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As an investor, I look for investments which does not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of Brady Corporation (NYSE:BRC), it is a financially-sound , dividend-paying company with a an impressive track record of performance. In the following section, I expand a bit more on these key aspects. For those interested in digger a bit deeper into my commentary, read the full report on Brady here.
Flawless balance sheet with solid track record and pays a dividend
In the previous year, BRC has ramped up its bottom line by 60%, with its latest earnings level surpassing its average level over the last five years. Not only did BRC outperformed its past performance, its growth also surpassed the Commercial Services industry expansion, which generated a 7.9% earnings growth. This is what investors like to see! BRC is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This indicates that BRC has sufficient cash flows and proper cash management in place, which is a crucial insight into the health of the company. BRC appears to have made good use of debt, producing operating cash levels of 3x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
Income investors would also be happy to know that BRC is a great dividend company, with a current yield standing at 1.8%. BRC has also been regularly increasing its dividend payments to shareholders over the past decade.
For Brady, I've put together three essential aspects you should further examine:
- Future Outlook: What are well-informed industry analysts predicting for BRC’s future growth? Take a look at our free research report of analyst consensus for BRC’s outlook.
- Valuation: What is BRC worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether BRC is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of BRC? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.