Royce & Associates Likes Identification and Security Company Brady Corp

Page 1 of 2

Royce & Associates recently filed a 13G which discloses that it owns 3.8 million shares of Brady Corp (NYSE:BRC), up from 3.5 million shares roughly three months ago. The new position represents a little over 8% of the outstanding shares. Brady is a $1.8 billion market cap company which primarily provides identification and security software; it also operates direct marketing and precision die-cut products businesses. Royce, which is managed by Chuck Royce, likes to take relatively large stakes in small-cap and mid-cap companies and has been managing money for 40 years. Find more of Royce’s stock picks.

Chuck Royce

Brady’s fiscal year ends in July, and so its most recent quarterly report was for the first fiscal quarter (which ended in October). Revenue declined 3%, with slight increases in Asia-Pacific being offset by declines in the Americas (the largest segment at 44% of revenue) and EMEA. With the company also taking a small loss on the sale of certain businesses, earnings were down 17%; we estimate that if it were not for the loss pretax income would have fallen a more modest 6%.

If we annualize the 51 cents per share that Brady Corp earned, we get a P/E multiple of 17 at current prices; that’s a bit higher to what we get from analyst expectations, as consensus is for EPS of $2.27 in the fiscal year ending in July 2013. Looking out one year further, the forward P/E slips to 14. So the Street is expecting at least some earnings growth over the next couple years. That’s certainly not the trajectory the company is on, and Brady will have to improve even over the next few quarters to hit earnings targets for the current year.

Royce had the largest position in Brady Corp out of all the funds and notable investors we track in our database of 13F filings. Ariel Investments, which is managed by John Rogers, reported owning 2 million shares at the end of September, roughly unchanged from three months earlier (see Ariel’s favorite stocks). David Dreman’s Dreman Value Management initiated a position of a little over 500,000 shares (check out more stocks Dreman was buying).

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The 10 Richest Stand Up Comedians in the World

The 10 Fattest Countries in the World

The 5 Best Summer Jobs for Teens

The 10 Most Religious Countries in the World Keeping the Faith

The 10 Most Educated Countries in the World

The 10 Most Popular Cell Phones in the World

The 10 Drunkest Countries in the World

The 10 Most Expensive Private Schools in the World

The 10 Smallest Countries in the World

Walking Dead Season 5 Spoilers You’ll Wish You Didn’t Know

The 10 Poorest Countries in the World

The 10 Greenest Countries in the World

The Top 10 Countries with the Highest Population in the World

The 10 Most Visited Countries in the World

The Top 10 Star Wars Characters in the Iconic Series

The 10 Most Expensive Android Phones in the World

5 Reasons Why The Illuminati Is Real and a Threat to Society

The 6 Scariest Halloween Costumes Ever Screamed At

The 4 Biggest Hedge Fund Managers in the World Today

The 15 Most Densely Populated Countries in the World

The 10 Biggest Tea Drinking Countries in the World

Top 6 Ways to Improve Your Checkout Process and Close Sales

The 5 Most Profitable Online Businesses You Can Start Today

The 20 Most Profitable Hospitals in the US

The 5 Most Profitable Home Businesses to Start

The 7 Teams that Will Win the Stanley Cup in 2015

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

50 Crazy Facts About Japan You Won’t Believe

Top 10 Least Expensive Hybrid Cars to Save the Planet With

The 10 Biggest ‘Gate’ Controversies in History

The 10 States with the Highest Nursing Shortages Leaving Their Hospitals Depleted

The 10 Best Value Investment Blogs that Every Investor Must Read

The 6 Cheapest Boarding Schools in Europe 2015

The 5 Most Expensive Cars To Insure in the World

The 10 Most Common Genetically Modified Foods

10 Self-Made Billionaires Who Came From Nothing

The 10 Most Expensive Cities to Live in North America

The 13 Most Expensive Headphones in the World to Represent

The Top 20 Wealthiest Soccer Teams in 2014

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!