NYSE:BRC
BRADY CORP
Global leader in color-coded identification systems providing essential safety and traceability solutions across critical industries.
Key Metrics
Investment Thesis
Bull Case
Investors may favor BRC due to its consistent revenue growth trajectory from $1.33B to $1.51B over the last three years and strong cash generation capabilities. The company's defensive nature in essential safety markets offers stability during economic downturns, supported by a diverse customer base across multiple high-barrier industries. Recent share repurchases of $50.8M signal management confidence in the intrinsic value of the stock.
Bear Case
Concerns exist regarding the volatility in net income and the substantial cash outflows from investing activities which reduced total cash by $75.8M year-over-year. The large retained earnings deficit of $1.32B warrants scrutiny as it reflects historical financing structures or past losses that may constrain future dividend growth despite current payouts. High levels of goodwill at $676.9M expose the company to impairment risks if acquired units underperform expectations.
About BRADY CORP
BRADY CORPORATION (NYSE:BRC) provides color-coded identification products and systems globally, serving industries such as industrial, healthcare, construction, and transportation. The company leverages its extensive distribution network and proprietary manufacturing capabilities to offer labeling solutions that enhance safety and compliance. With revenue reaching $1.51B in 2025, BRC maintains a strong market position through strategic acquisitions and consistent operational cash flow.
Analysis
Management Discussion
Despite a slight dip in net profit to $189.3M in 2025 compared to the previous year's $197.2M, revenue growth of $1.51B demonstrates successful execution against inflationary pressures. The company generated robust operating cash flow of $181.2M while investing heavily in growth via acquisitions and capital expenditures of $27.6M, indicating a strategy focused on long-term expansion over short-term earnings maximization.
Industry Overview
The industrial labeling and identification market is highly competitive but fragmented, offering opportunities for consolidation led by established players like BRADY. Regulatory pressures regarding workplace safety and supply chain traceability are driving steady demand for compliant labeling solutions globally. The shift towards digital integration and smart labeling technologies is reshaping industry dynamics, favoring companies with robust R&D spend of $79.9M.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | $1.33B | $1.34B | $1.51B |
| Cost of Revenue | $674.6M | $653.5M | $752.8M |
| Gross Profit | $657.3M | $687.9M | $760.8M |
| Operating Expenses | $432.1M | $444.5M | $524.2M |
| Operating Income | $225.2M | $243.4M | $236.6M |
| R&D | $61.4M | $67.7M | $79.9M |
| G&A | $370.7M | $376.7M | $444.3M |
| Stock-Based Comp | $7.5M | $7.4M | $11.9M |
| D&A | $32.4M | $29.9M | $40.6M |
| Depreciation | $20.6M | $20.5M | $21.7M |
| Amortization | $11.7M | $9.4M | $18.9M |
| Other OpEx | $0 | $0 | $0 |
| Non-Operating Income | $483.0K | $4.4M | $459.0K |
| Interest Expense | $3.5M | $3.1M | $4.7M |
| Pre-Tax Income | $225.7M | $247.8M | $237.1M |
| Income Tax | $50.8M | $50.6M | $47.8M |
| Continuing Ops | $174.9M | $197.2M | $189.3M |
| Discontinued Ops | $0 | $0 | $0 |
| Net Income | $174.9M | $197.2M | $189.3M |
| Minority Interest | $0 | $0 | $0 |
| Net to Common | $174.9M | $197.2M | $189.3M |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Current Assets | $524.8M | $599.7M | $621.8M |
| Cash & Equivalents | $151.5M | $250.1M | $174.3M |
| Accounts Receivable | $184.4M | $185.5M | $231.9M |
| Inventory | $177.1M | $152.7M | $200.9M |
| Prepaid Expenses | $11.8M | $11.4M | $14.7M |
| Other Current Assets | $0 | $0 | $0 |
| Long-Term Assets | $864.4M | $915.9M | $1.11B |
| PP&E (Net) | $142.1M | $195.8M | $225.6M |
| Intangibles | $62.1M | $51.8M | $105.4M |
| Goodwill | $592.6M | $589.6M | $676.9M |
| Operating Leases | $29.7M | $38.5M | $58.4M |
| Other LT Assets | $37.9M | $40.1M | $46.1M |
| Total Assets | $1.39B | $1.52B | $1.73B |
| Current Liabilities | $258.0M | $264.7M | $330.3M |
| Accounts Payable | $79.9M | $84.7M | $105.0M |
| Current Leases | $14.7M | $13.4M | $15.2M |
| Taxes Payable | $12.6M | $7.4M | $5.5M |
| Other Current Liab | $150.9M | $159.2M | $204.5M |
| Long-Term Liabilities | $140.3M | $184.2M | $211.7M |
| LT Operating Leases | $16.2M | $25.3M | $43.6M |
| Other LT Liab | $124.1M | $158.9M | $168.1M |
| Total Liabilities | $398.3M | $448.9M | $542.0M |
| Shareholders' Equity | $990.9M | $1.07B | $1.19B |
| Retained Earnings | $1.02B | $1.17B | $1.32B |
| AOCI | $-93.1M | $-109.6M | $-92.2M |
| Treasury Stock | $290.2M | $351.9M | $393.2M |
| Total L&E | $1.39B | $1.52B | $1.73B |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Net Income (CFO) | $174.9M | $197.2M | $189.3M |
| Non-Cash Adjustments | $56.0M | $58.0M | $-28.3M |
| Working Capital Changes | $-21.7M | $-123.0K | $20.3M |
| Cash from Operations | $209.1M | $255.1M | $181.2M |
| Capital Expenditures | $19.2M | $79.9M | $27.6M |
| Cash from Investing | $-11.2M | $-81.0M | $-171.3M |
| Share Buybacks | $75.0M | $72.2M | $50.8M |
| Dividends Paid | $45.4M | $45.1M | $45.5M |
| Cash from Financing | $-163.6M | $-70.5M | $-83.9M |
| FX Effect | $3.1M | $-4.9M | $-1.8M |
| Net Change in Cash | $37.5M | $98.6M | $-75.8M |
| Beginning Cash | $114.1M | $151.5M | $250.1M |
| Ending Cash | $151.5M | $250.1M | $174.3M |
Frequently Asked Questions
How does BRADY CORP make money?
The company's revenue is driven by its core manufacturing of durable labels, tags, and coding equipment, alongside significant growth from its global distribution network which supplies industrial, healthcare, and construction sectors. Strategic acquisitions totaling $144.5M in the latest period have expanded its product portfolio to include advanced RFID and smart label technologies.
What are the main risks for BRC?
Fluctuations in global logistics costs and supply chain disruptions could impact the company's margins given its reliance on international distribution networks. The significant accumulated other comprehensive income loss of $92.2M suggests potential foreign exchange or valuation risks that may affect equity stability. Intense competition from lower-cost generic labeling providers poses a threat to market share if pricing power erodes.
What is BRC's competitive advantage?
BRADY's extensive global distribution footprint ensures rapid market response and high customer retention rates. The company's proprietary color-coding standards create a high barrier to entry for competitors, fostering deep brand loyalty among safety-conscious industrial clients. Strong balance sheet with $174.3M in cash provides flexibility for continued M&A and R&D investment.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.