The Brink's Co (FRA:PTY) Beneish M-Score : -3.01 (As of May. 21, 2024)

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What is The Brink's Co Beneish M-Score?

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -3.01 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for The Brink's Co's Beneish M-Score or its related term are showing as below:

FRA:PTY' s Beneish M-Score Range Over the Past 10 Years
Min: -3.01 Med: -2.75 Max: -2.47
Current: -3.01

During the past 13 years, the highest Beneish M-Score of The Brink's Co was -2.47. The lowest was -3.01. And the median was -2.75.

The Brink's Co Beneish M-Score Historical Data

The historical data trend for The Brink's Co's Beneish M-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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The Brink's Co Beneish M-Score Chart

The Brink's Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.81

-2.60

-2.83

-2.51

-2.97

The Brink's Co Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Beneish M-Score	Get a 7-Day Free Trial															-2.66	-2.74	-2.75	-2.97	-3.01

Competitive Comparison of The Brink's Co's Beneish M-Score

For the Security & Protection Services subindustry, The Brink's Co's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

The Brink's Co's Beneish M-Score Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, The Brink's Co's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where The Brink's Co's Beneish M-Score falls into.

The Brink's Co Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of The Brink's Co for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 0.9415

0.528 * 0.9657

0.404 * 0.9018

0.892 * 1.0224

0.115 * 0.9686

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9596

4.679 * -0.094873

0.327 * 1.0314

-3.02

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was €788 Mil.
Revenue was 1137.212 + 1142.215 + 1150.074 + 1122.553 = €4,552 Mil.
Gross Profit was 284.188 + 296.741 + 287.097 + 251.425 = €1,119 Mil.
Total Current Assets was €2,673 Mil.
Total Assets was €6,145 Mil.
Property, Plant and Equipment(Net PPE) was €1,231 Mil.
Depreciation, Depletion and Amortization(DDA) was €259 Mil.
Selling, General, & Admin. Expense(SGA) was €660 Mil.
Total Current Liabilities was €1,832 Mil.
Long-Term Debt & Capital Lease Obligation was €3,286 Mil.
Net Income was 45.356 + -4.585 + 42.727 + 29.628 = €113 Mil.
Non Operating Income was 8.832 + -51.627 + -7.683 + -2.308 = €-53 Mil.
Cash Flow from Operations was 58.788 + 375.42 + 175.875 + 138.819 = €749 Mil.

Total Receivables was €819 Mil.
Revenue was 1107.164 + 1124.21 + 1148.067 + 1072.669 = €4,452 Mil.
Gross Profit was 247.603 + 299.154 + 258.56 + 252.014 = €1,057 Mil.
Total Current Assets was €2,287 Mil.
Total Assets was €5,840 Mil.
Property, Plant and Equipment(Net PPE) was €1,192 Mil.
Depreciation, Depletion and Amortization(DDA) was €242 Mil.
Selling, General, & Admin. Expense(SGA) was €673 Mil.
Total Current Liabilities was €1,497 Mil.
Long-Term Debt & Capital Lease Obligation was €3,220 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI	=	(Receivables_t / Revenue_t)	/	(Receivables_t-1 / Revenue_t-1)
	=	(788.44 / 4552.054)	/	(819.025 / 4452.11)
	=	0.173205	/	0.183963
	=	0.9415

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI	=	GrossMargin_t-1	/	GrossMargin_t
	=	(GrossProfit_t-1 / Revenue_t-1)	/	(GrossProfit_t / Revenue_t)
	=	(1057.331 / 4452.11)	/	(1119.451 / 4552.054)
	=	0.23749	/	0.245922
	=	0.9657

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI	=	(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)	/	(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
	=	(1 - (2672.692 + 1230.776) / 6144.956)	/	(1 - (2286.525 + 1191.597) / 5840.395)
	=	0.364769	/	0.404471
	=	0.9018

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI	=	Sales_t	/	Sales_t-1
	=	Revenue_t	/	Revenue_t-1
	=	4552.054	/	4452.11
	=	1.0224

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI	=	(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1))	/	(Depreciation_t / (Depreciaton_t + PPE_t))
	=	(241.578 / (241.578 + 1191.597))	/	(259.327 / (259.327 + 1230.776))
	=	0.168561	/	0.174033
	=	0.9686

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI	=	(SGA_t / Sales_t)	/	(SGA_t-1 /Sales_t-1)
	=	(659.855 / 4552.054)	/	(672.541 / 4452.11)
	=	0.144958	/	0.151061
	=	0.9596

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI	=	((LTD_t + CurrentLiabilities_t) / TotalAssets_t)	/	((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
	=	((3286.332 + 1832.18) / 6144.956)	/	((3219.965 + 1496.828) / 5840.395)
	=	0.832962	/	0.807615
	=	1.0314

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA	=	(IncomefromContinuingOperations_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(NetIncome_t - NonOperatingIncome_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(113.126 - -52.786	-	748.902)	/	6144.956
	=	-0.094873

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

The Brink's Co has a M-score of -3.02 suggests that the company is unlikely to be a manipulator.

The Brink's Co Beneish M-Score Related Terms

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The Brink's Co (FRA:PTY) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » The Brink's Co (FRA:PTY) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

BCO:USA

Address

1801 Bayberry Court, P.O. Box 18100, Richmond, VA, USA, 23226-8100

Website

https://www.brinks.com

The Brink's Co is a Global provider of secure logistics and security solutions for cash and other valuables. In 2020, the company acquired the U.K.-based G4S that reorganized its operating segments to be North America, Latin America, Europe, and Rest of World. It generates maximum revenue from the North America segment, namely from its core business of cash-in-transit and ATM services. The Latin America and Europe segments trail North America in revenue earnings with the Brinks Global Services line of business that specializes in the secure transportation of high-valued commodities, such as jewelry, precious metals, banknotes, and electronics. Brink's customer base includes financial institutions, retails, government agencies, mints, and other commercial businesses.