Brink’s, the global leader in cash management services, has announced a substantial share buyback program, authorizing the repurchase of up to $750 million in shares. This initiative, confirmed on December 11, 2023, allows Brink’s to buy back approximately 15.4% of its outstanding stock through open market transactions.
The decision to initiate a buyback program often signifies that a company’s management believes its shares are undervalued. This move reflects Brink’s confidence in its business prospects and aims to enhance shareholder value.
Recent Analyst Ratings
The company has recently attracted attention from analysts. On October 24, Weiss Ratings upgraded Brink’s from a “hold (C+)” rating to a “buy (B-)” rating, indicating a more favorable outlook for the stock. Conversely, Zacks Research downgraded Brink’s from a “strong-buy” rating to a “hold” rating on October 6. Currently, Brink’s has one analyst rating the stock as a buy and another issuing a hold rating. According to MarketBeat, the consensus rating for Brink’s is categorized as a “Moderate Buy,” reflecting a mixed but generally positive sentiment among analysts.
Financial Performance and Future Guidance
Brink’s last released its earnings results on November 5, reporting an earnings per share (EPS) of $2.08 for the quarter. This figure fell slightly short of the consensus estimate of $2.09 by $0.01. The company generated revenue of $1.34 billion, surpassing analyst expectations of $1.33 billion. Brink’s demonstrated strong financial health with a return on equity of 93.16% and a net margin of 3.31%. Year-over-year, revenue increased by 6.0% compared to the same period last year when the company reported an EPS of $1.51.
Looking ahead, Brink’s has set its guidance for the fourth quarter of 2025 at an EPS range of $2.280 to $2.680. Analysts collectively predict that Brink’s will achieve an EPS of 6.49 for the current fiscal year.
Dividend Announcement
In addition to the share buyback plan, Brink’s has declared a quarterly dividend, which was paid on December 1, 2023. Shareholders on record as of November 3 received a dividend of $0.255 per share, reflecting an annualized dividend of $1.02. The dividend yield stands at 0.9%, and Brink’s dividend payout ratio (DPR) is currently 26.09%, indicating a sustainable approach to returning value to its shareholders.
About Brink’s: The Brink’s Company specializes in cash management services, digital retail solutions, and ATM managed services, operating across several geographical segments, including North America, Latin America, Europe, and the Rest of the World. The North America segment encompasses operations in the United States and Canada, while the Latin America segment includes services in various Latin American countries.
This share buyback program and positive analyst ratings highlight Brink’s commitment to enhancing shareholder value and reflect its strong operational performance in the competitive cash management industry.
