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

Fundamentals

Moderate growth potential and slightly overvalued.


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


Market Performance


7 Day Return

3.9%

BCO

1.4%

US Commercial Services

1.0%

US Market


1 Year Return

33.6%

BCO

17.0%

US Commercial Services

6.7%

US Market

Return vs Industry: BCO exceeded the US Commercial Services industry which returned 17% over the past year.

Return vs Market: BCO exceeded the US Market which returned 6.7% over the past year.


Share holder returns

BCOIndustryMarket
7 Day3.9%1.4%1.0%
30 Day-0.02%2.2%-1.8%
90 Day-3.8%1.1%-1.8%
1 Year34.7%33.6%21.5%17.0%9.1%6.7%
3 Year133.9%128.2%70.6%59.0%46.1%36.6%
5 Year303.5%282.5%106.9%86.1%66.9%48.6%

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 based on future cash flows and its price relative to the stock market?

50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Undervalued: BCO ($84.14) is trading below our estimate of fair value ($167.49)

Significantly Undervalued: BCO is trading below fair value by more than 20%.


Price Based on Earnings

PE vs Industry: BCO is poor value based on its PE Ratio (53.9x) compared to the Commercial Services industry average (25.5x).

PE vs Market: BCO is poor value based on its PE Ratio (53.9x) compared to the US market (17.5x).


Price Based on Expected Growth

Low PEG Ratio: BCO is poor value based on its PEG Ratio (1.7x)


Price Based on Value of Assets

PB vs Industry: BCO is overvalued based on its PB Ratio (21.7x) compared to the US Commercial Services industry average (1.8x).


Next Steps

Future Growth

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

31.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: BCO's forecast earnings growth (31.2% per year) is above the savings rate (2.7%).

Earnings vs Market: BCO's earnings (31.2% per year) are forecast to grow faster than the US market (14.5% per year).

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

Revenue vs Market: BCO's revenue (5.7% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: BCO's revenue (5.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High 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?

0.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: BCO has become profitable over the past 5 years, growing earnings by 0.4% 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 (-2.4%).


Return on Equity

High ROE: Whilst BCO's Return on Equity (39.72%) is high, this metric is skewed due to their high level of debt.


Return on Assets

ROA vs Industry: BCO's Return on Assets is below or equal to the Commercial Services industry average last year.


Return on Capital Employed

ROCE Improving: BCO's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Brink's's financial position?


Financial Position Analysis

Short Term Liabilities: BCO's short term assets ($1.2B) exceeds its short term liabilities ($888.8M)

Long Term Liabilities: BCO's short term assets (1.2B) do not cover its long term liabilities (2.6B)


Debt to Equity History and Analysis

Debt Level: BCO's debt to equity ratio (782.9%) is considered high

Reducing Debt: BCO's debt to equity ratio has increased from 74.9% to 782.9% over the past 5 years.

Debt Coverage: BCO's debt is not well covered by operating cash flow (17%).

Interest Coverage: BCO's interest payments on its debt are well covered by EBIT (3.1x 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 0.8x debt).


Next Steps

Dividend

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

0.65%

Expected Dividend Yield


Dividend Yield vs Market

company0.7%marketbottom25%1.5%markettop25%3.8%industryaverage2.0%forecastin3Years0.7%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: BCO's dividend (0.71%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: BCO's dividend (0.71%) is low compared to the top 25% of dividend payers in the US market (3.77%).

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 .


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

What is the CEO of Brink's's salary, the management and board of directors tenure and is there insider trading?

3.3yrs

Average management tenure


CEO

Doug Pertz (65yo)

3.3yrs

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 ($USD10.36M) is about average for companies of similar size in the US market ($USD5.11M).

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


Management Age and Tenure

3.3yrs

Average Tenure

57yo

Average Age

Experienced Management: BCO's management team is considered experienced (3.3 years average tenure).


Board Age and Tenure

3.8yrs

Average Tenure

56yo

Average Age

Experienced Board: BCO's board of directors are considered experienced (3.8 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$400,00002 May 19
Amit Zukerman
EntityIndividual
Role
Consultant
Employee Consultant
Shares5,000
Max PriceUS$80.00
SellUS$1,754,36301 May 19
Amit Zukerman
EntityIndividual
Role
Consultant
Employee Consultant
Shares21,946
Max PriceUS$79.94
SellUS$532,29626 Apr 19
Thomas Colan
EntityIndividual
Role
Chief Accounting Officer
Controller & Principal Accounting Officer
Shares6,374
Max PriceUS$83.93
BuyUS$217,17011 Mar 19
Ronald Domanico
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares3,000
Max PriceUS$72.39
BuyUS$729,25011 Mar 19
Douglas Pertz
EntityIndividual
Role
Chief Executive Officer
President
Shares10,000
Max PriceUS$73.20
SellUS$345,90507 Mar 19
Rohan Pal
EntityIndividual
Role
Chief Information Officer
Executive VP
Shares4,524
Max PriceUS$76.46
SellUS$727,41915 Feb 19
Susan Docherty
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares9,400
Max PriceUS$77.58
SellUS$756,20012 Feb 19
Amit Zukerman
EntityIndividual
Role
Consultant
Employee Consultant
Shares10,000
Max PriceUS$75.62

Ownership Breakdown


Management Team

  • Edward Cunningham (62yo)

    Vice President of Investor Relations & Corporate Communications

    • Tenure: 13.8yrs
  • Doug Pertz (65yo)

    President

    • Tenure: 3.3yrs
    • Compensation: US$10.36m
  • Ron Domanico (60yo)

    Executive VP & CFO

    • Tenure: 3.3yrs
    • Compensation: US$2.64m
  • McAlister Marshall (49yo)

    Executive Officer

    • Tenure: 0.8yrs
    • Compensation: US$1.75m
  • Dana O’Brien (51yo)

    Senior VP & General Counsel

    • Tenure: 0.5yrs
  • Tom Colan (64yo)

    Controller & Principal Accounting Officer

    • Tenure: 0yrs
  • Ray Shemanski

    Senior VP and President

    • Tenure: 2yrs
  • Michael Beech (57yo)

    Executive VP

    • Tenure: 4.8yrs
    • Compensation: US$1.67m
  • Amit Zukerman (47yo)

    Employee Consultant

    • Tenure: 0.3yrs
    • Compensation: US$2.51m
  • Rohan Pal (53yo)

    Executive VP

    • Tenure: 3.3yrs

Board Members

  • Michael Herling (62yo)

    Non-Executive Chairman & Lead Independent Director

    • Tenure: 3.4yrs
    • Compensation: US$381.92k
  • Dan Henry (53yo)

    Independent Director

    • Tenure: 2yrs
    • Compensation: US$279.15k
  • Doug Pertz (65yo)

    President

    • Tenure: 3.3yrs
    • Compensation: US$10.36m
  • Paul Boynton (54yo)

    Independent Director

    • Tenure: 9.7yrs
    • Compensation: US$207.75k
  • George Stoeckert (71yo)

    Independent Director

    • Tenure: 3.8yrs
    • Compensation: US$246.90k
  • Reggie Hedgebeth (51yo)

    Independent Director

    • Tenure: 8.3yrs
    • Compensation: US$242.70k
  • Kathie Andrade (58yo)

    Independent Director

    • Tenure: 0.2yrs
  • Ian Clough (52yo)

    Independent Director

    • Tenure: 3.8yrs
    • Compensation: US$233.51k
  • Susan Docherty (56yo)

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: US$223.18k

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: 50.00m
  • 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, i ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 01:26
End of Day Share Price2019/10/11 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.

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