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Brink's Company (BCO)
NYSE:BCO

Brink's Company (BCO) AI Stock Analysis

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Brink's Company

(NYSE:BCO)

Rating:70Neutral
Price Target:
$97.00
▲(2.96%Upside)
The overall score reflects Brink's solid financial performance and strong guidance from the earnings call, offset by high leverage and moderate valuation metrics. Positive corporate events and technical indicators suggest potential for growth, but strategic improvements are necessary for long-term stability.
Positive Factors
Financial Performance
First-quarter results handily beat consensus expectations, with adjusted EBITDA and EPS above the high end of guidance.
Market Potential
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
Currency Fluctuations
Increased FX headwinds are expected to weigh on near-term revenue performance due to a stronger US Dollar and currency devaluations in key regions.
Currency Impact
A stronger USD relative to other currencies is expected to present a 6% headwind to 2025 reported revenue growth compared to prior expectations of a 3.5% headwind.
Revenue Growth
Reduced expectations for total company organic revenue growth in 2025 to 6%, down from 9%, reflecting slower Latin America growth as Argentina inflation moderates.

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

Brink's Company Business Overview & Revenue Model

Company DescriptionBrink's Company (BCO) is a global leader in total cash management, secure logistics, and payment solutions. Operating in over 100 countries, Brink's provides a range of services that include armored car transportation, ATM replenishment and maintenance, cash handling, and secure international transportation of valuables. The company serves a diverse clientele, including financial institutions, retailers, government agencies, and commercial enterprises, offering solutions designed to ensure the secure and efficient movement of cash and valuables.
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: 0.08%|
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 has shown consistent revenue growth and stable operational margins. However, high leverage and the need for improved net profitability are notable concerns. The company's cash generation is resilient, but efforts to strengthen equity and manage debt are essential for long-term stability.
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue5.02B5.01B4.87B4.54B4.20B3.69B
Gross Profit1.27B1.27B1.17B1.07B964.40M813.60M
EBITDA615.40M817.30M715.40M613.00M576.10M373.00M
Net Income165.20M162.90M87.70M170.60M105.20M22.70M
Balance Sheet
Total Assets6.58B6.62B6.60B6.37B5.57B5.14B
Cash, Cash Equivalents and Short-Term Investments1.23B1.40B1.18B972.00M710.30M620.90M
Total Debt4.02B4.25B3.88B3.65B3.21B2.75B
Total Liabilities6.25B6.31B6.08B5.80B5.31B4.93B
Stockholders Equity329.00M184.90M397.40M570.20M252.60M202.50M
Cash Flow
Free Cash Flow72.70M203.50M499.70M297.30M310.10M199.20M
Operating Cash Flow301.90M426.00M702.40M479.90M478.00M317.70M
Investing Cash Flow-219.20M-216.20M-179.80M-331.20M-454.70M-565.40M
Financing Cash Flow-80.50M42.20M-207.10M245.20M171.30M683.70M

Brink's Company Technical Analysis

Technical Analysis Sentiment
Positive
Last Price94.21
Price Trends
50DMA
87.71
Positive
100DMA
87.92
Positive
200DMA
93.15
Positive
Market Momentum
MACD
2.31
Negative
RSI
71.65
Negative
STOCH
86.80
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BCO, the sentiment is Positive. The current price of 94.21 is above the 20-day moving average (MA) of 88.96, above the 50-day MA of 87.71, and above the 200-day MA of 93.15, indicating a bullish trend. The MACD of 2.31 indicates Negative momentum. The RSI at 71.65 is Negative, neither overbought nor oversold. The STOCH value of 86.80 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
$1.06B24.2527.48%1.88%-1.05%-2.78%
SNSNT
79
Outperform
$112.90M65.29-3.47%
ADADT
72
Outperform
$7.03B14.3716.26%2.62%-5.44%-16.05%
BCBCO
70
Neutral
$3.97B25.3854.50%1.08%1.97%41.88%
67
Neutral
$2.52B12.599.94%4.40%-2.21%31.02%
66
Neutral
$44.93M30.509.92%
GEGEO
62
Neutral
$3.65B141.792.12%0.50%-71.85%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
BCO
Brink's Company
94.66
-8.51
-8.25%
GEO
Geo Group
26.33
10.76
69.11%
SNT
Senstar Technologies
4.68
2.99
176.92%
NSSC
Napco Security Technologies
31.65
-21.02
-39.91%
SPCB
SuperCom
10.67
6.94
186.06%
ADT
Adt
8.50
1.39
19.55%

Brink's Company Corporate Events

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: Jun 25, 2025