What Makes Brink's Company (BCO) Worth Holding?

SouthernSun Asset Management, LLC, an investment management firm, released its “SouthernSun Small Cap Strategy” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the third quarter, the strategy returned 11.73% on a gross basis (11.52% net) compared to a 12.39% return for the Russell 2000 Index and 12.60% for the Russell 2000 Value Index. The strategy returned -0.66% on a gross basis (-0.10% net) for the trailing twelve months compared to 10.76% and 7.88% respectively for the indexes over the same period. In addition, please check the top 5 holdings of the strategy to know its best pick in 2025.

In its third-quarter 2025 investor letter, SouthernSun Small Cap Strategy highlighted stocks such as The Brink’s Company (NYSE:BCO). The Brink’s Company (NYSE:BCO) offers cash and valuables management, digital retail solutions, and automated teller machine (ATM) managed services. The one-month return of The Brink’s Company (NYSE:BCO) was -6.33%, and its shares gained 3.12% of their value over the last 52 weeks. On November 4, 2025, The Brink’s Company (NYSE:BCO) stock closed at $105.88 per share, with a market capitalization of $4.411 billion.

SouthernSun Small Cap Strategy stated the following regarding The Brink’s Company (NYSE:BCO) in its third quarter 2025 investor letter:

"The Brink’s Company (NYSE:BCO) was the top contributor in the Small Cap strategy during the third quarter. BCO, a leading global provider of cash and valuables management, digital retail solutions (DRS), and ATM managed services (AMS), was a top contributor for the quarter. In the second quarter, the company delivered 16% organic growth in AMS and DRS while continuing to stimulate customer demand for outsourcing with financial institutions and convert whitespace opportunities in retail. These higher-margin, recurring revenue businesses now represent over 25% of total company revenue and are expected to continue delivering double digit organic growth for the foreseeable future. Free cash flow continues to improve with over $100 million generated in the quarter on EBITDA growth, continued capital efficiency and strong working capital performance. In addition, management has been disciplined and opportunistic with capital deployment – buying back $130mm in stock year to date with $85mm of that coming in 2q. We believe the current price affords share owners a nice opportunity to compound double digit returns over our investment time horizon with a strong balance sheet providing a backdrop for cash flow growth and a predictable and effective capital allocation strategy."

The Brink’s Company (NYSE:BCO) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 32 hedge fund portfolios held The Brink’s Company (NYSE:BCO) at the end of the second quarter, up from 30 in the previous quarter.  While we acknowledge the potential of The Brink’s Company (NYSE:BCO) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered The Brink’s Company (NYSE:BCO) and shared the list of most undervalued industrial stocks to buy according to analysts. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.