NYSE:BCO

Stock Analysis Report

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Executive Summary

The Brink's Company provides secure transportation, cash management, and other security-related services in North America, South America, and internationally. More Details


Snowflake Analysis

Moderate growth potential second-rate dividend payer.


Similar Companies

Share Price & News

How has Brink's's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BCO is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: BCO's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

5.6%

BCO

-3.6%

US Commercial Services

-4.6%

US Market


1 Year Return

-1.9%

BCO

12.0%

US Commercial Services

38.5%

US Market

Return vs Industry: BCO underperformed the US Commercial Services industry which returned 12.3% over the past year.

Return vs Market: BCO underperformed the US Market which returned 38.9% over the past year.


Shareholder returns

BCOIndustryMarket
7 Day5.6%-3.6%-4.6%
30 Day11.1%-0.7%0.6%
90 Day11.3%-4.1%1.9%
1 Year-0.5%-1.9%13.5%12.0%41.5%38.5%
3 Year9.5%6.4%39.7%30.0%56.7%46.7%
5 Year167.9%155.2%109.6%87.7%123.5%98.6%

Long-Term Price Volatility Vs. Market

How volatile is Brink's's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Brink's undervalued compared to its fair value and its price relative to the market?

232.82x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BCO ($76.83) is trading above our estimate of fair value ($39.2)

Significantly Below Fair Value: BCO is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: BCO is poor value based on its PE Ratio (232.8x) compared to the US Commercial Services industry average (25x).

PE vs Market: BCO is poor value based on its PE Ratio (232.8x) compared to the US market (21.2x).


Price to Earnings Growth Ratio

PEG Ratio: BCO is poor value based on its PEG Ratio (3.3x)


Price to Book Ratio

PB vs Industry: BCO is overvalued based on its PB Ratio (19.1x) compared to the US Commercial Services industry average (2.5x).


Next Steps

Future Growth

How is Brink's forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

71.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BCO's forecast earnings growth (71.6% per year) is above the savings rate (2%).

Earnings vs Market: BCO's earnings (71.6% per year) are forecast to grow faster than the US market (20.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: BCO's revenue (8.5% per year) is forecast to grow slower than the US market (10.4% per year).

High Growth Revenue: BCO's revenue (8.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if BCO's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Brink's performed over the past 5 years?

-4.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BCO has a large one-off loss of $139.6M impacting its December 31 2020 financial results.

Growing Profit Margin: BCO's current net profit margins (0.5%) are lower than last year (0.8%).


Past Earnings Growth Analysis

Earnings Trend: BCO has become profitable over the past 5 years, growing earnings by -4.3% per year.

Accelerating Growth: BCO's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: BCO had negative earnings growth (-39.7%) over the past year, making it difficult to compare to the Commercial Services industry average (-10.4%).


Return on Equity

High ROE: BCO's Return on Equity (11.4%) is considered low.


Next Steps

Financial Health

How is Brink's's financial position?


Financial Position Analysis

Short Term Liabilities: BCO's short term assets ($1.6B) exceed its short term liabilities ($999.4M).

Long Term Liabilities: BCO's short term assets ($1.6B) do not cover its long term liabilities ($3.9B).


Debt to Equity History and Analysis

Debt Level: BCO's debt to equity ratio (1178.9%) is considered high.

Reducing Debt: BCO's debt to equity ratio has increased from 134.7% to 1178.9% over the past 5 years.

Debt Coverage: BCO's debt is not well covered by operating cash flow (13.3%).

Interest Coverage: BCO's interest payments on its debt are well covered by EBIT (3.3x coverage).


Balance Sheet


Next Steps

Dividend

What is Brink's current dividend yield, its reliability and sustainability?

0.78%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BCO's dividend (0.78%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.35%).

High Dividend: BCO's dividend (0.78%) is low compared to the top 25% of dividend payers in the US market (3.72%).


Stability and Growth of Payments

Stable Dividend: BCO's dividends per share have been stable in the past 10 years.

Growing Dividend: BCO's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (181.8%), BCO's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BCO's dividends in 3 years are forecast to be thoroughly covered by earnings (9.3% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.8yrs

Average management tenure


CEO

Doug Pertz (66 yo)

4.67yrs

Tenure

US$8,401,209

Compensation

Mr. Douglas Allen Pertz, also known as Doug, has been the Chief Executive Officer and President of The Brink's Company since June 9, 2016. He serves as the President of Mosaic USA Holdings, Inc. Mr. Pertz ...


CEO Compensation Analysis

Compensation vs Market: Doug's total compensation ($USD8.40M) is above average for companies of similar size in the US market ($USD4.97M).

Compensation vs Earnings: Doug's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Douglas Pertz
President4.67yrsUS$8.40m0.78%
$ 29.7m
Raphael Shemanski
Senior VP and President of U.S. & Canada3.33yrsUS$2.21m0.12%
$ 4.4m
Ronald Domanico
Executive VP & CFO4.58yrsUS$2.51m0.18%
$ 6.8m
Dana O'Brien
Senior VP1.83yrsUS$2.19mno data
Michael Beech
Executive VP and President of Latin America & Global Security6.17yrsUS$1.76m0.14%
$ 5.3m
Amit Zukerman
Employee Consultant1.67yrsUS$12.55m0.24%
$ 8.9m
Michael Sweeney
VP, Controller & Principal Accounting Officer0.25yrno datano data
Rohan Pal
Executive VP4.58yrsno data0.032%
$ 1.2m
Edward Cunningham
Vice President of Investor Relations & Corporate Communications15.08yrsno datano data
George Neill
Chief Marketing Officer2.17yrsno datano data
Simon Davis
Senior VP & Chief Human Resources Officer2.08yrsno data0.017%
$ 629.7k
Dominik Bossart
Senior VP of EMEA & Asia and President of Brink’s Global Services2.08yrsno data0.048%
$ 1.8m

2.8yrs

Average Tenure

55.5yo

Average Age

Experienced Management: BCO's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Douglas Pertz
President4.67yrsUS$8.40m0.78%
$ 29.7m
Michael Herling
Non-Executive Chairman & Lead Independent Director4.75yrsUS$383.82k0.027%
$ 1.0m
Paul Boynton
Independent Director11yrsUS$315.20kno data
George Stoeckert
Independent Director5.08yrsUS$250.62k0.052%
$ 2.0m
Reginald Hedgebeth
Independent Director9.58yrsUS$278.86k0.014%
$ 519.6k
Kathie Andrade
Independent Director1.5yrsUS$128.85k0.0021%
$ 77.9k
Ian Clough
Independent Director5.08yrsUS$224.98k0.028%
$ 1.0m
Susan Docherty
Independent Director7.08yrsUS$232.48k0.014%
$ 527.5k

5.1yrs

Average Tenure

58yo

Average Age

Experienced Board: BCO's board of directors are considered experienced (5.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

The Brink's Company's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: The Brink's Company
  • Ticker: BCO
  • Exchange: NYSE
  • Founded: 1859
  • Industry: Security and Alarm Services
  • Sector: Commercial Services
  • Market Cap: US$3.798b
  • Shares outstanding: 49.43m
  • Website: https://www.brinks.com

Number of Employees


Location

  • The Brink's Company
  • 1801 Bayberry Court
  • PO Box 18100
  • Richmond
  • Virginia
  • 23226-8100
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BCONYSE (New York Stock Exchange)YesCommon SharesUSUSDJan 1968
PTYDB (Deutsche Boerse AG)YesCommon SharesDEEURJan 1968

Biography

The Brink's Company provides secure transportation, cash management, and other security-related services in North America, South America, and internationally. The company offers armored vehicle transportat...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/02/26 23:50
End of Day Share Price2021/02/26 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.