SECURE WASTE INFRASTRUCTURE (SES.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:SES - CA8139211038 - Common Stock
17.34 CAD
-0.04 (-0.23%)
Taking everything into account, SES scores 5 out of 10 in our fundamental rating. SES was compared to 206 industry peers in the Oil, Gas & Consumable Fuels industry. While SES belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. SES does not seem to be growing, but still is valued expensively.
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.
- Each year in the past 5 years SES had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of SES (4.09%) is better than 78.16% of its industry peers.
- With an excellent Return On Equity value of 13.40%, SES belongs to the best of the industry, outperforming 89.81% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 10.66%, SES belongs to the top of the industry, outperforming 95.63% of the companies in the same industry.
- SES had an Average Return On Invested Capital over the past 3 years of 12.50%. This is significantly above the industry average of 6.62%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.09% | ||
| ROE | 13.4% | ||
| ROIC | 10.66% |
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 (1.02%) which is comparable to the rest of the industry.
- SES's Profit Margin has improved in the last couple of years.
- SES has a Operating Margin (2.63%) which is comparable to the rest of the industry.
- SES's Operating Margin has improved in the last couple of years.
- With a Gross Margin value of 3.99%, SES perfoms like the industry average, outperforming 45.63% of the companies in the same industry.
- In the last couple of years the Gross Margin of SES has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.63% | ||
| PM (TTM) | 1.02% | ||
| GM | 3.99% |
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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SES is creating some value.
- SES has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, SES has more shares outstanding
- Compared to 1 year ago, SES has an improved debt to assets ratio.
2.2 Solvency
- SES has an Altman-Z score of 5.74. This indicates that SES is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of SES (5.74) is better than 85.92% of its industry peers.
- The Debt to FCF ratio of SES is 9.95, which is on the high side as it means it would take SES, 9.95 years of fcf income to pay off all of its debts.
- SES has a Debt to FCF ratio of 9.95. This is in the better half of the industry: SES outperforms 73.30% of its industry peers.
- SES has a Debt/Equity ratio of 1.27. This is a high value indicating a heavy dependency on external financing.
- SES has a Debt to Equity ratio of 1.27. This is in the lower half of the industry: SES underperforms 60.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.27 | ||
| Debt/FCF | 9.95 | ||
| Altman-Z | 5.74 |
ROIC/WACC1.39
WACC7.68%
2.3 Liquidity
- SES has a Current Ratio of 1.21. This is a normal value and indicates that SES is financially healthy and should not expect problems in meeting its short term obligations.
- SES has a Current ratio of 1.21. This is in the better half of the industry: SES outperforms 68.45% of its industry peers.
- A Quick Ratio of 0.92 indicates that SES may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.92, SES is in the better half of the industry, outperforming 64.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.21 | ||
| Quick Ratio | 0.92 |
3. Growth
3.1 Past
- The earnings per share for SES have decreased strongly by -79.82% in the last year.
- Measured over the past years, SES shows a very strong growth in Earnings Per Share. The EPS has been growing by 121.24% on average per year.
- The Revenue for SES has decreased by -23.28% in the past year. This is quite bad
- SES shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 28.44% yearly.
EPS 1Y (TTM)-79.82%
EPS 3YN/A
EPS 5Y121.24%
EPS Q2Q%-100%
Revenue 1Y (TTM)-23.28%
Revenue growth 3Y41.51%
Revenue growth 5Y28.44%
Sales Q2Q%-2.41%
3.2 Future
- Based on estimates for the next years, SES will show a very negative growth in Earnings Per Share. The EPS will decrease by -19.41% on average per year.
- The Revenue is expected to decrease by -8.27% on average over the next years.
EPS Next Y-71.21%
EPS Next 2Y-31.76%
EPS Next 3Y-19.41%
EPS Next 5YN/A
Revenue Next Year-60.16%
Revenue Next 2Y-34.05%
Revenue Next 3Y-23.11%
Revenue Next 5Y-8.27%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last 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.
4. Valuation
4.1 Price/Earnings Ratio
- SES is valuated quite expensively with a Price/Earnings ratio of 39.41.
- SES's Price/Earnings ratio is in line with the industry average.
- SES's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 28.60.
- The Price/Forward Earnings ratio is 17.56, which indicates a rather expensive current valuation of SES.
- SES's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. SES is cheaper than 62.62% of the companies in the same industry.
- SES is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.41 | ||
| Fwd PE | 17.56 |
4.2 Price Multiples
- SES's Enterprise Value to EBITDA is on the same level as the industry average.
- Based on the Price/Free Cash Flow ratio, SES is valued a bit cheaper than the industry average as 61.65% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.11 | ||
| EV/EBITDA | 10.61 |
4.3 Compensation for Growth
- SES has a very decent profitability rating, which may justify a higher PE ratio.
- SES's earnings are expected to decrease with -19.41% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.33
EPS Next 2Y-31.76%
EPS Next 3Y-19.41%
5. Dividend
5.1 Amount
- SES has a Yearly Dividend Yield of 2.28%.
- SES's Dividend Yield is a higher than the industry average which is at 3.29.
- Compared to an average S&P500 Dividend Yield of 1.82, SES pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.28% |
5.2 History
- The dividend of SES is nicely growing with an annual growth rate of 7.92%!
- SES has been paying a dividend for at least 10 years, so it has 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
- 91.35% of the earnings are spent on dividend by SES. This is not a sustainable payout ratio.
- The Dividend Rate of SES has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP91.35%
EPS Next 2Y-31.76%
EPS Next 3Y-19.41%
SECURE WASTE INFRASTRUCTURE / SES.CA FAQ
What is the fundamental rating for SES stock?
ChartMill assigns a fundamental rating of 5 / 10 to SES.CA.
What is the valuation status of SECURE WASTE INFRASTRUCTURE (SES.CA) stock?
ChartMill assigns a valuation rating of 3 / 10 to SECURE WASTE INFRASTRUCTURE (SES.CA). This can be considered as Overvalued.
What is the profitability of SES stock?
SECURE WASTE INFRASTRUCTURE (SES.CA) has a profitability rating of 7 / 10.
What is the financial health of SECURE WASTE INFRASTRUCTURE (SES.CA) stock?
The financial health rating of SECURE WASTE INFRASTRUCTURE (SES.CA) is 5 / 10.
Is the dividend of SECURE WASTE INFRASTRUCTURE sustainable?
The dividend rating of SECURE WASTE INFRASTRUCTURE (SES.CA) is 5 / 10 and the dividend payout ratio is 91.35%.