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Brady Corporation

BRC
52
Security & Protection Services · Industrials
Price
$93.69
+0.14 (+0.15%)
Market Cap
$4.41B
Winston Score
52
Winston is curious
Mixed quality — meaningful strengths and weaknesses.

Share count falling — buybacks

8.2% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 52.4M (2021) → 48.1M (2025)

Brady Corporation makes labels, signs, and identification products used in factories, hospitals, and offices. Their products help workers stay safe by marking dangerous equipment, organizing wires and cables, and identifying people with ID badges and wristbands. The company sells to manufacturers, healthcare facilities, and government organizations around the world.

Brady earns money by selling physical products like label printers, pre-printed signs, and the consumable label materials that customers keep buying over and over. It operates in over 30 countries, with major business in North America and Europe, and generates roughly $1.3 billion in annual revenue. The repeat purchase nature of its consumable supplies — customers who buy a Brady printer tend to keep buying Brady labels — creates a sticky customer base that is hard for competitors to displace. The main risk is that Brady serves industrial customers heavily, so a slowdown in manufacturing activity could reduce demand for its products.

Winston Score History

Politician Trades

1 trades / 12mo

0 Congressional buys and 1 sell on BRC in the last 12 months.

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Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+7.7% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

+19.0% YoY

YoY Growth Rate

Steady EPS growth

R&D Spend

$80M/ year

Rising (+18% vs prior year)

5.3% of revenue

In line with sector average (4%)

R&D investment increasing — building for the future

Insider Activity

10.0%ownership

Insiders own a meaningful stake in the company

Cash Position

Cash flow positive

$176M cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Company generates more cash than it spends — no dilution risk from fundraising

Growth context

Brady Corporation is growing revenue at 8% year-over-year. The Winston Score measures business quality today — these growth metrics show what could matter tomorrow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Gross Margin
50.6%
Healthy — 50.6% gross margin
Operating Margin
16.2%
Healthy — 16.2% operating margin
ROCE
4.3%
Weak — 4.3% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY
+7.5%
Steady sales growth (7.5% YoY)
EPS YoY
-6.3%
Earnings shrinking (-6.3% YoY)

Slight earnings drop. Typical near a cyclical low.

EPS Consistency
2/8 quarters
Earnings rarely grow — volatile business

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Cash Flow

Cash Conversion
111%
Turns 111% of profit into real cash
FCF Margin
11.8%
Modest free cash flow (11.8%)

FCF margin between 10% and 20%. Every $100 in sales becomes $10 to $20 in real cash.

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Stability

Debt / Equity
0.11
Conservative — low debt load (0.11)
Interest Cover
54.76x
Comfortably covers interest (54.8x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

P/E Ratio (TTM)
23.5x
Growth-priced — P/E 23.5

P/E above the market average. People are paying up for expected growth.

P/E vs Forward
+7.3
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (23.5 → 16.2)

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Dividends

Dividend Yield
1.14%
Small dividend — 1.14% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend Growth
+2.1%
Dividend flat

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