Brinks Home Security Holdings, Inc.

Company Description

Brinks Home Security Holdings, Inc, through its subsidiary Brinks Home Security, Inc. sells and services security alarm systems for residential and commercial properties in North America. The company was founded in 1983 and has a market cap of $1.01 billion.

Fourth-Quarter Results

Brinks is fresh off the heels of solid fourth-quarter results, reported on Feb 18, in which both revenue and income were ahead of last year's results.

Revenue was up 7% from last year to $135.2 million. Net income came in at $14.8 million, up from $12.2 million. This produced earnings of 32 cents per share, up from 27 cents last year.

The company said that its gains were driven by a larger subscriber base a reduction in the royalty rate charged by its former parent for November and December.

Full-Year Results

Brinks also released its full-year results, with income jumping to $57.1 million from $44.2 million last year. Revenue increased to $532.3 million from $484.4 million.

Estimates and Valuations

With the current-year estimate pegged at $1.58 per share, this stock is trading with a forward P/E multiple of 14X, a slight premium to the overall market.

The Chart

Shares of CFL have been on a nice rally for most of the last 2 months after bottoming out just above $13 in late November. Since then, this stock has topped off above $25, where some short-term resistance has developed. Take a look at the chart below.