BRINK'S CO/THE (BCO) Stock Fundamental Analysis
USA - NYSE:BCO - US1096961040 - Common Stock
113.97 USD
-0.99 (-0.86%)
113.97 USD
0 (0%)
Overall BCO gets a fundamental rating of 5 out of 10. We evaluated BCO against 84 industry peers in the Commercial Services & Supplies industry. BCO has a medium profitability rating, but doesn't score so well on its financial health evaluation. BCO has a correct valuation and a medium growth rate.
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.
Each year in the past 5 years BCO had a positive operating cash flow.
1.2 Ratios
BCO's Return On Assets of 2.30% is in line compared to the rest of the industry. BCO outperforms 57.14% of its industry peers.
BCO has a better Return On Equity (63.90%) than 98.81% of its industry peers.
BCO has a Return On Invested Capital of 7.12%. This is in the better half of the industry: BCO outperforms 61.90% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BCO is below the industry average of 10.60%.
| 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.
BCO's Profit Margin has improved in the last couple of years.
BCO's Operating Margin of 9.30% is fine compared to the rest of the industry. BCO outperforms 69.05% of its industry peers.
BCO's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 25.16%, BCO is doing worse than 61.90% 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 | 9.3% | ||
| 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.
The number of shares outstanding for BCO has been reduced compared to 1 year ago.
Compared to 5 years ago, BCO has less shares outstanding
BCO has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.58, we must say that BCO is in the distress zone and has some risk of bankruptcy.
BCO has a Altman-Z score of 1.58. This is in the lower half of the industry: BCO underperforms 64.29% of its industry peers.
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.
With a Debt to FCF ratio value of 11.86, BCO perfoms like the industry average, outperforming 52.38% of the companies in the same industry.
BCO has a Debt/Equity ratio of 15.60. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of BCO (15.60) is worse than 86.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 15.6 | ||
| Debt/FCF | 11.86 | ||
| Altman-Z | 1.58 |
ROIC/WACC0.85
WACC8.37%
2.3 Liquidity
A Current Ratio of 1.51 indicates that BCO should not have too much problems paying its short term obligations.
BCO has a Current ratio (1.51) which is in line with its industry peers.
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.
The Quick ratio of BCO (1.51) is better than 60.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.51 | ||
| Quick Ratio | 1.51 |
3. Growth
3.1 Past
BCO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -10.55%.
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.
BCO shows a small growth in Revenue. In the last year, the Revenue has grown by 2.17%.
BCO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.35% yearly.
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
The Revenue is expected to grow by 5.00% on average over the next years.
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.
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
A Price/Earnings ratio of 16.19 indicates a correct valuation of BCO.
Compared to the rest of the industry, the Price/Earnings ratio of BCO indicates a somewhat cheap valuation: BCO is cheaper than 77.38% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.38, BCO is valued a bit cheaper.
BCO is valuated correctly with a Price/Forward Earnings ratio of 12.16.
Based on the Price/Forward Earnings ratio, BCO is valued cheaper than 82.14% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of BCO to the average of the S&P500 Index (22.86), we can say BCO is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.19 | ||
| Fwd PE | 12.16 |
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 69.05% of the companies listed in the same industry.
BCO's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. BCO is cheaper than 79.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.66 | ||
| EV/EBITDA | 9.81 |
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.
The decent profitability rating of BCO 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)0.91
PEG (5Y)1.34
EPS Next 2Y17.21%
EPS Next 3Y20.76%
5. Dividend
5.1 Amount
BCO has a yearly dividend return of 0.87%, which is pretty low.
Compared to an average industry Dividend Yield of 2.27, BCO pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.87, BCO pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.87% |
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
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%
113.97
-0.99 (-0.86%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners102.27%
Inst Owner Change-3.61%
Ins Owners1.02%
Ins Owner Change-0.73%
Market Cap4.75B
Analysts82.86
Price Target131.07 (15%)
Short Float %1.78%
Short Ratio2.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.87% |
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)1.58%
PT rev (3m)1.58%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.48%
EPS NY rev (1m)6%
EPS NY rev (3m)6%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.05%
Revenue NY rev (1m)1.36%
Revenue NY rev (3m)1.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.19 | ||
| Fwd PE | 12.16 | ||
| P/S | 0.94 | ||
| P/FCF | 13.66 | ||
| P/OCF | 8.3 | ||
| P/B | 18.65 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.81 |
EPS(TTM)7.04
EY6.18%
EPS(NY)9.37
Fwd EY8.22%
FCF(TTM)8.35
FCFY7.32%
OCF(TTM)13.73
OCFY12.05%
SpS121.7
BVpS6.11
TBVpS-40.23
PEG (NY)0.91
PEG (5Y)1.34
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 | 1.58 |
F-Score5
WACC8.37%
ROIC/WACC0.85
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 Year51.22%
EBIT Next 3Y21.81%
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%