BRINK'S CO/THE (BCO) Stock Fundamental Analysis
USA - NYSE:BCO - US1096961040 - Common Stock
113.97 USD
-0.99 (-0.86%)
113.97 USD
0 (0%)
Taking everything into account, BCO scores 5 out of 10 in our fundamental rating. BCO was compared to 84 industry peers in the Commercial Services & Supplies industry. While BCO is still in line with the averages on profitability rating, there are concerns on its financial health. BCO has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year BCO was profitable.
BCO had a positive operating cash flow in the past year.
Each year in the past 5 years BCO has 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 2.30% is in line compared to the rest of the industry. BCO outperforms 57.14% of its industry peers.
BCO has a Return On Equity of 63.90%. This is amongst the best in the industry. BCO outperforms 98.81% of its industry peers.
With a decent Return On Invested Capital value of 7.12%, BCO is doing good in the industry, outperforming 61.90% 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 | 2.3% | ||
| ROE | 63.9% | ||
| ROIC | 7.12% |
ROA(3y)2.16%
ROA(5y)1.73%
ROE(3y)49.44%
ROE(5y)49.26%
ROIC(3y)7.26%
ROIC(5y)6.71%
1.3 Margins
With a Profit Margin value of 3.21%, BCO perfoms like the industry average, outperforming 58.33% of the companies in the same industry.
In the last couple of years the Profit Margin of BCO has grown nicely.
Looking at the Operating Margin, with a value of 9.30%, BCO is in the better half of the industry, outperforming 69.05% of the companies in the same industry.
In the last couple of years the Operating Margin of BCO has grown nicely.
BCO has a worse Gross Margin (25.16%) than 61.90% of its industry peers.
BCO's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.3% | ||
| PM (TTM) | 3.21% | ||
| GM | 25.16% |
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
Based on the Altman-Z score of 1.58, we must say that BCO is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of BCO (1.58) is worse than 64.29% of its industry peers.
The Debt to FCF ratio of BCO is 11.86, which is on the high side as it means it would take BCO, 11.86 years of fcf income to pay off all of its debts.
BCO has a Debt to FCF ratio (11.86) which is comparable to the rest of the industry.
A Debt/Equity ratio of 15.60 is on the high side and indicates that BCO has dependencies on debt financing.
With a Debt to Equity ratio value of 15.60, BCO is not doing good in the industry: 86.90% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 15.6 | ||
| Debt/FCF | 11.86 | ||
| Altman-Z | 1.58 |
ROIC/WACC0.85
WACC8.36%
2.3 Liquidity
A Current Ratio of 1.51 indicates that BCO should not have too much problems paying its short term obligations.
With a Current ratio value of 1.51, BCO perfoms like the industry average, outperforming 51.19% of the companies in the same industry.
BCO has a Quick Ratio of 1.51. 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 better Quick ratio (1.51) than 60.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.51 | ||
| Quick Ratio | 1.51 |
3. Growth
3.1 Past
The earnings per share for BCO have decreased strongly by -10.55% in the last year.
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 2.17% in the past year.
The Revenue has been growing slightly by 6.35% on average over the past years.
EPS 1Y (TTM)-10.55%
EPS 3Y12.27%
EPS 5Y12.06%
EPS Q2Q%7.19%
Revenue 1Y (TTM)2.17%
Revenue growth 3Y6.07%
Revenue growth 5Y6.35%
Sales Q2Q%3.78%
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.
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
BCO is valuated correctly with a Price/Earnings ratio of 16.19.
Based on the Price/Earnings ratio, BCO is valued a bit cheaper than 77.38% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.38. BCO is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 12.16, which indicates a correct valuation of BCO.
BCO's Price/Forward Earnings ratio is rather cheap when compared to the industry. BCO is cheaper than 82.14% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.86, BCO is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.19 | ||
| Fwd PE | 12.16 |
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 69.05% 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 79.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.66 | ||
| EV/EBITDA | 9.75 |
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)0.91
PEG (5Y)1.34
EPS Next 2Y17.21%
EPS Next 3Y20.76%
5. Dividend
5.1 Amount
With a yearly dividend of 0.89%, BCO is not a good candidate for dividend investing.
BCO's Dividend Yield is a higher than the industry average which is at 2.28.
With a Dividend Yield of 0.89, BCO pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.89% |
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
BCO pays out 26.00% of its income as dividend. This is a sustainable payout ratio.
BCO's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP26%
EPS Next 2Y17.21%
EPS Next 3Y20.76%
113.97
-0.99 (-0.86%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners102.27%
Inst Owner Change-3.61%
Ins Owners1.02%
Ins Owner Change-0.68%
Market Cap4.75B
Analysts82.86
Price Target131.07 (15%)
Short Float %1.78%
Short Ratio2.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.89% |
Yearly Dividend0.96
Dividend Growth(5Y)9.81%
DP26%
Div Incr Years4
Div Non Decr Years28
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)29.6%
Min EPS beat(2)22.51%
Max EPS beat(2)36.7%
EPS beat(4)3
Avg EPS beat(4)13.54%
Min EPS beat(4)-16.32%
Max EPS beat(4)36.7%
EPS beat(8)7
Avg EPS beat(8)13.1%
EPS beat(12)10
Avg EPS beat(12)9.15%
EPS beat(16)14
Avg EPS beat(16)11.83%
Revenue beat(2)2
Avg Revenue beat(2)1.42%
Min Revenue beat(2)1.05%
Max Revenue beat(2)1.8%
Revenue beat(4)2
Avg Revenue beat(4)0.11%
Min Revenue beat(4)-2.25%
Max Revenue beat(4)1.8%
Revenue beat(8)3
Avg Revenue beat(8)-0.14%
Revenue beat(12)4
Avg Revenue beat(12)-0.47%
Revenue beat(16)7
Avg Revenue beat(16)-0.24%
PT rev (1m)1.58%
PT rev (3m)1.58%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.48%
EPS NY rev (1m)0%
EPS NY rev (3m)6%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.05%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.19 | ||
| Fwd PE | 12.16 | ||
| P/S | 0.94 | ||
| P/FCF | 13.66 | ||
| P/OCF | 8.3 | ||
| P/B | 18.65 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.75 |
EPS(TTM)7.04
EY6.18%
EPS(NY)9.37
Fwd EY8.22%
FCF(TTM)8.35
FCFY7.32%
OCF(TTM)13.73
OCFY12.05%
SpS121.7
BVpS6.11
TBVpS-40.23
PEG (NY)0.91
PEG (5Y)1.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.3% | ||
| ROE | 63.9% | ||
| ROCE | 9.34% | ||
| ROIC | 7.12% | ||
| ROICexc | 9.66% | ||
| ROICexgc | 19.35% | ||
| OM | 9.3% | ||
| PM (TTM) | 3.21% | ||
| GM | 25.16% | ||
| FCFM | 6.86% |
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-Score5
Asset Turnover0.72
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 15.6 | ||
| Debt/FCF | 11.86 | ||
| Debt/EBITDA | 5.3 | ||
| Cap/Depr | 80.6% | ||
| Cap/Sales | 4.42% | ||
| Interest Coverage | 1.94 | ||
| Cash Conversion | 76.28% | ||
| Profit Quality | 213.71% | ||
| Current Ratio | 1.51 | ||
| Quick Ratio | 1.51 | ||
| Altman-Z | 1.58 |
F-Score5
WACC8.36%
ROIC/WACC0.85
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)-10.55%
EPS 3Y12.27%
EPS 5Y12.06%
EPS Q2Q%7.19%
EPS Next Y17.78%
EPS Next 2Y17.21%
EPS Next 3Y20.76%
EPS Next 5YN/A
Revenue 1Y (TTM)2.17%
Revenue growth 3Y6.07%
Revenue growth 5Y6.35%
Sales Q2Q%3.78%
Revenue Next Year4.51%
Revenue Next 2Y4.56%
Revenue Next 3Y5.29%
Revenue Next 5Y5%
EBIT growth 1Y-9.98%
EBIT growth 3Y8.6%
EBIT growth 5Y11.43%
EBIT Next Year51.22%
EBIT Next 3Y21.81%
EBIT Next 5Y18.65%
FCF growth 1Y-2.19%
FCF growth 3Y-13.1%
FCF growth 5Y-0.03%
OCF growth 1Y5.13%
OCF growth 3Y-3.77%
OCF growth 5Y2.94%