Brinks Company Stock Beneish M Score
| BCO Stock | USD 88.13 1.09 1.25% |
Brinks | Beneish M Score |
At this time, it appears that Brinks Company is an unlikely manipulator. The earnings manipulation may begin if Brinks' top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by Brinks executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of Brinks' earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-2.81
Beneish M Score - Unlikely Manipulator
Brinks Beneish M-Score Indicator Trends
The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if Brinks' auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Net Receivables | 575 M | 796.3 M |
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| Total Revenue | 3.6 B | 4.9 B |
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| Total Assets | 6.9 B | 6.6 B |
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| Total Current Assets | 2.9 B | 2.8 B |
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| Non Current Assets Total | 4 B | 3.8 B |
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| Property Plant Equipment | 631.3 M | 841.8 M |
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| Depreciation And Amortization | 162.8 M | 275.8 M |
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| Selling General Administrative | 508.8 M | 688.6 M |
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| Total Current Liabilities | 2 B | 1.9 B |
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| Non Current Liabilities Total | 4.3 B | 4.1 B |
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| Net Debt | 2.3 B | 2.2 B |
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| Short Term Debt | 365.7 M | 348.3 M |
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| Long Term Debt | 3.4 B | 3.3 B |
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| Total Cash From Operating Activities | 737.5 M | 702.4 M |
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| Long Term Investments | 25.8 M | 42.1 M |
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| Gross Profit Margin | 0.25 | 0.2395 |
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Brinks Company Beneish M-Score Driver Matrix
One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between Brinks' different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Brinks in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Brinks' degree of accounting gimmicks and manipulations.
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About Brinks Beneish M Score
M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.
Other Operating Expenses |
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Brinks Earnings Manipulation Drivers
Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as Brinks. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Net Receivables | 635.6M | 679.1M | 701.8M | 862.2M | 796.3M | 575.0M | |
| Total Revenue | 3.7B | 3.7B | 4.2B | 4.5B | 4.9B | 3.6B | |
| Total Assets | 3.8B | 5.1B | 5.6B | 6.4B | 6.6B | 6.9B | |
| Total Current Assets | 1.1B | 1.6B | 1.8B | 2.3B | 2.8B | 2.9B | |
| Net Debt | 1.6B | 2.1B | 2.5B | 2.7B | 2.2B | 2.3B | |
| Short Term Debt | 154.7M | 228.7M | 202.3M | 47.2M | 348.3M | 365.7M | |
| Long Term Debt | 1.6B | 2.3B | 3.0B | 3.3B | 3.3B | 3.4B | |
| Operating Income | 236.8M | 213.5M | 354.7M | 350.8M | 494M | 518.7M | |
| Investments | (10.5M) | (900K) | (454.7M) | 19.8M | (367M) | (348.7M) |
About Brinks Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Brinks Company's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Brinks using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Brinks Company based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Brinks Investors Sentiment
The influence of Brinks' investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Brinks. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock market does not have solid backing from leading economists and market statisticians.
Investor biases related to Brinks' public news can be used to forecast risks associated with an investment in Brinks. The trend in average sentiment can be used to explain how an investor holding Brinks can time the market purely based on public headlines and social activities around Brinks Company. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Brinks' market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Brinks' and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average Brinks' news discussions. The higher the estimated score, the more favorable is the investor's outlook on Brinks.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Brinks in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Brinks' short interest history, or implied volatility extrapolated from Brinks options trading.
Pair Trading with Brinks
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Brinks position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Brinks will appreciate offsetting losses from the drop in the long position's value.Moving together with Brinks Stock
| 0.93 | BV | BrightView Holdings Financial Report 2nd of May 2024 | PairCorr |
| 0.86 | ABM | ABM Industries rporated Financial Report 4th of June 2024 | PairCorr |
| 0.67 | CBZ | CBIZ Inc Earnings Call This Week | PairCorr |
| 0.63 | RTO | Rentokil Initial PLC | PairCorr |
Moving against Brinks Stock
| 0.86 | AZ | A2Z Smart Technologies | PairCorr |
| 0.69 | BA | Boeing Earnings Call Tomorrow | PairCorr |
| 0.66 | FA | First Advantage Corp Financial Report 8th of May 2024 | PairCorr |
| 0.65 | AP | Ampco Pittsburgh | PairCorr |
The ability to find closely correlated positions to Brinks could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Brinks when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Brinks - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Brinks Company to buy it.
The correlation of Brinks is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Brinks moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Brinks Company moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Brinks can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Check out Brinks Piotroski F Score and Brinks Altman Z Score analysis. Note that the Brinks Company information on this page should be used as a complementary analysis to other Brinks' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Complementary Tools for Brinks Stock analysis
When running Brinks' price analysis, check to measure Brinks' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Brinks is operating at the current time. Most of Brinks' value examination focuses on studying past and present price action to predict the probability of Brinks' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Brinks' price. Additionally, you may evaluate how the addition of Brinks to your portfolios can decrease your overall portfolio volatility.
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Is Brinks' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Brinks. If investors know Brinks will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Brinks listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.95) | Dividend Share 0.86 | Earnings Share 1.83 | Revenue Per Share 105.511 | Quarterly Revenue Growth 0.046 |
The market value of Brinks Company is measured differently than its book value, which is the value of Brinks that is recorded on the company's balance sheet. Investors also form their own opinion of Brinks' value that differs from its market value or its book value, called intrinsic value, which is Brinks' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Brinks' market value can be influenced by many factors that don't directly affect Brinks' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Brinks' value and its price as these two are different measures arrived at by different means. Investors typically determine if Brinks is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Brinks' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.