SECURE WASTE INFRASTRUCTURE (SES.CA) Stock Fundamental Analysis
TSX:SES - Toronto Stock Exchange - CA8139211038 - Common Stock - Currency: CAD
We assign a fundamental rating of 6 out of 10 to SES. SES was compared to 504 industry peers in the Oil, Gas & Consumable Fuels industry. SES scores excellent points on both the profitability and health parts. This is a solid base for a good stock. SES is not valued too expensively and it also shows a decent growth rate. This makes SES very considerable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year SES was profitable.
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.
1.2 Ratios
Looking at the Return On Assets, with a value of 25.75%, SES belongs to the top of the industry, outperforming 97.61% of the companies in the same industry.
SES has a better Return On Equity (63.66%) than 100.00% of its industry peers.
The Return On Invested Capital of SES (14.99%) is better than 95.69% 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 13.67%.
The 3 year average ROIC (12.50%) for SES is below the current ROIC(14.99%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 25.75% | ||
| ROE | 63.66% | ||
| ROIC | 14.99% |
ROA(3y)12.95%
ROA(5y)5.15%
ROE(3y)28.94%
ROE(5y)11.22%
ROIC(3y)12.5%
ROIC(5y)N/A
1.3 Margins
SES has a Profit Margin of 4.64%. This is comparable to the rest of the industry: SES outperforms 56.94% of its industry peers.
SES's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 2.54%, SES perfoms like the industry average, outperforming 47.37% of the companies in the same industry.
SES's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 3.96%, SES perfoms like the industry average, outperforming 41.15% of the companies in the same industry.
SES's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.54% | ||
| PM (TTM) | 4.64% | ||
| GM | 3.96% |
OM growth 3Y-0.69%
OM growth 5Y26.32%
PM growth 3YN/A
PM growth 5Y153.2%
GM growth 3Y-10.11%
GM growth 5Y-0.77%
2. Health
2.1 Basic Checks
SES has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for SES has been reduced compared to 1 year ago.
SES has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, SES has an improved debt to assets ratio.
2.2 Solvency
SES has an Altman-Z score of 7.51. This indicates that SES is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 7.51, SES belongs to the top of the industry, outperforming 89.95% of the companies in the same industry.
The Debt to FCF ratio of SES is 1.63, which is an excellent value as it means it would take SES, only 1.63 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of SES (1.63) is better than 87.56% of its industry peers.
SES has a Debt/Equity ratio of 0.70. This is a neutral value indicating SES is somewhat dependend on debt financing.
SES has a worse Debt to Equity ratio (0.70) than 61.24% of its industry peers.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 1.63 | ||
| Altman-Z | 7.51 |
ROIC/WACC1.9
WACC7.89%
2.3 Liquidity
SES has a Current Ratio of 1.00. This is a normal value and indicates that SES is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Current ratio value of 1.00, SES is doing good in the industry, outperforming 60.77% of the companies in the same industry.
SES has a Quick Ratio of 1.00. This is a bad value and indicates that SES is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.77, SES perfoms like the industry average, outperforming 58.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1 | ||
| Quick Ratio | 0.77 |
3. Growth
3.1 Past
SES shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -58.25%.
The Earnings Per Share has been growing by 121.24% on average over the past years. This is a very strong growth
SES shows a strong growth in Revenue. In the last year, the Revenue has grown by 45.56%.
SES shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 28.44% yearly.
EPS 1Y (TTM)-58.25%
EPS 3YN/A
EPS 5Y121.24%
EPS Q2Q%-89.12%
Revenue 1Y (TTM)45.56%
Revenue growth 3Y41.51%
Revenue growth 5Y28.44%
Sales Q2Q%3.06%
3.2 Future
The Earnings Per Share is expected to decrease by -13.61% on average over the next years. This is quite bad
Based on estimates for the next years, SES will show a quite strong growth in Revenue. The Revenue will grow by 11.30% on average per year.
EPS Next Y-53.03%
EPS Next 2Y-27.94%
EPS Next 3Y-13.61%
EPS Next 5YN/A
Revenue Next Year6.5%
Revenue Next 2Y5.81%
Revenue Next 3Y6.5%
Revenue Next 5Y11.3%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 18.41 indicates a rather expensive valuation of SES.
The rest of the industry has a similar Price/Earnings ratio as SES.
SES is valuated rather cheaply when we compare the Price/Earnings ratio to 26.43, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 13.54 indicates a correct valuation of SES.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SES is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 22.17. SES is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.41 | ||
| Fwd PE | 13.54 |
4.2 Price Multiples
SES's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SES is cheaper than 66.03% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SES indicates a rather cheap valuation: SES is cheaper than 84.69% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.91 | ||
| EV/EBITDA | 8.07 |
4.3 Compensation for Growth
The decent profitability rating of SES may justify a higher PE ratio.
SES's earnings are expected to decrease with -13.61% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.15
EPS Next 2Y-27.94%
EPS Next 3Y-13.61%
5. Dividend
5.1 Amount
SES has a Yearly Dividend Yield of 2.68%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.38, SES pays a bit more dividend than its industry peers.
SES's Dividend Yield is comparable with the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.68% |
5.2 History
On average, the dividend of SES grows each year by 7.92%, which is quite nice.
SES has paid a dividend for at least 10 years, which is a reliable track record.
SES has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)7.92%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
15.97% of the earnings are spent on dividend by SES. This is a low number and sustainable payout ratio.
DP15.97%
EPS Next 2Y-27.94%
EPS Next 3Y-13.61%
TSX:SES (6/4/2025, 7:00:00 PM)
14.91
-0.38 (-2.49%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners39%
Inst Owner ChangeN/A
Ins Owners1.71%
Ins Owner ChangeN/A
Market Cap3.44B
Analysts76.92
Price Target17.62 (18.18%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.68% |
Yearly Dividend0.4
Dividend Growth(5Y)7.92%
DP15.97%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-35.15%
Min EPS beat(2)-37.7%
Max EPS beat(2)-32.59%
EPS beat(4)1
Avg EPS beat(4)-1.69%
Min EPS beat(4)-37.7%
Max EPS beat(4)75.52%
EPS beat(8)4
Avg EPS beat(8)118.95%
EPS beat(12)6
Avg EPS beat(12)93.63%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-3.18%
Min Revenue beat(2)-11%
Max Revenue beat(2)4.65%
Revenue beat(4)3
Avg Revenue beat(4)4.67%
Min Revenue beat(4)-11%
Max Revenue beat(4)17.9%
Revenue beat(8)7
Avg Revenue beat(8)4.32%
Revenue beat(12)11
Avg Revenue beat(12)146.93%
Revenue beat(16)15
Avg Revenue beat(16)200.29%
PT rev (1m)-3.11%
PT rev (3m)-5.18%
EPS NQ rev (1m)-6.1%
EPS NQ rev (3m)-8.33%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.4%
Revenue NQ rev (1m)-1.49%
Revenue NQ rev (3m)-4.33%
Revenue NY rev (1m)-1.15%
Revenue NY rev (3m)-2.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.41 | ||
| Fwd PE | 13.54 | ||
| P/S | 0.26 | ||
| P/FCF | 7.91 | ||
| P/OCF | 5.83 | ||
| P/B | 3.53 | ||
| P/tB | 5.43 | ||
| EV/EBITDA | 8.07 |
EPS(TTM)0.81
EY5.43%
EPS(NY)1.1
Fwd EY7.38%
FCF(TTM)1.88
FCFY12.64%
OCF(TTM)2.56
OCFY17.14%
SpS57.92
BVpS4.22
TBVpS2.75
PEG (NY)N/A
PEG (5Y)0.15
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 25.75% | ||
| ROE | 63.66% | ||
| ROCE | 19.03% | ||
| ROIC | 14.99% | ||
| ROICexc | 15.16% | ||
| ROICexgc | 18.79% | ||
| OM | 2.54% | ||
| PM (TTM) | 4.64% | ||
| GM | 3.96% | ||
| FCFM | 3.25% |
ROA(3y)12.95%
ROA(5y)5.15%
ROE(3y)28.94%
ROE(5y)11.22%
ROIC(3y)12.5%
ROIC(5y)N/A
ROICexc(3y)12.62%
ROICexc(5y)N/A
ROICexgc(3y)15.28%
ROICexgc(5y)N/A
ROCE(3y)15.88%
ROCE(5y)N/A
ROICexcg growth 3Y64.69%
ROICexcg growth 5Y64.56%
ROICexc growth 3Y66%
ROICexc growth 5Y59.12%
OM growth 3Y-0.69%
OM growth 5Y26.32%
PM growth 3YN/A
PM growth 5Y153.2%
GM growth 3Y-10.11%
GM growth 5Y-0.77%
F-Score5
Asset Turnover5.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 1.63 | ||
| Debt/EBITDA | 1.33 | ||
| Cap/Depr | 89.6% | ||
| Cap/Sales | 1.16% | ||
| Interest Coverage | 8.27 | ||
| Cash Conversion | 115.23% | ||
| Profit Quality | 70.16% | ||
| Current Ratio | 1 | ||
| Quick Ratio | 0.77 | ||
| Altman-Z | 7.51 |
F-Score5
WACC7.89%
ROIC/WACC1.9
Cap/Depr(3y)77.13%
Cap/Depr(5y)61.14%
Cap/Sales(3y)1.64%
Cap/Sales(5y)1.99%
Profit Quality(3y)116.66%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-58.25%
EPS 3YN/A
EPS 5Y121.24%
EPS Q2Q%-89.12%
EPS Next Y-53.03%
EPS Next 2Y-27.94%
EPS Next 3Y-13.61%
EPS Next 5YN/A
Revenue 1Y (TTM)45.56%
Revenue growth 3Y41.51%
Revenue growth 5Y28.44%
Sales Q2Q%3.06%
Revenue Next Year6.5%
Revenue Next 2Y5.81%
Revenue Next 3Y6.5%
Revenue Next 5Y11.3%
EBIT growth 1Y-2.59%
EBIT growth 3Y40.53%
EBIT growth 5Y62.24%
EBIT Next Year128.59%
EBIT Next 3Y37.61%
EBIT Next 5Y29.12%
FCF growth 1Y55.91%
FCF growth 3Y127.08%
FCF growth 5Y36.82%
OCF growth 1Y44.61%
OCF growth 3Y88.67%
OCF growth 5Y20.38%