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Brink's Company (BCO)
NYSE:BCO
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Brink's Company
(NYSE:BCO)
71Outperform
Positive Factors
Business Strategy
BCO is effectively executing on its strategy to scale its high-growth, high-margin Digital Retail Solutions and ATM Managed Services, which comprise 23% of revenue and is growing 26% organically.
Financial Performance
Shares finished up 2% in a flat market, believed to be due to full-year guidance that was better than Street expectations while being appropriately conservative.
Negative Factors
Foreign Exchange Impact
Increased FX headwinds are expected to weigh on near-term revenue performance due to a stronger US Dollar and currency devaluations in key regions.
Brink's Company (BCO) vs. S&P 500 (SPY)
Market Cap
$3.77B
Dividend Yield1.11%
Average Volume (3M)269.80K
Price to Earnings (P/E)24.0
Beta (1Y)1.05
Revenue Growth2.82%
EPS Growth95.64%
CountryUS
Employees68,100
SectorIndustrials
Sector Strength69
IndustryCorporate Services
Share Statistics
EPS (TTM)3.63
Shares Outstanding43,139,797
10 Day Avg. Volume332,273
30 Day Avg. Volume269,803
Financial Highlights & Ratios
PEG Ratio0.25
Price to Book (P/B)N/A
Price to Sales (P/S)0.75
Price to Cash Flow (P/CF)2.60
P/FCF Ratio2.50
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$111.00Price Target Upside30.91% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
Brink's Company Business Overview & Revenue Model
Company DescriptionThe Brink's Co. provides secure logistics and cash management services. It operates through the following segments: North America, South America and Rest of World. Its logistics and security solutions include cash-in-transit; ATM replenishment & maintenance; and cash management & payment services, such as vault outsourcing, money processing, intelligent safe services, and international transportation of valuables. The company was founded by Perry Brink and Fidelia Brink on May 5, 1859 and is headquartered in Richmond, VA.
How the Company Makes MoneyBrink's Company generates revenue primarily through its cash-in-transit services, which involve transporting cash and other valuables securely between locations. Additionally, Brink's provides cash management services, including cash processing, vaulting, and ATM replenishment and maintenance. The company also offers payment solutions that help businesses handle cash transactions efficiently. Key revenue streams include fees for transportation, storage, and processing of cash and valuables. Brink's partners with financial institutions, retailers, and other businesses, leveraging long-term contracts and service agreements to secure a stable income flow. The company's global presence and reputation for security and reliability are significant factors contributing to its earnings.
Brink's Company Financial Statement Overview
Summary
Brink's Company has shown strong revenue growth and profitability improvements, supported by solid cash flow generation. However, high leverage and declining equity raise potential financial risks. The company should focus on reducing debt and improving cost management for long-term stability.Income Statement
Brink's Company shows a solid financial performance with a consistent revenue growth rate over multiple years. The gross profit margin and net profit margin have also increased, indicating improved profitability. However, EBIT and EBITDA margins show room for improvement, suggesting potential cost management issues.78
Positive
Balance Sheet
The balance sheet reveals a strong cash position and a decreasing trend in stockholders' equity, which indicates increased leverage. The debt-to-equity ratio is relatively high, posing potential risks of financial instability. The equity ratio is low, reflecting significant liabilities compared to equity.65
Positive
Cash Flow
Brink's Company has demonstrated strong operating cash flow and consistent free cash flow generation. However, the free cash flow growth rate has declined recently, and the reliance on debt financing raises concerns about long-term sustainability.72
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 5.01B | 4.87B | 4.54B | 4.20B | 3.69B | Gross Profit |
| 1.27B | 1.17B | 1.07B | 964.40M | 813.60M | EBIT |
| 453.00M | 425.20M | 350.80M | 354.70M | 213.50M | EBITDA |
| 795.00M | 715.40M | 613.00M | 576.10M | 373.00M | Net Income Common Stockholders |
| 162.90M | 87.70M | 170.60M | 105.20M | 22.70M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 1.40B | 1.18B | 972.00M | 710.30M | 620.90M | Total Assets |
| 6.62B | 6.60B | 6.37B | 5.57B | 5.14B | Total Debt |
| 4.03B | 3.88B | 3.65B | 3.21B | 2.75B | Net Debt |
| 2.64B | 2.70B | 2.68B | 2.50B | 2.13B | Total Liabilities |
| 6.31B | 6.08B | 5.80B | 5.31B | 4.93B | Stockholders Equity |
| 312.50M | 397.40M | 570.20M | 252.60M | 202.50M |
| Cash Flow | Free Cash Flow | |||
| 203.50M | 499.70M | 297.30M | 310.10M | 199.20M | Operating Cash Flow |
| 426.00M | 702.40M | 479.90M | 478.00M | 317.70M | Investing Cash Flow |
| -216.20M | -179.80M | -331.20M | -454.70M | -565.40M | Financing Cash Flow |
| 42.20M | -207.10M | 245.20M | 171.30M | 683.70M |
Brink's Company Technical Analysis
Negative
84.79
Price Trends
91.80
Negative
94.74
Negative
99.79
Negative
Market Momentum
-1.70
Positive
36.11
Neutral
16.10
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BCO, the sentiment is Negative. The current price of 84.79 is below the 20-day moving average (MA) of 90.96, below the 50-day MA of 91.80, and below the 200-day MA of 99.79, indicating a bearish trend. The MACD of -1.70 indicates Positive momentum. The RSI at 36.11 is Neutral, neither overbought nor oversold. The STOCH value of 16.10 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BCO.
Brink's Company Risk Analysis
Brink's Company disclosed 23 risk factors in its most recent earnings report. Brink's Company reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Brink's Company Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $11.83B | 23.18 | 34.88% | 0.72% | 11.19% | 51.03% | |
77 Outperform | $118.99B | 30.51 | 83.72% | 1.96% | 7.09% | 11.51% | |
74 Outperform | $3.71B | 4.01 | 129.04% | 8.56% | -3.38% | 63.33% | |
73 Outperform | $23.09B | 15.75 | 6.94% | 1.07% | 4.68% | 63.39% | |
71 Outperform | $3.77B | 24.00 | 55.57% | 1.11% | 2.82% | 95.64% | |
62 Neutral | $8.17B | 12.83 | 0.26% | 3.07% | 3.83% | -16.44% | |
51 Neutral | $36.08B | 48.04 | 4.65% | 2.11% | -17.38% | ― |
* Industrials Sector Average
Performance Comparison
BCO
Brink's Company
84.79
1.65
1.98%
ADP
Automatic Data Processing
290.55
51.15
21.37%
FIS
Fidelity National Info
69.75
2.81
4.20%
GPN
Global Payments
92.90
-38.16
-29.12%
WU
Western Union
10.64
-1.89
-15.08%
PAYC
Paycom
202.82
14.50
7.70%
Brink's Company Earnings Call Summary
Earnings Call Date: Feb 26, 2025 | % Change Since: -10.23% | Next Earnings Date: May 7, 2025
Earnings Call Sentiment Neutral
Brink's Company demonstrated strong organic growth, significant EBITDA improvement, and robust free cash flow. However, currency headwinds and challenges in Latin America posed notable financial impacts. The company is optimistic about its strategic initiatives and partnerships, which are expected to drive future growth.Highlights
Strong Organic Growth
The Brink's Company achieved total organic growth of 11% in Q4 and 12% for the full year, with AMS DRS growing 23% organically in both periods.
Record EBITDA and Margin Expansion
The company delivered $912 million of EBITDA in 2024 and expanded EBITDA margins by 40 basis points to a record high of 18.2%.
Robust Free Cash Flow
Brink's generated $400 million in free cash flow for the full year, with $300 million in Q4, driven by working capital efficiencies.
AMS DRS Revenue Growth
AMS DRS grew by $200 million and now represents 24% of total revenue. The company expects mid to high teens organic growth in AMS DRS for 2025.
Capital Efficiency and Shareholder Returns
Brink's reduced net leverage to 2.8 times EBITDA, returned $250 million to shareholders, and executed a share repurchase program reducing share count by 4%.
Strategic Wins and Leadership Strengthening
Added three experienced global executives and secured major partnerships with BP convenience stores and Western Union.
Lowlights
Currency Headwinds Impact
The company faced a 10% headwind due to the strengthening U.S. Dollar, impacting higher margin Latin American segments.
EBITDA Margin Impact from FX
Total adjusted EBITDA margins were down 30 basis points from the previous year due to regional revenue mix impacted by foreign exchange.
Argentina Inflation Moderation
Expected deceleration of reported organic growth in Latin America due to inflation moderation in Argentina.
Interest Expense Increase
Interest expense was up $8 million year over year, driven by higher debt and slightly higher financing leases.
Company Guidance
In the call, The Brink's Company provided detailed guidance on various metrics for the fourth quarter and full year 2024. They reported a total organic growth of 11% in Q4 and 12% for the full year, with ATM managed services and digital retail solutions (AMS DRS) growing 23% organically. The company's EBITDA for 2024 was $912 million, marking an expansion of EBITDA margins by 40 basis points to 18.2%. Earnings per share (EPS) were $7.17, reflecting a 4% reduction in share count due to their share repurchase program. The company generated $400 million in free cash flow for the year, with over $300 million in Q4 alone, driven by improvements in working capital efficiencies. For 2025, the company plans to grow total organic revenue in the mid-single digits, with AMS DRS expected to see mid to high teens organic growth. EBITDA margins are projected to expand by 30 to 50 basis points, with 40% to 45% of EBITDA converted into free cash flow, and about half of that cash returned to shareholders. Despite a 10% currency headwind in their Latin American segment in 2024, they aim to continue their growth trajectory and margin expansion into 2025.Brink's Company Corporate Events
Legal ProceedingsBusiness Operations and StrategyFinancial Disclosures
Brink’s Company Reports Record Revenue Growth in 2024
Neutral
Feb 26, 2025
On February 26, 2025, Brink’s Company announced its fourth-quarter and full-year 2024 results, highlighting a record revenue growth of 3% and organic growth of 12%. The company generated $426 million in cash from operations and $400 million in free cash flow, returning $245 million to shareholders. Brink’s also resolved investigations with the DOJ and FinCEN regarding historical cross-border currency shipments, incurring charges of $45.7 million, which impacted its earnings per share. The company remains focused on strategic growth and improving its revenue mix.
Legal ProceedingsRegulatory Filings and Compliance
Brink’s Company Resolves U.S. Investigations with Settlement
Neutral
Feb 6, 2025
On February 6, 2025, Brink’s Global Services USA, a subsidiary of The Brink’s Company, announced it had resolved investigations with the U.S. Department of Justice and the U.S. Treasury’s Financial Crimes Enforcement Network regarding cross-border currency shipments from 2018 to 2020. The resolutions involved a Non-Prosecution Agreement and a Consent Order to pay $42 million over three years, underscoring Brink’s commitment to compliance and enhancing its global Ethics & Compliance program. The settlement will be treated as a special item in financial statements, thus not affecting the company’s 2024 financial guidance.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.