BRINK'S CO/THE (BCO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BCO - US1096961040 - Common Stock
116.69 USD
+0.23 (+0.2%)
116.69 USD
0 (0%)
Taking everything into account, BCO scores 5 out of 10 in our fundamental rating. BCO was compared to 82 industry peers in the Commercial Services & Supplies industry. BCO has an excellent profitability rating, but 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.
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
BCO has a Return On Assets (2.45%) which is comparable to the rest of the industry.
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 has a Return On Invested Capital of 7.75%. This is in the better half of the industry: BCO outperforms 69.51% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BCO is below the industry average of 10.51%.
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 in line compared to the rest of the industry. BCO outperforms 57.32% of its industry peers.
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.
In the last couple of years the Operating Margin of BCO has grown nicely.
The Gross Margin of BCO (25.36%) is worse than 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so BCO is destroying value.
Compared to 1 year ago, BCO has less shares outstanding
BCO has less shares outstanding than it did 5 years ago.
The debt/assets ratio for BCO is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.63, we must say that BCO is in the distress zone and has some risk of bankruptcy.
BCO has a Altman-Z score of 1.63. This is comparable 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.
The Debt to FCF ratio of BCO (9.55) is comparable to the rest of the industry.
BCO has a Debt/Equity ratio of 14.30. This is a high value indicating a heavy dependency on external financing.
BCO has a worse Debt to Equity ratio (14.30) than 87.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 14.3 | ||
| Debt/FCF | 9.55 | ||
| Altman-Z | 1.63 |
ROIC/WACC0.95
WACC8.19%
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 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's Quick ratio of 1.46 is in line compared to the rest of the industry. BCO outperforms 59.76% of its industry peers.
| 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.
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
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
BCO is valuated correctly with a Price/Earnings ratio of 15.33.
Based on the Price/Earnings ratio, BCO is valued a bit cheaper than 78.05% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.46, BCO is valued a bit cheaper.
The Price/Forward Earnings ratio is 12.45, 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 81.71% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of BCO to the average of the S&P500 Index (36.10), we can say BCO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.33 | ||
| Fwd PE | 12.45 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BCO indicates a somewhat cheap valuation: BCO is cheaper than 65.85% of the companies listed in the same industry.
85.37% of the companies in the same industry are more expensive than BCO, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.61 | ||
| EV/EBITDA | 9.24 |
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.
A more expensive valuation may be justified as BCO's earnings are expected to grow with 20.76% in the coming years.
PEG (NY)0.86
PEG (5Y)1.27
EPS Next 2Y17.21%
EPS Next 3Y20.76%
5. Dividend
5.1 Amount
With a yearly dividend of 0.88%, BCO is not a good candidate for dividend investing.
BCO's Dividend Yield is a higher than the industry average which is at 2.48.
With a Dividend Yield of 0.88, BCO pays less dividend than the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.88% |
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%
116.69
+0.23 (+0.2%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners100.28%
Inst Owner Change-0.8%
Ins Owners0.93%
Ins Owner Change-1.52%
Market Cap4.85B
Revenue(TTM)5.15B
Net Income(TTM)170.10M
Analysts82.86
Price Target131.58 (12.76%)
Short Float %1.63%
Short Ratio3.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.88% |
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 | 15.33 | ||
| Fwd PE | 12.45 | ||
| P/S | 0.94 | ||
| P/FCF | 11.61 | ||
| P/OCF | 7.63 | ||
| P/B | 18.06 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.24 |
EPS(TTM)7.61
EY6.52%
EPS(NY)9.37
Fwd EY8.03%
FCF(TTM)10.05
FCFY8.62%
OCF(TTM)15.3
OCFY13.11%
SpS123.86
BVpS6.46
TBVpS-39.61
PEG (NY)0.86
PEG (5Y)1.27
Graham Number33.26
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 | 1.63 |
F-Score7
WACC8.19%
ROIC/WACC0.95
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 5 / 10 to BCO.
What is the valuation status of BRINK'S CO/THE (BCO) stock?
ChartMill assigns a valuation rating of 7 / 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%.