BRINK'S CO/THE (BCO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BCO - US1096961040 - Common Stock
110.42 USD
+1.3 (+1.19%)
110.42 USD
0 (0%)
Taking everything into account, BCO scores 6 out of 10 in our fundamental rating. BCO was compared to 82 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 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.
Each year in the past 5 years BCO has been profitable.
Each year in the past 5 years BCO had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 2.45%, BCO perfoms like the industry average, outperforming 56.10% of the companies in the same industry.
BCO has a better Return On Equity (63.35%) than 98.78% of its industry peers.
BCO has a Return On Invested Capital of 7.75%. This is in the better half of the industry: BCO outperforms 70.73% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BCO 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.
Looking at the Operating Margin, with a value of 9.82%, BCO is in the better half of the industry, outperforming 70.73% of the companies in the same industry.
BCO's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 25.36%, BCO is doing worse than 62.20% of the companies in the same 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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
BCO has a worse debt/assets ratio than last year.
2.2 Solvency
BCO has an Altman-Z score of 1.60. This is a bad value and indicates that BCO is not financially healthy and even has some risk of bankruptcy.
BCO's Altman-Z score of 1.60 is in line compared to the rest of the industry. BCO outperforms 40.24% 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.
BCO's Debt to FCF ratio of 9.55 is in line compared to the rest of the industry. BCO outperforms 57.32% 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.
Looking at the Debt to Equity ratio, with a value of 14.30, BCO is doing worse than 86.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 14.3 | ||
| Debt/FCF | 9.55 | ||
| Altman-Z | 1.6 |
ROIC/WACC0.97
WACC7.99%
2.3 Liquidity
BCO has a Current 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 Current ratio value of 1.46, BCO perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
A Quick Ratio of 1.46 indicates that BCO should not have too much problems paying its short term obligations.
The Quick ratio of BCO (1.46) is better than 60.98% of its industry peers.
| 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.
BCO shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.06% yearly.
The Revenue has been growing slightly by 3.07% in the past 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
BCO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.76% 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 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
The Price/Earnings ratio is 14.51, which indicates a correct valuation of BCO.
Based on the Price/Earnings ratio, BCO is valued a bit cheaper than the industry average as 79.27% of the companies are valued more expensively.
BCO is valuated rather cheaply when we compare the Price/Earnings ratio to 25.45, which is the current average of the S&P500 Index.
BCO is valuated reasonably with a Price/Forward Earnings ratio of 11.79.
81.71% of the companies in the same industry are more expensive than BCO, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.46, BCO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.51 | ||
| Fwd PE | 11.79 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BCO is valued a bit cheaper than the industry average as 70.73% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, BCO is valued cheaper than 82.93% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.01 | ||
| EV/EBITDA | 8.87 |
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 20.76% in the coming years.
PEG (NY)0.82
PEG (5Y)1.2
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.
BCO's Dividend Yield is a higher than the industry average which is at 2.55.
With a Dividend Yield of 0.93, BCO pays less dividend than the S&P500 average, which is at 2.45.
| 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 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
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 2Y17.21%
EPS Next 3Y20.76%
110.42
+1.3 (+1.19%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners101.64%
Inst Owner Change-0.81%
Ins Owners0.93%
Ins Owner Change-2.36%
Market Cap4.60B
Revenue(TTM)5.15B
Net Income(TTM)170.10M
Analysts82.86
Price Target131.58 (19.16%)
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%
PT rev (3m)1.58%
EPS NQ rev (1m)-0.4%
EPS NQ rev (3m)-0.4%
EPS NY rev (1m)0%
EPS NY rev (3m)6%
Revenue NQ rev (1m)0.51%
Revenue NQ rev (3m)0.51%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.51 | ||
| Fwd PE | 11.79 | ||
| P/S | 0.89 | ||
| P/FCF | 11.01 | ||
| P/OCF | 7.24 | ||
| P/B | 17.13 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.87 |
EPS(TTM)7.61
EY6.89%
EPS(NY)9.37
Fwd EY8.49%
FCF(TTM)10.03
FCFY9.08%
OCF(TTM)15.26
OCFY13.82%
SpS123.53
BVpS6.45
TBVpS-39.5
PEG (NY)0.82
PEG (5Y)1.2
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 | 1.6 |
F-Score7
WACC7.99%
ROIC/WACC0.97
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%.