NYSE:BCO

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Moderate growth potential with mediocre balance sheet.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.09%

BCO

-1.6%

US Commercial Services

-1.1%

US Market


1 Year Return

5.4%

BCO

19.2%

US Commercial Services

17.8%

US Market

Return vs Industry: BCO underperformed the US Commercial Services industry which returned 19.7% over the past year.

Return vs Market: BCO underperformed the US Market which returned 17.9% over the past year.


Shareholder returns

BCOIndustryMarket
7 Day-0.09%-1.6%-1.1%
30 Day-6.7%2.0%1.5%
90 Day-10.2%5.8%6.6%
1 Year6.2%5.4%23.3%19.2%20.2%17.8%
3 Year63.7%59.9%60.7%50.1%47.5%38.1%
5 Year215.1%200.3%98.5%77.4%71.2%52.4%

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?

37.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BCO ($84.09) is trading below our estimate of fair value ($135.07)

Significantly Below Fair Value: BCO is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: BCO is poor value based on its PE Ratio (153.5x) compared to the Commercial Services industry average (26.9x).

PE vs Market: BCO is poor value based on its PE Ratio (153.5x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: BCO is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

PB vs Industry: BCO is overvalued based on its PB Ratio (20.4x) compared to the US Commercial Services industry average (1.8x).


Next Steps

Future Growth

How is Brink's forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

66.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BCO's forecast earnings growth (66.1% per year) is above the savings rate (1.7%).

Earnings vs Market: BCO's earnings (66.1% per year) are forecast to grow faster than the US market (14.1% per year).

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

Revenue vs Market: BCO's revenue (5.2% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: BCO's revenue (5.2% 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?

9.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BCO has a large one-off loss of $119.0M impacting its December 31 2019 financial results.

Growing Profit Margin: BCO became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: BCO has become profitable over the past 5 years, growing earnings by 9.4% per year.

Accelerating Growth: BCO has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: BCO has become profitable in the last year, making it difficult to compare its past year earnings growth to the Commercial Services industry (-4.6%).


Return on Equity

High ROE: BCO's Return on Equity (15.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Brink's's financial position?


Financial Position Analysis

Short Term Liabilities: BCO's short term assets ($1.1B) exceed its short term liabilities ($827.2M).

Long Term Liabilities: BCO's short term assets ($1.1B) do not cover its long term liabilities ($2.7B).


Debt to Equity History and Analysis

Debt Level: BCO's debt to equity ratio (746.6%) is considered high.

Reducing Debt: BCO's debt to equity ratio has increased from 98.7% to 746.6% over the past 5 years.

Debt Coverage: BCO's debt is well covered by operating cash flow (23.8%).

Interest Coverage: BCO's interest payments on its debt are well covered by EBIT (3.5x coverage).


Balance Sheet

Inventory Level: BCO has a high level of physical assets or inventory.

Debt Coverage by Assets: BCO's debt is not covered by short term assets (assets are 0.7x debt).


Next Steps

Dividend

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

0.71%

Current Dividend Yield


Dividend Yield vs Market

company0.7%marketbottom25%1.4%markettop25%3.7%industryaverage1.5%forecastin3Years0.7%

Current dividend yield vs market & industry

Notable Dividend: BCO's dividend (0.71%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: BCO's dividend (0.71%) is low compared to the top 25% of dividend payers in the US market (3.73%).


Stability and Growth of Payments

Stable Dividend: BCO is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: BCO is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: BCO is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of BCO's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

3.6yrs

Average management tenure


CEO

Doug Pertz (65yo)

3.7yrs

Tenure

US$10,360,397

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 ($USD10.36M) is above average for companies of similar size in the US market ($USD4.87M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Douglas Pertz
President3.7yrsUS$10.36m0.64% $27.0m
Ronald Domanico
Executive VP & CFO3.6yrsUS$2.64m0.13% $5.7m
Michael Beech
Executive VP5.2yrsUS$1.67m0.13% $5.3m
Amit Zukerman
Employee Consultant0.7yrsUS$2.51m0.066% $2.8m
Raphael Shemanski
Senior VP and President2.3yrsno data0.088% $3.7m
Thomas Colan
Controller & Principal Accounting Officer0yrsno data0.0072% $302.5k
Rohan Pal
Executive VP3.6yrsno data0.020% $833.7k
Edward Cunningham
Vice President of Investor Relations & Corporate Communications14.1yrsno datano data
Dana O'Brien
Senior VP & General Counsel0.8yrsno datano data
George Neill
Chief Marketing Officer1.2yrsno datano data

3.6yrs

Average Tenure

57yo

Average Age

Experienced Management: BCO's management team is considered experienced (3.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Douglas Pertz
President3.7yrsUS$10.36m0.64% $27.0m
Michael Herling
Non-Executive Chairman & Lead Independent Director3.8yrsUS$381.92k0.017% $710.5k
Daniel Henry
Independent Director2.3yrsUS$279.15k0.0084% $354.2k
Paul Boynton
Independent Director10yrsUS$207.75kno data
George Stoeckert
Independent Director4.1yrsUS$246.90k0.042% $1.8m
Reginald Hedgebeth
Independent Director8.6yrsUS$242.70k0.014% $568.7k
Kathie Andrade
Independent Director0.5yrsno datano data
Ian Clough
Independent Director4.1yrsUS$233.51k0.022% $931.8k
Susan Docherty
Independent Director6.1yrsUS$223.18k0.011% $443.8k

4.1yrs

Average Tenure

56yo

Average Age

Experienced Board: BCO's board of directors are considered experienced (4.1 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$4.207b
  • Shares outstanding: 50.02m
  • Website: https://www.brinks.com

Number of Employees


Location

  • The Brink's Company
  • 1801 Bayberry Court
  • PO Box 18100
  • Richmond
  • Virginia
  • 23226
  • 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 cash-in-transit services, including armored vehicle transportation of valuables; automated teller machine (ATM) services, such as cash replenishment, replenishment forecasting, cash optimization, ATM remote monitoring, service call dispatching, transaction processing, installation, and first and second line maintenance; and network infrastructure services. It also provides transportation services for valued commodities, such as diamonds, jewelry, precious metals, securities, currency, high-tech devices, electronics, and pharmaceuticals; and cash management services comprising money processing, deploying and servicing intelligent safes and safe control devices, and check imaging, as well as cashier balancing, counterfeit detection, account consolidation, and electronic reporting services. In addition, the company offers payment services that include bill payment processing, mobile phone top-up, and prepaid cards; and commercial security system services, which comprise security system design and installation services that include alarms, motion detectors, closed-circuit televisions, and digital video recorders, as well as access control systems comprising card and biometric readers, electronic locks, and turnstiles. Further, it provides monitoring services after systems have been installed; and security and guarding services to protect airports, offices, warehouses, stores, and public venues. The company serves banks and financial institutions, retailers, government agencies, mints, jewelers, and other commercial operations. The company was formerly known as The Pittston Company and changed its name to The Brink's Company in May 2003. The Brink's Company was founded in 1859 and is headquartered in Richmond, Virginia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/24 01:46
End of Day Share Price2020/02/21 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.