Secure Energy Services (SES) AI Stock Analysis

• Market Cap: C$3.15B
• Dividend Yield: 2.93%
• Average Volume (3M): 871.46K
• Price to Earnings (P/E): 6.0
• Beta (1Y): 1.11
• Revenue Growth: 28.30%
• EPS Growth: 227.26%
• Country: CA
• Employees: 1,817
• Sector: Industrials
• Sector Strength: 79
• Industry: Waste Management
• EPS (TTM): 2.16
• Shares Outstanding: 230,885,480
• 10 Day Avg. Volume: 526,338
• 30 Day Avg. Volume: 871,455
• PEG Ratio: 0.03
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 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: C$17.55
• Price Target Upside: 28.67% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

Secure Energy Services shows a strong financial performance with robust revenue and cash flow growth, further supported by strategic initiatives and shareholder returns. Its valuation is attractive, though technical indicators suggest short-term challenges. High debt levels and macroeconomic uncertainties pose risks but are offset by positive earnings and corporate events, leading to an overall favorable investment outlook.

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

Market Comparison

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 Energy Services (SES) is a leading integrated energy services company operating primarily in Canada and the United States. The company specializes in providing midstream infrastructure and environmental and fluid management services to the oil and gas industry. SES offers a diverse range of solutions, including processing, recovering, and disposal of waste by-products generated throughout the lifecycle of oil and gas projects, as well as providing innovative midstream services such as pipeline transportation and oil recovery.

How the Company Makes Money

Secure Energy Services generates revenue through multiple streams. The primary source of income is its midstream infrastructure services, which involve the transportation, processing, and storage of crude oil and natural gas. The company earns fees from oil producers for the use of its pipelines and facilities. Additionally, SES provides environmental and fluid management services, which include the treatment and disposal of waste fluids and solids, generating revenue from service fees charged to its clients. Key factors contributing to SES's earnings include its strategic location of facilities near significant oil and gas production areas, long-term contracts with major energy companies, and its ability to offer comprehensive solutions that enhance operational efficiencies for its clients.

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: Neutral
• Last Price: 13.64
• 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 Neutral. The current price of 13.64 is above the 20-day moving average (MA) of 12.92, below the 50-day MA of 13.98, and below the 200-day MA of 13.98, indicating a neutral trend. The MACD of -0.25 indicates Negative momentum. The RSI at 51.98 is Neutral, neither overbought nor oversold. The STOCH value of 72.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:SES.

Secure Energy Services Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CEU	76 Outperform	$1.40B	7.60	26.23%	2.09%	8.79%	31.76%
TCW	75 Outperform	$785.51M	7.61	21.89%	4.39%	0.84%	-1.74%
SES	75 Outperform	C$3.15B	5.97	52.24%	2.93%	28.30%	227.26%
PSI	72 Outperform	C$919.81M	7.58	26.63%	4.49%	12.14%	26.17%
Sector *	64 Neutral	$4.28B	11.80	5.33%	250.46%	4.10%	-9.26%
STEP	59 Neutral	C$283.21M	151.15	0.49%	―	0.98%	-96.29%
HWO	54 Neutral	C$10.16M	0.35	2.07%	24.72%	-59.34%	―

Secure Energy Services Corporate Events

Secure Waste Infrastructure Corp. Announces Successful Shareholder Meeting Outcomes

Secure Waste Infrastructure Corp. announced the successful election of all proposed directors at its 2025 Annual and Special Meeting of Shareholders, along with the reappointment of KPMG LLP as independent auditors. The meeting also saw the approval of the Corporation’s Omnibus Incentive Plan and its approach to executive compensation. These developments are expected to strengthen Secure’s governance and operational strategies, further solidifying its position in the waste management and energy infrastructure sectors.

Spark’s Take on TSE:SES Stock

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

Secure Energy Services demonstrates robust financial performance and strategic growth initiatives, bolstered by a strong valuation. While technical indicators suggest short-term market challenges, the company’s strategic investments and shareholder return programs support a positive investment outlook. However, caution is advised due to high debt levels.

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

SECURE Waste Infrastructure Corp. Reports Strong Q1 2025 Results and Expands Growth Initiatives

SECURE Waste Infrastructure Corp. reported strong financial results for Q1 2025, achieving an adjusted EBITDA of $121 million and maintaining its guidance for the year. The company is increasing its growth capital program to $125 million, supported by a new water disposal infrastructure project. SECURE is also focusing on strategic growth through share buybacks and the integration of its newly acquired metals recycling business, aiming to enhance its infrastructure footprint and deliver sustainable growth.

Spark’s Take on TSE:SES Stock

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

Secure Energy Services shows strong fundamentals with solid financial performance, a robust valuation, and strategic corporate events enhancing shareholder value. However, technical indicators point to short-term market challenges, and high debt levels could pose risks. Overall, the stock presents a compelling investment case with some caution advised due to market conditions.

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

Secure Energy Services Obtains Exemptive Relief for Substantial Issuer Bid

Secure Energy Services has announced that it has obtained exemptive relief from the Alberta Securities Commission in connection with its substantial issuer bid. This relief pertains to certain extension, proportionate take-up, and related disclosure requirements. The company has engaged Scotia Capital Inc. as a financial advisor and Odyssey Trust Company as a depositary for the offer. This move is expected to streamline the issuer bid process and potentially enhance shareholder value, reflecting SECURE’s strategic efforts to optimize its financial operations.

Spark’s Take on TSE:SES Stock

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

Secure Energy Services demonstrates strong financial performance and a solid valuation, making it an attractive investment opportunity. The company’s strategic initiatives and shareholder return programs further bolster its appeal. However, technical analysis indicates potential short-term challenges, and high debt levels present a risk, slightly tempering the overall score.

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

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.