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.
Price History & Performance
|Historical stock prices|
|Current Share Price||US$49.10|
|52 Week High||US$73.42|
|52 Week Low||US$48.58|
|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 IPO||127.05%|
Recent News & Updates
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...
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.
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...
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
|BCO||US Commercial Services||US Market|
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.
|BCO Average Weekly Movement||3.7%|
|Commercial Services Industry Average Movement||6.9%|
|Market Average Movement||6.9%|
|10% most volatile stocks in US Market||15.7%|
|10% least volatile stocks in US Market||2.8%|
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
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
|BCO fundamental statistics|
Is BCO overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|BCO income statement (TTM)|
|Cost of Revenue||US$3.37b|
Last Reported Earnings
Jun 30, 2022
Next Earnings Date
|Earnings per share (EPS)||3.66|
|Net Profit Margin||3.95%|
How did BCO perform over the long term?See historical performance and comparison
1.6%Current Dividend Yield
Does BCO pay a reliable dividends?See BCO dividend history and benchmarks
|Brink's dividend dates|
|Ex Dividend Date||Nov 04 2022|
|Dividend Pay Date||Dec 01 2022|
|Days until Ex dividend||35 days|
|Days until Dividend pay date||62 days|
Does BCO pay a reliable dividends?See BCO dividend history and benchmarks
Is BCO undervalued compared to its fair value, analyst forecasts and its price relative to the market?
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
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.
|What is BCO's n/a Ratio?|
Price to Earnings Ratio vs Peers
How does BCO's PE Ratio compare to its peers?
|BCO PE Ratio vs Peers|
|Company||PE||Estimated Growth||Market Cap|
GEO GEO Group
ABM ABM Industries
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.
|Current PE Ratio||13.4x|
|Fair PE Ratio||n/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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How is Brink's forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?
Future Growth Score0/6
Future Growth Score 0/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
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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How has Brink's performed over the past 5 years?
Past Performance Score5/6
Past Performance Score 5/6
Growing Profit Margin
Earnings vs Industry
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
How is Brink's's financial position?
Financial Health Score2/6
Financial Health Score 2/6
Short Term Liabilities
Long Term Liabilities
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).
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What is Brink's current dividend yield, its reliability and sustainability?
Dividend Score 4/6
Cash Flow Coverage
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
|Brink's Dividend Yield vs Market|
|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.
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How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Mark Eubanks (50 yo)
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|
|Date||Total Comp.||Salary||Company Earnings|
|Jun 30 2022||n/a||n/a|
|Mar 31 2022||n/a||n/a|
|Dec 31 2021||US$3m||US$223k|
Compensation vs Market: Mark's total compensation ($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.
Experienced Management: BCO's management team is considered experienced (2.5 years average tenure).
Experienced Board: BCO's board of directors are considered experienced (6.3 years average tenure).
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
|10 Jun 22||BuyUS$504,500||Simon Davis||Individual||8,500||US$59.60|
|03 Mar 22||SellUS$352,051||Rohan Pal||Individual||5,120||US$68.76|
|08 Dec 21||BuyUS$95,205||Timothy Tynan||Individual||1,500||US$63.47|
|Owner Type||Number of Shares||Ownership Percentage|
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
|Ownership||Name||Shares||Current Value||Change %||Portfolio %|
The Brink's Company's employee growth, exchange listings and data sources
- 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
- The Brink's Company
- 1801 Bayberry Court
- PO Box 18100
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|BCO||NYSE (New York Stock Exchange)||Yes||Common Shares||US||USD||Jan 1968|
|PTY||DB (Deutsche Boerse AG)||Yes||Common Shares||DE||EUR||Jan 1968|
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/09/29 00:00|
|End of Day Share Price||2022/09/29 00:00|
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.