BRINK'S CO/THE (BCO) Stock Fundamental Analysis
USA - NYSE:BCO - US1096961040 - Common Stock
112.61 USD
-1.16 (-1.02%)
112.61 USD
0 (0%)
BCO gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 82 industry peers in the Commercial Services & Supplies industry. While BCO belongs to the best of the industry regarding profitability, there are concerns on its financial health. BCO may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
BCO had positive earnings in the past year.
BCO had a positive operating cash flow in the past year.
BCO had positive earnings in each of the past 5 years.
In the past 5 years BCO always reported a positive cash flow from operatings.
1.2 Ratios
BCO has a Return On Assets of 2.45%. This is comparable to the rest of the industry: BCO outperforms 56.10% of its industry peers.
Looking at the Return On Equity, with a value of 63.35%, 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 7.75%. This is in the better half of the industry: BCO outperforms 70.73% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BCO is below the industry average of 10.51%.
The last Return On Invested Capital (7.75%) for BCO is above the 3 year average (7.26%), which is a sign of increasing profitability.
| 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
With a Profit Margin value of 3.31%, BCO perfoms like the industry average, outperforming 58.54% of the companies in the same industry.
In the last couple of years the Profit Margin of BCO has grown nicely.
BCO has a Operating Margin of 9.82%. This is in the better half of the industry: BCO outperforms 69.51% 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 is not doing good in the industry: 62.20% of the companies in the same industry are doing better.
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.
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
Based on the Altman-Z score of 1.61, we must say that BCO is in the distress zone and has some risk of bankruptcy.
BCO has a Altman-Z score (1.61) which is in line with its industry peers.
The Debt to FCF ratio of BCO is 9.55, which is on the high side as it means it would take BCO, 9.55 years of fcf income to pay off all of its debts.
BCO has a Debt to FCF ratio (9.55) which is comparable to the rest of the 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 worse Debt to Equity ratio (14.30) than 86.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 14.3 | ||
| Debt/FCF | 9.55 | ||
| Altman-Z | 1.61 |
ROIC/WACC0.97
WACC7.98%
2.3 Liquidity
A Current Ratio of 1.46 indicates that BCO should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.46, BCO is in line with its industry, outperforming 50.00% of the companies in the same industry.
A Quick Ratio of 1.46 indicates that BCO should not have too much problems paying its short term obligations.
BCO's Quick ratio of 1.46 is fine compared to the rest of the industry. BCO outperforms 60.98% of its industry peers.
| 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.
The Revenue has been growing slightly by 3.07% in the past year.
Measured over the past years, BCO shows a small growth in Revenue. The Revenue has been growing by 6.35% on average per year.
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 20.76% on average over the next years. This is a very strong growth
BCO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.00% yearly.
EPS Next Y17.78%
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
Based on the Price/Earnings ratio of 14.80, the valuation of BCO can be described as correct.
Based on the Price/Earnings ratio, BCO is valued a bit cheaper than 79.27% of the companies in the same industry.
BCO's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.35.
Based on the Price/Forward Earnings ratio of 12.02, the valuation of BCO can be described as correct.
Based on the Price/Forward Earnings ratio, BCO is valued cheaply inside the industry as 81.71% of the companies are valued more expensively.
BCO's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 33.72.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.8 | ||
| Fwd PE | 12.02 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BCO indicates a somewhat cheap valuation: BCO is cheaper than 69.51% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BCO indicates a rather cheap valuation: BCO is cheaper than 84.15% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.23 | ||
| EV/EBITDA | 9.05 |
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.
A more expensive valuation may be justified as BCO's earnings are expected to grow with 20.76% in the coming years.
PEG (NY)0.83
PEG (5Y)1.23
EPS Next 2Y17.21%
EPS Next 3Y20.76%
5. Dividend
5.1 Amount
BCO has a yearly dividend return of 0.90%, which is pretty low.
Compared to an average industry Dividend Yield of 2.54, BCO pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.90, BCO pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.9% |
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 2Y17.21%
EPS Next 3Y20.76%
112.61
-1.16 (-1.02%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners101.64%
Inst Owner Change-0.26%
Ins Owners0.93%
Ins Owner Change-1.5%
Market Cap4.69B
Revenue(TTM)5.15B
Net Income(TTM)170.10M
Analysts82.86
Price Target131.07 (16.39%)
Short Float %1.65%
Short Ratio2.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.9% |
Yearly Dividend0.96
Dividend Growth(5Y)9.81%
DP24.81%
Div Incr Years4
Div Non Decr Years28
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)10.68%
Min EPS beat(2)-1.15%
Max EPS beat(2)22.51%
EPS beat(4)3
Avg EPS beat(4)17.33%
Min EPS beat(4)-1.15%
Max EPS beat(4)36.7%
EPS beat(8)6
Avg EPS beat(8)12.18%
EPS beat(12)9
Avg EPS beat(12)8.92%
EPS beat(16)13
Avg EPS beat(16)9.5%
Revenue beat(2)1
Avg Revenue beat(2)0.15%
Min Revenue beat(2)-0.74%
Max Revenue beat(2)1.05%
Revenue beat(4)2
Avg Revenue beat(4)0.49%
Min Revenue beat(4)-0.74%
Max Revenue beat(4)1.8%
Revenue beat(8)3
Avg Revenue beat(8)-0.12%
Revenue beat(12)4
Avg Revenue beat(12)-0.22%
Revenue beat(16)6
Avg Revenue beat(16)-0.37%
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 | 14.8 | ||
| Fwd PE | 12.02 | ||
| P/S | 0.91 | ||
| P/FCF | 11.23 | ||
| P/OCF | 7.38 | ||
| P/B | 17.47 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.05 |
EPS(TTM)7.61
EY6.76%
EPS(NY)9.37
Fwd EY8.32%
FCF(TTM)10.03
FCFY8.9%
OCF(TTM)15.26
OCFY13.55%
SpS123.53
BVpS6.45
TBVpS-39.5
PEG (NY)0.83
PEG (5Y)1.23
Graham Number33.22
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.45% | ||
| ROE | 63.35% | ||
| ROCE | 10.25% | ||
| ROIC | 7.75% | ||
| ROICexc | 10.48% | ||
| ROICexgc | 21.07% | ||
| OM | 9.82% | ||
| PM (TTM) | 3.31% | ||
| GM | 25.36% | ||
| FCFM | 8.12% |
ROA(3y)2.16%
ROA(5y)1.73%
ROE(3y)49.44%
ROE(5y)49.26%
ROIC(3y)7.26%
ROIC(5y)6.71%
ROICexc(3y)9.65%
ROICexc(5y)8.62%
ROICexgc(3y)20.73%
ROICexgc(5y)18.55%
ROCE(3y)9.42%
ROCE(5y)8.65%
ROICexgc growth 3Y6.62%
ROICexgc 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-Score7
Asset Turnover0.74
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 14.3 | ||
| Debt/FCF | 9.55 | ||
| Debt/EBITDA | 4.88 | ||
| Cap/Depr | 77.39% | ||
| Cap/Sales | 4.24% | ||
| Interest Coverage | 2.13 | ||
| Cash Conversion | 80.79% | ||
| Profit Quality | 245.56% | ||
| Current Ratio | 1.46 | ||
| Quick Ratio | 1.46 | ||
| Altman-Z | 1.61 |
F-Score7
WACC7.98%
ROIC/WACC0.97
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)2.01%
EPS 3Y12.27%
EPS 5Y12.06%
EPS Q2Q%37.75%
EPS Next Y17.78%
EPS Next 2Y17.21%
EPS Next 3Y20.76%
EPS Next 5YN/A
Revenue 1Y (TTM)3.07%
Revenue growth 3Y6.07%
Revenue growth 5Y6.35%
Sales Q2Q%6.04%
Revenue Next Year4.51%
Revenue Next 2Y4.56%
Revenue Next 3Y5.29%
Revenue Next 5Y5%
EBIT growth 1Y0.8%
EBIT growth 3Y8.6%
EBIT growth 5Y11.43%
EBIT Next Year54.62%
EBIT Next 3Y22.2%
EBIT Next 5Y18.65%
FCF growth 1Y7.6%
FCF growth 3Y-13.1%
FCF growth 5Y-0.03%
OCF growth 1Y11.06%
OCF growth 3Y-3.77%
OCF growth 5Y2.94%
BRINK'S CO/THE / BCO FAQ
What is the fundamental rating for BCO stock?
ChartMill assigns a fundamental rating of 5 / 10 to BCO.
What is the valuation status of BRINK'S CO/THE (BCO) stock?
ChartMill assigns a valuation rating of 7 / 10 to BRINK'S CO/THE (BCO). This can be considered as Undervalued.
How profitable is BRINK'S CO/THE (BCO) stock?
BRINK'S CO/THE (BCO) has a profitability rating of 7 / 10.
What is the expected EPS growth for BRINK'S CO/THE (BCO) stock?
The Earnings per Share (EPS) of BRINK'S CO/THE (BCO) is expected to grow by 17.78% in the next year.
How sustainable is the dividend of BRINK'S CO/THE (BCO) stock?
The dividend rating of BRINK'S CO/THE (BCO) is 6 / 10 and the dividend payout ratio is 24.81%.