BRINK'S CO/THE (BCO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BCO - US1096961040 - Common Stock
124.58 USD
-0.72 (-0.57%)
Overall BCO gets a fundamental rating of 5 out of 10. We evaluated BCO against 80 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.
- In the past 5 years BCO has always been profitable.
- BCO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- BCO has a Return On Assets of 2.45%. This is comparable to the rest of the industry: BCO outperforms 60.00% of its industry peers.
- The Return On Equity of BCO (63.35%) is better than 100.00% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 7.75%, BCO is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for BCO is below the industry average of 10.58%.
- 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
- 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.
- BCO's Profit Margin has improved in the last couple of years.
- BCO has a better Operating Margin (9.82%) 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.
- BCO's Gross Margin has improved in the last couple of years.
| 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so BCO is destroying value.
- The number of shares outstanding for BCO has been reduced compared to 1 year ago.
- The number of shares outstanding for BCO has been reduced compared to 5 years ago.
- BCO has a worse debt/assets ratio than last year.
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.
- With a Altman-Z score value of 1.66, BCO perfoms like the industry average, outperforming 42.50% of the companies in the same industry.
- 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.
- BCO has a Debt to FCF ratio (9.55) which is in line with its industry peers.
- A Debt/Equity ratio of 14.30 is on the high side and indicates that BCO has dependencies on debt financing.
- With a Debt to Equity ratio value of 14.30, BCO is not doing good in the industry: 91.25% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 14.3 | ||
| Debt/FCF | 9.55 | ||
| Altman-Z | 1.66 |
ROIC/WACC0.94
WACC8.21%
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.
- 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
- Based on estimates for the next years, BCO will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.22% on average per year.
- 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
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- 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
- BCO is valuated correctly with a Price/Earnings ratio of 16.37.
- Compared to the rest of the industry, the Price/Earnings ratio of BCO indicates a somewhat cheap valuation: BCO is cheaper than 80.00% of the companies listed in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.25. BCO is valued slightly cheaper when compared to this.
- BCO is valuated correctly with a Price/Forward Earnings ratio of 13.45.
- 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.
- BCO's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.37 | ||
| Fwd PE | 13.45 |
4.2 Price Multiples
- BCO's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. BCO is cheaper than 67.50% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, BCO is valued cheaply inside the industry as 85.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.39 | ||
| EV/EBITDA | 9.71 |
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 17.22% in the coming years.
PEG (NY)0.92
PEG (5Y)1.36
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.
- BCO's Dividend Yield is a higher than the industry average which is at 0.82.
- Compared to an average S&P500 Dividend Yield of 1.82, BCO's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.81% |
5.2 History
- The dividend of BCO is nicely growing with an annual growth rate of 9.81%!
- 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
- 24.81% 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.
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%.