BRINK'S CO/THE (BCO) Stock Fundamental Analysis
NYSE:BCO - New York Stock Exchange, Inc. - US1096961040 - Common Stock - Currency: USD
BCO gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 83 industry peers in the Commercial Services & Supplies industry. BCO has an excellent profitability rating, but there are concerns on its financial health. BCO has a decent growth rate and is not valued too expensively. Finally BCO also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
BCO had positive earnings in the past year.
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
The Return On Assets of BCO (2.51%) is comparable to the rest of the industry.
BCO has a Return On Equity of 80.27%. This is amongst the best in the industry. BCO outperforms 100.00% of its industry peers.
The Return On Invested Capital of BCO (7.29%) is better than 60.24% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BCO is below the industry average of 11.67%.
The last Return On Invested Capital (7.29%) for BCO is above the 3 year average (7.26%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.51% | ||
| ROE | 80.27% | ||
| ROIC | 7.29% |
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 3.29% is in line compared to the rest of the industry. BCO outperforms 56.63% of its industry peers.
BCO's Profit Margin has improved in the last couple of years.
BCO has a Operating Margin of 9.00%. This is in the better half of the industry: BCO outperforms 65.06% of its industry peers.
BCO's Operating Margin has improved in the last couple of years.
The Gross Margin of BCO (25.23%) is worse than 65.06% of its industry peers.
In the last couple of years the Gross Margin of BCO has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9% | ||
| PM (TTM) | 3.29% | ||
| GM | 25.23% |
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.
The number of shares outstanding for BCO has been reduced compared to 5 years ago.
BCO has a worse debt/assets ratio than last year.
2.2 Solvency
BCO has an Altman-Z score of 1.57. This is a bad value and indicates that BCO is not financially healthy and even has some risk of bankruptcy.
BCO has a worse Altman-Z score (1.57) than 67.47% of its industry peers.
BCO has a debt to FCF ratio of 53.39. This is a negative value and a sign of low solvency as BCO would need 53.39 years to pay back of all of its debts.
BCO has a Debt to FCF ratio (53.39) which is comparable to the rest of the industry.
BCO has a Debt/Equity ratio of 18.15. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of BCO (18.15) is worse than 87.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 18.15 | ||
| Debt/FCF | 53.39 | ||
| Altman-Z | 1.57 |
ROIC/WACC0.74
WACC9.78%
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.
BCO has a Current ratio (1.52) which 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 -6.23%.
BCO shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.06% yearly.
Looking at the last year, BCO shows a small growth in Revenue. The Revenue has grown by 1.97% in the last year.
Measured over the past years, BCO shows a small growth in Revenue. The Revenue has been growing by 6.35% on average per year.
EPS 1Y (TTM)-6.23%
EPS 3Y12.27%
EPS 5Y12.06%
EPS Q2Q%6.58%
Revenue 1Y (TTM)1.97%
Revenue growth 3Y6.07%
Revenue growth 5Y6.35%
Sales Q2Q%0.88%
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 20.89% on average per year.
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 Y11.12%
EPS Next 2Y15.6%
EPS Next 3Y20.89%
EPS Next 5YN/A
Revenue Next Year3.11%
Revenue Next 2Y3.78%
Revenue Next 3Y4.96%
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
Based on the Price/Earnings ratio of 12.59, the valuation of BCO can be described as correct.
BCO's Price/Earnings ratio is a bit cheaper when compared to the industry. BCO is cheaper than 79.52% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.34, BCO is valued rather cheaply.
The Price/Forward Earnings ratio is 9.56, 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 89.16% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.19, BCO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.59 | ||
| Fwd PE | 9.56 |
4.2 Price Multiples
73.49% of the companies in the same industry are more expensive than BCO, based on the Enterprise Value to EBITDA ratio.
BCO's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 50.32 | ||
| EV/EBITDA | 8.31 |
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.
BCO's earnings are expected to grow with 20.89% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.13
PEG (5Y)1.04
EPS Next 2Y15.6%
EPS Next 3Y20.89%
5. Dividend
5.1 Amount
BCO has a Yearly Dividend Yield of 1.21%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.56, BCO pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.21, BCO pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.21% |
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 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 25.67% 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.
DP25.67%
EPS Next 2Y15.6%
EPS Next 3Y20.89%
87.1
+1.19 (+1.39%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners102.61%
Inst Owner Change0.4%
Ins Owners1.03%
Ins Owner Change9.35%
Market Cap3.66B
Analysts82.86
Price Target129.03 (48.14%)
Short Float %2.94%
Short Ratio3.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.21% |
Yearly Dividend0.96
Dividend Growth(5Y)9.81%
DP25.67%
Div Incr Years4
Div Non Decr Years28
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)23.98%
Min EPS beat(2)11.25%
Max EPS beat(2)36.7%
EPS beat(4)3
Avg EPS beat(4)11.09%
Min EPS beat(4)-16.32%
Max EPS beat(4)36.7%
EPS beat(8)6
Avg EPS beat(8)8.77%
EPS beat(12)10
Avg EPS beat(12)7.88%
EPS beat(16)14
Avg EPS beat(16)11.58%
Revenue beat(2)1
Avg Revenue beat(2)0.83%
Min Revenue beat(2)-0.14%
Max Revenue beat(2)1.8%
Revenue beat(4)1
Avg Revenue beat(4)-0.52%
Min Revenue beat(4)-2.25%
Max Revenue beat(4)1.8%
Revenue beat(8)2
Avg Revenue beat(8)-0.33%
Revenue beat(12)4
Avg Revenue beat(12)-0.4%
Revenue beat(16)6
Avg Revenue beat(16)-0.55%
PT rev (1m)1.2%
PT rev (3m)1.2%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-10.88%
EPS NY rev (1m)0%
EPS NY rev (3m)6.48%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.88%
Revenue NY rev (1m)0%
Revenue NY rev (3m)3.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.59 | ||
| Fwd PE | 9.56 | ||
| P/S | 0.73 | ||
| P/FCF | 50.32 | ||
| P/OCF | 12.12 | ||
| P/B | 17.78 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.31 |
EPS(TTM)6.92
EY7.94%
EPS(NY)9.11
Fwd EY10.46%
FCF(TTM)1.73
FCFY1.99%
OCF(TTM)7.19
OCFY8.25%
SpS119.58
BVpS4.9
TBVpS-39.98
PEG (NY)1.13
PEG (5Y)1.04
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.51% | ||
| ROE | 80.27% | ||
| ROCE | 9.49% | ||
| ROIC | 7.29% | ||
| ROICexc | 9.72% | ||
| ROICexgc | 19.96% | ||
| OM | 9% | ||
| PM (TTM) | 3.29% | ||
| GM | 25.23% | ||
| FCFM | 1.45% |
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 | 18.15 | ||
| Debt/FCF | 53.39 | ||
| Debt/EBITDA | 5.02 | ||
| Cap/Depr | 78.6% | ||
| Cap/Sales | 4.56% | ||
| Interest Coverage | 2.05 | ||
| Cash Conversion | 40.61% | ||
| Profit Quality | 44.01% | ||
| Current Ratio | 1.52 | ||
| Quick Ratio | 1.52 | ||
| Altman-Z | 1.57 |
F-Score8
WACC9.78%
ROIC/WACC0.74
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)-6.23%
EPS 3Y12.27%
EPS 5Y12.06%
EPS Q2Q%6.58%
EPS Next Y11.12%
EPS Next 2Y15.6%
EPS Next 3Y20.89%
EPS Next 5YN/A
Revenue 1Y (TTM)1.97%
Revenue growth 3Y6.07%
Revenue growth 5Y6.35%
Sales Q2Q%0.88%
Revenue Next Year3.11%
Revenue Next 2Y3.78%
Revenue Next 3Y4.96%
Revenue Next 5Y5%
EBIT growth 1Y-11.41%
EBIT growth 3Y8.6%
EBIT growth 5Y11.43%
EBIT Next Year51.22%
EBIT Next 3Y21.81%
EBIT Next 5Y18.65%
FCF growth 1Y-77.3%
FCF growth 3Y-13.1%
FCF growth 5Y-0.03%
OCF growth 1Y-40.93%
OCF growth 3Y-3.77%
OCF growth 5Y2.94%