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

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Best Travel Destinations in Australia

World’s Most Expensive Musical Instruments

World’s Most Famous Animals

Most Expensive Cakes in the World

Most Expensive Kosher Champagne in the World

Most Expensive Kosher Wine in the World

The Most Surprisingly Dark Fairy Tales

Most Popular Travel Destinations in Asia

The 10 Most Expensive Dresses Ever Worn to the Oscars

World’s Most Visited Art Museums

Best Countries for Photographers to Work in

Best Paid Jobs in the Film Industry

The Most Renowned Recovered Paintings Ever

Child Stars That Turned out Just Fine

Books That Were Banned in the Past Century

World’s Richest Dancers

Best Remedies against Bad Breath

Foods That Improve Your Skin Texture

Best-Selling Children’s Books of all Time

Foods That Boost Your Libido

Best-Selling Books of all Time

The Most Expensive Academy Awards Jewelry in History

Most Expensive Japanese Restaurant In New York City

The Best B-Boy Movies

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

The Most Successful Reality TV Stars

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 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!