SECURE Waste Infrastructure (SES) AI Stock Analysis

• Market Cap: C$3.64B
• Dividend Yield: 2.19%
• Average Volume (3M): 978.46K
• Price to Earnings (P/E): 36.8
• Beta (1Y): 1.53
• Revenue Growth: -1.47%
• EPS Growth: -79.68%
• Country: CA
• Employees: 1,817
• Sector: Industrials
• Sector Strength: 72
• Industry: Waste Management
• EPS (TTM): 0.00
• Shares Outstanding: 219,838,710
• 10 Day Avg. Volume: 1,130,078
• 30 Day Avg. Volume: 978,461
• PEG Ratio: 0.03
• Price to Book (P/B): 3.73
• Price to Sales (P/S): 0.36
• P/FCF Ratio: 10.72
• 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$20.93
• Price Target Upside: 17.58% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: C$20.00 ▲(12.36% Upside)

SECURE Waste Infrastructure demonstrates strong financial performance with improved profitability and cash flow, supported by strategic corporate events like the note financing. However, valuation concerns due to a high P/E ratio and challenges highlighted in the earnings call, such as reduced EBITDA guidance, temper the overall score. The technical analysis suggests stable momentum, but not enough to offset valuation concerns.

Positive Factors

Financial Stability

A lower debt-to-equity ratio enhances financial stability, reducing leverage risk and increasing the company's ability to invest in growth opportunities.

Cash Flow Performance

Robust cash flow generation supports operational needs and growth initiatives, ensuring the company can sustain its business model and pursue strategic investments.

Strategic Infrastructure Projects

Investments in long-cycle infrastructure projects are expected to contribute to stable recurring cash flows, enhancing the company's market position and revenue stability.

Negative Factors

Metal Recycling Challenges

Ongoing challenges in the metal recycling segment can impact revenue and profitability, requiring strategic adjustments to mitigate market-driven issues.

EBITDA Guidance Revision

A downward revision in EBITDA guidance indicates potential revenue and profit pressures, affecting future financial performance and investor confidence.

Revenue Decline

A decline in revenue highlights challenges in maintaining sales volumes, which could impact long-term growth if not addressed through strategic initiatives.

SECURE Waste Infrastructure 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

SES generates revenue through multiple channels, including service fees for waste collection and disposal, recycling operations, and landfill operations. The company charges municipalities and businesses for waste management services, which includes regular collection schedules and on-demand services. Additionally, SES profits from the sale of recycled materials and byproducts generated from its recycling facilities. Strategic partnerships with local governments and industries enhance its revenue streams, as SES often enters long-term contracts for waste management services, providing a stable income base. Furthermore, SES may benefit from government incentives and grants aimed at promoting sustainable waste management practices, contributing to its overall earnings.

SECURE Waste Infrastructure Financial Statement Overview

Summary

SECURE Waste Infrastructure faces challenges in revenue growth and profitability, with declining margins and high leverage. The significant decline in free cash flow growth and moderate cash flow ratios suggest potential liquidity issues. The financial health of the company appears to be under pressure, requiring strategic improvements to enhance profitability and cash flow stability.

Income Statement

SECURE Waste Infrastructure's income statement shows a declining revenue trend with a negative growth rate of -0.796% in the TTM period. Gross profit and net profit margins are relatively low at 3.97% and 1.90%, respectively, indicating challenges in maintaining profitability. The EBIT and EBITDA margins have also decreased, reflecting operational inefficiencies. Despite past revenue growth, recent performance suggests potential risks in sustaining profitability.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.23 in the TTM period, indicating significant leverage. Return on equity is at 20.28%, showing some efficiency in generating returns from equity. However, the equity ratio is not provided, limiting a full assessment of asset financing. The high leverage poses a risk, but the company has managed to maintain a reasonable ROE.

Cash Flow

Cash flow analysis indicates a significant decline in free cash flow growth at -52.41% in the TTM period, raising concerns about cash generation capabilities. The operating cash flow to net income ratio is 0.68, suggesting moderate cash flow efficiency. The free cash flow to net income ratio is 0.58, indicating that not all net income is translating into free cash flow. These metrics highlight potential liquidity challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.34B	10.67B	8.24B	8.00B	3.77B	1.82B
Gross Profit	395.00M	405.00M	491.00M	470.00M	187.00M	36.00M
EBITDA	437.00M	941.00M	556.00M	527.00M	-40.00M	60.00M
Net Income	197.00M	582.00M	195.00M	184.00M	-203.00M	-85.00M
Balance Sheet
Total Assets	2.48B	2.28B	2.84B	2.84B	2.94B	1.38B
Cash, Cash Equivalents and Short-Term Investments	31.00M	26.00M	12.00M	12.00M	10.00M	7.00M
Total Debt	1.00B	454.00M	1.10B	1.03B	1.32B	434.00M
Total Liabilities	1.67B	1.24B	1.66B	1.57B	1.83B	659.00M
Stockholders Equity	817.00M	1.04B	1.19B	1.27B	1.11B	687.00M
Cash Flow
Free Cash Flow	207.00M	363.00M	227.00M	315.00M	14.00M	78.00M
Operating Cash Flow	357.00M	497.00M	430.00M	411.00M	57.00M	149.00M
Investing Cash Flow	-292.00M	954.00M	-155.00M	-58.00M	-43.00M	-58.00M
Financing Cash Flow	-39.00M	-1.44B	-272.00M	-346.00M	-9.00M	-92.00M

SECURE Waste Infrastructure Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 17.80
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• 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 17.8 is below the 20-day moving average (MA) of 17.81, below the 50-day MA of 18.40, and above the 200-day MA of 15.80, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 47.54 is Neutral, neither overbought nor oversold. The STOCH value of 48.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:SES.

SECURE Waste Infrastructure Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WCN	75 Outperform	$62.04B	72.16	7.61%	0.75%	10.49%	-32.11%
SES	70 Outperform	C$3.64B	36.79	11.37%	2.19%	-1.47%	-79.68%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
GFL	59 Neutral	$22.51B	-14.30	<0.01%	0.13%	-10.87%	-168.62%
BLM	54 Neutral	C$54.39M	―	-3.01%	―	63.49%	-133.70%

SECURE Waste Infrastructure Corporate Events

SECURE Waste Infrastructure Completes $300 Million Note Financing

SECURE Waste Infrastructure Corp. has successfully closed a $300 million private placement of 5.75% senior unsecured notes due in 2032. The proceeds from this offering will be used to repay existing debt and for general corporate purposes, potentially strengthening the company’s financial position and operational capabilities. This move is expected to have implications for SECURE’s market positioning, as it may enhance their ability to manage financial obligations and invest in future growth opportunities.

SECURE Waste Infrastructure Announces $300 Million Note Financing

SECURE Waste Infrastructure Corp. announced a $300 million senior unsecured note financing through a private placement, underwritten by major financial institutions. The proceeds will be used to repay existing debt and for general corporate purposes, potentially strengthening the company’s financial position and operational capabilities.

SECURE Waste Infrastructure Corp. Reports Strong Q3 2025 Results and Positive Outlook

SECURE Waste Infrastructure Corp. reported a third-quarter Adjusted EBITDA of $135 million, reflecting a 17% increase per share from the previous year. Despite a slight revenue decrease due to reduced drilling activity, the company expects solid growth in 2026, driven by strategic infrastructure projects and market repositioning. The company also maintained its financial flexibility and continued its capital allocation strategy, including share repurchases and dividends.

SECURE Waste Infrastructure Announces Dividend and Q3 Results Release

SECURE Waste Infrastructure Corp. has announced a quarterly dividend of $0.10 per common share, payable on October 15, 2025, to shareholders of record on October 1, 2025. Additionally, the company will release its third-quarter financial results on October 30, 2025, followed by a conference call to discuss the results. This announcement reflects SECURE’s ongoing commitment to providing value to its shareholders and maintaining transparency in its financial operations, potentially impacting its market positioning and stakeholder relations positively.