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1. Company Snapshot

1.a. Company Description

The 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.

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1.b. Last Insights on BCO

The Brink's Company's recent performance was driven by robust financial results, with Q3 2025 revenue reaching $1.34 billion, fueled by organic growth and strategic acquisitions. The company's Digital Retail Solutions and ATM Managed Services segments saw 19% organic growth, now accounting for 27% of trailing-twelve-month revenue. Despite a slight earnings miss, operating profit margin and EBITDA margin hit record highs. Strategic expansion, particularly in emerging markets, is fueling high-margin growth and future opportunities.

1.c. Company Highlights

2. Brink's Delivers Strong Q3 2025 Results with 5% Organic Revenue Growth

Brink's reported its third-quarter 2025 results, with 5% organic revenue growth driven by a 19% growth in ATM Managed Services and Digital Retail Solutions (AMS/DRS). The company's EBITDA margin was 19%, up 180 basis points from the prior year, with record Q3 EBITDA and operating profit margins. The earnings per share (EPS) came in at $2.08, slightly below estimates of $2.09. Free cash flow was $175 million, a 30% year-over-year increase, demonstrating the company's ability to generate cash.

Publication Date: Nov -09

📋 Highlights
  • AMS/DRS Growth Drives Revenue: 19% growth in ATM Managed Services and Digital Retail Solutions (AMS/DRS) fueled 5% organic revenue growth.
  • EBITDA Margin Expansion: Margins rose 180 bps to 19%, with Q3 record operating profit and full-year guidance for 30-50 bps expansion.
  • Strong Free Cash Flow: $175 million generated, up 30% YoY, with 40-45% cash flow conversion targeted for 2025.
  • Share Repurchase Momentum: 1.7M shares repurchased YTD at $89/share, with plans to return 50% of 2025 free cash flow to shareholders.
  • Regional Growth Balance: Latin America (Brazil, Mexico) and unvended retail markets show high potential, with Total Addressable Market (TAM) for AMS/DRS expected to grow 2-3x.

Regional Performance and Growth Opportunities

The company's growth is becoming more even across regions, with good progress in North America and the other three regions. In Latin America, Brazil and Mexico are performing well, and the region has a low penetration rate, offering significant opportunities. The Total Addressable Market (TAM) for AMS/DRS is expected to continue growing 2-3x, providing a long-term growth driver.

Operational Efficiency and Margin Expansion

North America margins were up 300-plus bps, driven by AMS/DRS mix improvement, disciplined pricing, and operational execution. The company expects incremental margins of 20-30% in North America, with a goal of reaching 20% EBITDA margins in the midterm. The company is driving growth in AMS/DRS through internal changes, including changing incentive comp plans for over 1,000 people to tie bonuses to AMS/DRS revenue growth.

Cash Flow and Capital Allocation

The company's cash conversion goal is 40-45% in the midterm, driven by improvements in Days Sales Outstanding (DSO) and Days Payable Outstanding (DPO). The company has made progress on DSO, improving by 5 days, due to a mix shift towards AMS/DRS and other actions. Brink's has repurchased approximately 1.7 million shares year-to-date at an average price of $89 per share and plans to remain active in its share repurchase program through the end of the year.

Valuation and Outlook

With a P/E Ratio of 27.77 and an EV/EBITDA of 10.19, the market is pricing in a certain level of growth. The company's ROIC is 6.07%, indicating a relatively efficient use of capital. The Net Debt / EBITDA ratio is 3.84, which is a bit high, but the company is working to improve its capital structure. Analysts estimate next year's revenue growth at 5.0%, in line with the company's mid-single-digit growth guidance. The long-term outlook is positive, driven by AMS opportunities, and the company is well-positioned to capitalize on these opportunities.

3. NewsRoom

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Edgestream Partners L.P. Buys 22,810 Shares of Brink’s Company (The) $BCO

Dec -03

Source: defenseworld.net

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Boston Partners Purchases 244,242 Shares of Brink’s Company (The) $BCO

Nov -28

Source: defenseworld.net

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Rep. Lisa C. McClain Sells Off Shares of Brink’s Company (The) (NYSE:BCO)

Nov -27

Source: defenseworld.net

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Security Matters (SMX) Shares Jump Over 48% After Hours: What's Going On?

Nov -27

Source: feeds.benzinga.com

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Fidelity Stock Selector Mid Cap Fund Q3 2025 Performance Review

Nov -26

Source: seekingalpha.com

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Prospects For The Brinks Company: Unlikely To Surge Anytime Soon

Nov -25

Source: seekingalpha.com

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AXQ Capital LP Buys Shares of 3,541 Brink’s Company (The) $BCO

Nov -25

Source: defenseworld.net

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The Brink's Company: The Cash Machine That Keeps On Rolling

Nov -06

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.63%)

6. Segments

North America

Expected Growth: 4.5%

The Brink's Company's 4.5% growth in North America is driven by increasing demand for cash management services, expansion of retail and commercial businesses, and strategic acquisitions. Additionally, the rise of e-commerce and digital payments has led to higher volumes of cash in circulation, further fueling growth.

Latin America

Expected Growth: 4.8%

The Brink's Company's 4.8% growth in Latin America is driven by increasing demand for secure logistics and cash management solutions, fueled by economic growth, urbanization, and a rising middle class. Additionally, the region's growing e-commerce market and need for efficient payment systems also contribute to this growth.

Europe

Expected Growth: 4.2%

Europe's 4.2% growth for The Brink's Company is driven by increasing demand for secure logistics and cash management solutions, fueled by economic recovery and rising consumer spending. Additionally, strategic acquisitions and expansion into new markets, such as retail and diamond and jewelry industries, contribute to the region's growth.

Rest of World

Expected Growth: 5.2%

The Rest of World segment of The Brink's Company, with a growth rate of 5.2%, is driven by increasing demand for secure logistics and cash management services in emerging markets, particularly in Latin America and Asia. This growth is also fueled by the expansion of e-commerce, rising middle-class consumption, and government initiatives to digitize payments.

7. Detailed Products

Cash Management

The Brink's Company provides cash management services, including cash processing, cash-in-transit, and cash storage, to help businesses manage their cash flow efficiently.

Secure Logistics

Brink's secure logistics services provide secure transportation and storage of valuable assets, including cash, jewelry, and other high-value items.

Vault Services

Brink's vault services provide secure storage and management of valuable assets, including cash, precious metals, and other high-value items.

CompuSafe

CompuSafe is a cash management system that helps businesses track and manage their cash deposits, reducing the risk of theft and increasing efficiency.

Brink's Direct

Brink's Direct is a cash management service that provides businesses with a secure and efficient way to manage their cash deposits, including cash pickup, processing, and deposit.

Global Services

Brink's global services provide secure logistics and cash management solutions to businesses operating globally, helping them to manage their cash and valuable assets across borders.

8. The Brink's Company's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for The Brink's Company is low due to the specialized nature of its services, making it difficult for substitutes to emerge.

Bargaining Power Of Customers

The bargaining power of customers for The Brink's Company is medium, as customers have some negotiating power due to the availability of alternative security services.

Bargaining Power Of Suppliers

The bargaining power of suppliers for The Brink's Company is low, as the company has a diverse supplier base and is not heavily dependent on any single supplier.

Threat Of New Entrants

The threat of new entrants for The Brink's Company is high, as the security services industry is attractive and has relatively low barriers to entry.

Intensity Of Rivalry

The intensity of rivalry for The Brink's Company is high, as the security services industry is highly competitive and fragmented, with many players competing for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 89.63%
Debt Cost 10.91%
Equity Weight 10.37%
Equity Cost 10.91%
WACC 10.91%
Leverage 864.24%

11. Quality Control: The Brink's Company passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
ADT

A-Score: 6.9/10

Value: 7.4

Growth: 6.6

Quality: 6.4

Yield: 5.0

Momentum: 8.0

Volatility: 8.0

1-Year Total Return ->

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Mueller Industries

A-Score: 6.3/10

Value: 4.5

Growth: 7.1

Quality: 7.9

Yield: 2.0

Momentum: 8.5

Volatility: 8.0

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Stock-Card
Brady

A-Score: 5.9/10

Value: 3.8

Growth: 6.2

Quality: 7.6

Yield: 3.0

Momentum: 6.0

Volatility: 9.0

1-Year Total Return ->

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Stock-Card
MSA Safety

A-Score: 5.3/10

Value: 2.6

Growth: 6.7

Quality: 6.6

Yield: 2.0

Momentum: 5.0

Volatility: 9.0

1-Year Total Return ->

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Stock-Card
Brinks

A-Score: 5.1/10

Value: 4.4

Growth: 6.7

Quality: 4.0

Yield: 2.0

Momentum: 6.0

Volatility: 7.7

1-Year Total Return ->

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Stock-Card
Resideo Technologies

A-Score: 5.1/10

Value: 7.3

Growth: 5.6

Quality: 3.7

Yield: 0.0

Momentum: 9.5

Volatility: 4.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

116.69$

Current Price

116.69$

Potential

-0.00%

Expected Cash-Flows