SECURE WASTE INFRASTRUCTURE (SES.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:SES - CA8139211038 - Common Stock
17.21 CAD
-0.57 (-3.21%)
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 has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
- In the past year SES was profitable.
- In the past year SES had a positive cash flow from operations.
- 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
- With a decent Return On Assets value of 4.09%, SES is doing good in the industry, outperforming 78.16% of the companies in the same industry.
- SES has a Return On Equity of 13.40%. This is amongst the best in the industry. SES outperforms 89.81% of its industry peers.
- 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
- With a Profit Margin value of 1.02%, SES perfoms like the industry average, outperforming 55.83% of the companies in the same industry.
- In the last couple of years the Profit Margin of SES has grown nicely.
- 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.
- SES's Gross Margin of 3.99% is in line compared to the rest of the industry. SES outperforms 45.63% of its industry peers.
- 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
- SES has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- Compared to 1 year ago, SES has less shares outstanding
- 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 5.73. This indicates that SES is financially healthy and has little risk of bankruptcy at the moment.
- With an excellent Altman-Z score value of 5.73, SES belongs to the best of the industry, outperforming 85.92% of the companies in the same industry.
- 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.
- With a decent Debt to FCF ratio value of 9.95, SES is doing good in the industry, outperforming 73.30% of the companies in the same industry.
- A Debt/Equity ratio of 1.27 is on the high side and indicates that SES has dependencies on debt financing.
- The Debt to Equity ratio of SES (1.27) is worse than 60.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.27 | ||
| Debt/FCF | 9.95 | ||
| Altman-Z | 5.73 |
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.
- With a decent Current ratio value of 1.21, SES is doing good in the industry, outperforming 68.45% of the companies in the same industry.
- A Quick Ratio of 0.92 indicates that SES may have some problems paying its short term obligations.
- With a decent Quick ratio value of 0.92, SES is doing good in 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.
- 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 very negative growth in Revenue. In the last year, the Revenue has decreased by -23.28%.
- The Revenue has been growing by 28.44% on average over the past years. This is a very strong growth!
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
- SES is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -19.41% yearly.
- SES is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -8.27% yearly.
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
- 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.
- 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
- The Price/Earnings ratio is 39.11, which means the current valuation is very expensive for SES.
- SES's Price/Earnings is on the same level as the industry average.
- When comparing the Price/Earnings ratio of SES to the average of the S&P500 Index (27.25), we can say SES is valued slightly more expensively.
- SES is valuated rather expensively with a Price/Forward Earnings ratio of 17.43.
- 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.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, SES is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.11 | ||
| Fwd PE | 17.43 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as SES.
- Based on the Price/Free Cash Flow ratio, SES is valued a bit cheaper than the industry average as 61.16% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.83 | ||
| EV/EBITDA | 10.55 |
4.3 Compensation for Growth
- SES has a very decent profitability rating, which may justify a higher PE ratio.
- A cheap valuation may be justified as SES's earnings are expected to decrease with -19.41% in the coming years.
PEG (NY)N/A
PEG (5Y)0.32
EPS Next 2Y-31.76%
EPS Next 3Y-19.41%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.28%, SES has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 3.29, SES pays a bit more dividend than its industry peers.
- SES's Dividend Yield is a higher than the S&P500 average which is at 1.82.
| 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 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
- SES pays out 91.35% of its income as dividend. 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%.