This company hasn’t exactly covered itself in glory on a long-term basis. Despite rather strong margins and ROIC, the company hasn’t really been able to find growth – since 2000 revenue has grown at an annualized rate of 4%, while EBTIDA has grown about 4.6%. Adjusted free cash flow has done better (up around 7.5%), but the stock performance tells the tale – the shares have lagged the market and the industrial sector on an extended basis, with a 10-year annualized return around 6%.
That’s not an inspiring backdrop, but the company has been actively cutting costs and streamlining its portfolio, and management seems to appreciate the need to find growth opportunities and is targeting some logical areas that I think could hold some promise. I can’t say I love this company, but if it can deliver on what I think are pretty low expectations, I can definitely see upside from here.
Read more here:
Brady Has An Opportunity To Be More Than It Has Been, But Execution Is Uncertain
No comments:
Post a Comment