SSC Security Services (SECU) AI Stock Analysis

• Market Cap: C$46.58M
• Dividend Yield: 4.53%
• Average Volume (3M): 6.50K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.34
• Revenue Growth: -3.04%
• EPS Growth: -134.82%
• Country: CA
• Employees: 3,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Security & Protection Services
• EPS (TTM): <0.01
• Shares Outstanding: 18,264,986
• 10 Day Avg. Volume: 9,861
• 30 Day Avg. Volume: 6,501
• PEG Ratio: 0.13
• Price to Book (P/B): 0.72
• Price to Sales (P/S): 0.39
• P/FCF Ratio: 52.91
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: C$2.50 ▼(-1.96% Downside)

The overall stock score is primarily influenced by strong revenue growth and a solid balance sheet, but is offset by profitability challenges and cash flow issues. Technical indicators show mild positive momentum, but valuation concerns due to a negative P/E ratio weigh heavily on the score.

SSC Security Services Business Overview & Revenue Model

Company Description

SSC Security Services (SECU) is a leading provider of comprehensive security solutions, specializing in both physical and electronic security services. Operating primarily in the corporate, residential, and government sectors, SECU offers a range of products and services including security personnel, surveillance systems, access control solutions, and cybersecurity consulting. With a commitment to ensuring safety and peace of mind for its clients, the company employs cutting-edge technology and highly trained professionals to deliver tailored security strategies.

How the Company Makes Money

SECU generates revenue through multiple streams including direct service contracts for on-site security personnel, installation and maintenance of security systems, and ongoing monitoring services. The company enters into long-term agreements with clients for regular security assessments and upgrades, ensuring a steady income. Additionally, SECU provides consulting services that involve risk assessment and security planning for businesses and governmental organizations. Strategic partnerships with technology providers enhance their service offerings, allowing for bundled packages that attract more clients. Seasonally, demand may increase in response to heightened security needs during events or crises, providing further opportunities for revenue growth.

SSC Security Services Financial Statement Overview

Summary

SSC Security Services shows strong revenue growth but struggles with profitability, as indicated by negative net income and EBIT margins. The balance sheet is strong with low leverage, but cash flow challenges persist, particularly in free cash flow generation.

Income Statement

SSC Security Services has shown a strong revenue growth rate of 38.8% in the TTM, indicating robust top-line expansion. However, the company is struggling with profitability, as evidenced by a negative net profit margin and EBIT margin. The gross profit margin is moderate at 15.68%, but the negative net income suggests challenges in managing costs or achieving operational efficiency.

Balance Sheet

The balance sheet is relatively strong with a low debt-to-equity ratio of 0.049, indicating conservative leverage. However, the return on equity is negative, reflecting the company's current unprofitability. The equity ratio is healthy, suggesting a solid capital structure.

Cash Flow

Cash flow performance is mixed, with a significant decline in free cash flow growth by 50.35% in the TTM. The operating cash flow to net income ratio is positive, indicating some ability to generate cash from operations, but the free cash flow to net income ratio suggests challenges in converting profits into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	116.66M	120.62M	109.06M	49.70M	20.28M	25.59M
Gross Profit	19.20M	17.57M	16.25M	8.47M	3.16M	4.17M
EBITDA	3.96M	5.14M	3.78M	502.06K	3.50M	-204.97K
Net Income	-203.41K	595.67K	87.14K	-981.38K	1.89M	-730.75K
Balance Sheet
Total Assets	78.55M	81.22M	84.78M	87.67M	84.89M	81.90M
Cash, Cash Equivalents and Short-Term Investments	9.63M	13.51M	14.84M	11.73M	30.28M	27.31M
Total Debt	3.13M	1.47M	1.75M	1.34M	2.92M	7.87M
Total Liabilities	16.75M	16.71M	17.09M	17.02M	9.02M	10.87M
Stockholders Equity	61.80M	64.52M	67.69M	70.64M	75.87M	71.03M
Cash Flow
Free Cash Flow	1.19M	879.20K	1.35M	-5.19M	-501.77K	15.61M
Operating Cash Flow	2.61M	1.96M	2.49M	-4.20M	998.00K	16.32M
Investing Cash Flow	-913.91K	1.46M	5.20M	-6.27M	9.44M	26.16M
Financing Cash Flow	-4.43M	-4.92M	-4.04M	-7.13M	-8.88M	-26.73M

SSC Security Services Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.55
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:SECU, the sentiment is Positive. The current price of 2.55 is below the 20-day moving average (MA) of 2.59, below the 50-day MA of 2.56, and above the 200-day MA of 2.44, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 52.95 is Neutral, neither overbought nor oversold. The STOCH value of 29.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:SECU.

SSC Security Services Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ZDC	63 Neutral	C$706.26M	375.84	4.11%	―	72.90%	493.33%
GSI	61 Neutral	C$256.85M	-104.66	-12.11%	―	-3.41%	-151.98%
SECU	55 Neutral	C$46.58M	―	-0.32%	4.53%	-3.04%	-134.82%
XX	48 Neutral	C$26.65M	-14.12	-14.50%	―	26.01%	41.58%
TTNM	47 Neutral	C$59.19M	-2.34	-23.32%	5.84%	0.46%	-1160.80%
SCAN	46 Neutral	C$22.32M	―	―	―	―	―

SSC Security Services Corporate Events

SSC Security Services Corp. Reports Strong Q3 Results

SSC Security Services Corp., a Canadian provider of cyber, physical, and electronic security services, caters to commercial, industrial, and public sector clients nationwide. The company has reported strong third-quarter results with notable improvements in margins and adjusted EBITDA, alongside continued share buybacks.

SSC Security Services Corp. Reports Strong Q3 Results with Improved Margins and Share Buybacks

SSC Security Services Corp. reported strong third-quarter results with improved margins, higher adjusted EBITDA, and ongoing share buybacks. The company saw a 1.7% increase in revenue to $30.2 million and a gross profit of $5.3 million, reflecting a focus on operating efficiencies and cost reduction. SSC continues to be debt-free, with significant cash reserves and a disciplined approach to acquisitions, having returned $55.4 million to shareholders through buybacks and dividends over the years.

The most recent analyst rating on (TSE:SECU) stock is a Buy with a C$2.50 price target. To see the full list of analyst forecasts on SSC Security Services stock, see the TSE:SECU Stock Forecast page.

SSC Security Services Corp. Declares Quarterly Dividend

SSC Security Services Corp. has announced its thirty-sixth dividend payment, declaring a cash dividend of $0.03 per common share for the quarter ending September 30, 2025. This decision reflects SSC’s ongoing commitment to providing shareholder value and may enhance investor confidence in the company’s financial stability and growth prospects.

The most recent analyst rating on (TSE:SECU) stock is a Buy with a C$2.50 price target. To see the full list of analyst forecasts on SSC Security Services stock, see the TSE:SECU Stock Forecast page.