BRINK'S CO/THE (BCO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BCO - US1096961040 - Common Stock
125.67 USD
-0.02 (-0.02%)
125.67 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. BCO scores excellent on profitability, but there are 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.
- In the past year BCO had a positive cash flow from operations.
- 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
- The Return On Assets of BCO (2.45%) is comparable to the rest of the industry.
- Looking at the Return On Equity, with a value of 63.35%, BCO belongs to the top 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
- Looking at the Profit Margin, with a value of 3.31%, BCO is in the better half of the industry, outperforming 61.25% of the companies in the same industry.
- In the last couple of years the Profit Margin of BCO has grown nicely.
- 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.
- With a Gross Margin value of 25.36%, BCO perfoms like the industry average, outperforming 41.25% of the companies in the same industry.
- 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), BCO is destroying value.
- BCO has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, BCO has less shares outstanding
- 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 has a Altman-Z score of 1.66. This is comparable 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.
- Looking at the Debt to FCF ratio, with a value of 9.55, BCO is in line with its industry, outperforming 60.00% of the companies in the same industry.
- BCO has a Debt/Equity ratio of 14.30. This is a high value indicating a heavy dependency on external financing.
- Looking at the Debt to Equity ratio, with a value of 14.30, BCO is doing worse than 91.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 14.3 | ||
| Debt/FCF | 9.55 | ||
| Altman-Z | 1.66 |
ROIC/WACC0.95
WACC8.16%
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.
- BCO has a Current ratio of 1.46. This is comparable to the rest of the industry: BCO outperforms 48.75% of its industry peers.
- A Quick Ratio of 1.46 indicates that BCO should not have too much problems paying 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%.
- Measured over the past years, BCO shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.06% on average per year.
- Looking at the last year, BCO shows a small growth in Revenue. The Revenue has grown by 3.07% in the last year.
- BCO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.35% yearly.
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
- The Earnings Per Share is expected to grow by 17.22% on average over the next years. This is quite good.
- Based on estimates for the next years, BCO will show a small growth in Revenue. The Revenue will grow by 5.00% on average per year.
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
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 16.51, which indicates a correct valuation of BCO.
- Based on the Price/Earnings ratio, BCO is valued a bit cheaper than 80.00% of the companies in the same industry.
- When comparing the Price/Earnings ratio of BCO to the average of the S&P500 Index (27.32), we can say BCO is valued slightly cheaper.
- Based on the Price/Forward Earnings ratio of 13.57, the valuation of BCO can be described as correct.
- BCO's Price/Forward Earnings ratio is rather cheap when compared to the industry. BCO is cheaper than 82.50% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.32, BCO is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.51 | ||
| Fwd PE | 13.57 |
4.2 Price Multiples
- 67.50% of the companies in the same industry are more expensive than BCO, based on the Enterprise Value to EBITDA ratio.
- 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 | 12.5 | ||
| EV/EBITDA | 9.73 |
4.3 Compensation for Growth
- BCO's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- BCO has a very decent profitability rating, which 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)0.93
PEG (5Y)1.37
EPS Next 2Y16.53%
EPS Next 3Y17.22%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.82%, BCO is not a good candidate for dividend investing.
- BCO's Dividend Yield is a higher than the industry average which is at 0.83.
- Compared to an average S&P500 Dividend Yield of 1.83, BCO's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.82% |
5.2 History
- On average, the dividend of BCO grows each year by 9.81%, which is quite nice.
- BCO has been paying a dividend for at least 10 years, so it has 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
- 24.81% of the earnings are spent on dividend by BCO. This is a low number and 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%.