BCO - The Brink's Company: Valuation Not Cheap Enough Yet

2024-04-16 21:38:30 ET

Summary

• The Brink's Co. is a market leader in cash and value management services, with significant competitive advantages and scale economies.
• Despite the trend towards cashless payments, BCO has plenty of market share left to capture, especially in developing countries where cash transactions are still prevalent.
• The company's digital retail solutions and ATM managed services continue to show strong growth potential, diversifying BCO's revenue mix and driving margin expansion. However, the current share price is not attractive for entry.

Summary

I am recommending a hold rating for The Brink's Company ( BCO ), as the current share price is not attractive. BCO provides cash and value management (core business), ATM managed services [AMS], and digital retail solutions [DRS]. The core business includes the secure transportation of currency, precious metals, and securities for financial institutions and governments, and ATM services include cash replenishment, transaction processing, and the and the installation and maintenance of bank-owned ATM networks....

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