Secure Energy Services (SES) AI Stock Analysis

• Market Cap: C$3.51B
• Dividend Yield: 2.5%
• Average Volume (3M): 590.94K
• Price to Earnings (P/E): 19.6
• Beta (1Y): 1.15
• Revenue Growth: 13.51%
• EPS Growth: -58.43%
• Country: CA
• Employees: 1,817
• Sector: Industrials
• Sector Strength: 90
• Industry: Waste Management
• EPS (TTM): 0.16
• Shares Outstanding: 219,838,170
• 10 Day Avg. Volume: 426,736
• 30 Day Avg. Volume: 590,940
• PEG Ratio: -0.31
• Price to Book (P/B): 3.92
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.09
• 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$17.07
• Price Target Upside: 6.02% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 76 Outperform
• Price Target: C$18.00 ▲(11.80%Upside)

Secure Energy Services is showing a strong financial trajectory, bolstered by effective cash management and strategic growth initiatives. While technical indicators and recent earnings call reflect positive momentum, macroeconomic risks and valuation concerns slightly temper the overall outlook.

Positive Factors

Financial Performance

Secure Energy Services delivered solid results, highlighted by a new 10-year Montney contract for a produced water facility.

Growth Strategy

Secure Energy Services increased its growth capital expenditure to $125 million, focusing on produced water infrastructure in the Montney.

Share Buybacks

Secure Energy Services repurchased approximately 5.3 million shares, continuing to drive per share metrics higher.

Negative Factors

Commodity Prices

The company reaffirmed its guidance, indicating strong resilience in financial results despite commodity price volatility.

Market Comparison

Secure Energy Services demonstrates similar qualities with its Waste Management/Midstream peer group, with expectations of additional multiple expansion.

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 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 demonstrates strong financial performance with robust cash flow management and improved profitability metrics, despite a slight recent revenue contraction. The balance sheet is moderately healthy, showing increased leverage but maintaining a solid equity base.

Income Statement

Secure Energy Services shows a strong rebound in financial performance. The TTM gross profit margin is 3.93%, with a net profit margin of 1.90%. Both margins have improved significantly from prior years, indicating enhanced operational efficiency. Revenue growth is impressive, with a notable increase from 2020 to 2024, although revenue slightly declined in the TTM period. EBIT and EBITDA margins for TTM are 2.47% and 4.10%, respectively, reflecting solid profitability, albeit with room for improvement.

Balance Sheet

The balance sheet reflects moderate financial health. The debt-to-equity ratio in the TTM is 0.73, which is manageable but has increased compared to earlier periods, indicating higher leverage. ROE is 20.33% for the TTM, showcasing efficient use of equity to generate profits. The equity ratio stands at 40.45%, suggesting a stable capital structure with a balanced approach to leveraging assets.

Cash Flow

Cash flow performance is robust, with a TTM operating cash flow to net income ratio of 2.98, indicating strong cash generation relative to net income. The free cash flow to net income ratio is 2.20, highlighting effective cash management and strong free cash flow growth. The company has shown consistent improvement in free cash flow over the years, supporting its financial flexibility.

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
EBITDA	931.00M	542.00M	527.00M	-40.00M	60.00M
Net Income	582.00M	195.00M	184.00M	-204.00M	-87.19M
Balance Sheet
Total Assets	2.28B	2.84B	2.84B	2.94B	1.42B
Cash, Cash Equivalents and Short-Term Investments	26.00M	12.00M	12.00M	10.00M	6.78M
Total Debt	454.00M	1.10B	1.03B	1.32B	434.38M
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: Positive
• Last Price: 16.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:SES, the sentiment is Positive. The current price of 16.1 is above the 20-day moving average (MA) of 15.53, above the 50-day MA of 14.97, and above the 200-day MA of 14.76, indicating a bullish trend. The MACD of 0.29 indicates Negative momentum. The RSI at 66.31 is Neutral, neither overbought nor oversold. The STOCH value of 85.57 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	76 Outperform	C$3.51B	19.57	16.22%	2.50%	13.51%	-58.43%
Sector *	65 Neutral	$10.86B	15.57	5.28%	1.92%	3.13%	-27.76%
WCN	―	$47.08B	75.02	7.96%	0.69%	―	―
BLM	53 Neutral	C$59.10M	2,028.57	0.16%	―	49.38%	-93.75%
BQE	―	C$71.46M	10.04	38.06%	―	―	―
GFL	―	$17.42B	10.03	-10.02%	0.13%	―	―
VTX	―	C$26.89M	―	-11.65%	―	―	―

Secure Energy Services Corporate Events

SECURE Announces Dividend and Upcoming Financial Results Release

SECURE Waste Infrastructure Corp. has announced a quarterly dividend of $0.10 per common share, payable on July 15, 2025, to shareholders of record as of July 1, 2025. The dividend is classified as an eligible dividend for Canadian tax purposes. Additionally, SECURE will release its 2025 second quarter financial results on July 29, 2025, followed by a conference call to discuss the results. This announcement underscores SECURE’s commitment to providing shareholder value and maintaining transparency with its stakeholders.

The most recent analyst rating on (TSE:SES) stock is a Hold with a C$15.00 price target. To see the full list of analyst forecasts on Secure Energy Services stock, see the TSE:SES Stock Forecast page.

Secure Energy Services Concludes Substantial Issuer Bid

Secure Energy Services has announced the final results of its substantial issuer bid, where it will purchase 9,382,390 shares at $14.50 each, totaling approximately $136 million. This move represents about 4% of the company’s issued shares, and after the buyback, the company will have 221,492,148 shares outstanding. The transaction is expected to impact the company’s share structure and potentially its market positioning, while shareholders are advised to consider tax implications of the deemed dividend from the share repurchase.

The most recent analyst rating on (TSE:SES) stock is a Hold with a C$15.00 price target. To see the full list of analyst forecasts on Secure Energy Services stock, see the TSE:SES Stock Forecast page.

Secure Energy Services Announces $136 Million Share Buyback

Secure Energy Services announced the preliminary results of its substantial issuer bid, expecting to return approximately $136 million to shareholders. The bid, which was undersubscribed, reflects shareholder confidence in the company’s long-term value. Secure plans to purchase 9,382,391 shares at $14.50 each, representing about 4% of its outstanding shares. The company maintains a strong balance sheet and robust cash flows, allowing it to continue prioritizing capital allocation and shareholder returns through additional share buybacks.

The most recent analyst rating on (TSE:SES) stock is a Hold with a C$15.00 price target. To see the full list of analyst forecasts on Secure Energy Services stock, see the TSE:SES Stock Forecast page.

SECURE Expands and Extends Credit Facility to Bolster Growth

SECURE Waste Infrastructure Corp. has announced an amendment and extension of its Senior Secured Revolving Credit Facility, increasing its size from $800 million to $900 million and extending its maturity to May 31, 2028. This expansion is set to enhance SECURE’s financial flexibility, supporting its strategic priorities of disciplined growth and capital returns to shareholders. The amendment reflects the company’s strong financial partnerships and commitment to responsible capital management, positioning SECURE to navigate market conditions and evaluate opportunities for long-term value creation.

The most recent analyst rating on (TSE:SES) stock is a Hold with a C$15.00 price target. To see the full list of analyst forecasts on Secure Energy Services stock, see the TSE:SES Stock Forecast page.

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.

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.

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.