The Brink's Co

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BCO : NYSE : Services
$41.3 up 0.7 | 1.72%
Today's Range: 40.25 - 41.35
Avg. Daily Volume: 412000.0
12/08/16 - 4:02 PM ET

Financial Analysis


BRINKS CO's gross profit margin for the third quarter of its fiscal year 2016 has increased when compared to the same period a year ago. Even though sales decreased, the net income has increased, representing an increase to the bottom line. BRINKS CO has average liquidity. Currently, the Quick Ratio is 1.16 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.

At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 2.49% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.

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Income Statement Q3 FY16 Q3 FY15
Net Sales ($mil)755.8759.2
EBITDA ($mil)81.964.8
EBIT ($mil)49.531.7
Net Income ($mil)24.57.6


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)238.3176.1
Total Assets ($mil)2022.51977.1
Total Debt ($mil)492.6480.0
Equity ($mil)374.1365.0


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin24.5823.17
EBITDA Margin10.838.53
Operating Margin6.554.18
Sales Turnover1.471.61
Return on Assets0.89-2.8
Return on Equity4.94-8.6
Debt Q3 FY16 Q3 FY15
Current Ratio1.341.35
Debt/Capital0.570.57
Interest Expense5.14.8
Interest Coverage9.716.6


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)49.948.9
Div / share0.10.1
EPS0.480.16
Book value / share7.57.46
Institutional Own % n/a n/a
Avg Daily Volume385548.0379557.0

Valuation


BUY. BRINKS CO's P/E ratio indicates a significant premium compared to an average of 31.96 for the Commercial Services & Supplies industry and a significant premium compared to the S&P 500 average of 25.37. Conducting a second comparison, its price-to-book ratio of 5.21 indicates a significant premium versus the S&P 500 average of 2.81 and a premium versus the industry average of 4.75. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. After reviewing these and other key valuation criteria, BRINKS CO proves to trade at a premium to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
BCO 108.47 Peers 31.96   BCO 10.98 Peers 15.74

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

BCO is trading at a significant premium to its peers.

 

Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

BCO is trading at a significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
BCO 16.77 Peers 26.35   BCO NM Peers 2.97

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

BCO is trading at a significant discount to its peers.

 

Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

BCO's negative PEG ratio makes this valuation measure meaningless.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
BCO 5.21 Peers 4.75   BCO 157.14 Peers 62.44

Average. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

BCO is trading at a valuation on par with its peers.

 

Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

BCO is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
BCO 0.65 Peers 2.36   BCO -6.11 Peers 7.38

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

BCO is trading at a significant discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

BCO significantly trails its peers on the basis of sales growth

 

 

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