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Brady Corporation (BRC)

Company Dividend Discount ModelIndustry: Security & Protection ServicesSector: Industrials

Valuation Snapshot

Stable Growth$38.74 - $59.73$48.50
Multi-Stage$52.51 - $57.58$55.00
Blended Fair Value$51.75
Current Price$75.91
Upside-31.83%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS-0.09%1.06%0.950.940.950.960.950.950.930.890.870.85
YoY Growth--1.07%-0.76%-1.15%0.40%-0.02%2.29%4.34%2.37%2.63%-0.41%
Dividend Yield--1.25%1.32%1.84%2.09%1.79%2.53%1.66%2.22%2.29%2.57%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)196.41
(-) Cash Dividends Paid (M)45.66
(=) Cash Retained (M)150.75
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)39.2824.5514.73
Cash Retained (M)150.75150.75150.75
(-) Cash Required (M)-39.28-24.55-14.73
(=) Excess Retained (M)111.47126.20136.02
(/) Shares Outstanding (M)47.9747.9747.97
(=) Excess Retained per Share2.322.632.84
LTM Dividend per Share0.950.950.95
(+) Excess Retained per Share2.322.632.84
(=) Adjusted Dividend3.283.583.79
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate0.59%1.59%2.59%
Fair Value$38.74$48.50$59.73
Upside / Downside-48.96%-36.11%-21.31%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)196.41199.54202.72205.95209.23212.56218.94
Payout Ratio23.25%36.60%49.95%63.30%76.65%90.00%92.50%
Projected Dividends (M)45.6673.03101.25130.36160.37191.31202.52

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate0.59%1.59%2.59%
Year 1 PV (M)66.2866.9467.60
Year 2 PV (M)83.4085.0786.75
Year 3 PV (M)97.46100.39103.39
Year 4 PV (M)108.81113.20117.73
Year 5 PV (M)117.80123.78129.99
PV of Terminal Value (M)2,045.092,148.782,256.63
Equity Value (M)2,518.842,638.162,762.09
Shares Outstanding (M)47.9747.9747.97
Fair Value$52.51$55.00$57.58
Upside / Downside-30.83%-27.55%-24.15%

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