BRINK'S CO/THE (BCO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BCO - US1096961040 - Common Stock
124.67 USD
-0.81 (-0.65%)
124.67 USD
0 (0%)
Overall BCO gets a fundamental rating of 5 out of 10. We evaluated BCO against 80 industry peers in the Commercial Services & Supplies industry. While BCO belongs to the best of the industry regarding profitability, there are concerns on its financial health. BCO may be a bit undervalued, certainly considering the very reasonable score on growth
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.
- BCO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- BCO's Return On Assets of 2.45% is in line compared to the rest of the industry. BCO outperforms 60.00% of its industry peers.
- With an excellent Return On Equity value of 63.35%, 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 7.75%. This is in the better half of the industry: BCO outperforms 70.00% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for BCO is below the industry average of 10.58%.
- 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's Profit Margin of 3.31% is fine compared to the rest of the industry. BCO outperforms 61.25% of its industry peers.
- In the last couple of years the Profit Margin of BCO has grown nicely.
- With a decent Operating Margin value of 9.82%, BCO is doing good in the industry, outperforming 67.50% of the companies in the same industry.
- BCO's Operating Margin has improved in the last couple of years.
- BCO has a Gross Margin of 25.36%. This is comparable to the rest of the industry: BCO outperforms 41.25% of its industry peers.
- BCO's Gross Margin has improved in the last couple of years.
| 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.
- 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
- The debt/assets ratio for BCO is higher compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 1.66, we must say that BCO is in the distress zone and has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 1.66, BCO is in line with its industry, outperforming 42.50% of the companies in the same industry.
- BCO has a debt to FCF ratio of 9.55. This is a negative value and a sign of low solvency as BCO would need 9.55 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 9.55, BCO is in line with its industry, outperforming 60.00% of the companies in the same industry.
- A Debt/Equity ratio of 14.30 is on the high side and indicates that BCO has dependencies on debt financing.
- BCO has a worse Debt to Equity ratio (14.30) than 91.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 14.3 | ||
| Debt/FCF | 9.55 | ||
| Altman-Z | 1.66 |
ROIC/WACC0.95
WACC8.2%
2.3 Liquidity
- A Current Ratio of 1.46 indicates that BCO should not have too much problems paying its short term obligations.
- With a Current ratio value of 1.46, BCO perfoms like the industry average, outperforming 48.75% of the companies in the same industry.
- 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.
- With a Quick ratio value of 1.46, BCO perfoms like the industry average, outperforming 57.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.46 | ||
| Quick Ratio | 1.46 |
3. Growth
3.1 Past
- BCO shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.01%.
- The Earnings Per Share has been growing by 12.06% on average over the past years. This is quite good.
- 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
- The Earnings Per Share is expected to grow by 17.22% on average over the next years. This is quite good.
- Based on estimates for the next years, BCO will show a small growth in Revenue. The Revenue will grow by 5.00% on average per year.
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 16.38.
- Based on the Price/Earnings ratio, BCO is valued a bit cheaper than the industry average as 78.75% of the companies are valued more expensively.
- BCO is valuated rather cheaply when we compare the Price/Earnings ratio to 28.82, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 13.46, the valuation of BCO can be described as correct.
- 82.50% of the companies in the same industry are more expensive than BCO, based on the Price/Forward Earnings ratio.
- The average S&P500 Price/Forward Earnings ratio is at 25.95. BCO is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.38 | ||
| Fwd PE | 13.46 |
4.2 Price Multiples
- BCO's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. BCO is cheaper than 67.50% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of BCO indicates a rather cheap valuation: BCO is cheaper than 85.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.4 | ||
| EV/EBITDA | 9.72 |
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.
- BCO's earnings are expected to grow with 17.22% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.92
PEG (5Y)1.36
EPS Next 2Y16.53%
EPS Next 3Y17.22%
5. Dividend
5.1 Amount
- BCO has a yearly dividend return of 0.81%, which is pretty low.
- Compared to an average industry Dividend Yield of 0.82, BCO pays a bit more dividend than its industry peers.
- With a Dividend Yield of 0.81, BCO pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.81% |
5.2 History
- The dividend of BCO is nicely growing with an annual growth rate of 9.81%!
- 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)9.81%
Div Incr Years4
Div Non Decr Years28
5.3 Sustainability
- 24.81% of the earnings are spent on dividend by BCO. This is a low number and sustainable payout ratio.
- BCO's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP24.81%
EPS Next 2Y16.53%
EPS Next 3Y17.22%
BRINK'S CO/THE / BCO FAQ
Can you provide the ChartMill fundamental rating for BRINK'S CO/THE?
ChartMill assigns a fundamental rating of 5 / 10 to BCO.
What is the valuation status for BCO stock?
ChartMill assigns a valuation rating of 7 / 10 to BRINK'S CO/THE (BCO). This can be considered as Undervalued.
What is the profitability of BCO stock?
BRINK'S CO/THE (BCO) has a profitability rating of 7 / 10.
Can you provide the financial health for BCO stock?
The financial health rating of BRINK'S CO/THE (BCO) is 3 / 10.
Can you provide the dividend sustainability for BCO stock?
The dividend rating of BRINK'S CO/THE (BCO) is 6 / 10 and the dividend payout ratio is 24.81%.