SSC Security Services (SECU) AI Stock Analysis

• Market Cap: $46.58M
• Dividend Yield: 4.71%
• Average Volume (3M): 6.99K
• Price to Earnings (P/E): 119.7
• Beta (1Y): 0.33
• 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: 5,601
• 30 Day Avg. Volume: 6,986
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.85
• Enterprise Value/Revenue: 0.34
• Enterprise Value/Gross Profit: 2.07
• Enterprise Value/Ebitda: 10.00
• 1Y Price Target: $2.50
• Price Target Upside: -2.12% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 59 Neutral
• Price Target: C$2.50 ▼(-1.96% Downside)

SSC Security Services' strong revenue growth is overshadowed by profitability and cash flow challenges, impacting its financial performance score. Technical indicators show mild bullish momentum but lack strong directional signals. The negative P/E ratio is a concern, though the high dividend yield offers some compensation for investors.

SSC Security Services Business Overview & Revenue Model

Company Description

SSC Security Services Corp. provides physical and cyber security services to corporate and public sector clients in Canada. It provides physical security services, such as on-site security guards, remote continuous camera monitoring, mobile patrol, and investigative services for clients in Ontario, Manitoba, Saskatchewan, Alberta, and British Columbia. The company also provides cyber security services, including managed Security, vulnerability and risk analysis, cyber security consulting, chief information security officer (CISO) consulting, and cyber security staff augmentation services. The company was formerly known as Input Capital Corp. and changed its name to SSC Security Services Corp. in October 2021. SSC Security Services Corp. was founded in 1996 and is headquartered in Regina, Canada.

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 and a robust balance sheet with low leverage, which are significant strengths. However, negative EBIT margins and the need for improved cash flow alignment with profitability metrics are concerns.

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	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: 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 Positive. The current price of 2.55 is below the 20-day moving average (MA) of 2.59, above the 50-day MA of 2.52, and above the 200-day MA of 2.43, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 49.99 is Neutral, neither overbought nor oversold. The STOCH value of 25.38 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	62 Neutral	C$612.30M	325.84	4.11%	―	72.90%	493.33%
GSI	61 Neutral	C$275.23M	144.83	-12.11%	―	-3.41%	-151.98%
SECU	59 Neutral	$46.58M	119.71	-0.32%	4.71%	-3.04%	-134.82%
TTNM	53 Neutral	C$61.96M	―	-24.17%	5.97%	2.28%	-1613.54%
XX	50 Neutral	C$25.85M	―	-14.50%	―	26.01%	41.58%
SCAN	44 Neutral	C$21.96M	―	216.65%	―	―	―

SSC Security Services Corporate Events

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.