BRINK'S CO/THE (BCO) Stock Fundamental Analysis
NYSE:BCO - New York Stock Exchange, Inc. - US1096961040 - Common Stock
Taking everything into account, BCO scores 5 out of 10 in our fundamental rating. BCO was compared to 83 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. BCO also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
BCO had positive earnings in the past year.
In the past year BCO had a positive cash flow from operations.
BCO had positive earnings in each of the past 5 years.
BCO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
BCO has a Return On Assets (1.79%) which is comparable to the rest of the industry.
With an excellent Return On Equity value of 43.09%, BCO belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
BCO has a Return On Invested Capital of 6.14%. This is comparable to the rest of the industry: BCO outperforms 54.88% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BCO is below the industry average of 10.08%.
The last Return On Invested Capital (6.14%) for BCO is above the 3 year average (5.48%), which is a sign of increasing profitability.
| 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
With a Profit Margin value of 2.39%, BCO perfoms like the industry average, outperforming 56.10% of the companies in the same industry.
In the last couple of years the Profit Margin of BCO has grown nicely.
BCO has a Operating Margin of 10.04%. This is in the better half of the industry: BCO outperforms 68.29% of its industry peers.
In the last couple of years the Operating Margin of BCO has grown nicely.
The Gross Margin of BCO (25.29%) is worse than 62.20% of its industry peers.
In the last couple of years the Gross Margin of BCO has remained more or less at the same level.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), BCO is destroying value.
BCO has less shares outstanding than it did 1 year ago.
BCO has less shares outstanding than it did 5 years ago.
BCO has about the same debt/assets ratio as last year.
2.2 Solvency
BCO has an Altman-Z score of 1.64. This is a bad value and indicates that BCO is not financially healthy and even has some risk of bankruptcy.
BCO has a worse Altman-Z score (1.64) than 63.41% of its industry peers.
BCO has a debt to FCF ratio of 16.31. This is a negative value and a sign of low solvency as BCO would need 16.31 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 16.31, BCO is in line with its industry, outperforming 47.56% of the companies in the same industry.
BCO has a Debt/Equity ratio of 13.41. This is a high value indicating a heavy dependency on external financing.
BCO has a Debt to Equity ratio of 13.41. This is amonst the worse of the industry: BCO underperforms 92.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 13.41 | ||
| Debt/FCF | 16.31 | ||
| Altman-Z | 1.64 |
ROIC/WACC0.8
WACC7.69%
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.
BCO has a Current ratio of 1.57. This is comparable to the rest of the industry: BCO outperforms 56.10% of its industry peers.
A Quick Ratio of 1.57 indicates that BCO should not have too much problems paying its short term obligations.
BCO has a Quick ratio of 1.57. This is in the better half of the industry: BCO outperforms 70.73% 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.
BCO shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.95% yearly.
BCO shows a small growth in Revenue. In the last year, the Revenue has grown by 3.60%.
The Revenue has been growing slightly by 6.92% on average over the past years.
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
BCO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.27% yearly.
BCO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.55% yearly.
EPS Next Y-6.41%
EPS Next 2Y6.39%
EPS Next 3Y12.27%
EPS Next 5YN/A
Revenue Next Year2.87%
Revenue Next 2Y3.64%
Revenue Next 3Y4.46%
Revenue Next 5Y4.55%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
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 12.63, which indicates a correct valuation of BCO.
BCO's Price/Earnings ratio is rather cheap when compared to the industry. BCO is cheaper than 86.59% of the companies in the same industry.
BCO is valuated cheaply when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 11.85 indicates a reasonable valuation of BCO.
BCO's Price/Forward Earnings ratio is rather cheap when compared to the industry. BCO is cheaper than 89.02% of the companies in the same industry.
BCO is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.63 | ||
| Fwd PE | 11.85 |
4.2 Price Multiples
75.61% of the companies in the same industry are more expensive than BCO, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, BCO is valued a bit cheaper than the industry average as 71.95% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.41 | ||
| EV/EBITDA | 8.35 |
4.3 Compensation for Growth
BCO has a very decent profitability rating, which may justify a higher PE ratio.
BCO's earnings are expected to grow with 12.27% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)0.79
EPS Next 2Y6.39%
EPS Next 3Y12.27%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.07%, BCO has a reasonable but not impressive dividend return.
BCO's Dividend Yield is a higher than the industry average which is at 2.09.
With a Dividend Yield of 1.07, BCO pays less dividend than the S&P500 average, which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.07% |
5.2 History
On average, the dividend of BCO grows each year by 7.53%, which is quite nice.
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)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 earnings are growing more, so the dividend growth is sustainable.
DP34.51%
EPS Next 2Y6.39%
EPS Next 3Y12.27%
BRINK'S CO/THE
NYSE:BCO (1/22/2025, 10:27:25 AM)
94.19
-0.16 (-0.17%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners98.77%
Inst Owner Change-0.04%
Ins Owners0.55%
Ins Owner Change-0.32%
Market Cap4.11B
Analysts82.86
Price Target133.11 (41.32%)
Short Float %1.98%
Short Ratio2.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.07% |
Yearly Dividend0.87
Dividend Growth(5Y)7.53%
DP34.51%
Div Incr Years4
Div Non Decr Years28
Ex-DateN/A
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)0%
PT rev (3m)1.95%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-25.76%
EPS NY rev (1m)0%
EPS NY rev (3m)-13.54%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.27%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.63 | ||
| Fwd PE | 11.85 | ||
| P/S | 0.82 | ||
| P/FCF | 17.41 | ||
| P/OCF | 8.83 | ||
| P/B | 14.83 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.35 |
EPS(TTM)7.46
EY7.92%
EPS(NY)7.95
Fwd EY8.44%
FCF(TTM)5.41
FCFY5.74%
OCF(TTM)10.67
OCFY11.33%
SpS114.42
BVpS6.35
TBVpS-38.07
PEG (NY)N/A
PEG (5Y)0.79
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 | 1.64 |
F-Score6
WACC7.69%
ROIC/WACC0.8
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-6.41%
EPS Next 2Y6.39%
EPS Next 3Y12.27%
EPS Next 5YN/A
Revenue 1Y (TTM)3.6%
Revenue growth 3Y9.72%
Revenue growth 5Y6.92%
Sales Q2Q%2.57%
Revenue Next Year2.87%
Revenue Next 2Y3.64%
Revenue Next 3Y4.46%
Revenue Next 5Y4.55%
EBIT growth 1Y2.81%
EBIT growth 3Y24.67%
EBIT growth 5Y11.48%
EBIT Next Year46.07%
EBIT Next 3Y19.55%
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%