SSC Security Services (SECU) AI Stock Analysis

• Market Cap: C$42.19M
• Dividend Yield: 4.92%
• Average Volume (3M): 9.24K
• Price to Earnings (P/E): 268.6
• Beta (1Y): 0.11
• Revenue Growth: -1.00%
• EPS Growth: -71.94%
• Country: CA
• Employees: 3,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Security & Protection Services
• EPS (TTM): 0.01
• Shares Outstanding: 18,264,286
• 10 Day Avg. Volume: 14,280
• 30 Day Avg. Volume: 9,238
• PEG Ratio: 0.00
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: 45 Neutral
• Price Target: C$2.50 ▲(2.88% Upside)

The overall stock score is primarily influenced by moderate financial performance and bearish technical indicators. The high P/E ratio suggests overvaluation, but the attractive dividend yield provides some offset. The lack of earnings call data and corporate events means these factors do not impact the score.

Positive Factors

Strong Balance Sheet

A low debt-to-equity ratio indicates conservative leverage, providing financial stability and flexibility for future investments or downturns.

Positive Cash Flow Trends

Improved cash generation capabilities enhance the company's ability to fund operations, invest in growth opportunities, and return value to shareholders.

Diverse Revenue Streams

Multiple revenue streams provide resilience against market fluctuations and enable the company to capture diverse growth opportunities across sectors.

Negative Factors

Low Profitability

Low profitability limits the company's ability to reinvest in growth and may hinder long-term competitive positioning and shareholder returns.

Operational Efficiency

Inefficiencies in operations can lead to higher costs and reduced competitiveness, impacting the company's ability to scale effectively.

Pressure on Cost Management

Decreasing margins suggest challenges in managing costs, which may affect profitability and the ability to sustain competitive pricing.

SSC Security Services Business Overview & Revenue Model

Company Description

SSC Security Services (SECU) is a comprehensive security solutions provider specializing in a wide range of services including physical security, cybersecurity, event security, and risk management. The company operates across various sectors such as corporate, residential, retail, and government, delivering tailored security solutions that meet the unique needs of its diverse clientele. SECU prides itself on leveraging advanced technology and highly trained personnel to ensure the safety and security of its customers.

How the Company Makes Money

SSC Security Services generates revenue through multiple streams, primarily by offering contract-based security services to businesses and organizations. The company charges clients a recurring fee for ongoing security personnel deployment, monitoring services, and maintenance of security systems. Additionally, SECU generates income from one-time security assessments, installation of security equipment, and training programs for security staff. Strategic partnerships with technology providers enhance their service offerings and enable cross-selling opportunities, further contributing to their revenue growth. Seasonal contracts for event security during large gatherings, festivals, or conferences also serve as a significant revenue source, especially during peak seasons.

SSC Security Services Financial Statement Overview

Summary

SSC Security Services shows stable revenue growth and a strong balance sheet with low leverage. However, profitability is a concern with low margins and returns on equity. Positive cash flow trends are noted, but operational efficiency needs improvement.

Income Statement

SSC Security Services shows a modest revenue growth rate of 2.36% in the latest year, but profitability remains a challenge with a low net profit margin of 0.13% and negative EBIT. The gross profit margin has decreased slightly from previous years, indicating pressure on cost management. Overall, the income statement reflects a company struggling to convert revenue growth into substantial profit.

Balance Sheet

The balance sheet of SSC Security Services is relatively stable with a low debt-to-equity ratio of 0.09, indicating conservative leverage. However, the return on equity is low at 0.26%, suggesting inefficiencies in generating returns from equity. The equity ratio is strong, showing a solid capital structure, but the company needs to improve its profitability to enhance shareholder value.

Cash Flow

The cash flow statement shows positive developments with a 36.31% growth in free cash flow, indicating improved cash generation capabilities. However, the operating cash flow to net income ratio is relatively low, suggesting that net income is not fully translating into cash flow. The company has made strides in improving free cash flow, but further efforts are needed to enhance cash flow efficiency.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	119.42M	119.42M	120.62M	109.06M	49.70M	20.28M
Gross Profit	16.12M	16.12M	17.57M	16.25M	8.47M	3.16M
EBITDA	4.63M	4.63M	5.14M	3.78M	502.06K	3.50M
Net Income	159.24K	159.23K	595.67K	87.14K	-981.38K	1.89M
Balance Sheet
Total Assets	83.94M	83.94M	81.22M	84.78M	87.67M	84.89M
Cash, Cash Equivalents and Short-Term Investments	11.26M	11.26M	13.51M	14.84M	11.73M	30.28M
Total Debt	5.58M	5.58M	1.47M	1.75M	1.34M	2.92M
Total Liabilities	22.57M	22.57M	16.71M	17.09M	17.02M	9.02M
Stockholders Equity	61.37M	61.37M	64.52M	67.69M	70.64M	75.87M
Cash Flow
Free Cash Flow	1.62M	1.62M	879.20K	1.35M	-5.19M	-501.77K
Operating Cash Flow	3.06M	3.06M	1.96M	2.49M	-4.20M	998.00K
Investing Cash Flow	-914.35K	-914.35K	1.46M	5.20M	-6.27M	9.44M
Financing Cash Flow	-4.23M	-4.23M	-4.92M	-4.04M	-7.13M	-8.88M

SSC Security Services Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.43
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 Negative. The current price of 2.43 is above the 20-day moving average (MA) of 2.42, below the 50-day MA of 2.52, and below the 200-day MA of 2.46, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 37.37 is Neutral, neither overbought nor oversold. The STOCH value of 26.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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%
XX	52 Neutral	C$28.51M	-32.24	-7.09%	―	17.15%	76.98%
DPRO	52 Neutral	$315.65M	-5.02	-48.13%	―	26.74%	53.14%
GSI	48 Neutral	C$202.06M	-57.32	―	―	-3.41%	-151.98%
SECU	45 Neutral	C$42.19M	268.60	0.25%	4.92%	-1.00%	-71.94%

SSC Security Services Corporate Events

SSC Security Services to Renew Share Repurchase Program

SSC Security Services Corp. has announced its intention to renew a normal course issuer bid to repurchase up to 1,100,000 Class A common shares, representing about 10% of its public float. The move, pending approval from the TSX Venture Exchange, is aimed at enhancing shareholder value as management believes the shares are undervalued. The bid will commence on January 6, 2026, and will be conducted through CIBC Capital Markets.

The most recent analyst rating on (TSE:SECU) stock is a Hold 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. Reports Strong FY2025 Results with Improved Margins

SSC Security Services Corp. concluded its fiscal year 2025 with improved margins and increased adjusted EBITDA per share, reflecting steady growth and operational efficiency. The company reported a gross profit increase to $20.0 million and adjusted EBITDA of $5.7 million, highlighting its focus on profitability and disciplined capital allocation, which positions it as a resilient entity for shareholders.

The most recent analyst rating on (TSE:SECU) stock is a Hold 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 37th Dividend Payment

SSC Security Services Corp. has announced its thirty-seventh dividend payment, with a cash dividend of $0.03 per common share for the quarter ending December 31, 2025. This dividend, payable on January 15, 2026, is designated as an eligible dividend, allowing Canadian residents to benefit from an enhanced dividend tax credit. This announcement reflects SSC’s ongoing commitment to providing value to its shareholders and maintaining its position in the security services industry.

The most recent analyst rating on (TSE:SECU) stock is a Hold 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.