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what it is
Brady sells the labels, safety signs, printers, and tracking tools companies use so people do not miswire, mislabel, or lose things.
how it gets paid
Last year Brc made $1.5B in revenue. high-performance labels was the main engine at $0.53B, or 35% of sales.
why it's growing
Revenue grew 12.8% last year. The key number was $1.21 in quarterly EPS because it put Brady on track for the $5.00 full-year profit estimate.
what just happened
Brady started fiscal 2026 well, with quarterly EPS hitting $1.21 as sales rose 7.5%.
At a glance
A balance sheet — strong enough to weather a downturn
90/100 earnings predictability — you can trust these numbers
20.6x trailing p/e — priced about right
1.2% dividend yield — cash in your pocket every quarter
17.0% return on capital — nothing to write home about
xvary composite: 73/100 — average
What they do
Brady sells the labels, safety signs, printers, and tracking tools companies use so people do not miswire, mislabel, or lose things.
Brady's moat shows up where your customer hates mistakes. If your factory labels the wrong wire or your hospital tracks the wrong asset, the cost of fixing that error dwarfs the cost of the label. That is why a very unglamorous product mix still produced a 51.1% gross margin (gross margin → money left after making the product → pricing power) and a 17.0% return on capital (return on capital → profit earned on the money put into the business → this is not a commodity shop).
How they make money
$1.5B
annual revenue · their business grew +12.8% last year
high-performance labels
$0.53B
signs and workplace identification
$0.35B
printing systems and software
$0.27B
safety devices and lockout products
$0.20B
precision die-cut materials
$0.15B
The products that matter
identification software and workflow tools
Software
about $0.75B revenue
based on the stated 50/50 split, software represents about half of the $1.5B business. that's the part investors will watch for margin support.
~50% of revenue
specialty materials and physical manufacturing
Manufacturing
about $0.75B revenue
the other half of revenue comes from making and selling physical products. that's unusual next to the software mix — and it means execution on the factory side still matters a lot.
~50% of revenue
Key numbers
$5.00
fy2026 eps
At $81.28, you are paying about 16.3 times next year's expected profit. Plain English: the market is pricing Brady like a steady grower, not a rocket ship.
17.0%
return on capital
Return on capital → profit earned on invested money → Brady turns each dollar inside the business into $0.17 of operating performance.
22.5%
operating margin
Operating margin → profit after running the business → this is high for a company selling industrial identification products.
$116M
long-term debt
Debt is only 3% of capital, which means Brady has room to absorb a slowdown without balance-sheet drama.
Financial health
A
strength
- balance sheet grade A — very strong financial position
- risk rank 2 — safer than 80% of stocks
- price stability 85 / 100
- long-term debt $116M (3% of capital)
- net profit margin 15.9% — keeps 16 cents of every dollar in revenue
- return on equity 16% — $0.16 profit for every $1 investors have put in
A with balance sheet grade and risk rank standing out. your money faces less risk here than at most public companies.
Total return vs. market
You invested $10,000 in BRC 3 years ago → it's now worth $18,540.
The index would have given you $13,920.
source: institutional data · total return
What just happened
beat estimates
Brady started fiscal 2026 well, with quarterly EPS hitting $1.21 as sales rose 7.5%.
The story was simple: steady top-line growth and disciplined execution. That fits a company carrying a 51.1% gross margin and modest debt.
$789M
revenue
$1.21
eps
51.1%
gross margin
the number that mattered
The key number was $1.21 in quarterly EPS because it put Brady on track for the $5.00 full-year profit estimate.
-
brady corporation is off to a good start in fiscal 2026 (ends july 31st).
-
sales in the october quarter rose 7.5%, and earnings per share increased 8% to $1.21. (we note that we have adopted adjusted earnings beginning in fiscal 2026, and we have not restated prior years' results.) volume was strongest in the americas and asia segment where sales of its workplace safety products were up nearly 10%.margins were little changed, as somewhat higher sg&a expenses were offset by selective price increases.
-
we expect the company to post record earnings in fiscal 2026 of $5.00 per share, up nearly 9%. The company is in a strong financial position.
-
brady has historically been rather conservative in its use of debt.it is very selective in pursuing acquisitions and typically makes small, tuck-in type deals that do not require significant financing. also, its capital spending requirements are modest and stable, and its dividend payout has been declining steadily as a percentage of net profit over the past several years. instead, management prefers to direct its cash flow toward new product development, technology investments, and share repurchases. The company's diversity insulates it from swings in the overall economy. brady's broad customer base spans many industries, including electronics, telecommunications, manufacturing, construction, aerospace, and healthcare, among others. on a geographic basis, the company generates nearly half of its sales outside of the united states, and has 90 facilities in 35 countries around the world. furthermore, brady's product line is extensive and includes safety signs, floor marking tape, personal protection equipment, radio frequency identification and bar code scanners, handheld printers, and wrist bands. therefore, it is not dependent on any one industry, region, or product for its success. These shares are best for long-term investors. they have doubled in value over the past three years, but we rank them to perform in line with the broader market over the coming six to 12 months. however, we expect the stock to provide good returns out to late decade, and conservative accounts can take solace in the company's above average risk rank of 2.
-
stuart j.
source: company earnings report, 2026
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What could go wrong
the #1 risk is execution across a business split 50/50 between software and manufacturing.
med
mix deterioration
Half the appeal here is that software economics help lift an industrial-looking business. If the software side slows or the manufacturing side starts dragging, the market has less reason to pay up.
That pressure lands on the full $1.5B revenue base and makes a 14.4% net margin harder to defend.
med
industrial end-market exposure
Utilities, construction, and similar customers do not stop needing identification products, but they can delay orders when budgets tighten. That matters when physical manufacturing is still half the story.
Even a modest slowdown would hit the manufacturing half of revenue first, not the software half.
med
institutional sponsorship drift
Three straight quarters of net institutional selling is not fatal. It is a message. The stock may need another clean earnings cycle before bigger holders step back in.
117 buyers versus 162 sellers in 3Q2025 can pressure the multiple even if the business itself stays steady.
If Brady loses the software-like mix that makes this business special, you are left with a still-profitable but less distinctive $1.5B industrial company.
source: institutional data · regulatory filings · risk analysis
Pay attention to
earnings
next quarterly print
The setup is $1.35 EPS on roughly $0.4B of revenue. This stock gets judged on consistency.
margin
gross margin staying near 45.8%
That number is the best proof the software mix is still doing real work.
flow
institutional selling slowing down
Three straight quarters of net selling is manageable. Four starts to look like a verdict.
mix risk
software and manufacturing staying balanced
The 50/50 split is part of the story. If one side weakens, the market will notice fast.
Analyst rankings
short-term outlook
average
momentum score 3 — in human-speak, analysts see a stock acting normal, not one flashing a near-term signal.
risk profile
above average
stability score 2 — safer than roughly 80% of stocks. you are not buying chaos here.
chart momentum
average
technical score 3 — the chart is moving with the broader market, not breaking away from it.
earnings predictability
90 / 100
Management usually delivers what the street expects. In a business like this, reliability is part of the product.
source: institutional data
Institutional activity
institutions have been net selling for 3 consecutive quarters — 117 buyers vs. 162 sellers in 3q2025. total institutional holdings: 36.1M shares. net selling for 3 quarters.
source: institutional data
Price targets
3-5 year target range
$68
$117
$81
current price
$93
target midpoint · +14% from current · 3-5yr high: $140 (+70% · 16% ann'l return)
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