24 | Q2 FY23 |
---|---|---|
Gross Profit Margin | 52.58 | 50.54 |
EBITDA Margin | 19.05 | 17.54 |
Operating Margin | 16.71 | 14.95 |
Sales Turnover | 0.95 | 0.96 |
Return on Assets | 13.37 | 11.55 |
Return on Equity | 18.13 | 16.39 |
Debt | Q2 FY24 | Q2 FY23 |
---|---|---|
Current Ratio | 2.13 | 2.19 |
Debt/Capital | 0.07 | 0.1 |
Interest Expense | 0.79 | 1.24 |
Interest Coverage | 68.26 | 39.37 |
Share Data | Q2 FY24 | Q2 FY23 |
---|---|---|
Shares outstanding (mil) | 48.33 | 49.66 |
Div / share | 0.24 | 0.23 |
EPS | 0.9 | 0.76 |
Book value / share | 21.49 | 19.48 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 361172.0 | 373491.0 |
BUY. BRADY CORP's P/E ratio indicates a significant discount compared to an average of 48.91 for the Miscellaneous Manufacturing subsector and a significant discount compared to the S&P 500 average of 27.95. For additional comparison, its price-to-book ratio of 2.70 indicates a significant discount versus the S&P 500 average of 4.68 and a significant discount versus the subsector average of 4.93. The price-to-sales ratio is well below both the S&P 500 average and the subsector average, indicating a discount. Upon assessment of these and other key valuation criteria, BRADY CORP proves to trade at a discount to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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BRC 15.14 | Peers 48.91 | BRC 11.18 | Peers 33.35 | |||||||||||||||||||||
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. BRC is trading at a significant discount to its peers. |
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. BRC is trading at a significant discount to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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BRC 13.45 | Peers 24.06 | BRC 1.00 | Peers 0.90 | |||||||||||||||||||||
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations. BRC is trading at a significant discount to its peers. |
Premium. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. BRC trades at a premium to its peers. |
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Price/Book |
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Earnings Growth |
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BRC 2.70 | Peers 4.93 | BRC 21.97 | Peers 128.39 | |||||||||||||||||||||
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. BRC is trading at a significant discount to its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, BRC is expected to significantly trail its peers on the basis of its earnings growth rate. |
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Price/Sales |
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Sales Growth |
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BRC 2.10 | Peers 6.36 | BRC 2.00 | Peers 8.96 | |||||||||||||||||||||
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. BRC is trading at a significant discount to its subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. BRC significantly trails its peers on the basis of sales growth. |
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