Brinks Beneish M Score

BCO Stock  USD 63.50  0.37  0.58%   
This module uses fundamental data of Brinks to approximate the value of its Beneish M Score. Brinks M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Continue to Brinks Piotroski F Score and Brinks Altman Z Score analysis.
  
Brinks Total Debt is quite stable at the moment as compared to the past year. The company's current value of Total Debt is estimated at 3.98 Billion. Debt Non Current is expected to rise to about 3.8 B this year, although the value of Debt Current will most likely fall to about 134.6 M. Brinks Accounts Payable Turnover is quite stable at the moment as compared to the past year. The company's current value of Accounts Payable Turnover is estimated at 24.46. Accrued Expenses Turnover is expected to rise to 7.83 this year, although the value of Inventory Turnover will most likely fall to 387.95.
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.
-2.96
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables1.03Focus
Asset QualityN/AFocus
Expense Coverage1.03Focus
Gross Margin Strengs0.94Focus
Accruals Factor1.03Focus
Depreciation Resistance0.99Focus
Net Sales Growth0.92Focus
Financial Leverage Condition1.0Focus

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 ValueLast YearChange From Last Year 10 Year Trend
Selling General and Administrative Expense687.7 M724.2 M
Notably Down
Up
Slightly volatile
Revenues3.5 B3.8 B
Significantly Down
Up
Pretty Stable
Trade and Non Trade Receivables769.7 M807.1 M
Sufficiently Down
Up
Slightly volatile
Property Plant and Equipment Net1.2 B1.3 B
Fairly Down
Up
Slightly volatile
Operating Income343.4 M318.2 M
Significantly Up
Up
Slightly volatile
Net Cash Flow from Operations339.8 M430.2 M
Significantly Down
Up
Slightly volatile
Liabilities Non Current4.8 B4.5 B
Significantly Up
Up
Slightly volatile
Current LiabilitiesB1.3 B
Significantly Down
Up
Slightly volatile
Total Liabilities5.3 B4.9 B
Significantly Up
Up
Slightly volatile
Gross Margin19.4320.66
Notably Down
Up
Slightly volatile
Depreciation Amortization and Accretion241.6 M275.4 M
Fairly Down
Up
Slightly volatile
Debt Non Current3.8 B3.5 B
Significantly Up
Up
Slightly volatile
Debt Current134.6 M143.8 M
Notably Down
Up
Slightly volatile
Total DebtB3.7 B
Significantly Up
Up
Slightly volatile
Assets Non Current3.3 B4.1 B
Significantly Down
Up
Slightly volatile
Current Assets1.4 B1.8 B
Significantly Down
Up
Slightly volatile
Total Assets5.4 BB
Significantly Up
Up
Slightly volatile

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.

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.

Operating Expenses

683.71 Million

Brinks Operating Expenses is quite stable at the moment as compared to the past year. The company's current value of Operating Expenses is estimated at 683.71 Million

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.
201820192020202120222023 (projected)
Revenues3.49 B3.68 B3.69 B4.2 B3.78 B3.49 B
Total Assets3.24 B3.76 B5.14 B5.57 B5.01 B5.41 B
Current Assets1.21 B1.23 B1.81 B2 B1.8 B1.44 B
Assets Non Current2.03 B2.53 B3.32 B3.57 B4.1 B3.27 B
Total Liabilities3.08 B3.57 B5.01 B5.44 B4.9 B5.29 B
Current Liabilities849.4 M1 B1.34 B1.43 B1.29 B1.05 B
Total Debt1.55 B1.86 B2.75 B3.21 B3.69 B3.98 B
Debt Current82.4 M88.8 M151.5 M125 M143.75 M134.58 M
Debt Non Current1.47 B1.77 B2.6 B3.08 B3.55 B3.83 B
Operating Income268.8 M230.1 M211.8 M353.6 M318.24 M343.36 M
Gross Margin22.5223.1122.0422.9620.6619.43

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.
The Brinks Company provides secure transportation, cash management, and other security-related services in North America, Latin America, Europe, and internationally. The Brinks Company was founded in 1859 and is headquartered in Richmond, Virginia. Brinks operates under Security Protection Services classification in the United States and is traded on New York Stock Exchange. It employs 72200 people.

Be your own money manager

Our tools can tell you how much better you can do entering a position in Brinks without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

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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

+0.69RBCRBC Bearings Incorporated Symbol ChangePairCorr
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 equities. 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.
Pair CorrelationCorrelation Matching
Continue to 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.

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When running Brinks Company 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 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
0.066
Market Capitalization
2.9 B
Quarterly Revenue Growth
0.057
Return On Assets
0.0381
Return On Equity
106.8806
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 Brinks value 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.