SECURE WASTE INFRASTRUCTURE (SES.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:SES - CA8139211038 - Common Stock
17.54 CAD
-0.15 (-0.85%)
We assign a fundamental rating of 5 out of 10 to SES. SES was compared to 214 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.
- Each year in the past 5 years SES had a positive operating cash flow.
1.2 Ratios
- SES has a Return On Assets of 4.09%. This is in the better half of the industry: SES outperforms 78.97% of its industry peers.
- SES's Return On Equity of 13.40% is amongst the best of the industry. SES outperforms 90.19% of its industry peers.
- SES has a better Return On Invested Capital (10.66%) than 95.79% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for SES is significantly above the industry average of 6.53%.
| 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.
- In the last couple of years the Profit Margin of SES has grown nicely.
- SES has a Operating Margin (2.63%) which is in line with its industry peers.
- SES's Operating Margin has improved in the last couple of years.
- SES has a Gross Margin of 3.99%. This is comparable to the rest of the industry: SES outperforms 45.79% of its industry peers.
- SES's Gross Margin has been stable in the last couple of years.
| 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.
- The number of shares outstanding for SES has been reduced compared to 1 year ago.
- The number of shares outstanding for SES has been increased compared to 5 years ago.
- SES has a better debt/assets ratio than last year.
2.2 Solvency
- SES has an Altman-Z score of 5.75. This indicates that SES is financially healthy and has little risk of bankruptcy at the moment.
- SES has a Altman-Z score of 5.75. This is amongst the best in the industry. SES outperforms 85.51% 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.
- The Debt to FCF ratio of SES (9.95) is better than 74.30% 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 (1.27) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.27 | ||
| Debt/FCF | 9.95 | ||
| Altman-Z | 5.75 |
ROIC/WACC1.42
WACC7.53%
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 better Current ratio (1.21) than 69.16% of its industry peers.
- SES has a Quick Ratio of 1.21. 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 decent Quick ratio value of 0.92, SES is doing good in the industry, outperforming 64.95% 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
- Looking at the last year, SES shows a very negative growth in Revenue. The Revenue has decreased by -23.28% in the last year.
- 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
- 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.
- 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
- 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
- A Price/Earnings ratio of 39.86 indicates a quite expensive valuation of SES.
- 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 27.32.
- The Price/Forward Earnings ratio is 17.77, which indicates a rather expensive current valuation of SES.
- 61.68% of the companies in the same industry are more expensive than SES, based on the Price/Forward Earnings ratio.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.32, SES is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.86 | ||
| Fwd PE | 17.77 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SES is on the same level as its industry peers.
- SES's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. SES is cheaper than 61.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.54 | ||
| EV/EBITDA | 10.71 |
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)0.33
EPS Next 2Y-31.76%
EPS Next 3Y-19.41%
5. Dividend
5.1 Amount
- SES has a Yearly Dividend Yield of 2.32%. Purely for dividend investing, there may be better candidates out there.
- SES's Dividend Yield is a higher than the industry average which is at 2.82.
- Compared to an average S&P500 Dividend Yield of 1.83, SES pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.32% |
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
- 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%.