SSC Security Services (SECU) AI Stock Analysis

• Market Cap: C$44.11M
• Dividend Yield: 4.74%
• Average Volume (3M): 16.96K
• Price to Earnings (P/E): 119.7
• Beta (1Y): 0.45
• Revenue Growth: -0.76%
• EPS Growth: -143.20%
• Country: CA
• Employees: 3,000
• Sector: Industrials
• Sector Strength: 90
• Industry: Security & Protection Services
• EPS (TTM): <0.01
• Shares Outstanding: 18,301,685
• 10 Day Avg. Volume: 10,461
• 30 Day Avg. Volume: 16,959
• PEG Ratio: 1.24
• Price to Book (P/B): 0.71
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 18.47
• 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: C$2.51
• Price Target Upside: 4.01% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 70 Outperform
• Price Target: C$2.50 ▲(3.73%Upside)

SSC Security Services' overall stock score reflects strong financial health due to revenue growth and a solid balance sheet. The positive impact of recent corporate events, such as securing a major contract and consistent dividend payments, boosts investor confidence. However, challenges in profitability and valuation due to negative earnings offset these strengths.

SSC Security Services Business Overview & Revenue Model

Company Description

SSC Security Services (SECU) is a prominent player in the security services industry, specializing in providing comprehensive security solutions to a diverse client base. The company operates across various sectors, including commercial, industrial, and governmental, offering a wide range of services such as manned guarding, electronic surveillance, risk assessments, and security consulting. SSC Security Services is dedicated to ensuring the safety and security of its clients through innovative and reliable services.

How the Company Makes Money

SSC Security Services generates revenue primarily through the provision of security services to its clients. The company's key revenue streams include contracts for manned guarding, where it provides trained security personnel to safeguard client premises, and electronic surveillance services, which involve the installation and monitoring of security systems such as CCTV and alarm systems. Additionally, the company earns from consulting services, offering expert advice on risk management and security strategy. Partnerships with technology providers enhance their service offerings, contributing to their ability to meet client needs effectively and maintain a competitive edge in the market.

SSC Security Services Financial Statement Overview

Summary

SSC Security Services demonstrates strong revenue growth and a solid balance sheet with low leverage, which are significant strengths. However, profitability is a concern with negative EBIT margins, and cash flow management needs attention to ensure alignment with profitability metrics.

Income Statement

SSC Security Services has demonstrated a robust revenue growth trajectory, with significant increases over the past years. The gross profit margin is healthy, indicating efficient cost management. However, the net profit margin is low, and EBIT margins are negative, signaling challenges in operational profitability. Improvement in controlling operating expenses could enhance profitability.

Balance Sheet

The balance sheet of SSC Security Services is strong, characterized by a solid equity base and a low debt-to-equity ratio, reflecting financial stability and a conservative leverage approach. The equity ratio is high, indicating a substantial portion of assets are financed by shareholders' equity, which reduces financial risk.

Cash Flow

The company's operating cash flow is positive and improving, which is a positive sign for liquidity. However, the free cash flow growth rate shows some volatility, and the free cash flow to net income ratio suggests that cash generation needs to be more aligned with profitability. Continued focus on enhancing cash flow stability is recommended.

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

SSC Security Services Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.41
• 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 2.41 is above the 20-day moving average (MA) of 2.40, above the 50-day MA of 2.39, and below the 200-day MA of 2.45, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 59.96 is Neutral, neither overbought nor oversold. The STOCH value of 62.73 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
ZDC	71 Outperform	C$423.92M	132.24	7.90%	―	55.96%	53.54%
SECU	70 Outperform	C$44.11M	119.71	-0.37%	4.74%	-0.76%	-143.20%
GSI	69 Neutral	C$126.99M	144.83	-12.44%	―	-4.94%	-145.86%
Sector *	62 Neutral	C$6.70B	7.73	3.45%	2.77%	6.50%	-23.02%
TTNM	60 Neutral	C$65.87M	―	-25.37%	5.52%	4.74%	-478.84%
XX	50 Neutral	C$22.92M	―	-26.97%	―	37.38%	-41.34%
SCAN	41 Neutral	$12.21M	―	216.65%	―	113.56%	31.13%

SSC Security Services Corporate Events

SSC Security Services Corp. Declares 35th Dividend Payment

SSC Security Services Corp. has announced its thirty-fifth dividend payment, declaring a cash dividend of $0.03 per common share for the quarter ending June 30, 2025. This announcement reflects the company’s commitment to providing returns to its shareholders and may enhance its attractiveness to investors, particularly those residing in Canada who can benefit from the enhanced dividend tax credit.

SSC Security Services Corp. Achieves Strong Margins and Consistent EBITDA in Q2 2025

SSC Security Services Corp. reported its second-quarter results, highlighting improved profit margins and consistent adjusted EBITDA despite a slight decline in revenue due to fewer temporary contracts compared to the previous year. The company emphasized its focus on operational management, gross margin growth, and share buybacks, maintaining a strong financial position with no long-term debt and significant cash reserves, which positions it well for future opportunities.