BRINK'S CO/THE (BCO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BCO - US1096961040 - Common Stock
125.45 USD
-0.22 (-0.18%)
125.45 USD
0 (0%)
Taking everything into account, BCO scores 5 out of 10 in our fundamental rating. BCO was compared to 80 industry peers in the Commercial Services & Supplies industry. While BCO has a great profitability rating, there are quite some concerns on its financial health. BCO scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
- In the past year BCO was profitable.
- BCO had a positive operating cash flow in the past year.
- Each year in the past 5 years BCO has been profitable.
- In the past 5 years BCO always reported a positive cash flow from operatings.
1.2 Ratios
- BCO has a Return On Assets (2.45%) which is in line with its industry peers.
- With an excellent Return On Equity value of 63.35%, BCO belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
- The Return On Invested Capital of BCO (7.75%) is better than 70.00% of its industry peers.
- BCO had an Average Return On Invested Capital over the past 3 years of 7.26%. This is below the industry average of 10.58%.
- The 3 year average ROIC (7.26%) for BCO is below the current ROIC(7.75%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.45% | ||
| ROE | 63.35% | ||
| ROIC | 7.75% |
ROA(3y)2.16%
ROA(5y)1.73%
ROE(3y)49.44%
ROE(5y)49.26%
ROIC(3y)7.26%
ROIC(5y)6.71%
1.3 Margins
- BCO's Profit Margin of 3.31% is fine compared to the rest of the industry. BCO outperforms 61.25% of its industry peers.
- BCO's Profit Margin has improved in the last couple of years.
- The Operating Margin of BCO (9.82%) is better than 67.50% of its industry peers.
- BCO's Operating Margin has improved in the last couple of years.
- BCO has a Gross Margin (25.36%) which is in line with its industry peers.
- In the last couple of years the Gross Margin of BCO has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.82% | ||
| PM (TTM) | 3.31% | ||
| GM | 25.36% |
OM growth 3Y2.39%
OM growth 5Y4.78%
PM growth 3Y9.07%
PM growth 5Y32.79%
GM growth 3Y3.31%
GM growth 5Y1.84%
2. Health
2.1 Basic Checks
- BCO has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- BCO has less shares outstanding than it did 1 year ago.
- BCO has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, BCO has a worse debt to assets ratio.
2.2 Solvency
- BCO has an Altman-Z score of 1.66. This is a bad value and indicates that BCO is not financially healthy and even has some risk of bankruptcy.
- BCO's Altman-Z score of 1.66 is in line compared to the rest of the industry. BCO outperforms 42.50% of its industry peers.
- BCO has a debt to FCF ratio of 9.55. This is a negative value and a sign of low solvency as BCO would need 9.55 years to pay back of all of its debts.
- With a Debt to FCF ratio value of 9.55, BCO perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
- A Debt/Equity ratio of 14.30 is on the high side and indicates that BCO has dependencies on debt financing.
- BCO has a Debt to Equity ratio of 14.30. This is amonst the worse of the industry: BCO underperforms 91.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 14.3 | ||
| Debt/FCF | 9.55 | ||
| Altman-Z | 1.66 |
ROIC/WACC0.95
WACC8.15%
2.3 Liquidity
- BCO has a Current Ratio of 1.46. This is a normal value and indicates that BCO is financially healthy and should not expect problems in meeting its short term obligations.
- Looking at the Current ratio, with a value of 1.46, BCO is in line with its industry, outperforming 48.75% of the companies in the same industry.
- BCO has a Quick Ratio of 1.46. This is a normal value and indicates that BCO is financially healthy and should not expect problems in meeting its short term obligations.
- The Quick ratio of BCO (1.46) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.46 | ||
| Quick Ratio | 1.46 |
3. Growth
3.1 Past
- BCO shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.01%.
- BCO shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.06% yearly.
- The Revenue has been growing slightly by 3.07% in the past year.
- The Revenue has been growing slightly by 6.35% on average over the past years.
EPS 1Y (TTM)2.01%
EPS 3Y12.27%
EPS 5Y12.06%
EPS Q2Q%37.75%
Revenue 1Y (TTM)3.07%
Revenue growth 3Y6.07%
Revenue growth 5Y6.35%
Sales Q2Q%6.04%
3.2 Future
- BCO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.22% yearly.
- BCO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.00% yearly.
EPS Next Y17.83%
EPS Next 2Y16.53%
EPS Next 3Y17.22%
EPS Next 5YN/A
Revenue Next Year4.71%
Revenue Next 2Y4.84%
Revenue Next 3Y5.04%
Revenue Next 5Y5%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 16.48, the valuation of BCO can be described as correct.
- 80.00% of the companies in the same industry are more expensive than BCO, based on the Price/Earnings ratio.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, BCO is valued a bit cheaper.
- The Price/Forward Earnings ratio is 13.55, which indicates a correct valuation of BCO.
- Based on the Price/Forward Earnings ratio, BCO is valued cheaply inside the industry as 82.50% of the companies are valued more expensively.
- When comparing the Price/Forward Earnings ratio of BCO to the average of the S&P500 Index (25.98), we can say BCO is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.48 | ||
| Fwd PE | 13.55 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, BCO is valued a bit cheaper than the industry average as 68.75% of the companies are valued more expensively.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of BCO indicates a rather cheap valuation: BCO is cheaper than 85.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.48 | ||
| EV/EBITDA | 9.72 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- The decent profitability rating of BCO may justify a higher PE ratio.
- BCO's earnings are expected to grow with 17.22% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.92
PEG (5Y)1.37
EPS Next 2Y16.53%
EPS Next 3Y17.22%
5. Dividend
5.1 Amount
- BCO has a yearly dividend return of 0.81%, which is pretty low.
- Compared to an average industry Dividend Yield of 0.82, BCO pays a bit more dividend than its industry peers.
- With a Dividend Yield of 0.81, BCO pays less dividend than the S&P500 average, which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.81% |
5.2 History
- On average, the dividend of BCO grows each year by 9.81%, which is quite nice.
- BCO has paid a dividend for at least 10 years, which is a reliable track record.
- BCO has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)9.81%
Div Incr Years4
Div Non Decr Years28
5.3 Sustainability
- BCO pays out 24.81% of its income as dividend. This is a sustainable payout ratio.
- BCO's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP24.81%
EPS Next 2Y16.53%
EPS Next 3Y17.22%
BRINK'S CO/THE / BCO FAQ
Can you provide the ChartMill fundamental rating for BRINK'S CO/THE?
ChartMill assigns a fundamental rating of 5 / 10 to BCO.
What is the valuation status for BCO stock?
ChartMill assigns a valuation rating of 7 / 10 to BRINK'S CO/THE (BCO). This can be considered as Undervalued.
What is the profitability of BCO stock?
BRINK'S CO/THE (BCO) has a profitability rating of 7 / 10.
Can you provide the financial health for BCO stock?
The financial health rating of BRINK'S CO/THE (BCO) is 3 / 10.
Can you provide the dividend sustainability for BCO stock?
The dividend rating of BRINK'S CO/THE (BCO) is 6 / 10 and the dividend payout ratio is 24.81%.