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Is This Struggling Security Stock Really a Safe Bet for Investors?

BCO is down 18% from its 2020 record high

Feb 22, 2022 at 10:11 AM
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The Brink's Company (NYSE:BCO) is an American private security and protection company with operations in 53 countries and customers in more than 100 countries. BCO offers total cash management; route-based secure logistics and payment solutions including cash-in-transit; ATM services; cash management services including vault outsourcing, money processing, and intelligent safe services; and international transportation of valuables. At last check, BCO was seen trading down 1.4% at $68.20.

Earlier this month, The Brink’s Company announced that its senior leadership team will host a conference call on Wednesday, Feb. 23, to review fourth quarter and full year of 2021 financial results. In the security company's Q3 results, Brink's reported an earnings per share (EPS) of $1.14. For upcoming Q4 earnings, Wall Street analysts anticipate that the security company will report earnings of $1.45 per share.

Brink’s stock has decreased about 9% year-over-year and  BCO is down 18% since peaking at a record-high of $94.67 in January 2020. However, shares of BCO have grown in price 6% year-to-date and are up 16% since sinking to an October bottom of $58.48. Moreover, Brink's Company offers a forward dividend of $0.80 with a dividend yield of 1.16%. In addition, Brink's stock has a decent valuation with a forward price-earnings ratio of 15.90 and a price-sales ratio of 0.85.

Seemingly, BCO’s biggest fundamental downside is its balance sheet, which holds $700.8 million in cash and $3.11 billion in total debt. Still, Brink’s stock continues to offer a great level of security and stability for risk-averse investors.

Options volume has been extremely light for the security, but it looks like short sellers are on the retreat. Over the past two reporting periods, short interest has dropped 27%. This accounts for 6.7% of the stock's total available float, or over nine days' worth of pent-up buying power.

 

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