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BCO

Brink's NYSE:BCO Stock Report

Last Price

US$49.10

Market Cap

US$2.3b

7D

-4.7%

1Y

-22.4%

Updated

29 Sep, 2022

Data

Company Financials +
BCO fundamental analysis
Snowflake Score
Valuation3/6
Future Growth0/6
Past Performance5/6
Financial Health2/6
Dividends4/6

BCO Stock Overview

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

Brink's Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Brink's
Historical stock prices
Current Share PriceUS$49.10
52 Week HighUS$73.42
52 Week LowUS$48.58
Beta1.28
1 Month Change-12.21%
3 Month Change-18.49%
1 Year Change-22.43%
3 Year Change-38.87%
5 Year Change-41.44%
Change since IPO127.05%

Recent News & Updates

Sep 24
Brink's (NYSE:BCO) Has Announced A Dividend Of $0.20

Brink's (NYSE:BCO) Has Announced A Dividend Of $0.20

The board of The Brink's Company ( NYSE:BCO ) has announced that it will pay a dividend on the 1st of December, with...

Sep 21

The Brink's declares $0.20 dividend

The Brink's (NYSE:BCO) declares $0.20/share quarterly dividend, in line with previous. Forward yield 1.52% Payable Dec. 1; for shareholders of record Nov. 7; ex-div Nov. 4. See BCO Dividend Scorecard, Yield Chart, & Dividend Growth.

Aug 19
Should You Investigate The Brink's Company (NYSE:BCO) At US$58.77?

Should You Investigate The Brink's Company (NYSE:BCO) At US$58.77?

The Brink's Company ( NYSE:BCO ), is not the largest company out there, but it saw significant share price movement...

Aug 12

The Brink's Company: Revisiting The Bullish Case

Since the beginning of this bear market, BCO has been one of my few bullish recommendations. The firm is trading at less than 9x forward FCF, despite high-single digits growth and buybacks. BCO is now in a better position than at the beginning of the year to weather a credit event, especially since management extended debt maturities. I believe that BCO continues to provide an attractive risk-reward opportunity. Investment Thesis The Brink's Company (BCO) has been one of my few bullish recommendations since the start of this bear market. While the stock corrected in line with what we have broadly seen in equity markets so far this year, it failed to bounce in recent weeks despite strong earnings, leading me to believe that there continues to be a positive risk-reward opportunity at the current market price. The stock trades at less than 9x forward free cash flow ("FCF") while the business is growing at a high single-digit rate and management is doing buybacks. The high amount of leverage was one of my concerns, but the firm successfully extended its maturities and is now in a better position to enter this tightening cycle. In terms of valuation, I continue to believe that the stock is trading at a significant discount compared to its intrinsic value. A Quick Update Following Q2 FY22 Results BCO published Q2 FY22 earnings on August 3rd, 2022. Sales increased by ~8.1% YoY to $1.13 billion in the most recent quarter, which is in line with the historical growth rate. The firm generated $266.4 million in gross profit, compared to $229.6 million in the same quarter last year, for a gross profit margin of ~23.5% and ~21.9% respectively. BCO Q2 FY22 Presentation I was impressed to see that BCO managed to maintain high margins, despite FX headwinds. Both the LTM gross and operating margins remain near a record high of ~23% and ~8.5%, respectively. However, I believe it's important to keep a cool head and be open to the possibility of lower margins over the next quarters. After all, the business shows cyclicality over a long period of time, and given where we are in the business cycle, I believe the probability to have lower margins from here is higher. Refinitiv Eikon Talking about FX headwinds, revenue grew at ~13% in constant currency, which is higher than the historical average. It's encouraging to this positive evolution, which shows in my opinion that cash remains a valuable medium of exchange. On top of that, I expect revenue growth to remain elevated, especially once the dollar rolls over. BCO Q2 FY22 Presentation Every segment showed positive revenue growth in Q2 FY22, with the exception of Europe (because of FX). Operating profit per segment remains in line with previous quarters, which shows that business remains healthy. BCO Q2 FY22 Presentation Management reaffirmed its FY22 free cash flow guidance of $280-315 and now sees adjusted (excluding deferred payroll taxes) FCF ~23% higher, which is another positive development in my opinion. Wall Street FY22 EPS estimates are now at $5.77 and are expected to reach $8.16 in FY24, growing at over 15% annually. Given BCO's forward P/E of ~10, I believe the stock is attractively valued, trading at a PEG ratio of less than 1. BCO Q2 FY22 Presentation In my previous articles on BCO, I have raised the issue of leverage, especially in the event of a credit crunch when the firm needs refinancing. While this issue persists, management took the right step in rolling over part of their debt, resulting in an extended credit facility and maturities. Paying down debt doesn't seem to be an immediate priority for management as they continue to be focused on returning capital through dividends and share buybacks. Overall, I believe BCO had a good quarter, which is reflected in management's full-year expectations. Moving to our debt maturity profile on slide nine. In the second quarter 2022, we amended and extended our credit facility. We retained $1 billion revolving credit facility and we expanded our term loan A by $200 million to $1.4 billion. The amended facility reduced our used pricing grid by 25 bps and is expected to provide significant interest expense savings going forward. Maturity was extended out five years and meaningfully expanded our capacity to make restricted payments, including share repurchases. On this slide the light gray bars reflect our debt maturity before the amendment extend and the dark blue bars afterward. Our 5.5% senior notes mature in July 2025. And otherwise, we have no material debt retirement obligations until 2027. Mark Eubanks - President & Chief Executive Officer - Q2 FY22 Earnings Call

Shareholder Returns

BCOUS Commercial ServicesUS Market
7D-4.7%-1.9%-3.1%
1Y-22.4%-7.6%-21.5%

Return vs Industry: BCO underperformed the US Commercial Services industry which returned -7.4% over the past year.

Return vs Market: BCO underperformed the US Market which returned -20.3% over the past year.

Price Volatility

Is BCO's price volatile compared to industry and market?
BCO volatility
BCO Average Weekly Movement3.7%
Commercial Services Industry Average Movement6.9%
Market Average Movement6.9%
10% most volatile stocks in US Market15.7%
10% least volatile stocks in US Market2.8%

Stable Share Price: BCO is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: BCO's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
185973,350Mark Eubankshttps://www.brinks.com

The Brink's Company provides secure transportation, cash management, and other security-related services in North America, Latin America, Europe, and internationally. The company offers armored vehicle transportation of valuables; automated teller machine (ATM) management services, such as cash replenishment, replenishment forecasting, cash optimization, ATM remote monitoring, service call dispatching, transaction processing, installation, and first and second line maintenance services; network infrastructure; and cash-in-transit services. It also provides transportation services for diamonds, jewelry, precious metals, securities, bank notes, currency, high-tech devices, electronics, and pharmaceuticals; vault outsourcing and money processing services; and services related to deploying and servicing intelligent safes and safe control devices, as well as cashier balancing, counterfeit detection, account consolidation, electronic reporting, check imaging, and reconciliation services.

Brink's Fundamentals Summary

How do Brink's's earnings and revenue compare to its market cap?
BCO fundamental statistics
Market CapUS$2.32b
Earnings (TTM)US$173.00m
Revenue (TTM)US$4.38b

13.4x

P/E Ratio

0.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
BCO income statement (TTM)
RevenueUS$4.38b
Cost of RevenueUS$3.37b
Gross ProfitUS$1.02b
Other ExpensesUS$843.60m
EarningsUS$173.00m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)3.66
Gross Margin23.20%
Net Profit Margin3.95%
Debt/Equity Ratio808.6%

How did BCO perform over the long term?

See historical performance and comparison

Dividends

1.6%

Current Dividend Yield

22%

Payout Ratio

Does BCO pay a reliable dividends?

See BCO dividend history and benchmarks
When do you need to buy BCO by to receive an upcoming dividend?
Brink's dividend dates
Ex Dividend DateNov 04 2022
Dividend Pay DateDec 01 2022
Days until Ex dividend35 days
Days until Dividend pay date62 days

Does BCO pay a reliable dividends?

See BCO dividend history and benchmarks
We’ve recently updated our valuation analysis.

Valuation

Is BCO undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for BCO?

Other financial metrics that can be useful for relative valuation.

BCO key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.2x
Enterprise Value/EBITDA8.7x
PEG Ration/a

Price to Earnings Ratio vs Peers

How does BCO's PE Ratio compare to its peers?

BCO PE Ratio vs Peers
The above table shows the PE ratio for BCO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average13.1x
CXW CoreCivic
11.8x5.2%US$1.0b
GEO GEO Group
14.9x20.3%US$923.3m
ABM ABM Industries
11.8x9.1%US$2.6b
BRC Brady
14x9.2%US$2.1b
BCO Brink's
13.4xn/aUS$2.3b

Price-To-Earnings vs Peers: BCO is expensive based on its Price-To-Earnings Ratio (13.4x) compared to the peer average (13.1x).


Price to Earnings Ratio vs Industry

How does BCO's PE Ratio compare vs other companies in the US Commercial Services Industry?

Price-To-Earnings vs Industry: BCO is good value based on its Price-To-Earnings Ratio (13.4x) compared to the US Commercial Services industry average (16x)


Price to Earnings Ratio vs Fair Ratio

What is BCO's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

BCO PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio13.4x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate BCO's Price-To-Earnings Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of BCO when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: BCO ($49.1) is trading below our estimate of fair value ($69.11)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but there are not enough analysts covering the stock to determine statistical confidence in agreement.


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Future Growth

How is Brink's forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


6.4%

Forecasted annual revenue growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if BCO's forecast earnings growth is above the savings rate (1.9%).

Earnings vs Market: Insufficient data to determine if BCO's earnings are forecast to grow faster than the US market

High Growth Earnings: Insufficient data to determine if BCO's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: BCO's revenue (6.4% per year) is forecast to grow slower than the US market (7.7% per year).

High Growth Revenue: BCO's revenue (6.4% 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


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Past Performance

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

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


37.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: BCO has high quality earnings.

Growing Profit Margin: BCO's current net profit margins (3.9%) are higher than last year (0.9%).


Past Earnings Growth Analysis

Earnings Trend: BCO's earnings have grown significantly by 37.6% per year over the past 5 years.

Accelerating Growth: BCO's earnings growth over the past year (355.3%) exceeds its 5-year average (37.6% per year).

Earnings vs Industry: BCO earnings growth over the past year (355.3%) exceeded the Commercial Services industry 23.6%.


Return on Equity

High ROE: Whilst BCO's Return on Equity (50.53%) is outstanding, this metric is skewed due to their high level of debt.


Discover strong past performing companies

Financial Health

How is Brink's's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: BCO's short term assets ($2.2B) exceed its short term liabilities ($1.4B).

Long Term Liabilities: BCO's short term assets ($2.2B) do not cover its long term liabilities ($4.1B).


Debt to Equity History and Analysis

Debt Level: BCO's net debt to equity ratio (602.5%) is considered high.

Reducing Debt: BCO's debt to equity ratio has increased from 130.2% to 808.6% over the past 5 years.

Debt Coverage: BCO's debt is not well covered by operating cash flow (14.8%).

Interest Coverage: BCO's interest payments on its debt are well covered by EBIT (3.4x coverage).


Balance Sheet


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Dividend

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

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


1.63%

Current Dividend Yield

Upcoming Dividend Payment

TodaySep 30 2022Ex Dividend DateNov 04 2022Dividend Pay DateDec 01 202227 days from Ex DividendBuy in the next 35 days to receive the upcoming dividend

Dividend Yield vs Market

Brink's Dividend Yield vs Market
How does Brink's dividend yield compare to the market?
SegmentDividend Yield
Company (Brink's)1.6%
Market Bottom 25% (US)1.7%
Market Top 25% (US)4.7%
Industry Average (Commercial Services)1.4%
Analyst forecast in 3 Years (Brink's)1.3%

Notable Dividend: BCO's dividend (1.63%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.64%).

High Dividend: BCO's dividend (1.63%) is low compared to the top 25% of dividend payers in the US market (4.61%).


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.


Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (22.4%), BCO's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (14.5%), BCO's dividend payments are thoroughly covered by cash flows.


Discover strong dividend paying companies

Management

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

2.5yrs

Average management tenure


CEO

Mark Eubanks (50 yo)

0.33yr

Tenure

US$2,987,822

Compensation

Mr. Richard Mark Eubanks, Jr., also known as Mark, has been the Chief Executive Officer, President and Director of The Brink's Company from May 6, 2022 and served as its Executive Vice President and Chief...


CEO Compensation Analysis

Mark Eubanks's Compensation vs Brink's Earnings
How has Mark Eubanks's remuneration changed compared to Brink's's earnings?
DateTotal Comp.SalaryCompany Earnings
Jun 30 2022n/an/a

US$173m

Mar 31 2022n/an/a

US$162m

Dec 31 2021US$3mUS$223k

US$103m

Compensation vs Market: Mark's total compensation ($USD2.99M) is below average for companies of similar size in the US market ($USD5.56M).

Compensation vs Earnings: Insufficient data to compare Mark's compensation with company performance.


Leadership Team

Experienced Management: BCO's management team is considered experienced (2.5 years average tenure).


Board Members

Experienced Board: BCO's board of directors are considered experienced (6.3 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

NYSE:BCO Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
10 Jun 22BuyUS$504,500Simon DavisIndividual8,500US$59.60
03 Mar 22SellUS$352,051Rohan PalIndividual5,120US$68.76
08 Dec 21BuyUS$95,205Timothy TynanIndividual1,500US$63.47

Ownership Breakdown

What is the ownership structure of BCO?
Owner TypeNumber of SharesOwnership Percentage
Individual Insiders971,4732.0%
Institutions48,218,50098.0%

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


Top Shareholders

Top 25 shareholders own 85.94% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
11.11%
BlackRock, Inc.
5,249,118$257.7m-3.28%0.01%
9.64%
The Vanguard Group, Inc.
4,552,057$223.5m-3.03%0.01%
9.45%
William Blair Investment Management, LLC
4,462,853$219.1m-2.71%0.42%
9.29%
FMR LLC
4,391,182$215.6m28.21%0.02%
6.72%
Fuller & Thaler Asset Management, Inc.
3,173,035$155.8m-7.17%1.15%
5.41%
American Century Investment Management Inc
2,557,778$125.6m-4.36%0.1%
4.63%
Ariel Investments, LLC
2,188,942$107.5m5.67%1.06%
3.04%
State Street Global Advisors, Inc.
1,436,597$70.5m-6.71%no data
2.48%
Channing Capital Management, LLC
1,171,801$57.5m14.11%2.1%
2.43%
Hotchkis and Wiley Capital Management, LLC
1,146,940$56.3m18.93%0.23%
1.92%
T. Rowe Price Group, Inc.
906,060$44.5m-0.46%0.01%
1.83%
BNY Mellon Asset Management
864,906$42.5m-4.82%0.01%
1.82%
Dimensional Fund Advisors LP
858,220$42.1m-0.12%0.01%
1.76%
Greencape Capital Pty Ltd
831,821$40.8m-41.73%3.59%
1.75%
Silvercrest Asset Management Group LLC
825,699$40.5m-16.9%0.33%
1.7%
Geode Capital Management, LLC
800,837$39.3m-3.75%0.01%
1.69%
P2 Capital Partners, LLC
798,533$39.2m0%4.9%
1.64%
SouthernSun Asset Management, LLC
774,800$38.0m3.07%4.82%
1.43%
Boston Partners Global Investors, Inc.
677,452$33.3m1.43%0.03%
1.31%
Northern Trust Global Investments
620,905$30.5m-5.02%0.01%
1.17%
Douglas Pertz
552,795$27.1m622.38%no data
0.99%
Charles Schwab Investment Management, Inc.
465,636$22.9m0.3%0.01%
0.96%
Zuckerman Investment Group, LLC
454,793$22.3m5.23%4.44%
0.96%
American Beacon Advisors, Inc.
452,407$22.2m-13.98%0.34%
0.81%
Goldman Sachs Group, Investment Banking and Securities Investments
383,459$18.8m115.76%0.01%

Company Information

The Brink's Company's 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
  • Implied Market Cap: US$2.320b
  • Shares outstanding: 47.24m
  • 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

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/29 00:00
End of Day Share Price2022/09/29 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.