SSC Security Services (SECU) AI Stock Analysis

• Market Cap: C$36.16M
• Dividend Yield: 4.92%
• Average Volume (3M): 9.24K
• Price to Earnings (P/E): 131.1
• Beta (1Y): 0.16
• Revenue Growth: -1.00%
• EPS Growth: -71.94%
• Country: CA
• Employees: 3,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Security & Protection Services
• EPS (TTM): 0.00
• Shares Outstanding: 18,264,286
• 10 Day Avg. Volume: 14,280
• 30 Day Avg. Volume: 9,238
• PEG Ratio: -4.19
• Price to Book (P/B): 0.79
• Price to Sales (P/S): 0.41
• P/FCF Ratio: 30.00
• 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: 58 Neutral
• Price Target: C$2.50 ▲(2.88% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is mainly supported by a conservatively levered balance sheet and positive (but volatile) cash generation, while very thin/inconsistent profitability limits the fundamental outlook. Technicals add pressure due to a bearish trend and weak momentum, and valuation is weighed down by an extremely high P/E despite a strong dividend yield.

Positive Factors

Conservative balance sheet

Very low debt-to-equity (~0.09) provides durable financial resilience for a low-margin services business. That conservative capital structure reduces refinancing risk, preserves capacity to invest in technology or training, and helps absorb shocks without threatening operations.

Positive cash generation (TTM)

Operating and free cash flow being positive in the latest TTM shows the company can convert revenue into cash, supporting liquidity and recurring operations. This cash generation underpins dividend ability and funds modest reinvestment even if profitability is thin, improving durability.

Recurring, diversified revenue streams

A business model built on recurring contracts, monitoring fees and service agreements creates predictable revenue and client stickiness. Diversified offerings (physical, cyber, events, training) and tech partnerships enable cross-selling and reduce single-market dependence over the medium term.

Negative Factors

Extremely thin and inconsistent profitability

Margins near breakeven and occasional losses indicate limited operating leverage and constrained pricing power. Thin profits leave little buffer for rising labor or contract costs, curb investment capacity, and make sustained return improvement difficult without structural cost or pricing changes.

Sharp free cash flow decline

A ~-54.7% drop in FCF signals volatility in cash generation and weaker internal funding for growth or safety cushions. With free cash covering only about half of net income, the company is more exposed to unexpected expenses and may face tougher trade-offs between dividends, capex, and working capital.

Low return on equity despite capital base

ROE near zero indicates the company is not effectively converting its equity base into profits. This structural inefficiency may pressure investor returns, constrain internal reinvestment prospects, and suggests management needs to improve operational efficiency or reallocate capital for durable value creation.

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

Financials are mixed: revenue is up modestly (+3.6% TTM) and leverage is low (debt-to-equity ~0.09), but profitability is extremely thin (net margin ~0.1%, modest EBITDA margin ~3.9%) with recent operating pressure and weak ROE (~0.3%). Cash flow is positive, yet free cash flow fell sharply (~-54.7% TTM), indicating volatility.

Income Statement

TTM (Trailing-Twelve-Months) revenue is up (+3.6%), showing continued top-line momentum after several years of large swings. However, profitability remains thin: net margin is near breakeven (~0.1%) and results have been inconsistent over time (including a loss in 2022). EBITDA margin is modest (~3.9%) and EBIT is still negative in the most recent periods, indicating cost pressure and limited operating leverage.

Balance Sheet

The balance sheet appears conservatively levered, with low debt relative to equity (debt-to-equity ~0.09 in TTM), which provides resilience in a lower-margin business. Total assets and equity are sizable versus debt, but shareholder returns are weak (TTM return on equity ~0.3%), reflecting the company’s minimal profitability despite a solid capital base.

Cash Flow

Cash generation is positive in the latest TTM period (operating cash flow and free cash flow both positive), which supports liquidity and financial flexibility. That said, free cash flow declined sharply versus the prior period (TTM free cash flow growth ~-54.7%), and cash conversion is not strong—operating cash flow is relatively low versus revenue, and free cash flow covers only about half of net income in TTM, pointing to volatility and limited buffer if earnings soften.

Breakdown	TTM	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	123.76M	119.42M	120.62M	109.06M	49.70M	20.28M
Gross Profit	15.27M	16.12M	17.57M	16.25M	8.47M	3.16M
EBITDA	4.83M	4.63M	5.14M	3.78M	502.06K	3.50M
Net Income	276.56K	159.23K	595.67K	87.14K	-981.38K	1.89M
Balance Sheet
Total Assets	82.50M	83.94M	81.22M	84.78M	87.67M	84.89M
Cash, Cash Equivalents and Short-Term Investments	8.57M	11.26M	13.51M	14.84M	11.73M	30.28M
Total Debt	9.99M	5.58M	1.47M	1.75M	1.34M	2.92M
Total Liabilities	21.68M	22.57M	16.71M	17.09M	17.02M	9.02M
Stockholders Equity	60.82M	61.37M	64.52M	67.69M	70.64M	75.87M
Cash Flow
Free Cash Flow	732.01K	1.62M	879.20K	1.35M	-5.19M	-501.77K
Operating Cash Flow	2.00M	3.06M	1.96M	2.49M	-4.20M	998.00K
Investing Cash Flow	-1.05M	-914.35K	1.46M	5.20M	-6.27M	9.44M
Financing Cash Flow	-3.80M	-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: Positive

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 2.22, above the 50-day MA of 2.31, and below the 200-day MA of 2.44, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 36.07 is Neutral, neither overbought nor oversold. The STOCH value of 8.70 is Positive, 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%
SECU	58 Neutral	C$36.16M	131.13	0.25%	4.92%	-1.00%	-71.94%
XX	52 Neutral	C$27.71M	-31.04	-7.09%	―	17.15%	76.98%
DPRO	52 Neutral	C$221.44M	-3.66	-48.12%	―	26.74%	53.14%
GSI	42 Neutral	C$159.00M	-32.51	―	―	-3.41%	-151.98%

SSC Security Services Corporate Events

SSC Security Services Declares Tax-Efficient Quarterly Dividend

SSC Security Services Corp. has declared a quarterly cash dividend of $0.03 per common share for the quarter ending March 31, 2026, equivalent to $0.12 per share on an annualized basis. The dividend will be paid on April 15, 2026 to shareholders of record as of March 31, 2026, and is designated as an eligible dividend for Canadian tax purposes, allowing resident investors to benefit from an enhanced dividend tax credit.

The announcement underscores SSC’s continued practice of returning capital to shareholders, signaling confidence in its cash generation and financial stability within the competitive Canadian security services market. The tax-efficient nature of the payout may be particularly attractive to domestic investors, potentially supporting shareholder loyalty and interest in the company’s stock over time.

The most recent analyst rating on (TSE:SECU) stock is a Hold with a C$2.00 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 Posts Record Q1 Revenue on Organic Growth, Maintains Debt-Free Balance Sheet

SSC Security Services reported record first-quarter fiscal 2026 revenue of $33.5 million, up 14.7% year over year, driven entirely by organic growth and strong contract renewals, marking the highest quarterly revenue in its history. Gross profit rose to $5.1 million despite a modest margin compression, adjusted EBITDA held essentially flat at $1.1 million, and the company maintained a debt-free balance sheet with $8.6 million in cash, continued dividend payments, and an outlook calling for further growth from integrated security services and potential acquisitions.

The company finished the quarter with working capital of $25.1 million and shareholders’ equity of $60.8 million, while comprehensive net loss narrowed to essentially breakeven and adjusted net income came in at $0.4 million. Management highlighted strong demand for integrated physical and electronic security solutions, positioning SSC to leverage its solid financial footing and recurring revenue base as it pursues both organic expansion and selective consolidation in the Canadian security market.

The most recent analyst rating on (TSE:SECU) stock is a Hold with a C$2.00 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 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.