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Brink's (BCO)
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Brink's Company (BCO) AI Stock Analysis

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BCO

Brink's Company

(NYSE:BCO)

Rating:72Outperform
Price Target:
$102.00
▲(16.78%Upside)
The overall score reflects strong earnings performance and positive corporate events, tempered by financial leverage concerns and mixed valuation signals. Strategic initiatives and execution in high-margin segments bolster the outlook, while technical indicators suggest cautious optimism.
Positive Factors
Financial Performance
First-quarter results handily beat consensus expectations, with adjusted EBITDA and EPS above the high end of guidance.
Market Expansion
Brink's operates in a $36 billion market, with potential to expand that market by 2-3 times through DRS and AMS adoption.
Shareholder Returns
Brink’s has consistently increased its free cash flow and the percentage of that cash flow returned to shareholders.
Negative Factors
FX Impact
The guidance assumes strong FX headwinds continue.
Growth Moderation
The guidance assumes strong FX headwinds continue and growth in the AMS/DRS business moderates from 23% in 2024 to the mid-to-high-teens range in 2025.

Brink's Company (BCO) vs. SPDR S&P 500 ETF (SPY)

Brink's Company Business Overview & Revenue Model

Company DescriptionThe 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. In addition, the company offers technology applications, including online cash tracking, cash inventory management, and other web-based tools. Further, it provides bill payment and collection services; prepaid cards and corporate debit cards; and security system design and installation services that include alarms, motion detectors, closed-circuit televisions, and digital video recorders, as well as access control systems comprising card and biometric readers, electronic locks, and turnstiles. Additionally, the company offers monitoring services; and security and guarding services to protect airports, offices, warehouses, stores, and public venues. It serves banks and financial institutions, retailers, government agencies, mints, jewelers, and other commercial operations. The company was formerly known as The Pittston Company and changed its name to The Brink's Company in May 2003. The Brink's Company was founded in 1859 and is headquartered in Richmond, Virginia.
How the Company Makes MoneyBrink's Company generates revenue primarily through its cash management and secure logistics services. Key revenue streams include fees for armored transportation of cash and valuables, ATM services such as replenishment and repair, and cash processing services that include counting, sorting, and validating currency. Brink's also earns income from its global services, which involve secure transportation of valuables across international borders. Strategic partnerships with financial institutions and retailers bolster its revenue by integrating Brink's solutions into their operations, enhancing the efficiency and security of their cash handling processes. Additionally, technological advancements in security and payment solutions contribute to new revenue opportunities for Brink's.

Brink's Company Earnings Call Summary

Earnings Call Date:May 12, 2025
(Q1-2025)
|
% Change Since: -6.95%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Neutral
Brink's demonstrated strong growth in its high-margin AMS and DRS segments, expanded its shareholder returns, and secured significant new partnerships, which are positive indicators. However, the company faced currency headwinds in Latin America, a decline in interest income from Argentina, and margin pressures due to restructuring and FX impacts.
Q1-2025 Updates
Positive Updates
Record Q1 Operating Profits and Organic Growth
Brink's delivered total organic growth of 6% in Q1 2025, at the top end of guidance. Operating profits increased by 40 basis points with a focus on higher-margin recurring revenue businesses.
Strong Performance in AMS and DRS
AMS and DRS grew over 20% for the fourth consecutive quarter, now representing 25% of the business. This growth supports performance consistency and margin expansion.
Increased Shareholder Returns
Brink's repurchased 1.3 million shares, representing about 3% of outstanding shares at year-end 2024. Additionally, the company announced the third consecutive annual increase to its quarterly dividend.
New Partnerships and Expansion
Brink's secured a new partnership with a leading financial institution in North America and announced new awards in Southeast Asia, indicating strong pipeline and market expansion.
Negative Updates
Currency Headwinds in Latin America
Organic growth of 7% in Latin America was more than offset by a 16% year-over-year currency devaluation, primarily impacting the Mexican peso and Argentine peso.
Interest Income Decline
Interest income from Argentina decreased by $5 million year-over-year due to moderating inflation, impacting overall margins.
Margin Pressure from Restructuring and FX
Q1 adjusted EBITDA margins were down 50 basis points due to currency mix impacts and higher restructuring costs.
Company Guidance
In the first quarter of fiscal year 2025, Brink's Company reported a strong performance, achieving a total organic growth of 6%, which was at the top end of its previous guidance. The company's high-margin recurring revenue businesses, ATM Managed Services (AMS) and Digital Retail Solutions (DRS), experienced over 20% growth for the fourth consecutive quarter. Brink's reported an adjusted EBITDA of $215 million with a 17.2% margin and earnings per share of $1.62, both exceeding the high end of the guidance due to strong execution and expense timing shifts. The company also highlighted a free cash flow conversion of 40%, in line with expectations. Strategic initiatives remain focused on expanding AMS and DRS, enhancing margins, and adhering to a capital allocation framework. Brink's reaffirmed its full-year guidance, projecting mid-single-digit organic growth, 30 to 50 basis points of EBITDA margin expansion, and free cash flow conversion between 40% and 45%. For the second quarter, Brink's expects EBITDA between $205 million and $225 million, with earnings per share ranging from $1.25 to $1.65, maintaining its outlook despite currency headwinds and restructuring costs.

Brink's Company Financial Statement Overview

Summary
Brink's Company exhibits solid revenue growth and stable operational margins. However, high leverage and the need for improved net profitability are concerns. Cash flow generation is positive but requires further enhancement.
Income Statement
75
Positive
Brink's Company has demonstrated consistent revenue growth over the years, with a notable increase from $3.69 billion in 2020 to $5.02 billion in the TTM. The gross profit margin has remained stable around 25%, while the net profit margin has shown some fluctuations but improved to 3.29% in the TTM. EBITDA margin has been relatively stable, indicating efficient operational performance. However, the company needs to improve its net profitability to enhance overall financial performance.
Balance Sheet
65
Positive
The company's debt-to-equity ratio is high, suggesting a significant reliance on debt financing, which introduces financial risk. The return on equity (ROE) has improved, reaching 50.21% in the TTM, indicating effective use of equity. The equity ratio is low at 4.99%, reflecting limited equity financing. Overall, the balance sheet shows a leveraged position, and strengthening equity is advisable to reduce risk.
Cash Flow
70
Positive
Brink's Company has shown a positive trend in operating cash flows, although there was a decline in the TTM. The free cash flow growth rate has decreased, yet the company maintains a positive free cash flow. The operating cash flow to net income ratio indicates good cash generation relative to net income. However, maintaining or improving free cash flow generation is crucial for sustaining financial health.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue5.01B4.87B4.54B4.20B3.69B
Gross Profit1.27B1.17B1.07B964.40M813.60M
EBITDA817.30M715.40M613.00M576.10M373.00M
Net Income162.90M87.70M170.60M105.20M22.70M
Balance Sheet
Total Assets6.62B6.60B6.37B5.57B5.14B
Cash, Cash Equivalents and Short-Term Investments1.40B1.18B972.00M710.30M620.90M
Total Debt4.25B3.88B3.65B3.21B2.75B
Total Liabilities6.31B6.08B5.80B5.31B4.93B
Stockholders Equity184.90M397.40M570.20M252.60M202.50M
Cash Flow
Free Cash Flow203.50M499.70M297.30M310.10M199.20M
Operating Cash Flow426.00M702.40M479.90M478.00M317.70M
Investing Cash Flow-216.20M-179.80M-331.20M-454.70M-565.40M
Financing Cash Flow42.20M-207.10M245.20M171.30M683.70M

Brink's Company Technical Analysis

Technical Analysis Sentiment
Negative
Last Price87.34
Price Trends
50DMA
88.21
Positive
100DMA
87.83
Positive
200DMA
91.60
Negative
Market Momentum
MACD
0.77
Positive
RSI
43.72
Neutral
STOCH
11.29
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 87.34 is below the 20-day moving average (MA) of 93.01, below the 50-day MA of 88.21, and below the 200-day MA of 91.60, indicating a neutral trend. The MACD of 0.77 indicates Positive momentum. The RSI at 43.72 is Neutral, neither overbought nor oversold. The STOCH value of 11.29 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 24 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 (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
$1.10B25.1527.48%1.69%-1.05%-2.78%
79
Outperform
$105.67M65.29-3.47%
76
Outperform
$6.93B12.4917.13%2.63%3.80%-3.18%
72
Outperform
$3.67B23.4354.50%1.14%1.97%41.88%
67
Neutral
€8.31B20.516.46%2.85%1.84%-40.85%
66
Neutral
$40.03M26.079.92%
63
Neutral
$3.61B137.052.12%0.50%-71.85%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
BCO
Brink's Company
87.61
-17.36
-16.54%
GEO
Geo Group
25.45
11.68
84.82%
SNT
Senstar Technologies
4.38
2.68
157.65%
NSSC
Napco Security Technologies
30.53
-22.99
-42.96%
SPCB
SuperCom
8.81
4.55
106.81%
ADT
Adt
8.35
1.47
21.37%

Brink's Company Corporate Events

Executive/Board ChangesBusiness Operations and Strategy
Brink’s Company Enhances CEO Retention and Succession Plan
Positive
Jul 18, 2025

On July 17, 2025, Brink’s Company entered into a letter agreement with CEO Mark Eubanks to ensure retention and succession planning, offering specific vesting treatments for his future equity awards. Additionally, on July 16, 2025, the company amended its Severance Pay Plan and Change in Control Plan to enhance termination protections and retention value, increasing severance benefits and extending vesting periods for the CEO, which may impact the company’s leadership stability and stakeholder confidence.

The most recent analyst rating on (BCO) stock is a Buy with a $144.00 price target. To see the full list of analyst forecasts on Brink’s Company stock, see the BCO Stock Forecast page.

Business Operations and Strategy
Brink’s Company Updates Investor Presentation for Growth
Positive
Jun 3, 2025

On June 3, 2025, The Brink’s Company updated its investor presentation slides, highlighting its strategic focus on expanding its AMS and DRS offerings to drive organic growth and improve profit margins. The company aims to enhance shareholder value through efficient capital allocation, while addressing market trends and challenges such as macroeconomic factors and technological risks. Brink’s plans to optimize its network and expand its addressable market by 2-3 times, leveraging its innovative solutions to secure long-term recurring revenue and improve operational efficiency.

The most recent analyst rating on (BCO) stock is a Buy with a $111.00 price target. To see the full list of analyst forecasts on Brink’s Company stock, see the BCO Stock Forecast page.

Stock BuybackBusiness Operations and StrategyFinancial Disclosures
Brink’s Company Reports Strong Q1 2025 Results
Positive
May 12, 2025

On May 12, 2025, Brink’s Company announced its strong first-quarter results, with revenue reaching the upper end of its guidance range and achieving a 6% organic growth. The company reported significant growth in ATM managed services and digital retail solutions, with a 20% increase in these areas. Brink’s also repurchased over 1.3 million shares year-to-date, nearly tripling the previous year’s repurchases. Despite global economic uncertainties, the company remains committed to executing its strategy to improve profitability and deliver shareholder value through growth in its AMS and DRS sectors, streamlining operations, and adhering to its capital allocation priorities.

The most recent analyst rating on (BCO) stock is a Buy with a $111.00 price target. To see the full list of analyst forecasts on Brink’s Company stock, see the BCO Stock Forecast page.

Executive/Board ChangesShareholder Meetings
Brink’s Company Shareholders Approve Key Proposals at Annual Meeting
Positive
May 9, 2025

On May 8, 2025, The Brink’s Company held its annual meeting of shareholders where three proposals were discussed and voted on. Shareholders elected nine directors to the board, approved an advisory resolution on executive compensation, and selected KPMG LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025. These decisions are expected to impact the company’s governance and financial oversight positively.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Jul 26, 2025