BRINK'S CO/THE (BCO) Stock Fundamental Analysis
NYSE:BCO - New York Stock Exchange, Inc. - US1096961040 - Common Stock - Currency: USD
Overall BCO gets a fundamental rating of 5 out of 10. We evaluated BCO against 84 industry peers in the Commercial Services & Supplies industry. While BCO is still in line with the averages on profitability rating, there are concerns on its financial health. BCO has a decent growth rate and is not valued too expensively.
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
The Return On Assets of BCO (1.79%) is comparable to the rest of the industry.
BCO's Return On Equity of 43.09% is amongst the best of the industry. BCO outperforms 100.00% of its industry peers.
With a Return On Invested Capital value of 6.14%, BCO perfoms like the industry average, outperforming 54.88% 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 10.12%.
The 3 year average ROIC (5.48%) for BCO is below the current ROIC(6.14%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.79% | ||
| ROE | 43.09% | ||
| ROIC | 6.14% |
ROA(3y)1.97%
ROA(5y)1.4%
ROE(3y)48.58%
ROE(5y)34.66%
ROIC(3y)5.48%
ROIC(5y)5.24%
1.3 Margins
BCO's Profit Margin of 2.39% is in line compared to the rest of the industry. BCO outperforms 56.10% of its industry peers.
In the last couple of years the Profit Margin of BCO has grown nicely.
BCO's Operating Margin of 10.04% is fine compared to the rest of the industry. BCO outperforms 68.29% of its industry peers.
BCO's Operating Margin has improved in the last couple of years.
BCO has a worse Gross Margin (25.29%) than 62.20% of its industry peers.
BCO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.04% | ||
| PM (TTM) | 2.39% | ||
| GM | 25.29% |
OM growth 3Y13.63%
OM growth 5Y4.27%
PM growth 3Y60.7%
PM growth 5YN/A
GM growth 3Y2.8%
GM growth 5Y1.24%
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.
Compared to 5 years ago, BCO has less shares outstanding
BCO has about the same debt/assets ratio as last year.
2.2 Solvency
BCO has an Altman-Z score of 1.63. This is a bad value and indicates that BCO is not financially healthy and even has some risk of bankruptcy.
BCO's Altman-Z score of 1.63 is in line compared to the rest of the industry. BCO outperforms 40.24% of its industry peers.
The Debt to FCF ratio of BCO is 16.31, which is on the high side as it means it would take BCO, 16.31 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 16.31, BCO perfoms like the industry average, outperforming 45.12% of the companies in the same industry.
A Debt/Equity ratio of 13.41 is on the high side and indicates that BCO has dependencies on debt financing.
The Debt to Equity ratio of BCO (13.41) is worse than 92.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 13.41 | ||
| Debt/FCF | 16.31 | ||
| Altman-Z | 1.63 |
ROIC/WACC0.9
WACC6.84%
2.3 Liquidity
BCO has a Current Ratio of 1.57. 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 Current ratio value of 1.57, BCO perfoms like the industry average, outperforming 56.10% of the companies in the same industry.
BCO has a Quick Ratio of 1.57. 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 (1.57) is better than 69.51% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.57 | ||
| Quick Ratio | 1.57 |
3. Growth
3.1 Past
BCO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.30%, which is quite good.
Measured over the past years, BCO shows a quite strong growth in Earnings Per Share. The EPS has been growing by 15.95% on average per year.
The Revenue has been growing slightly by 3.60% in the past year.
Measured over the past years, BCO shows a small growth in Revenue. The Revenue has been growing by 6.92% on average per year.
EPS 1Y (TTM)17.3%
EPS 3Y25.75%
EPS 5Y15.95%
EPS Q2Q%-21.35%
Revenue 1Y (TTM)3.6%
Revenue growth 3Y9.72%
Revenue growth 5Y6.92%
Sales Q2Q%2.57%
3.2 Future
Based on estimates for the next years, BCO will show a small growth in Earnings Per Share. The EPS will grow by 7.19% on average per year.
Based on estimates for the next years, BCO will show a small growth in Revenue. The Revenue will grow by 4.55% on average per year.
EPS Next Y-6.63%
EPS Next 2Y0.69%
EPS Next 3Y7.19%
EPS Next 5YN/A
Revenue Next Year2.77%
Revenue Next 2Y1.37%
Revenue Next 3Y2.8%
Revenue Next 5Y4.55%
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 decreasing.
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 12.28, which indicates a correct valuation of BCO.
BCO's Price/Earnings ratio is rather cheap when compared to the industry. BCO is cheaper than 85.37% of the companies in the same industry.
When comparing the Price/Earnings ratio of BCO to the average of the S&P500 Index (29.62), we can say BCO is valued rather cheaply.
With a Price/Forward Earnings ratio of 12.88, BCO is valued correctly.
Based on the Price/Forward Earnings ratio, BCO is valued cheaper than 84.15% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.70, BCO is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.28 | ||
| Fwd PE | 12.88 |
4.2 Price Multiples
BCO's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. BCO is cheaper than 75.61% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, BCO is valued a bit cheaper than 70.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.94 | ||
| EV/EBITDA | 8.2 |
4.3 Compensation for Growth
BCO has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.77
EPS Next 2Y0.69%
EPS Next 3Y7.19%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.05%, BCO has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.14, BCO pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.27, BCO's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.05% |
5.2 History
On average, the dividend of BCO grows each year by 7.53%, 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)7.53%
Div Incr Years4
Div Non Decr Years28
5.3 Sustainability
BCO pays out 34.51% of its income as dividend. This is a sustainable payout ratio.
The dividend of BCO is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP34.51%
EPS Next 2Y0.69%
EPS Next 3Y7.19%
91.64
-0.65 (-0.7%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners99.79%
Inst Owner Change-92.45%
Ins Owners0.48%
Ins Owner Change6.92%
Market Cap4.00B
Analysts82.86
Price Target126.99 (38.57%)
Short Float %2.34%
Short Ratio4.41
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.05% |
Yearly Dividend0.87
Dividend Growth(5Y)7.53%
DP34.51%
Div Incr Years4
Div Non Decr Years28
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.79%
Min EPS beat(2)-16.32%
Max EPS beat(2)12.74%
EPS beat(4)3
Avg EPS beat(4)7.03%
Min EPS beat(4)-16.32%
Max EPS beat(4)22.85%
EPS beat(8)6
Avg EPS beat(8)4.71%
EPS beat(12)10
Avg EPS beat(12)6.9%
EPS beat(16)14
Avg EPS beat(16)12.83%
Revenue beat(2)0
Avg Revenue beat(2)-1.87%
Min Revenue beat(2)-2.25%
Max Revenue beat(2)-1.49%
Revenue beat(4)1
Avg Revenue beat(4)-0.73%
Min Revenue beat(4)-2.25%
Max Revenue beat(4)1.15%
Revenue beat(8)2
Avg Revenue beat(8)-0.58%
Revenue beat(12)4
Avg Revenue beat(12)-0.66%
Revenue beat(16)6
Avg Revenue beat(16)-0.7%
PT rev (1m)-4.6%
PT rev (3m)-4.6%
EPS NQ rev (1m)1.25%
EPS NQ rev (3m)1.25%
EPS NY rev (1m)-0.23%
EPS NY rev (3m)-0.23%
Revenue NQ rev (1m)-0.39%
Revenue NQ rev (3m)-0.39%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)-0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.28 | ||
| Fwd PE | 12.88 | ||
| P/S | 0.8 | ||
| P/FCF | 16.94 | ||
| P/OCF | 8.59 | ||
| P/B | 14.43 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.2 |
EPS(TTM)7.46
EY8.14%
EPS(NY)7.12
Fwd EY7.77%
FCF(TTM)5.41
FCFY5.9%
OCF(TTM)10.67
OCFY11.64%
SpS114.42
BVpS6.35
TBVpS-38.07
PEG (NY)N/A
PEG (5Y)0.77
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.79% | ||
| ROE | 43.09% | ||
| ROCE | 10.3% | ||
| ROIC | 6.14% | ||
| ROICexc | 8.13% | ||
| ROICexgc | 16.66% | ||
| OM | 10.04% | ||
| PM (TTM) | 2.39% | ||
| GM | 25.29% | ||
| FCFM | 4.73% |
ROA(3y)1.97%
ROA(5y)1.4%
ROE(3y)48.58%
ROE(5y)34.66%
ROIC(3y)5.48%
ROIC(5y)5.24%
ROICexc(3y)6.95%
ROICexc(5y)6.41%
ROICexgc(3y)15.12%
ROICexgc(5y)13.3%
ROCE(3y)9.09%
ROCE(5y)8.64%
ROICexcg growth 3Y21.52%
ROICexcg growth 5Y3.72%
ROICexc growth 3Y19.42%
ROICexc growth 5Y-0.36%
OM growth 3Y13.63%
OM growth 5Y4.27%
PM growth 3Y60.7%
PM growth 5YN/A
GM growth 3Y2.8%
GM growth 5Y1.24%
F-Score6
Asset Turnover0.75
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 13.41 | ||
| Debt/FCF | 16.31 | ||
| Debt/EBITDA | 4.7 | ||
| Cap/Depr | 79.19% | ||
| Cap/Sales | 4.6% | ||
| Interest Coverage | 2.42 | ||
| Cash Conversion | 58.86% | ||
| Profit Quality | 197.74% | ||
| Current Ratio | 1.57 | ||
| Quick Ratio | 1.57 | ||
| Altman-Z | 1.63 |
F-Score6
WACC6.84%
ROIC/WACC0.9
Cap/Depr(3y)72.63%
Cap/Depr(5y)72.85%
Cap/Sales(3y)4.06%
Cap/Sales(5y)3.97%
Profit Quality(3y)346.27%
Profit Quality(5y)597.32%
High Growth Momentum
Growth
EPS 1Y (TTM)17.3%
EPS 3Y25.75%
EPS 5Y15.95%
EPS Q2Q%-21.35%
EPS Next Y-6.63%
EPS Next 2Y0.69%
EPS Next 3Y7.19%
EPS Next 5YN/A
Revenue 1Y (TTM)3.6%
Revenue growth 3Y9.72%
Revenue growth 5Y6.92%
Sales Q2Q%2.57%
Revenue Next Year2.77%
Revenue Next 2Y1.37%
Revenue Next 3Y2.8%
Revenue Next 5Y4.55%
EBIT growth 1Y2.81%
EBIT growth 3Y24.67%
EBIT growth 5Y11.48%
EBIT Next Year46.06%
EBIT Next 3Y19.47%
EBIT Next 5Y15.11%
FCF growth 1Y7.32%
FCF growth 3Y35.88%
FCF growth 5Y19.05%
OCF growth 1Y14.99%
OCF growth 3Y30.27%
OCF growth 5Y14.04%