BRINK'S CO/THE (BCO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BCO - US1096961040 - Common Stock
112.6 USD
+1.53 (+1.38%)
112.6 USD
0 (0%)
BCO gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 82 industry peers in the Commercial Services & Supplies industry. While BCO has a great profitability rating, there are quite some concerns on its financial health. BCO scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
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.
Each year in the past 5 years BCO had a positive operating cash flow.
1.2 Ratios
BCO's Return On Assets of 2.45% is in line compared to the rest of the industry. BCO outperforms 56.10% of its industry peers.
With an excellent Return On Equity value of 63.35%, BCO belongs to the best of the industry, outperforming 98.78% 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 69.51% of its industry peers.
BCO had an Average Return On Invested Capital over the past 3 years of 7.26%. This is below the industry average of 10.48%.
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
The Profit Margin of BCO (3.31%) is comparable to the rest of the industry.
BCO's Profit Margin has improved in the last couple of years.
BCO's Operating Margin of 9.82% is fine compared to the rest of the industry. BCO outperforms 70.73% of its industry peers.
BCO's Operating Margin has improved in the last couple of years.
BCO has a Gross Margin of 25.36%. This is in the lower half of the industry: BCO underperforms 62.20% of its industry peers.
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
BCO has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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
BCO has an Altman-Z score of 1.61. This is a bad value and indicates that BCO is not financially healthy and even has some risk of bankruptcy.
BCO has a Altman-Z score of 1.61. This is comparable to the rest of the industry: BCO outperforms 41.46% of its industry peers.
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.
With a Debt to FCF ratio value of 9.55, BCO perfoms like the industry average, outperforming 57.32% 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.
With a Debt to Equity ratio value of 14.30, BCO is not doing good in the industry: 87.80% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 14.3 | ||
| Debt/FCF | 9.55 | ||
| Altman-Z | 1.61 |
ROIC/WACC0.96
WACC8.07%
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 48.78% 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.
BCO has a Quick ratio (1.46) which is comparable to the rest of the 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%.
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.
Looking at the last year, BCO shows a small growth in Revenue. The Revenue has grown by 3.07% in the last year.
BCO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.35% yearly.
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 very strong growth in Earnings Per Share. The EPS will grow by 20.76% on average per year.
The Revenue is expected to grow by 5.00% on average over the next years.
EPS Next Y17.78%
EPS Next 2Y17.21%
EPS Next 3Y20.76%
EPS Next 5YN/A
Revenue Next Year4.51%
Revenue Next 2Y4.56%
Revenue Next 3Y5.29%
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
Based on the Price/Earnings ratio of 14.80, the valuation of BCO can be described as correct.
BCO's Price/Earnings ratio is rather cheap when compared to the industry. BCO is cheaper than 80.49% of the companies in the same industry.
BCO is valuated rather cheaply when we compare the Price/Earnings ratio to 25.98, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 12.02, which indicates a correct valuation of BCO.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BCO indicates a rather cheap valuation: BCO is cheaper than 80.49% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 35.79. BCO is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.8 | ||
| Fwd PE | 12.02 |
4.2 Price Multiples
69.51% of the companies in the same industry are more expensive than BCO, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BCO indicates a rather cheap valuation: BCO is cheaper than 85.37% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.23 | ||
| EV/EBITDA | 8.97 |
4.3 Compensation for Growth
BCO's 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 20.76% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.83
PEG (5Y)1.23
EPS Next 2Y17.21%
EPS Next 3Y20.76%
5. Dividend
5.1 Amount
BCO has a yearly dividend return of 0.93%, which is pretty low.
Compared to an average industry Dividend Yield of 2.61, BCO pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.93, BCO pays less dividend than the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.93% |
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 2Y17.21%
EPS Next 3Y20.76%
112.6
+1.53 (+1.38%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners101.64%
Inst Owner Change-0.8%
Ins Owners0.93%
Ins Owner Change-1.52%
Market Cap4.69B
Revenue(TTM)5.15B
Net Income(TTM)170.10M
Analysts82.86
Price Target131.58 (16.86%)
Short Float %1.8%
Short Ratio3.11
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.93% |
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)0.39%
PT rev (3m)0.39%
EPS NQ rev (1m)-0.4%
EPS NQ rev (3m)-0.4%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0.51%
Revenue NQ rev (3m)0.51%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.8 | ||
| Fwd PE | 12.02 | ||
| P/S | 0.91 | ||
| P/FCF | 11.23 | ||
| P/OCF | 7.38 | ||
| P/B | 17.47 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.97 |
EPS(TTM)7.61
EY6.76%
EPS(NY)9.37
Fwd EY8.32%
FCF(TTM)10.03
FCFY8.9%
OCF(TTM)15.26
OCFY13.55%
SpS123.53
BVpS6.45
TBVpS-39.5
PEG (NY)0.83
PEG (5Y)1.23
Graham Number33.22
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 | 1.61 |
F-Score7
WACC8.07%
ROIC/WACC0.96
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 Y17.78%
EPS Next 2Y17.21%
EPS Next 3Y20.76%
EPS Next 5YN/A
Revenue 1Y (TTM)3.07%
Revenue growth 3Y6.07%
Revenue growth 5Y6.35%
Sales Q2Q%6.04%
Revenue Next Year4.51%
Revenue Next 2Y4.56%
Revenue Next 3Y5.29%
Revenue Next 5Y5%
EBIT growth 1Y0.8%
EBIT growth 3Y8.6%
EBIT growth 5Y11.43%
EBIT Next Year54.62%
EBIT Next 3Y22.2%
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 6 / 10 to BCO.
What is the valuation status of BRINK'S CO/THE (BCO) stock?
ChartMill assigns a valuation rating of 8 / 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 17.78% 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%.