Friday, April 30, 2010

Brinks (BCO)

The Brink's Company (NYSE: BCO) -- a provider of secure transportation, cash logistics and other security-related services to banks and financial institutions, retailers, government agencies, mints, jewelers and other commercial operations worldwide. -- earns a 100% 'guru score' on the Fisher model.

The company's international network serves customers in more than 50 countries and employs approximately 59,400 people.

Its operations include approximately 875 facilities and 10,500 vehicles. 71% of its revenues are from outside North America. TIts other security services include security and guarding.

PRICE/SALES RATIO: [PASS]

The prospective company should have a low Price/Sales ratio. Non-cyclical (non-Smokestack) companies with Price/Sales ratios below 0.75 are tremendous values and should be sought.

BCO's P/S of 0.45 based on trailing 12 month sales, is below 0.75 which is considered quite attractive. It passes this methodology's P/S ratio test with flying colors.

TOTAL DEBT/EQUITY RATIO: [PASS]

Less debt equals less risk according to this methodology. BCO's Debt/Equity of 36.57% is acceptable, thus passing the test.

LONG-TERM EPS GROWTH RATE: [PASS]

This methodology looks for companies that have an inflation adjusted EPS growth rate greater than 15%. BCO's inflation adjusted EPS growth rate of 40.82% passes the test.

FREE CASH PER SHARE: [PASS]

This methodology looks for companies that have a positive free cash per share. Companies should have enough free cash available to sustain three years of losses.

This is based on the premise that companies without cash will soon be out of business. BCO's free cash per share of 0.13 passes this criterion.

THREE YEAR AVERAGE NET PROFIT MARGIN: [PASS]

This methodology looks for companies that have an average net profit margin of 5% or greater over a three year period. BCO, whose three year net profit margin averages 5.73%, passes this evaluation.

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