BRINK'S CO/THE (BCO) Stock Fundamental Analysis
NYSE:BCO - US1096961040 - Common Stock
109.95 USD
+0.19 (+0.17%)
109.95 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. BCO scores excellent on profitability, but there are concerns on its financial health. BCO has a correct valuation and a medium 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.
Each year in the past 5 years BCO has been profitable.
Each year in the past 5 years BCO had a positive operating cash flow.
1.2 Ratios
BCO has a better Return On Assets (2.30%) than 60.71% of its industry peers.
Looking at the Return On Equity, with a value of 63.90%, BCO belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
BCO's Return On Invested Capital of 7.12% is fine compared to the rest of the industry. BCO outperforms 63.10% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BCO is below the industry average of 11.08%.
| 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 of 3.21%. This is in the better half of the industry: BCO outperforms 60.71% of its industry peers.
BCO's Profit Margin has improved in the last couple of years.
BCO has a better Operating Margin (9.31%) than 69.05% of its industry peers.
In the last couple of years the Operating Margin of BCO has grown nicely.
BCO has a Gross Margin of 25.16%. This is in the lower half of the industry: BCO underperforms 61.90% of its industry peers.
BCO's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.31% | ||
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so BCO 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.
The debt/assets ratio for BCO is higher compared to a year ago.
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.
Looking at the Altman-Z score, with a value of 1.57, BCO is doing worse than 64.29% of the companies in the same industry.
BCO has a debt to FCF ratio of 11.86. This is a negative value and a sign of low solvency as BCO would need 11.86 years to pay back of all of its debts.
BCO has a Debt to FCF ratio (11.86) which is in line with its industry peers.
A Debt/Equity ratio of 15.60 is on the high side and indicates that BCO has dependencies on debt financing.
The Debt to Equity ratio of BCO (15.60) is worse than 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 15.6 | ||
| Debt/FCF | 11.86 | ||
| Altman-Z | 1.57 |
ROIC/WACC0.85
WACC8.37%
2.3 Liquidity
A Current Ratio of 1.51 indicates that BCO should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.51, BCO is in line with its industry, outperforming 48.81% 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 Quick ratio (1.51) which is comparable to the rest of the industry.
| 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.
BCO shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.06% yearly.
BCO shows a small growth in Revenue. In the last year, the Revenue has grown by 2.17%.
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
BCO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.89% yearly.
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.
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 15.62.
78.57% of the companies in the same industry are more expensive than BCO, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of BCO to the average of the S&P500 Index (26.76), we can say BCO is valued slightly cheaper.
With a Price/Forward Earnings ratio of 12.06, BCO is valued correctly.
Based on the Price/Forward Earnings ratio, BCO is valued cheaper than 82.14% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.91, BCO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.62 | ||
| Fwd PE | 12.06 |
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 67.86% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, BCO is valued a bit cheaper than 78.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.28 | ||
| EV/EBITDA | 9.58 |
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)1.4
PEG (5Y)1.3
EPS Next 2Y15.6%
EPS Next 3Y20.89%
5. Dividend
5.1 Amount
With a yearly dividend of 0.92%, BCO is not a good candidate for dividend investing.
BCO's Dividend Yield is a higher than the industry average which is at 2.30.
With a Dividend Yield of 0.92, BCO pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.92% |
5.2 History
On average, the dividend of BCO grows each year by 9.81%, which is quite nice.
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
26.00% of the earnings are spent on dividend by BCO. This is a low number and sustainable payout ratio.
The dividend of BCO is growing, but earnings are growing more, so the dividend growth is sustainable.
DP26%
EPS Next 2Y15.6%
EPS Next 3Y20.89%
109.95
+0.19 (+0.17%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners102.27%
Inst Owner Change-3.49%
Ins Owners1.02%
Ins Owner Change8.77%
Market Cap4.62B
Analysts82.86
Price Target129.03 (17.35%)
Short Float %2.05%
Short Ratio2.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.92% |
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)0%
PT rev (3m)1.2%
EPS NQ rev (1m)3.48%
EPS NQ rev (3m)17.04%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)2.05%
Revenue NQ rev (3m)5.66%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.62 | ||
| Fwd PE | 12.06 | ||
| P/S | 0.91 | ||
| P/FCF | 13.28 | ||
| P/OCF | 8.07 | ||
| P/B | 18.14 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.58 |
EPS(TTM)7.04
EY6.4%
EPS(NY)9.11
Fwd EY8.29%
FCF(TTM)8.28
FCFY7.53%
OCF(TTM)13.62
OCFY12.39%
SpS120.71
BVpS6.06
TBVpS-39.9
PEG (NY)1.4
PEG (5Y)1.3
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.3% | ||
| ROE | 63.9% | ||
| ROCE | 9.34% | ||
| ROIC | 7.12% | ||
| ROICexc | 9.67% | ||
| ROICexgc | 19.36% | ||
| OM | 9.31% | ||
| 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 | 5.29 | ||
| Cap/Depr | 80.6% | ||
| Cap/Sales | 4.42% | ||
| Interest Coverage | 1.94 | ||
| Cash Conversion | 76.26% | ||
| Profit Quality | 213.71% | ||
| Current Ratio | 1.51 | ||
| Quick Ratio | 1.51 | ||
| Altman-Z | 1.57 |
F-Score5
WACC8.37%
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 Y11.12%
EPS Next 2Y15.6%
EPS Next 3Y20.89%
EPS Next 5YN/A
Revenue 1Y (TTM)2.17%
Revenue growth 3Y6.07%
Revenue growth 5Y6.35%
Sales Q2Q%3.78%
Revenue Next Year3.11%
Revenue Next 2Y3.78%
Revenue Next 3Y4.96%
Revenue Next 5Y5%
EBIT growth 1Y-9.94%
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%