# Brady (BRC.US)

Canonical: https://gigainvestors.com/s/BRC

Analysis as of: 2026-10-16T07:27:04.186Z. Financial observations: FY1997–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

A wonderful business at too high a price

Quality tests for Buy: pass (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $84.03 per share; close as of 2026-10-15.

Estimated value: low $61.76 per share, central $83.23 per share, high $97.03 per share. Buy at or below the central value $83.23 per share. Valuation as of 2026-10-16T07:27:04.186Z; scenarios are not confidence intervals.

Expected annual return: 9.9% at the stated quote. About 9.9% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: pass

- 3 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 3

- Years with a net loss: 0

- Operating margin variation: 0.12×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.12×

- FY2018: 0.13×

- FY2019: 0.14×

- FY2020: 0.14×

- FY2021: 0.15×

- FY2022: 0.15×

- FY2023: 0.17×

- FY2024: 0.18×

- FY2025: 0.16×

- FY2026: 0.16×

### moat: pass

- ROIC, median of available years: 49.6%

- ROIC, second-lowest year: 37.8%

- Typical minus recent gross margin: -1.3 pp

- Typical gross margin (annual median): 50.0%

- Recent gross margin (lower of latest and 3-year median): 51.3%

- Years with nonpositive capital: 0

- Capital spending / revenue: 2.4%

- ROIC including acquisitions, ten-year median: 15.9%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 41.9%

- FY2018: 65.5%

- FY2019: 61.4%

- FY2020: 72.9%

- FY2021: 46.0%

- FY2022: 44.4%

- FY2023: 53.3%

- FY2024: 54.3%

- FY2025: 37.8%

- FY2026: 36.7%

### economics: pass

- Owner earnings / net income, 5-yr: 0.98×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $894M

- Net income, five-year total: $917M

- Return on incremental invested capital: 52.9%

- Working capital / revenue, annual change: 0.5 pp

- Working capital / revenue, change between three-year averages: 3.4 pp

- Working capital / revenue, final three-year average: 21.1%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 1.00×

- FY2023: 1.08×

- FY2024: 0.75×

- FY2025: 1.07×

- FY2026: 1.00×

### management: pass

- Historical market-dollar context (not the management verdict): 2017 to 2026 (9 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 61.4% vs 37.8%

- Per-share earnings: 1.73 to 4.07 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -0.6%

- Ordinary dilution, 5-year annual growth: -1.8%

- Market cap gain: $2.8B

- Cumulative retained earnings: $970M

- Diluted shares, 10-year annual growth: -0.6%

- Diluted shares, 5-year annual growth: -1.8%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value growth: 11.2%

- Per-share value change: $2.33

- Per-share value, starting three-year median: $1.73

- Per-share value, ending three-year median: $4.07

- Buybacks concentrated in cheaper years (correlation): 0.77

- Average buyback yield: 1.6%

- Buyback history: 9 years

- Debt-funded buybacks: Yes

- Acquisition spending: $412M

- Cumulative net income, 10 years: $1.5B

- ROIC, first three-year median: 61.4%

- ROIC, last three-year median: 37.8%

Chart: Earnings per share; fiscal year observations.

- FY2017: $1.84

- FY2018: $1.73

- FY2019: $2.46

- FY2020: $2.11

- FY2021: $2.47

- FY2022: $2.90

- FY2023: $3.51

- FY2024: $4.07

- FY2025: $3.94

- FY2026: $4.30

### accounting: pass

- Sloan accruals: -2.1%

- Receivables to sales index (DSRI): 1.02×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 9.4%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.19×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.58×

Chart: Sloan accruals; fiscal year observations.

- FY2017: -4.6%

- FY2018: -4.9%

- FY2019: -2.7%

- FY2020: -2.5%

- FY2021: -5.5%

- FY2022: 2.3%

- FY2023: -2.5%

- FY2024: -3.8%

- FY2025: 0.5%

- FY2026: -2.1%

## Holders

- [John Rogers](https://gigainvestors.com/AI): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Andrew Adams](https://gigainvestors.com/MPF): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Price needs cash profits to grow 6% a year for ten years · "Brady beats top-line and bottom-line estimates; gives FY27 outlook" (seekingalpha.com, Sep 2026) · sales +9.8%

Story as of 2026-10-16T09:58:25.554Z; price observation 2026-10-15.

Price needs cash profits to grow 6% a year for ten years

- 2025-05-29: BRC Q1 Earnings Call: Revenue Misses Expectations Amid Tariff Headwinds and Strategic Acquisitions ([finance.yahoo.com](https://finance.yahoo.com/news/brc-q1-earnings-call-revenue-190841238.html))

- 2026-02-27: Brady Declares New Dividend As Buybacks And Earnings Guidance Shape Returns ([finance.yahoo.com](https://finance.yahoo.com/news/brady-declares-dividend-buybacks-earnings-081344112.html))

- 2026-05-18: Brady Corp. Boosts FY26 Outlook; Shares Up 4.2% - Update ([nasdaq.com](https://www.nasdaq.com/articles/brady-corp-boosts-fy26-outlook-shares-42-update))

### Sales · FY2025–2026

sales +9.8%; source https://www.sec.gov/Archives/edgar/data/746598/000074659826000044/brc-20260731.htm; observed 2026-09-03.

- FY2017: $1.1B 

- FY2018: $1.2B 

- FY2019: $1.2B 

- FY2020: $1.1B 

- FY2021: $1.1B 

- FY2022: $1.3B 

- FY2023: $1.3B 

- FY2024: $1.3B 

- FY2025: $1.5B 

- FY2026: $1.7B 

### Gross margin · FY2026

gross margin 51.7%; source https://www.sec.gov/Archives/edgar/data/746598/000074659826000044/brc-20260731.htm; observed 2026-09-03.

- FY2017: 50.1% 

- FY2018: 50.1% 

- FY2019: 49.9% 

- FY2020: 48.8% 

- FY2021: 49.0% 

- FY2022: 48.5% 

- FY2023: 49.4% 

- FY2024: 51.3% 

- FY2025: 50.3% 

- FY2026: 51.7% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in security & protection services; annual sales are USD 1.7 billion.

- Source: https://www.sec.gov/Archives/edgar/data/746598/000074659826000044/brc-20260731.htm (filed 2026-09-03); FY2026: revenue 1661565000; grossProfit 859829000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); BRC.US: 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. 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 name tags, 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.

### Why customers stay

Margins ranged from 50.3% to 51.7% during 2024–26; it earns 49.6% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-09-03); FY2024: grossProfit / revenue = 51.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-09-03); FY2025: grossProfit / revenue = 50.3%.

- Source: https://www.sec.gov/Archives/edgar/data/746598/000074659826000044/brc-20260731.htm (filed 2026-09-03); FY2026: grossProfit / revenue = 51.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-09-03); 10-year return on capital observations [[2017,0.4188361051964513],[2018,0.6550621716518388],[2019,0.6140494099109369],[2020,0.7288592893091537],[2021,0.45968813095662747],[2022,0.4440828440178865],[2023,0.5329346299287895],[2024,0.5431823131933866],[2025,0.3781710175389831],[2026,0.36723070864033247]]; median 0.4963113804427085. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 49% gross margin through 2022 cost inflation.

- Source: https://www.sec.gov/Archives/edgar/data/746598/000074659826000044/brc-20260731.htm (filed 2026-09-03); Gross margin observations: [[2021,0.49047521704414615],[2022,0.4850398828934413],[2023,0.4935004576296511]]; range within 2 percentage points.

### Where the cash goes

Spends 3.2% of cash earnings on expansion; earns 52.9% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-09-03); FY2017: growth capex 0; upkeep 15167000; owner earnings 107781000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-09-03); FY2018: growth capex 0; upkeep 21777000; owner earnings 94725000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-09-03); FY2019: growth capex 0; upkeep 32825000; owner earnings 122232000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-09-03); FY2020: growth capex 0; upkeep 27277000; owner earnings 108529000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-09-03); FY2021: growth capex 1706000; upkeep 25483000; owner earnings 129659000. Growth capex / owner earnings = 0.013157590294541837.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-09-03); FY2022: growth capex 8956000; upkeep 34182000; owner earnings 149979000. Growth capex / owner earnings = 0.05971502677041452.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-09-03); FY2023: growth capex 0; upkeep 19226000; owner earnings 188001000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-09-03); FY2024: growth capex 1377930.9563383162; upkeep 78514069.04366168; owner earnings 148573930.95633832. Growth capex / owner earnings = 0.009274379074908176.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-09-03); FY2025: growth capex 0; upkeep 27577000; owner earnings 202318000. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/746598/000074659826000044/brc-20260731.htm (filed 2026-09-03); FY2026: growth capex 6603000; upkeep 44870000; owner earnings 205378000. Growth capex / owner earnings = 0.03215047376057806.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-09-03); Incremental return on capital 0.5289986489201325, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-09-03); Dividend observations: [[2017,41880000],[2018,42873000],[2019,44732000],[2020,45756000],[2021,45746000],[2022,45931000],[2023,45404000],[2024,45060000],[2025,45542000],[2026,46139000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/746598/000074659826000044/brc-20260731.htm (filed 2026-09-03); FY2026: cash repurchases 42204000 USD.

### Are managers owners

Insiders own 3.7% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); BRC.US SharesStats.PercentInsiders = 3.7159999999999997 percentage points; cache date 2026-10-16.

### What could break it

US import tariffs could raise product costs.

- Source: https://www.sec.gov/Archives/edgar/data/746598/000074659826000044/brc-20260731.htm (filed 2026-09-03); nesses and facilitating comparisons of our sales performance with prior periods.

Macroeconomic Conditions and Trends

The Company’s operations and financial performance are subject to the risks and uncertainties inherent in the global economic environment, including inflationary pressures, supply chain disruptions, and other macroeconomic challenges. These pressures may impact the Company’s business, financial condition and results of operations as the global economic outlook remains uncertain.

The global trade environment remains complex and continues to evolve, driven by the imposition of tariffs on goods entering the U.S. and countermeasures from other nations. Our business has incurred, and we expect will continue to incur additional costs related to these incremental tariffs and related countermeasures. While we have received some refunds for tariffs previously paid, we continue to incur tariff costs that have remained above historical levels since the second half of fiscal 2025. Future impacts will depend on changes in trade policy and the timing, availability and amount of these further potential refunds. We also continue to face broader macroeconomic pressures impacting the cost and availability of certain raw materials, components, freight and other inputs. The Company has taken and will continue to take action to mitigate these pressures through a combination of targeted price increases, strategic sourcing adjustments, product portfolio optimization, as well as our ongoing efforts to drive sustainable efficiency gains in our operations and administrative structures.

The Company continues to evaluate developments related to tariff policy and related administrative proceedings. While we have received certain refunds for tariffs previously paid, we expect to continue to incur ongoing tariff costs while actively pursuing additional refunds. Any such potential refunds of tariffs previously paid remain subject to ongoing administrative processes and uncertainty regarding their timing, availability, and ultimate amount.

Refer to Risk Factors, included in Part I, Item 1A of this Annual Report on Form 10-K for the year ended July 31, 2026, for further discussion of the possible impact of global economic or geopolitical events on our business.

19

Table of Contents

Results of Operations

The comparability of the operating results for the year ended July 31, 2026 to the year ended July 31, 2025 has been impacted by the acquisition of MECCO Partners LLC (“Mecco”) on August 4, 2025. The operating results of Mecco have been included since the acquisition date and are reported within the Americas & Asia reportable segment. The comparability of the operating results for the year ended July 31, 2025 to the year ended July 31, 2024 has been impacted by the acquisitions of Gravotech Holding (“Gravotech”) on August 1, 2024, American Barcode and RFID In

### What the price says

The price assumes cash profits grow 6% yearly over ten years; actual growth was 8.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-09-03); Ten-year compound average after fade. Initial solved rate 0.09002862308845402. Price 84.03; FX 1; discount 0.1; same compounder ten-year fade to terminal 0.03. FY2016 owner earnings/share 1.8791388445705057 → FY2026 4.301109947643979. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $33.10 per share

- 2016-11: $36.75 per share

- 2016-12: $37.55 per share

- 2017-01: $36.35 per share

- 2017-02: $38.25 per share

- 2017-03: $38.65 per share

- 2017-04: $38.95 per share

- 2017-05: $35.90 per share

- 2017-06: $33.90 per share

- 2017-07: $33.20 per share

- 2017-08: $33.35 per share

- 2017-09: $37.95 per share

- 2017-10: $38.05 per share

- 2017-11: $39.10 per share

- 2017-12: $37.90 per share

- 2018-01: $38.25 per share

- 2018-02: $37.40 per share

- 2018-03: $37.15 per share

- 2018-04: $36.40 per share

- 2018-05: $39.00 per share

- 2018-06: $38.55 per share

- 2018-07: $38.25 per share

- 2018-08: $40.45 per share

- 2018-09: $43.75 per share

- 2018-10: $40.29 per share

- 2018-11: $43.56 per share

- 2018-12: $43.46 per share

- 2019-01: $44.71 per share

- 2019-02: $47.31 per share

- 2019-03: $46.41 per share

- 2019-04: $48.79 per share

- 2019-05: $46.30 per share

- 2019-06: $49.32 per share

- 2019-07: $51.73 per share

- 2019-08: $47.21 per share

- 2019-09: $53.05 per share

- 2019-10: $56.34 per share

- 2019-11: $57.00 per share

- 2019-12: $57.26 per share

- 2020-01: $55.37 per share

- 2020-02: $47.34 per share

- 2020-03: $45.13 per share

- 2020-04: $43.54 per share

- 2020-05: $51.13 per share

- 2020-06: $46.82 per share

- 2020-07: $45.97 per share

- 2020-08: $46.89 per share

- 2020-09: $40.02 per share

- 2020-10: $37.72 per share

- 2020-11: $44.18 per share

- 2020-12: $52.82 per share

- 2021-01: $45.91 per share

- 2021-02: $52.41 per share

- 2021-03: $53.45 per share

- 2021-04: $54.57 per share

- 2021-05: $57.23 per share

- 2021-06: $56.04 per share

- 2021-07: $54.68 per share

- 2021-08: $53.33 per share

- 2021-09: $50.70 per share

- 2021-10: $52.09 per share

- 2021-11: $50.25 per share

- 2021-12: $53.90 per share

- 2022-01: $51.92 per share

- 2022-02: $46.08 per share

- 2022-03: $46.27 per share

- 2022-04: $44.75 per share

- 2022-05: $48.51 per share

- 2022-06: $47.24 per share

- 2022-07: $47.85 per share

- 2022-08: $46.54 per share

- 2022-09: $41.73 per share

- 2022-10: $45.75 per share

- 2022-11: $47.90 per share

- 2022-12: $47.10 per share

- 2023-01: $53.47 per share

- 2023-02: $55.16 per share

- 2023-03: $53.73 per share

- 2023-04: $51.03 per share

- 2023-05: $47.68 per share

- 2023-06: $47.57 per share

- 2023-07: $51.58 per share

- 2023-08: $50.44 per share

- 2023-09: $54.92 per share

- 2023-10: $51.46 per share

- 2023-11: $56.27 per share

- 2023-12: $58.69 per share

- 2024-01: $60.23 per share

- 2024-02: $58.28 per share

- 2024-03: $59.28 per share

- 2024-04: $59.00 per share

- 2024-05: $68.27 per share

- 2024-06: $66.02 per share

- 2024-07: $71.61 per share

- 2024-08: $74.04 per share

- 2024-09: $76.63 per share

- 2024-10: $71.14 per share

- 2024-11: $74.89 per share

- 2024-12: $73.85 per share

- 2025-01: $74.49 per share

- 2025-02: $72.47 per share

- 2025-03: $70.64 per share

- 2025-04: $70.29 per share

- 2025-05: $69.77 per share

- 2025-06: $67.97 per share

- 2025-07: $70.57 per share

- 2025-08: $78.08 per share

- 2025-09: $78.03 per share

- 2025-10: $75.91 per share

- 2025-11: $78.24 per share

- 2025-12: $78.37 per share

- 2026-01: $86.47 per share

- 2026-02: $92.34 per share

- 2026-03: $81.24 per share

- 2026-04: $81.82 per share

- 2026-05: $86.08 per share

- 2026-06: $91.57 per share

- 2026-07: $94.27 per share

- 2026-08: $90.65 per share

- 2026-09: $83.49 per share

- 2026-10: $84.03 per share

## Annual estimated value (USD per share)

- FY2017: low $5.30 per share, central $5.74 per share, high $6.32 per share

- FY2018: low $22.72 per share, central $25.44 per share, high $29.06 per share

- FY2019: low $25.05 per share, central $27.84 per share, high $31.56 per share

- FY2020: low $25.18 per share, central $28.14 per share, high $32.09 per share

- FY2021: low $26.34 per share, central $29.64 per share, high $34.04 per share

- FY2022: low $30.73 per share, central $34.74 per share, high $40.07 per share

- FY2023: low $36.01 per share, central $41.16 per share, high $47.43 per share

- FY2024: low $39.54 per share, central $45.20 per share, high $51.80 per share

- FY2025: low $55.64 per share, central $79.79 per share, high $93.26 per share

- FY2026: low $61.76 per share, central $83.23 per share, high $97.03 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:32:44.195Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/746598/000074659826000044/brc-20260731.htm); period 2026-07-31, filed 2026-09-03.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.