BRINK'S CO/THE (BCO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BCO - US1096961040 - Common Stock
119.63 USD
+0.34 (+0.29%)
119.63 USD
0 (0%)
BCO gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 81 industry peers in the Commercial Services & Supplies industry. BCO has an excellent profitability rating, but there are concerns on its financial health. 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.
BCO had a positive operating cash flow in the past year.
BCO had positive earnings in each of the past 5 years.
Each year in the past 5 years BCO had a positive operating cash flow.
1.2 Ratios
BCO has a Return On Assets of 2.45%. This is in the better half of the industry: BCO outperforms 61.73% 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 100.00% of the companies in the same industry.
BCO's Return On Invested Capital of 7.75% is fine compared to the rest of the industry. BCO outperforms 69.14% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BCO is below the industry average of 10.33%.
The 3 year average ROIC (7.26%) for BCO is below the current ROIC(7.75%), indicating increased profibility in the last year.
| 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
BCO has a better Profit Margin (3.31%) than 60.49% of its industry peers.
BCO's Profit Margin has improved in the last couple of years.
The Operating Margin of BCO (9.82%) is better than 69.14% 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 comparable to the rest of the industry.
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
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
The debt/assets ratio for BCO is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.64, we must say that BCO is in the distress zone and has some risk of bankruptcy.
BCO has a Altman-Z score (1.64) which is comparable to the rest of the industry.
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 better Debt to FCF ratio (9.55) than 60.49% of its industry peers.
A Debt/Equity ratio of 14.30 is on the high side and indicates that BCO has dependencies on debt financing.
BCO has a Debt to Equity ratio of 14.30. This is amonst the worse of the industry: BCO underperforms 90.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 14.3 | ||
| Debt/FCF | 9.55 | ||
| Altman-Z | 1.64 |
ROIC/WACC0.95
WACC8.16%
2.3 Liquidity
A Current Ratio of 1.46 indicates that BCO should not have too much problems paying its short term obligations.
BCO has a Current ratio (1.46) which is in line with its industry peers.
BCO has a Quick 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.
Looking at the Quick ratio, with a value of 1.46, BCO is in line with its industry, outperforming 56.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.46 | ||
| Quick Ratio | 1.46 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.01% over the past year.
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.
The Revenue has been growing slightly by 6.35% on average over the past years.
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.
BCO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.00% yearly.
EPS Next Y17.83%
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 15.72.
Based on the Price/Earnings ratio, BCO is valued cheaper than 80.25% of the companies in the same industry.
When comparing the Price/Earnings ratio of BCO to the average of the S&P500 Index (26.92), we can say BCO is valued slightly cheaper.
A Price/Forward Earnings ratio of 12.92 indicates a correct valuation of BCO.
BCO's Price/Forward Earnings ratio is rather cheap when compared to the industry. BCO is cheaper than 83.95% of the companies in the same industry.
BCO is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.46, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.72 | ||
| Fwd PE | 12.92 |
4.2 Price Multiples
70.37% of the companies in the same industry are more expensive than BCO, based on the Enterprise Value to EBITDA ratio.
86.42% of the companies in the same industry are more expensive than BCO, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.9 | ||
| EV/EBITDA | 9.41 |
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.
The decent profitability rating of BCO 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)0.88
PEG (5Y)1.3
EPS Next 2Y16.53%
EPS Next 3Y17.22%
5. Dividend
5.1 Amount
BCO has a yearly dividend return of 0.86%, which is pretty low.
Compared to an average industry Dividend Yield of 0.89, BCO pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.00, BCO's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.86% |
5.2 History
On average, the dividend of BCO grows each year by 9.81%, which is quite nice.
BCO has paid a dividend for at least 10 years, which is 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
BCO pays out 24.81% of its income as dividend. This is a 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%
119.63
+0.34 (+0.29%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners100.28%
Inst Owner Change-0.8%
Ins Owners0.93%
Ins Owner Change-1.63%
Market Cap4.97B
Revenue(TTM)5.15B
Net Income(TTM)170.10M
Analysts82.86
Price Target131.58 (9.99%)
Short Float %1.72%
Short Ratio2.98
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.86% |
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)0.39%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.4%
EPS NY rev (1m)0.04%
EPS NY rev (3m)0.04%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.51%
Revenue NY rev (1m)0.19%
Revenue NY rev (3m)0.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.72 | ||
| Fwd PE | 12.92 | ||
| P/S | 0.97 | ||
| P/FCF | 11.9 | ||
| P/OCF | 7.82 | ||
| P/B | 18.51 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.41 |
EPS(TTM)7.61
EY6.36%
EPS(NY)9.26
Fwd EY7.74%
FCF(TTM)10.05
FCFY8.4%
OCF(TTM)15.3
OCFY12.79%
SpS123.86
BVpS6.46
TBVpS-39.61
PEG (NY)0.88
PEG (5Y)1.3
Graham Number33.26
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 | 1.64 |
F-Score7
WACC8.16%
ROIC/WACC0.95
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 Y17.83%
EPS Next 2Y16.53%
EPS Next 3Y17.22%
EPS Next 5YN/A
Revenue 1Y (TTM)3.07%
Revenue growth 3Y6.07%
Revenue growth 5Y6.35%
Sales Q2Q%6.04%
Revenue Next Year4.71%
Revenue Next 2Y4.84%
Revenue Next 3Y5.04%
Revenue Next 5Y5%
EBIT growth 1Y0.8%
EBIT growth 3Y8.6%
EBIT growth 5Y11.43%
EBIT Next Year55.09%
EBIT Next 3Y21.21%
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 17.83% 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%.