Secure Energy Services (SES) AI Stock Analysis

• Market Cap: C$3.12B
• Dividend Yield: 3.24%
• Average Volume (3M): 1.09M
• Price to Earnings (P/E): 5.9
• Beta (1Y): 1.17
• Revenue Growth: 28.30%
• EPS Growth: 227.26%
• Country: CA
• Employees: 1,817
• Sector: Industrials
• Sector Strength: 61
• Industry: Waste Management
• EPS (TTM): 2.16
• Shares Outstanding: 230,885,480
• 10 Day Avg. Volume: 890,505
• 30 Day Avg. Volume: 1,092,245
• PEG Ratio: 0.03
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.35
• Price to Cash Flow (P/CF): 6.20
• P/FCF Ratio: 8.30
• 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$17.95
• Price Target Upside: 32.96% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

Secure Energy Services exhibits strong financial performance, strategic investments, and shareholder-friendly initiatives, such as share buybacks and dividends. Despite mixed technical indicators and high debt levels, the stock's undervaluation and solid earnings outlook support a positive investment case.

Positive Factors

Financial Performance

Secure delivered solid Q4/24 results, capping an impressive year for the company.

Future Guidance

SES reaffirmed its 2025 guidance, with adjusted EBITDA set between $510-540 million, which is up 7-13% year-over-year.

Share Buybacks

SES' strategy of aggressive share buybacks is expected to continue through 2025.

Negative Factors

Comparison with Peers

SES continues to demonstrate many similar qualities with its Waste Management/Midstream peer group, and its outperformance should be rewarded by way of additional multiple expansion in the years to come.

Secure Energy Services Business Overview & Revenue Model

Company Description

Secure Waste Infrastructure Corp., an energy services company, provides solutions to upstream oil and natural gas companies operating primarily in Western Canadian Sedimentary Basin and the United States. It operates through two segments, Midstream Infrastructure, and Environmental and Fluid Management. The company's Midstream Infrastructure segment provides services, such as clean oil terminalling, rail transloading, pipeline transportation, marketing and custom treating of crude oil, produced and waste water disposal, oilfield waste processing, and purchase/resale of oil services through its full service terminals, rail facilities, crude oil pipelines, crude oil terminalling facilities, water disposal facilities, and landfills. The Environmental and Fluid Management segment includes a network of owned, operated, and marketed industrial landfills, hazardous and non-hazardous waste management and disposal, onsite abandonment, and environmental solutions for site remediation and reclamation, bio-remediation, water treatment and recycling, emergency response, rail, and metal recycling services, as well as offers fluid management for drilling, completion, and production operations for oil and gas producers. This segment also designs and implements drilling fluid systems for producers drilling for oil, bitumen, and natural gas; provides naturally occurring radioactive material management services, as well as equipment and chemical solutions that optimize well production. Secure Energy Services Inc. is headquartered in Calgary, Canada.

How the Company Makes Money

Secure Energy Services generates revenue through a multifaceted business model centered around its core service offerings. Key revenue streams include waste management services, where SES provides safe and efficient disposal and recycling solutions for the oil and gas industry. The company also earns from water treatment services, which involve treating and recycling wastewater produced during oil and gas extraction, enabling operators to comply with environmental regulations. Additionally, SES offers environmental solutions such as remediation and reclamation services, which help clients manage environmental impacts and restore land. Significant partnerships with oil and gas companies contribute to SES's earnings by ensuring a consistent demand for its services. Furthermore, SES's strategic acquisition of complementary businesses enhances its service capabilities and expands its market reach, thereby driving additional revenue.

Secure Energy Services Financial Statement Overview

Summary

Secure Energy Services exhibits solid financial health across all verticals, with improvements in revenue, profitability, and cash flow generation. Despite high debt levels posing a potential risk, the company maintains strong operational and financial management.

Income Statement

Secure Energy Services demonstrates a robust recovery in revenue growth with a significant increase from previous years, notably from 2023 to 2024. The gross profit margin has improved, and net profit margin has turned positive, indicating enhanced operational efficiency. Strong EBIT and EBITDA margins highlight profitability improvements. However, the gross profit margin is still relatively low compared to industry standards, suggesting room for further cost management enhancements.

Balance Sheet

The balance sheet shows a healthy equity ratio, suggesting a strong capital structure. The debt-to-equity ratio has improved over the years, indicating effective debt management. Return on equity has turned positive and indicates a good return for shareholders compared to previous years' negative returns. However, the company's total debt remains substantial, which could pose a risk in fluctuating economic conditions.

Cash Flow

The cash flow statement highlights a strong free cash flow growth rate and an impressive operating cash flow to net income ratio, indicating effective cash generation from operations. The free cash flow to net income ratio is favorable, showcasing the company's ability to convert net income into free cash flow. Continued positive cash flows from operations strengthen the company's liquidity position.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
10.67B	8.24B	8.00B	3.77B	1.82B
	Gross Profit
422.00M	512.00M	493.00M	-60.00M	-2.57M
	EBIT
268.00M	353.00M	324.00M	-210.00M	-68.54M
	EBITDA
931.00M	542.00M	527.00M	-40.00M	60.00M
	Net Income Common Stockholders
582.00M	195.00M	184.00M	-204.00M	-87.19M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
26.00M	12.00M	12.00M	10.00M	6.78M
	Total Assets
2.28B	2.84B	2.84B	2.94B	1.42B
	Total Debt
454.00M	1.10B	1.03B	1.32B	434.38M
	Net Debt
428.00M	1.09B	1.02B	1.31B	427.59M
	Total Liabilities
1.24B	1.66B	1.57B	1.83B	711.08M
	Stockholders Equity
1.04B	1.19B	1.27B	1.11B	683.70M
Cash Flow		Free Cash Flow
363.00M	227.00M	315.00M	31.00M	77.38M
	Operating Cash Flow
497.00M	430.00M	411.00M	74.00M	148.72M
	Investing Cash Flow
954.00M	-155.00M	-58.00M	-43.00M	-60.06M
	Financing Cash Flow
-1.44B	-272.00M	-346.00M	-26.00M	-89.32M

Secure Energy Services Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 13.50
• 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:SES, the sentiment is Negative. The current price of 13.5 is below the 20-day moving average (MA) of 14.82, below the 50-day MA of 14.58, and below the 200-day MA of 13.88, indicating a bearish trend. The MACD of 0.35 indicates Negative momentum. The RSI at 66.60 is Neutral, neither overbought nor oversold. The STOCH value of 59.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:SES.

Secure Energy Services Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SES	78 Outperform	C$3.12B	5.91	52.24%	3.24%	28.30%	227.26%
PSI	76 Outperform	C$920.60M	7.59	26.63%	4.83%	12.14%	26.17%
Sector *	62 Neutral	$7.67B	13.25	3.04%	3.47%	3.63%	-13.99%
STEP	59 Neutral	C$278.16M	148.46	0.49%	―	0.98%	-96.29%

Secure Energy Services Corporate Events

Secure Energy Services Announces $200 Million Share Buyback

Secure Energy Services announced a substantial issuer bid to purchase up to $200 million of its outstanding common shares, representing approximately 5.97% to 7.22% of the total shares, depending on the final purchase price. This move, conducted via a modified Dutch auction, aims to optimize the company’s capital structure and potentially enhance shareholder value, pending necessary regulatory approvals.

Spark’s Take on TSE:SES Stock

According to Spark, TipRanks’ AI Analyst, TSE:SES is a Outperform.

Secure Energy Services demonstrates solid financial performance and appears undervalued, with ample liquidity and strategic growth initiatives. While technical indicators are mixed, the company’s robust operational management and strong shareholder returns support a positive outlook.

To see Spark’s full report on TSE:SES stock, click here.

SECURE Announces Quarterly Dividend and Upcoming Financial Results

SECURE Waste Infrastructure Corp. has announced a quarterly dividend of $0.10 per common share, payable on April 15, 2025, to shareholders of record as of April 1, 2025. Additionally, the company will release its first quarter financial and operating results for 2025 on May 2, 2025, followed by a conference call to discuss the results. This announcement reflects SECURE’s ongoing commitment to shareholder returns and transparency in its financial operations.

SECURE Waste Infrastructure Corp. Reports Robust 2024 Financial Results and Strategic Growth

SECURE Waste Infrastructure Corp. reported strong financial results for 2024, including an Adjusted EBITDA of $490 million, and returned $761 million to shareholders through dividends and share repurchases. The company has made strategic investments in growth projects and acquisitions, such as a metals recycling business, to strengthen its infrastructure network, and has adopted a new name reflecting its core operations.

SECURE to Release 2024 Financial Results and Host Conference Call

SECURE Waste Infrastructure Corp. announced it will release its fourth quarter and year-end financial and operating results for 2024 on February 21, 2025. The announcement includes a scheduled conference call to discuss the results, indicating the company’s ongoing commitment to transparency and communication with its stakeholders.