Brady Corporation BRC
Brady Corporation just reported record fiscal 2026 full-year results and guided fiscal 2027 adjusted diluted EPS to grow 23% at the midpoint, driven by the completed $1.4 billion acquisition of Honeywell's PSS business on August 3, 2026. Quarterly revenue growth has accelerated from 7.5% in Q1 FY2026 to 13.8% in Q3 FY2026, earnings surprises have been positive in four of the last five quarters, and the CEO personally purchased $1.0 million of stock at $76.86 per share in June 2026.
At a P/E of 20.4 versus the peer median of 23.5 and an EV/EBITDA of 13.3 versus the peer median of 13.7, the stock trades at a discount to peers despite a stronger growth trajectory, while RSI at 39.4 and a price below the 50-day MA of $93.0 suggest a tactical entry point ahead of the integration ramp.
What could go wrong
- Integration and leverage risk. The $1.4 billion all-cash PSS acquisition was funded with cash, a credit facility, and private placement debt on top of total debt that already rose from $80.7M in FY2023 to $158.6M in FY2025. Integration costs and elevated leverage could delay the margin recovery implied by FY2027 guidance.
- Margin compression trend. FY2025 operating margin compressed to 15.6% from 18.2% in FY2024 even as revenue grew 12.8%, and diluted EPS declined 3.2% to $3.92. If the PSS deal does not rapidly improve margins, the 103% P/S premium over the peer median of 1.29 becomes harder to justify.
- Technical weakness. The stock at $90.39 trades below its 50-day MA of $93.0 with a bearish MACD histogram of -0.50 and RSI of 39.4, indicating near-term selling pressure that could deepen if integration updates disappoint.
- Institutional outflows. Smart money score is near zero at 0.0002 as of 2026-06-30, and recent 13F filings show Dimensional Fund Advisors and Bessemer Group reducing positions in Q1 2026.
What would change my mind
Where this comes from: GlobeNewsWire press release 2026-08-03 · GlobeNewsWire press release 2026-09-03 · Quarterly results, fiscal year 2026 · Insider transactions. Orin's read on BRC; not advice.
Twelve months actual closes to 2026-09-23 · actual filings
50-day average 200-day average · volume below
On file
All BRC filingsLargest holders · 13F Q2 2026
Money flow| Filer | Position | Of fund |
|---|---|---|
| Fmr | $597.2M | 0.0% of fund |
| Vanguard Portfolio Management | $234.6M | 0.0% of fund |
| Vanguard Capital Management | $170.1M | 0.0% of fund |
| State Street | $153.8M | 0.0% of fund |
| Geode Capital Management | $75.9M | 0.0% of fund |
| Goldman Sachs Group | $44.1M | 0.0% of fund |
55 filers · quarter ended Q2 2026 · positions, not flows
Insiders, last 24 months: 139 Form 4 filings, net −$12.7M. Of the 50 on hand, 1 was an open-market purchase and 15 sales— the rest are grants, option exercises and tax withholding.
Ask Orin about BRC
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Start 3 free days →Where it trades
| Metric | Now | Own median | Sector |
|---|---|---|---|
| P/E | 19.4× | — | 44.5× |
| EV/EBITDA | 12.2× | — | — |
| P/S | 2.38× | — | — |
| P/B | 2.9× | — | — |
11.1%
free-cash-flow growth every year for 10 years, discounted at 10%, is what today’s price implies — starting from $0.2B of trailing free cash flow. It is an assumption the market is making, not a forecast Orin is making.
Against the companies it is compared to
| Company | Market cap | P/E | EV/EBITDA | Gross | Net | ROE |
|---|---|---|---|---|---|---|
| BRCBrady Corporation | $4B | 19.4× | 12.2× | 51.7% | 12.4% | 16% |
| CXTCrane NXT, Co. | $3B | 19.8× | 13.8× | 42.1% | 7.8% | 11% |
| KFYKorn Ferry | $4B | 13.6× | 6.9× | 9.9% | 9.4% | 14% |
| MYRGMYR Group Inc. | $5B | 27.8× | 15.3× | 12.4% | 4.1% | 24% |
| TPCTutor Perini Corporation | $4B | 35.8× | 13.1× | 11.5% | 2.1% | 10% |
The median is of the 4 peers listed above and nothing else — check it against the column. This company trades 18.7% below it. The peer set is the vendor’s, so a company can appear here that a person would not have chosen.
What it has traded at
What its sector has traded at
Two scales, drawn separately on purpose: a sector median and one company’s multiple are not the same number and putting them on one axis invites a comparison neither series supports.
Every estimate on one scale
The vertical rule is the current price. Ranges and point estimates are the backend’s, published as they were calculated; an arrow means the estimate sits beyond this scale, and its number is on the right.