BRINK'S CO/THE (BCO) Stock Fundamental Analysis
USA - NYSE:BCO - US1096961040 - Common Stock
116.35 USD
+2.38 (+2.09%)
116.35 USD
0 (0%)
BCO gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 84 industry peers in the Commercial Services & Supplies industry. There are concerns on the financial health of BCO while its profitability can be described as average. BCO is not valued too expensively and it also shows a decent growth rate.
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.
BCO had positive earnings in each of the past 5 years.
BCO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
BCO has a Return On Assets (2.30%) which is comparable to the rest of the industry.
BCO has a better Return On Equity (63.90%) than 98.81% of its industry peers.
The Return On Invested Capital of BCO (7.12%) is better than 61.90% of its industry peers.
The Average Return On Invested Capital over the past 3 years 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
BCO has a Profit Margin (3.21%) which is comparable to the rest of the industry.
BCO's Profit Margin has improved in the last couple of years.
The Operating Margin of BCO (9.30%) is better than 69.05% of its industry peers.
BCO's Operating Margin has improved in the last couple of years.
The Gross Margin of BCO (25.16%) is worse 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.
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 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.
BCO's Altman-Z score of 1.58 is on the low side compared to the rest of the industry. BCO is outperformed by 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.
The Debt to FCF ratio of BCO (11.86) 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.
BCO has a Debt to Equity ratio of 15.60. This is amonst the worse of the industry: BCO underperforms 86.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 15.6 | ||
| Debt/FCF | 11.86 | ||
| Altman-Z | 1.58 |
ROIC/WACC0.85
WACC8.36%
2.3 Liquidity
BCO has a Current 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.
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.
The Quick ratio of BCO (1.51) is better 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.
Looking at the last year, BCO shows a small growth in Revenue. The Revenue has grown by 2.17% in the last 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)-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
The Earnings Per Share is expected to grow by 20.76% on average over the next years. This is a very strong growth
Based on estimates for the next years, BCO will show a small growth in Revenue. The Revenue will grow by 5.00% on average per year.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
The Price/Earnings ratio is 16.53, which indicates a correct valuation of BCO.
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 27.41. BCO is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 12.42, 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 82.14% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.87, BCO is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.53 | ||
| Fwd PE | 12.42 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BCO is valued a bit cheaper than 69.05% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, BCO is valued a bit cheaper than 79.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.94 | ||
| EV/EBITDA | 9.75 |
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.
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 20.76% in the coming years.
PEG (NY)0.93
PEG (5Y)1.37
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.
Compared to an average industry Dividend Yield of 2.28, BCO pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, BCO's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.89% |
5.2 History
On average, the dividend of BCO grows each year by 9.81%, which is quite nice.
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%
116.35
+2.38 (+2.09%)
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 Cap4.85B
Analysts82.86
Price Target131.07 (12.65%)
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 | 16.53 | ||
| Fwd PE | 12.42 | ||
| P/S | 0.96 | ||
| P/FCF | 13.94 | ||
| P/OCF | 8.47 | ||
| P/B | 19.04 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.75 |
EPS(TTM)7.04
EY6.05%
EPS(NY)9.37
Fwd EY8.05%
FCF(TTM)8.35
FCFY7.17%
OCF(TTM)13.73
OCFY11.8%
SpS121.7
BVpS6.11
TBVpS-40.23
PEG (NY)0.93
PEG (5Y)1.37
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%