BRINK'S CO/THE (BCO)
US1096961040 - Common Stock
We assign a fundamental rating of 5 out of 10 to BCO. BCO was compared to 84 industry peers in the Commercial Services & Supplies industry. BCO has a medium profitability rating, but doesn't score so well on its financial health evaluation. A decent growth rate in combination with a cheap valuation! Better keep an eye on BCO.
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.
BCO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
BCO has a Return On Assets of 1.33%. This is comparable to the rest of the industry: BCO outperforms 51.81% of its industry peers.
BCO has a Return On Equity of 22.07%. This is amongst the best in the industry. BCO outperforms 90.36% of its industry peers.
BCO has a better Return On Invested Capital (6.23%) than 63.86% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BCO is below the industry average of 10.00%.
The last Return On Invested Capital (6.23%) for BCO is above the 3 year average (5.48%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.33% | ||
| ROE | 22.07% | ||
| ROIC | 6.23% |
ROA(3y)1.97%
ROA(5y)1.4%
ROE(3y)48.58%
ROE(5y)34.66%
ROIC(3y)5.48%
ROIC(5y)5.24%
1.3 Margins
BCO's Profit Margin of 1.80% is in line compared to the rest of the industry. BCO outperforms 53.01% of its industry peers.
In the last couple of years the Profit Margin of BCO has grown nicely.
BCO's Operating Margin of 10.02% is fine compared to the rest of the industry. BCO outperforms 73.49% of its industry peers.
In the last couple of years the Operating Margin of BCO has grown nicely.
BCO's Gross Margin of 23.95% is on the low side compared to the rest of the industry. BCO is outperformed by 60.24% of its industry peers.
BCO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.02% | ||
| PM (TTM) | 1.8% | ||
| GM | 23.95% |
OM growth 3Y13.63%
OM growth 5Y4.27%
PM growth 3Y60.7%
PM growth 5YN/A
GM growth 3Y2.8%
GM growth 5Y1.24%
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
The number of shares outstanding for BCO has been reduced compared to 5 years ago.
The debt/assets ratio for BCO has remained at the same level compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.59, we must say that BCO is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.59, BCO is doing worse than 61.45% of the companies in the same industry.
BCO has a debt to FCF ratio of 7.07. This is a slightly negative value and a sign of low solvency as BCO would need 7.07 years to pay back of all of its debts.
BCO has a Debt to FCF ratio of 7.07. This is comparable to the rest of the industry: BCO outperforms 59.04% of its industry peers.
A Debt/Equity ratio of 8.59 is on the high side and indicates that BCO has dependencies on debt financing.
With a Debt to Equity ratio value of 8.59, BCO is not doing good in the industry: 90.36% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 8.59 | ||
| Debt/FCF | 7.07 | ||
| Altman-Z | 1.59 |
ROIC/WACC0.87
WACC7.17%
2.3 Liquidity
A Current Ratio of 1.43 indicates that BCO should not have too much problems paying its short term obligations.
BCO has a Current ratio (1.43) which is in line with its industry peers.
BCO has a Quick Ratio of 1.43. 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 1.43 is fine compared to the rest of the industry. BCO outperforms 60.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.43 | ||
| Quick Ratio | 1.43 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 19.39% over the past year.
The Earnings Per Share has been growing by 15.95% on average over the past years. This is quite good.
BCO shows a small growth in Revenue. In the last year, the Revenue has grown by 7.48%.
The Revenue has been growing slightly by 6.92% on average over the past years.
EPS 1Y (TTM)19.39%
EPS 3Y25.75%
EPS 5Y15.95%
EPS growth Q2Q31.43%
Revenue 1Y (TTM)7.48%
Revenue growth 3Y9.72%
Revenue growth 5Y6.92%
Revenue growth Q2Q4.59%
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 24.18% on average per year.
The Revenue is expected to grow by 5.70% on average over the next years.
EPS Next Y9.7%
EPS Next 2Y19.01%
EPS Next 3Y24.18%
EPS Next 5YN/A
Revenue Next Year5.74%
Revenue Next 2Y5.39%
Revenue Next 3Y5.7%
Revenue Next 5YN/A
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 12.90 indicates a correct valuation of BCO.
86.75% of the companies in the same industry are more expensive than BCO, based on the Price/Earnings ratio.
BCO's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.84.
The Price/Forward Earnings ratio is 11.76, which indicates a very decent 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 90.36% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.35. BCO is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.9 | ||
| Fwd PE | 11.76 |
4.2 Price Multiples
79.52% 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 89.16% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.1 | ||
| EV/EBITDA | 8.07 |
4.3 Compensation for Growth
BCO's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
BCO has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as BCO's earnings are expected to grow with 24.18% in the coming years.
PEG (NY)1.33
PEG (5Y)0.81
EPS Next 2Y19.01%
EPS Next 3Y24.18%
5. Dividend
5.1 Amount
BCO has a Yearly Dividend Yield of 1.01%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.37, BCO pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.41, BCO's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.01% |
5.2 History
The dividend of BCO is nicely growing with an annual growth rate of 7.53%!
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)7.53%
Div Incr Years3
Div Non Decr Years14
5.3 Sustainability
45.15% of the earnings are spent on dividend by BCO. This is a bit on the high side, but may be sustainable.
BCO's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP45.15%
EPS Next 2Y19.01%
EPS Next 3Y24.18%
BRINK'S CO/THE
NYSE:BCO (4/29/2024, 1:16:45 PM)
90.54
+1.81 (+2.04%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap4.05B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.01% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.9 | ||
| Fwd PE | 11.76 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.33
PEG (5Y)0.81
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.33% | ||
| ROE | 22.07% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 10.02% | ||
| PM (TTM) | 1.8% | ||
| GM | 23.95% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.74
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 8.59 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.43 | ||
| Quick Ratio | 1.43 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)19.39%
EPS 3Y25.75%
EPS 5Y
EPS growth Q2Q
EPS Next Y9.7%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)7.48%
Revenue growth 3Y9.72%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y