BRINK'S CO/THE (BCO) Stock Fundamental Analysis
NYSE:BCO - New York Stock Exchange, Inc. - US1096961040 - Common Stock - Currency: USD
BCO gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 83 industry peers in the Commercial Services & Supplies industry. BCO scores excellent on profitability, but there are concerns on its financial health. BCO is valued quite cheap, while showing a decent growth score. This is a good combination! BCO also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year BCO was profitable.
In the past year BCO had a positive cash flow from operations.
In the past 5 years BCO has always been profitable.
In the past 5 years BCO always reported a positive cash flow from operatings.
1.2 Ratios
BCO has a Return On Assets (2.51%) which is in line with its industry peers.
BCO has a Return On Equity of 80.27%. This is amongst the best in the industry. BCO outperforms 100.00% of its industry peers.
BCO has a better Return On Invested Capital (7.29%) than 60.24% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BCO is below the industry average of 11.67%.
The last Return On Invested Capital (7.29%) for BCO is above the 3 year average (7.26%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.51% | ||
| ROE | 80.27% | ||
| ROIC | 7.29% |
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 of 3.29%. This is comparable to the rest of the industry: BCO outperforms 56.63% of its industry peers.
BCO's Profit Margin has improved in the last couple of years.
The Operating Margin of BCO (9.00%) is better than 65.06% of its industry peers.
In the last couple of years the Operating Margin of BCO has grown nicely.
BCO has a worse Gross Margin (25.23%) than 65.06% of its industry peers.
BCO's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9% | ||
| PM (TTM) | 3.29% | ||
| GM | 25.23% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), BCO is destroying value.
Compared to 1 year ago, BCO has less shares outstanding
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 1.57, we must say that BCO is in the distress zone and has some risk of bankruptcy.
BCO has a Altman-Z score of 1.57. This is in the lower half of the industry: BCO underperforms 68.67% of its industry peers.
The Debt to FCF ratio of BCO is 53.39, which is on the high side as it means it would take BCO, 53.39 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 53.39, BCO perfoms like the industry average, outperforming 44.58% of the companies in the same industry.
BCO has a Debt/Equity ratio of 18.15. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 18.15, BCO is not doing good in the industry: 87.95% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 18.15 | ||
| Debt/FCF | 53.39 | ||
| Altman-Z | 1.57 |
ROIC/WACC0.74
WACC9.86%
2.3 Liquidity
A Current Ratio of 1.52 indicates that BCO should not have too much problems paying its short term obligations.
BCO has a Current ratio (1.52) which is comparable to the rest of the industry.
BCO has a Quick Ratio of 1.52. 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 decent Quick ratio value of 1.52, BCO is doing good in the industry, outperforming 60.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.52 | ||
| Quick Ratio | 1.52 |
3. Growth
3.1 Past
BCO shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.23%.
BCO shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.06% yearly.
BCO shows a small growth in Revenue. In the last year, the Revenue has grown by 1.97%.
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)-6.23%
EPS 3Y12.27%
EPS 5Y12.06%
EPS Q2Q%6.58%
Revenue 1Y (TTM)1.97%
Revenue growth 3Y6.07%
Revenue growth 5Y6.35%
Sales Q2Q%0.88%
3.2 Future
BCO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.89% yearly.
BCO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.00% yearly.
EPS Next Y11.12%
EPS Next 2Y15.6%
EPS Next 3Y20.89%
EPS Next 5YN/A
Revenue Next Year3.11%
Revenue Next 2Y3.78%
Revenue Next 3Y4.96%
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
Based on the Price/Earnings ratio of 12.90, the valuation of BCO can be described as correct.
80.72% of the companies in the same industry are more expensive than BCO, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.15, BCO is valued rather cheaply.
The Price/Forward Earnings ratio is 9.80, which indicates a very decent valuation of BCO.
Based on the Price/Forward Earnings ratio, BCO is valued cheaply inside the industry as 90.36% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.60, BCO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.9 | ||
| Fwd PE | 9.8 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BCO is valued a bit cheaper than 73.49% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BCO is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 51.58 | ||
| EV/EBITDA | 8.42 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct 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 20.89% in the coming years.
PEG (NY)1.16
PEG (5Y)1.07
EPS Next 2Y15.6%
EPS Next 3Y20.89%
5. Dividend
5.1 Amount
BCO has a Yearly Dividend Yield of 1.13%.
BCO's Dividend Yield is a higher than the industry average which is at 2.45.
Compared to an average S&P500 Dividend Yield of 2.42, BCO's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.13% |
5.2 History
The dividend of BCO is nicely growing with an annual growth rate of 9.81%!
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)9.81%
Div Incr Years4
Div Non Decr Years28
5.3 Sustainability
25.67% 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.
DP25.67%
EPS Next 2Y15.6%
EPS Next 3Y20.89%
89.29
+0.19 (+0.21%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners102.61%
Inst Owner Change0.4%
Ins Owners1.03%
Ins Owner Change9.35%
Market Cap3.75B
Analysts82.86
Price Target129.03 (44.51%)
Short Float %2.94%
Short Ratio3.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.13% |
Yearly Dividend0.96
Dividend Growth(5Y)9.81%
DP25.67%
Div Incr Years4
Div Non Decr Years28
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)23.98%
Min EPS beat(2)11.25%
Max EPS beat(2)36.7%
EPS beat(4)3
Avg EPS beat(4)11.09%
Min EPS beat(4)-16.32%
Max EPS beat(4)36.7%
EPS beat(8)6
Avg EPS beat(8)8.77%
EPS beat(12)10
Avg EPS beat(12)7.88%
EPS beat(16)14
Avg EPS beat(16)11.58%
Revenue beat(2)1
Avg Revenue beat(2)0.83%
Min Revenue beat(2)-0.14%
Max Revenue beat(2)1.8%
Revenue beat(4)1
Avg Revenue beat(4)-0.52%
Min Revenue beat(4)-2.25%
Max Revenue beat(4)1.8%
Revenue beat(8)2
Avg Revenue beat(8)-0.33%
Revenue beat(12)4
Avg Revenue beat(12)-0.4%
Revenue beat(16)6
Avg Revenue beat(16)-0.55%
PT rev (1m)1.2%
PT rev (3m)1.2%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-10.88%
EPS NY rev (1m)0%
EPS NY rev (3m)5.68%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.88%
Revenue NY rev (1m)0%
Revenue NY rev (3m)3.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.9 | ||
| Fwd PE | 9.8 | ||
| P/S | 0.75 | ||
| P/FCF | 51.58 | ||
| P/OCF | 12.42 | ||
| P/B | 18.22 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.42 |
EPS(TTM)6.92
EY7.75%
EPS(NY)9.11
Fwd EY10.21%
FCF(TTM)1.73
FCFY1.94%
OCF(TTM)7.19
OCFY8.05%
SpS119.58
BVpS4.9
TBVpS-39.98
PEG (NY)1.16
PEG (5Y)1.07
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.51% | ||
| ROE | 80.27% | ||
| ROCE | 9.49% | ||
| ROIC | 7.29% | ||
| ROICexc | 9.72% | ||
| ROICexgc | 19.96% | ||
| OM | 9% | ||
| PM (TTM) | 3.29% | ||
| GM | 25.23% | ||
| FCFM | 1.45% |
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-Score8
Asset Turnover0.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 18.15 | ||
| Debt/FCF | 53.39 | ||
| Debt/EBITDA | 5.02 | ||
| Cap/Depr | 78.6% | ||
| Cap/Sales | 4.56% | ||
| Interest Coverage | 2.05 | ||
| Cash Conversion | 40.61% | ||
| Profit Quality | 44.01% | ||
| Current Ratio | 1.52 | ||
| Quick Ratio | 1.52 | ||
| Altman-Z | 1.57 |
F-Score8
WACC9.86%
ROIC/WACC0.74
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)-6.23%
EPS 3Y12.27%
EPS 5Y12.06%
EPS Q2Q%6.58%
EPS Next Y11.12%
EPS Next 2Y15.6%
EPS Next 3Y20.89%
EPS Next 5YN/A
Revenue 1Y (TTM)1.97%
Revenue growth 3Y6.07%
Revenue growth 5Y6.35%
Sales Q2Q%0.88%
Revenue Next Year3.11%
Revenue Next 2Y3.78%
Revenue Next 3Y4.96%
Revenue Next 5Y5%
EBIT growth 1Y-11.41%
EBIT growth 3Y8.6%
EBIT growth 5Y11.43%
EBIT Next Year51.22%
EBIT Next 3Y21.81%
EBIT Next 5Y18.65%
FCF growth 1Y-77.3%
FCF growth 3Y-13.1%
FCF growth 5Y-0.03%
OCF growth 1Y-40.93%
OCF growth 3Y-3.77%
OCF growth 5Y2.94%