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SECURE WASTE INFRASTRUCTURE (SES.CA) Stock Fundamental Analysis

TSX:SES - Toronto Stock Exchange - CA81373C1023 - Common Stock - Currency: CAD

14.71  -0.13 (-0.88%)

Fundamental Rating

7

We assign a fundamental rating of 7 out of 10 to SES. SES was compared to 221 industry peers in the Oil, Gas & Consumable Fuels industry. SES has an excellent profitability rating, but there are some minor concerns on its financial health. SES has both an excellent growth and valuation score. This means it is growing and it is still cheap. This is a rare combination! With these ratings, SES could be worth investigating further for value and growth investing!.


Dividend Valuation Growth Profitability Health

7

1. Profitability

1.1 Basic Checks

SES had positive earnings in the past year.
SES had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: SES reported negative net income in multiple years.
In the past 5 years SES always reported a positive cash flow from operatings.
SES.CA Yearly Net Income VS EBIT VS OCF VS FCFSES.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 200M -200M 400M

1.2 Ratios

Looking at the Return On Assets, with a value of 42.47%, SES belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
The Return On Equity of SES (94.79%) is better than 100.00% of its industry peers.
SES has a better Return On Invested Capital (18.24%) than 96.14% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SES is in line with the industry average of 7.73%.
The 3 year average ROIC (8.54%) for SES is below the current ROIC(18.24%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 42.47%
ROE 94.79%
ROIC 18.24%
ROA(3y)2.14%
ROA(5y)0.07%
ROE(3y)4.21%
ROE(5y)0.09%
ROIC(3y)8.54%
ROIC(5y)N/A
SES.CA Yearly ROA, ROE, ROICSES.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10 -10

1.3 Margins

Looking at the Profit Margin, with a value of 7.61%, SES is in line with its industry, outperforming 56.52% of the companies in the same industry.
In the last couple of years the Profit Margin of SES has grown nicely.
SES's Operating Margin of 3.22% is in line compared to the rest of the industry. SES outperforms 47.34% of its industry peers.
In the last couple of years the Operating Margin of SES has grown nicely.
With a Gross Margin value of 4.75%, SES is not doing good in the industry: 63.77% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of SES has grown nicely.
Industry RankSector Rank
OM 3.22%
PM (TTM) 7.61%
GM 4.75%
OM growth 3YN/A
OM growth 5Y18.66%
PM growth 3YN/A
PM growth 5Y28.41%
GM growth 3Y46.54%
GM growth 5Y3.3%
SES.CA Yearly Profit, Operating, Gross MarginsSES.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 5 -5 10 -10

6

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), SES is creating value.
SES has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, SES has more shares outstanding
SES has a worse debt/assets ratio than last year.
SES.CA Yearly Shares OutstandingSES.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 100M 200M 300M
SES.CA Yearly Total Debt VS Total AssetsSES.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B 1.5B 2B 2.5B

2.2 Solvency

SES has an Altman-Z score of 7.83. This indicates that SES is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of SES (7.83) is better than 91.79% of its industry peers.
The Debt to FCF ratio of SES is 2.16, which is a good value as it means it would take SES, 2.16 years of fcf income to pay off all of its debts.
SES's Debt to FCF ratio of 2.16 is amongst the best of the industry. SES outperforms 84.06% of its industry peers.
SES has a Debt/Equity ratio of 0.50. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.50, SES is doing worse than 60.39% of the companies in the same industry.
Even though the debt/equity ratio score it not favorable for SES, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
Industry RankSector Rank
Debt/Equity 0.5
Debt/FCF 2.16
Altman-Z 7.83
ROIC/WACC2.35
WACC7.76%
SES.CA Yearly LT Debt VS Equity VS FCFSES.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 200M 400M 600M 800M 1B

2.3 Liquidity

A Current Ratio of 1.15 indicates that SES should not have too much problems paying its short term obligations.
The Current ratio of SES (1.15) is comparable to the rest of the industry.
A Quick Ratio of 0.88 indicates that SES may have some problems paying its short term obligations.
SES has a Quick ratio (0.88) which is in line with its industry peers.
Industry RankSector Rank
Current Ratio 1.15
Quick Ratio 0.88
SES.CA Yearly Current Assets VS Current LiabilitesSES.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M 1B

7

3. Growth

3.1 Past

SES shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 296.36%, which is quite impressive.
Measured over the past years, SES shows a very strong growth in Earnings Per Share. The EPS has been growing by 45.41% on average per year.
SES shows a strong growth in Revenue. In the last year, the Revenue has grown by 67.73%.
Measured over the past years, SES shows a very strong growth in Revenue. The Revenue has been growing by 22.92% on average per year.
EPS 1Y (TTM)296.36%
EPS 3YN/A
EPS 5Y45.41%
EPS Q2Q%143.75%
Revenue 1Y (TTM)67.73%
Revenue growth 3Y65.34%
Revenue growth 5Y22.92%
Sales Q2Q%-12.41%

3.2 Future

SES is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.77% yearly.
Based on estimates for the next years, SES will show a small growth in Revenue. The Revenue will grow by 5.74% on average per year.
EPS Next Y249.87%
EPS Next 2Y24.65%
EPS Next 3Y19.77%
EPS Next 5YN/A
Revenue Next Year-11.67%
Revenue Next 2Y-2.07%
Revenue Next 3Y0.02%
Revenue Next 5Y5.74%

3.3 Evolution

The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
SES.CA Yearly Revenue VS EstimatesSES.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2B 4B 6B 8B
SES.CA Yearly EPS VS EstimatesSES.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 0 0.5 -0.5 1 1.5 2

7

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 6.75, the valuation of SES can be described as very cheap.
Based on the Price/Earnings ratio, SES is valued cheaply inside the industry as 85.99% of the companies are valued more expensively.
SES is valuated cheaply when we compare the Price/Earnings ratio to 30.43, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 14.56, SES is valued correctly.
SES's Price/Forward Earnings ratio is in line with the industry average.
SES's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.78.
Industry RankSector Rank
PE 6.75
Fwd PE 14.56
SES.CA Price Earnings VS Forward Price EarningsSES.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

72.46% of the companies in the same industry are more expensive than SES, based on the Enterprise Value to EBITDA ratio.
SES's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. SES is cheaper than 65.70% of the companies in the same industry.
Industry RankSector Rank
P/FCF 13.83
EV/EBITDA 6.58
SES.CA Per share dataSES.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40 50

4.3 Compensation for Growth

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of SES may justify a higher PE ratio.
A more expensive valuation may be justified as SES's earnings are expected to grow with 19.77% in the coming years.
PEG (NY)0.03
PEG (5Y)0.15
EPS Next 2Y24.65%
EPS Next 3Y19.77%

6

5. Dividend

5.1 Amount

SES has a Yearly Dividend Yield of 2.70%.
SES's Dividend Yield is a higher than the industry average which is at 6.30.
Compared to an average S&P500 Dividend Yield of 2.30, SES has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 2.7%

5.2 History

On average, the dividend of SES grows each year by 7.52%, which is quite nice.
SES has been paying a dividend for at least 10 years, so it has a reliable track record.
SES has decreased its dividend in the last 3 years.
Dividend Growth(5Y)7.52%
Div Incr Years2
Div Non Decr Years2
SES.CA Yearly Dividends per shareSES.CA Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0.1 0.2 0.3 0.4

5.3 Sustainability

SES pays out 11.20% of its income as dividend. This is a sustainable payout ratio.
SES's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP11.2%
EPS Next 2Y24.65%
EPS Next 3Y19.77%
SES.CA Yearly Income VS Free CF VS DividendSES.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 100M -100M 200M -200M 300M
SES.CA Dividend Payout.SES.CA Dividend Payout, showing the Payout Ratio.SES.CA Dividend Payout.PayoutRetained Earnings

SECURE WASTE INFRASTRUCTURE

TSX:SES (2/14/2025, 7:00:00 PM)

14.71

-0.13 (-0.88%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)10-30 2024-10-30/bmo
Earnings (Next)02-21 2025-02-21/amc
Inst Owners37.3%
Inst Owner ChangeN/A
Ins Owners1.7%
Ins Owner ChangeN/A
Market Cap3.44B
Analysts76.92
Price Target18.59 (26.38%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 2.7%
Yearly Dividend0.39
Dividend Growth(5Y)7.52%
DP11.2%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)473.26%
Min EPS beat(2)-11.99%
Max EPS beat(2)958.51%
EPS beat(4)2
Avg EPS beat(4)235.03%
Min EPS beat(4)-11.99%
Max EPS beat(4)958.51%
EPS beat(8)4
Avg EPS beat(8)116.02%
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)11.35%
Min Revenue beat(2)4.79%
Max Revenue beat(2)17.9%
Revenue beat(4)4
Avg Revenue beat(4)7.57%
Min Revenue beat(4)1.26%
Max Revenue beat(4)17.9%
Revenue beat(8)8
Avg Revenue beat(8)152.76%
Revenue beat(12)12
Avg Revenue beat(12)236.23%
Revenue beat(16)16
Avg Revenue beat(16)252.8%
PT rev (1m)0.68%
PT rev (3m)18.13%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)-1.03%
EPS NY rev (3m)14.44%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)3.8%
Valuation
Industry RankSector Rank
PE 6.75
Fwd PE 14.56
P/S 0.27
P/FCF 13.83
P/OCF 8.61
P/B 3.32
P/tB 4.65
EV/EBITDA 6.58
EPS(TTM)2.18
EY14.82%
EPS(NY)1.01
Fwd EY6.87%
FCF(TTM)1.06
FCFY7.23%
OCF(TTM)1.71
OCFY11.62%
SpS55.11
BVpS4.43
TBVpS3.16
PEG (NY)0.03
PEG (5Y)0.15
Profitability
Industry RankSector Rank
ROA 42.47%
ROE 94.79%
ROCE 24.5%
ROIC 18.24%
ROICexc 18.39%
ROICexgc 22.32%
OM 3.22%
PM (TTM) 7.61%
GM 4.75%
FCFM 1.93%
ROA(3y)2.14%
ROA(5y)0.07%
ROE(3y)4.21%
ROE(5y)0.09%
ROIC(3y)8.54%
ROIC(5y)N/A
ROICexc(3y)8.58%
ROICexc(5y)N/A
ROICexgc(3y)10.36%
ROICexgc(5y)N/A
ROCE(3y)11.47%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y33.61%
ROICexc growth 3YN/A
ROICexc growth 5Y31.34%
OM growth 3YN/A
OM growth 5Y18.66%
PM growth 3YN/A
PM growth 5Y28.41%
GM growth 3Y46.54%
GM growth 5Y3.3%
F-Score6
Asset Turnover5.58
Health
Industry RankSector Rank
Debt/Equity 0.5
Debt/FCF 2.16
Debt/EBITDA 0.85
Cap/Depr 80.32%
Cap/Sales 1.17%
Interest Coverage 6.19
Cash Conversion 66.33%
Profit Quality 25.36%
Current Ratio 1.15
Quick Ratio 0.88
Altman-Z 7.83
F-Score6
WACC7.76%
ROIC/WACC2.35
Cap/Depr(3y)59.6%
Cap/Depr(5y)63.93%
Cap/Sales(3y)1.6%
Cap/Sales(5y)2.53%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)296.36%
EPS 3YN/A
EPS 5Y45.41%
EPS Q2Q%143.75%
EPS Next Y249.87%
EPS Next 2Y24.65%
EPS Next 3Y19.77%
EPS Next 5YN/A
Revenue 1Y (TTM)67.73%
Revenue growth 3Y65.34%
Revenue growth 5Y22.92%
Sales Q2Q%-12.41%
Revenue Next Year-11.67%
Revenue Next 2Y-2.07%
Revenue Next 3Y0.02%
Revenue Next 5Y5.74%
EBIT growth 1Y18.91%
EBIT growth 3YN/A
EBIT growth 5Y45.85%
EBIT Next Year14.22%
EBIT Next 3Y8.21%
EBIT Next 5Y5.24%
FCF growth 1Y84.72%
FCF growth 3Y43.14%
FCF growth 5Y89.05%
OCF growth 1Y103.46%
OCF growth 3Y42.47%
OCF growth 5Y18.18%