NEW YORK ( TheStreet) -- Brink's Company (NYSE: BCO) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, increase in net income, solid stock price performance and growth in earnings per share. We feel these strengths outweigh the fact that the company shows low profit margins. Highlights from the ratings report include:
- The revenue growth greatly exceeded the industry average of 3.0%. Since the same quarter one year prior, revenues rose by 28.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Commercial Services & Supplies industry average. The net income increased by 28.9% when compared to the same quarter one year prior, rising from $23.90 million to $30.80 million.
- After a year of stock price fluctuations, the net result is that BCO's price has not changed very much. Although its weak earnings growth may have played a role in this flat result, don't lose sight of the fact that the performance of the overall market, as measured by the S&P 500 Index, was essentially similar. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- BRINKS CO has improved earnings per share by 46.7% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, BRINKS CO reported lower earnings of $1.17 versus $4.05 in the prior year. This year, the market expects an improvement in earnings ($1.75 versus $1.17).
- The gross profit margin for BRINKS CO is rather low; currently it is at 23.00%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 3.10% trails that of the industry average.