BRINK'S CO/THE (BCO) Stock Fundamental Analysis
NYSE:BCO - New York Stock Exchange, Inc. - US1096961040 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to BCO. BCO was compared to 83 industry peers in the Commercial Services & Supplies industry. BCO scores excellent on profitability, but there are concerns on its financial health. BCO is not valued too expensively and it also shows a decent growth rate. BCO also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
BCO had positive earnings in the past year.
BCO had a positive operating cash flow in the past year.
BCO had positive earnings in each of the past 5 years.
In the past 5 years BCO always reported a positive cash flow from operatings.
1.2 Ratios
BCO has a better Return On Assets (2.46%) than 60.24% of its industry peers.
With an excellent Return On Equity value of 88.10%, BCO belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 7.15%, BCO is in the better half of the industry, outperforming 61.45% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for BCO is below the industry average of 10.60%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.46% | ||
| ROE | 88.1% | ||
| ROIC | 7.15% |
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 3.25% is fine compared to the rest of the industry. BCO outperforms 60.24% of its industry peers.
In the last couple of years the Profit Margin of BCO has grown nicely.
BCO's Operating Margin of 8.80% is fine compared to the rest of the industry. BCO outperforms 66.27% of its industry peers.
BCO's Operating Margin has improved in the last couple of years.
The Gross Margin of BCO (25.32%) is worse than 62.65% of its industry peers.
In the last couple of years the Gross Margin of BCO has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.8% | ||
| PM (TTM) | 3.25% | ||
| GM | 25.32% |
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.
Compared to 1 year ago, BCO has less shares outstanding
BCO has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, BCO has a worse debt to assets ratio.
2.2 Solvency
BCO has an Altman-Z score of 1.58. This is a bad value and indicates that BCO is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.58, BCO is not doing good in the industry: 63.86% of the companies in the same industry are doing better.
The Debt to FCF ratio of BCO is 19.15, which is on the high side as it means it would take BCO, 19.15 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of BCO (19.15) is comparable to the rest of the industry.
A Debt/Equity ratio of 20.31 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 20.31, BCO is doing worse than 89.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 20.31 | ||
| Debt/FCF | 19.15 | ||
| Altman-Z | 1.58 |
ROIC/WACC0.92
WACC7.79%
2.3 Liquidity
BCO has a Current Ratio of 1.52. This is a normal value and indicates that BCO is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of BCO (1.52) is comparable to the rest of the industry.
A Quick Ratio of 1.52 indicates that BCO should not have too much problems paying its short term obligations.
BCO has a better Quick ratio (1.52) than 60.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.52 | ||
| Quick Ratio | 1.52 |
3. Growth
3.1 Past
BCO shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.85%.
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 2.82% in the past year.
The Revenue has been growing slightly by 6.35% on average over the past years.
EPS 1Y (TTM)-2.85%
EPS 3Y12.27%
EPS 5Y12.06%
EPS Q2Q%-23.19%
Revenue 1Y (TTM)2.82%
Revenue growth 3Y6.07%
Revenue growth 5Y6.35%
Sales Q2Q%1.49%
3.2 Future
Based on estimates for the next years, BCO will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.58% on average per year.
The Revenue is expected to grow by 5.00% on average over the next years.
EPS Next Y5.15%
EPS Next 2Y12.02%
EPS Next 3Y16.58%
EPS Next 5YN/A
Revenue Next Year-0.08%
Revenue Next 2Y2.23%
Revenue Next 3Y3.05%
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.
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
Based on the Price/Earnings ratio of 13.04, the valuation of BCO can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of BCO indicates a rather cheap valuation: BCO is cheaper than 80.72% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of BCO to the average of the S&P500 Index (27.85), we can say BCO is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 12.40, the valuation of BCO can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BCO indicates a rather cheap valuation: BCO is cheaper than 80.72% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.77, BCO is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.04 | ||
| Fwd PE | 12.4 |
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 71.08% of the companies listed in the same industry.
BCO's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. BCO is cheaper than 65.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.88 | ||
| EV/EBITDA | 8.45 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates BCO does not grow enough to justify the current Price/Earnings ratio.
BCO has a very decent profitability rating, which may justify a higher PE ratio.
BCO's earnings are expected to grow with 16.58% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.53
PEG (5Y)1.08
EPS Next 2Y12.02%
EPS Next 3Y16.58%
5. Dividend
5.1 Amount
BCO has a Yearly Dividend Yield of 1.07%. Purely for dividend investing, there may be better candidates out there.
BCO's Dividend Yield is a higher than the industry average which is at 2.50.
Compared to an average S&P500 Dividend Yield of 2.45, BCO's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.07% |
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 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 25.66% 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.
DP25.66%
EPS Next 2Y12.02%
EPS Next 3Y16.58%
88.94
-0.3 (-0.34%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners99.79%
Inst Owner Change0.31%
Ins Owners0.48%
Ins Owner Change8.67%
Market Cap3.84B
Analysts82.86
Price Target127.5 (43.36%)
Short Float %2.38%
Short Ratio2.88
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.07% |
Yearly Dividend0.96
Dividend Growth(5Y)9.81%
DP25.66%
Div Incr Years4
Div Non Decr Years28
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-2.53%
Min EPS beat(2)-16.32%
Max EPS beat(2)11.25%
EPS beat(4)3
Avg EPS beat(4)7.63%
Min EPS beat(4)-16.32%
Max EPS beat(4)22.85%
EPS beat(8)6
Avg EPS beat(8)4.79%
EPS beat(12)10
Avg EPS beat(12)6.64%
EPS beat(16)14
Avg EPS beat(16)9.72%
Revenue beat(2)0
Avg Revenue beat(2)-1.2%
Min Revenue beat(2)-2.25%
Max Revenue beat(2)-0.14%
Revenue beat(4)1
Avg Revenue beat(4)-0.68%
Min Revenue beat(4)-2.25%
Max Revenue beat(4)1.15%
Revenue beat(8)2
Avg Revenue beat(8)-0.49%
Revenue beat(12)3
Avg Revenue beat(12)-0.78%
Revenue beat(16)5
Avg Revenue beat(16)-0.77%
PT rev (1m)0%
PT rev (3m)-4.21%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-23.64%
EPS NY rev (1m)0%
EPS NY rev (3m)-9.75%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.6%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.04 | ||
| Fwd PE | 12.4 | ||
| P/S | 0.77 | ||
| P/FCF | 18.88 | ||
| P/OCF | 9.02 | ||
| P/B | 20.78 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.45 |
EPS(TTM)6.82
EY7.67%
EPS(NY)7.17
Fwd EY8.06%
FCF(TTM)4.71
FCFY5.3%
OCF(TTM)9.86
OCFY11.09%
SpS116.02
BVpS4.28
TBVpS-38.71
PEG (NY)2.53
PEG (5Y)1.08
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.46% | ||
| ROE | 88.1% | ||
| ROCE | 9.33% | ||
| ROIC | 7.15% | ||
| ROICexc | 10.01% | ||
| ROICexgc | 21.48% | ||
| OM | 8.8% | ||
| PM (TTM) | 3.25% | ||
| GM | 25.32% | ||
| FCFM | 4.06% |
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%
ROICexcg growth 3Y6.62%
ROICexcg 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-Score8
Asset Turnover0.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 20.31 | ||
| Debt/FCF | 19.15 | ||
| Debt/EBITDA | 5.11 | ||
| Cap/Depr | 75.86% | ||
| Cap/Sales | 4.44% | ||
| Interest Coverage | 1.87 | ||
| Cash Conversion | 58.02% | ||
| Profit Quality | 124.92% | ||
| Current Ratio | 1.52 | ||
| Quick Ratio | 1.52 | ||
| Altman-Z | 1.58 |
F-Score8
WACC7.79%
ROIC/WACC0.92
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)-2.85%
EPS 3Y12.27%
EPS 5Y12.06%
EPS Q2Q%-23.19%
EPS Next Y5.15%
EPS Next 2Y12.02%
EPS Next 3Y16.58%
EPS Next 5YN/A
Revenue 1Y (TTM)2.82%
Revenue growth 3Y6.07%
Revenue growth 5Y6.35%
Sales Q2Q%1.49%
Revenue Next Year-0.08%
Revenue Next 2Y2.23%
Revenue Next 3Y3.05%
Revenue Next 5Y5%
EBIT growth 1Y-9.74%
EBIT growth 3Y8.6%
EBIT growth 5Y11.43%
EBIT Next Year47.18%
EBIT Next 3Y19.65%
EBIT Next 5Y18.65%
FCF growth 1Y-59.28%
FCF growth 3Y-13.1%
FCF growth 5Y-0.03%
OCF growth 1Y-39.35%
OCF growth 3Y-3.77%
OCF growth 5Y2.94%