BRINK'S CO/THE (BCO) Stock Fundamental Analysis
USA - NYSE:BCO - US1096961040 - Common Stock
111.59 USD
+0.74 (+0.67%)
111.59 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to BCO. BCO was compared to 82 industry peers in the Commercial Services & Supplies industry. There are concerns on the financial health of BCO while its profitability can be described as average. BCO is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
BCO had positive earnings in the past year.
In the past year BCO had a positive cash flow from operations.
BCO had positive earnings in each of the past 5 years.
BCO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 2.30%, BCO perfoms like the industry average, outperforming 57.32% of the companies in the same industry.
Looking at the Return On Equity, with a value of 63.90%, BCO belongs to the top of the industry, outperforming 98.78% of the companies in the same industry.
BCO has a Return On Invested Capital of 7.12%. This is in the better half of the industry: BCO outperforms 62.20% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BCO is below the industry average of 10.38%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.3% | ||
| ROE | 63.9% | ||
| ROIC | 7.12% |
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 has a Profit Margin (3.21%) which is in line with its industry peers.
In the last couple of years the Profit Margin of BCO has grown nicely.
BCO has a better Operating Margin (9.30%) than 69.51% of its industry peers.
In the last couple of years the Operating Margin of BCO has grown nicely.
BCO has a worse Gross Margin (25.16%) than 60.98% of its industry peers.
In the last couple of years the Gross Margin of BCO has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.3% | ||
| PM (TTM) | 3.21% | ||
| GM | 25.16% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so BCO 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
Based on the Altman-Z score of 1.57, we must say that BCO is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.57, BCO is doing worse than 62.20% of the companies in the same industry.
BCO has a debt to FCF ratio of 11.86. This is a negative value and a sign of low solvency as BCO would need 11.86 years to pay back of all of its debts.
BCO's Debt to FCF ratio of 11.86 is in line compared to the rest of the industry. BCO outperforms 52.44% of its industry peers.
BCO has a Debt/Equity ratio of 15.60. This is a high value indicating a heavy dependency on external financing.
BCO has a Debt to Equity ratio of 15.60. This is amonst the worse of the industry: BCO underperforms 86.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 15.6 | ||
| Debt/FCF | 11.86 | ||
| Altman-Z | 1.57 |
ROIC/WACC0.88
WACC8.06%
2.3 Liquidity
A Current Ratio of 1.51 indicates that BCO should not have too much problems paying its short term obligations.
The Current ratio of BCO (1.51) is comparable to the rest of the industry.
BCO has a Quick Ratio of 1.51. This is a normal value and indicates that BCO is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.51, BCO is doing good in the industry, outperforming 60.98% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.51 | ||
| Quick Ratio | 1.51 |
3. Growth
3.1 Past
The earnings per share for BCO have decreased strongly by -10.55% in the last year.
The Earnings Per Share has been growing by 12.06% on average over the past years. This is quite good.
Looking at the last year, BCO shows a small growth in Revenue. The Revenue has grown by 2.17% in the last year.
The Revenue has been growing slightly by 6.35% on average over the past years.
EPS 1Y (TTM)-10.55%
EPS 3Y12.27%
EPS 5Y12.06%
EPS Q2Q%7.19%
Revenue 1Y (TTM)2.17%
Revenue growth 3Y6.07%
Revenue growth 5Y6.35%
Sales Q2Q%3.78%
3.2 Future
The Earnings Per Share is expected to grow by 20.76% on average over the next years. This is a very strong growth
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 Y17.78%
EPS Next 2Y17.21%
EPS Next 3Y20.76%
EPS Next 5YN/A
Revenue Next Year4.51%
Revenue Next 2Y4.56%
Revenue Next 3Y5.29%
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.
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
The Price/Earnings ratio is 15.85, which indicates a correct valuation of BCO.
Based on the Price/Earnings ratio, BCO is valued a bit cheaper than 76.83% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.40, BCO is valued a bit cheaper.
The Price/Forward Earnings ratio is 11.91, which indicates a very decent valuation of BCO.
81.71% of the companies in the same industry are more expensive than BCO, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.94, BCO is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.85 | ||
| Fwd PE | 11.91 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BCO is valued a bit cheaper than the industry average as 65.85% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BCO indicates a somewhat cheap valuation: BCO is cheaper than 78.05% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.37 | ||
| EV/EBITDA | 9.62 |
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.
BCO has a very decent profitability rating, which may justify a higher PE ratio.
BCO's earnings are expected to grow with 20.76% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.89
PEG (5Y)1.31
EPS Next 2Y17.21%
EPS Next 3Y20.76%
5. Dividend
5.1 Amount
With a yearly dividend of 0.92%, BCO is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.51, BCO pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.92, BCO pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.92% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)9.81%
Div Incr Years4
Div Non Decr Years28
5.3 Sustainability
26.00% of the earnings are spent on dividend by BCO. This is a low number and sustainable payout ratio.
The dividend of BCO is growing, but earnings are growing more, so the dividend growth is sustainable.
DP26%
EPS Next 2Y17.21%
EPS Next 3Y20.76%
111.59
+0.74 (+0.67%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners101.64%
Inst Owner Change-0.11%
Ins Owners0.93%
Ins Owner Change-0.77%
Market Cap4.65B
Analysts82.86
Price Target131.07 (17.46%)
Short Float %1.77%
Short Ratio2.28
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.92% |
Yearly Dividend0.96
Dividend Growth(5Y)9.81%
DP26%
Div Incr Years4
Div Non Decr Years28
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)29.6%
Min EPS beat(2)22.51%
Max EPS beat(2)36.7%
EPS beat(4)3
Avg EPS beat(4)13.54%
Min EPS beat(4)-16.32%
Max EPS beat(4)36.7%
EPS beat(8)7
Avg EPS beat(8)13.1%
EPS beat(12)10
Avg EPS beat(12)9.15%
EPS beat(16)14
Avg EPS beat(16)11.83%
Revenue beat(2)2
Avg Revenue beat(2)1.42%
Min Revenue beat(2)1.05%
Max Revenue beat(2)1.8%
Revenue beat(4)2
Avg Revenue beat(4)0.11%
Min Revenue beat(4)-2.25%
Max Revenue beat(4)1.8%
Revenue beat(8)3
Avg Revenue beat(8)-0.14%
Revenue beat(12)4
Avg Revenue beat(12)-0.47%
Revenue beat(16)7
Avg Revenue beat(16)-0.24%
PT rev (1m)0%
PT rev (3m)1.58%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.48%
EPS NY rev (1m)0%
EPS NY rev (3m)6%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.05%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.85 | ||
| Fwd PE | 11.91 | ||
| P/S | 0.92 | ||
| P/FCF | 13.37 | ||
| P/OCF | 8.13 | ||
| P/B | 18.26 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.62 |
EPS(TTM)7.04
EY6.31%
EPS(NY)9.37
Fwd EY8.4%
FCF(TTM)8.35
FCFY7.48%
OCF(TTM)13.73
OCFY12.3%
SpS121.7
BVpS6.11
TBVpS-40.23
PEG (NY)0.89
PEG (5Y)1.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.3% | ||
| ROE | 63.9% | ||
| ROCE | 9.34% | ||
| ROIC | 7.12% | ||
| ROICexc | 9.66% | ||
| ROICexgc | 19.35% | ||
| OM | 9.3% | ||
| PM (TTM) | 3.21% | ||
| GM | 25.16% | ||
| FCFM | 6.86% |
ROA(3y)2.16%
ROA(5y)1.73%
ROE(3y)49.44%
ROE(5y)49.26%
ROIC(3y)7.26%
ROIC(5y)6.71%
ROICexc(3y)9.65%
ROICexc(5y)8.62%
ROICexgc(3y)20.73%
ROICexgc(5y)18.55%
ROCE(3y)9.42%
ROCE(5y)8.65%
ROICexcg growth 3Y6.62%
ROICexcg growth 5Y8.33%
ROICexc growth 3Y8.17%
ROICexc growth 5Y4.02%
OM growth 3Y2.39%
OM growth 5Y4.78%
PM growth 3Y9.07%
PM growth 5Y32.79%
GM growth 3Y3.31%
GM growth 5Y1.84%
F-Score5
Asset Turnover0.72
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 15.6 | ||
| Debt/FCF | 11.86 | ||
| Debt/EBITDA | 5.3 | ||
| Cap/Depr | 80.6% | ||
| Cap/Sales | 4.42% | ||
| Interest Coverage | 1.94 | ||
| Cash Conversion | 76.28% | ||
| Profit Quality | 213.71% | ||
| Current Ratio | 1.51 | ||
| Quick Ratio | 1.51 | ||
| Altman-Z | 1.57 |
F-Score5
WACC8.06%
ROIC/WACC0.88
Cap/Depr(3y)74.55%
Cap/Depr(5y)70.21%
Cap/Sales(3y)4.21%
Cap/Sales(5y)3.97%
Profit Quality(3y)289.66%
Profit Quality(5y)481.75%
High Growth Momentum
Growth
EPS 1Y (TTM)-10.55%
EPS 3Y12.27%
EPS 5Y12.06%
EPS Q2Q%7.19%
EPS Next Y17.78%
EPS Next 2Y17.21%
EPS Next 3Y20.76%
EPS Next 5YN/A
Revenue 1Y (TTM)2.17%
Revenue growth 3Y6.07%
Revenue growth 5Y6.35%
Sales Q2Q%3.78%
Revenue Next Year4.51%
Revenue Next 2Y4.56%
Revenue Next 3Y5.29%
Revenue Next 5Y5%
EBIT growth 1Y-9.98%
EBIT growth 3Y8.6%
EBIT growth 5Y11.43%
EBIT Next Year54.62%
EBIT Next 3Y22.2%
EBIT Next 5Y18.65%
FCF growth 1Y-2.19%
FCF growth 3Y-13.1%
FCF growth 5Y-0.03%
OCF growth 1Y5.13%
OCF growth 3Y-3.77%
OCF growth 5Y2.94%