SSC Security Services (SECU) AI Stock Analysis

• Market Cap: C$35.80M
• Dividend Yield: 4.92%
• Average Volume (3M): 9.24K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.27
• 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$2.00 ▼(-17.70% Downside)
• 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

A very low debt-to-equity (~0.09) gives SECU durable financial resilience in a low-margin services business. Low leverage reduces refinancing and interest shock risk, preserves capacity to fund working capital or selective investments, and supports stability across cycles.

Positive cash generation

Operating and free cash flow being positive provides ongoing liquidity to cover operations, payroll and maintenance capex without heavy reliance on external funding. This cash generation underpins dividend support and financial flexibility despite margin pressure.

Recurring, diversified revenue streams

SECU's business mixes recurring contract fees with one-time installs, training and event work across corporate, residential, retail and government. That multi-stream, contract-based model improves revenue visibility, supports cross-selling and cushions cyclical swings.

Negative Factors

Very thin profitability

A near‑breakeven net margin (~0.1%) leaves minimal buffer for unexpected costs or investment. Persistent low profitability limits retained earnings and the ability to self-fund growth initiatives, making strategic improvements or margin recovery essential for durable returns.

Volatile free cash flow

A sharp ~-54.7% TTM decline in free cash flow signals unstable conversion of earnings to cash. This volatility raises risk around sustaining dividends, funding capex or absorbing shocks, and complicates mid-term planning in a business with thin margins.

Limited operating leverage

Modest EBITDA (~3.9%) and negative EBIT indicate weak operating leverage: revenue growth so far isn't translating into meaningful operating profit. Without structural cost control or higher-margin sales, scaling revenue may not yield durable profitability improvements.

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

SECU primarily makes money by selling contracted security and related on-site services to clients under service agreements. Revenue is typically generated on a recurring basis through (1) time-and-materials style billing where clients pay hourly (or shift-based) rates for guards, supervisors, and patrol personnel, and/or (2) fixed-fee arrangements for defined site coverage or patrol routes. In these models, SECU’s gross profit is generally the spread between what it bills clients and the direct costs to deliver the service—most importantly wages, payroll taxes, benefits, uniforms, training, insurance, and scheduling/dispatch overhead. Additional revenue can come from premium billing for higher-skill posts (e.g., armed or specialized roles, if offered), overtime/holiday coverage, rapid-response or short-notice staffing, and ancillary reimbursables or pass-through charges when contract terms allow. Significant factors influencing earnings include labor availability and wage rates, contract pricing discipline, client retention and renewals (which support recurring revenue), and the ability to manage staffing utilization and overtime. Specific material partnerships or named customer relationships: null.

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: 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 Negative. The current price of 2.43 is above the 20-day moving average (MA) of 2.01, above the 50-day MA of 2.18, and above the 200-day MA of 2.41, indicating a bearish trend. The MACD of -0.07 indicates Negative momentum. The RSI at 42.37 is Neutral, neither overbought nor oversold. The STOCH value of 57.14 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	59 Neutral	C$35.98M	75.08	-5.11%	―	17.15%	76.98%
SECU	58 Neutral	C$35.80M	-1,422.49	0.45%	4.92%	-1.00%	-71.94%
DPRO	52 Neutral	C$181.90M	-11.28	-72.67%	―	26.74%	53.14%
GSI	44 Neutral	C$129.19M	-61.93	―	―	-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.