Brady Corporation: Where Do We Go From Here?

(8min)

Summary

  • Brady Corporation boasts solid financials with improving revenue, gross margins, and return on invested capital, trending positively after a slow start last decade.
  • Dividend consistency is impressive, but growth is lackluster. With a declining payout ratio, I want to see stronger dividend increases to match inflation.
  • Recent Q3 earnings were mixed: strong Americas and Asia growth offset by weakness in Europe and Australia, leading to a subpar market reaction.
  • Valuation suggests the stock is slightly overvalued. With an estimated long-term return below my 10% target, I rate BRC a hold for now.

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Company Description

Brady Corporation (NYSE:BRC) produces and sells a variety of office and workplace products to a wide range of customers across the globe. The company employs approximately 5,700 employees and has a

This article was written by

I have a masters degree in Analytics from Northwestern University and a bachelors degree in Accounting. I have worked in the investment arena for over 10 years starting as an analyst and working my way up to a management role. Dividend investing is a personal hobby and I look forward to sharing my thoughts with the Seeking Alpha community.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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