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Nervous markets await NvidiaThis summary was created by AI, based on 4 opinions in the last 12 months.
Secure Energy Services (SES-T) is positioned as a strong player in the waste remediation and metals recycling industry, boasting a stable recurring revenue model and a cash flow conversion rate that is notably high at around 50%. The company is growing both organically and through acquisitions, with a significant capital allocation toward share buybacks, further supported by the recent large share purchase by its Chairman. Analysts are optimistic about SES, projecting a price target of $18.97, and highlighting its relatively inexpensive valuation and consistent dividend yield of 2.91%. Despite reporting a slight decline in EPS and revenue for the most recent quarter, SES has shown resilience in its core operations, as reflected in its adjusted EBITDA guidance, leading to experts suggesting that it remains a compelling investment opportunity despite some market cyclicality.
Waste remediation, metals recycling. Recurring revenue. Cashflow conversion rate to free cashflow extremely high in the 50% range. Growing by acquisition and organically. Allocating a lot of capital to buybacks, and Chairman recently added a big share. Industry is not too cyclical, not too hurt by tariffs. Valuation inexpensive. Yield is 2.91%.
(Analysts’ price target is $18.97)SES is cheap and has a decent balance sheet. It pays a 2.63% dividend which has shown a bit of growth. At $3.6B, it is significantly larger than QST ever was. SES has decent cash flow and the stock is up 48% in the past year. 2025 earnings, however, are expected to decline, but this does seem reflected in the low valuation of 7X earnings. The business can be cyclical, but would consider it worth buying on valuation and potential.
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For the quarter-ended, SES reported EPS of 12c missing estimates of 13c. Revenue (Excl oil purchase and resale) beat estimates of $333M coming in at $337M declining from $353M from the year prior. Adjusted EBITDA was $114M, declining from $119M but coming in well-ahead of forecasts of $102.15M. The comapny's CEO stated, "Strong second quarter results were driven by robust industry fundamentals, favorable weather conditions, and continued operational execution across our business units, resulting in double digit revenue growth on a same store sales basis." SES also raised its full-year adjusted EBITDA guidance and repurchased approximately 11% of outstanding shares in the quarter. The decline in revenue appears to be driven by wek industry conditions, but we think the results are fine outside of that. The adjusted EBITDA guidance raise is good to see and SES continues to be cheap at 13.5x forward earnings.
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Environmental services. Processes wastewater for oil and gas, mid-stream processing and storage. Very attractive EBITDA margins of 35-40%. Just bought biggest competitor. Stock's down, as Competition Bureau is forcing divestitures. Company is appealing this, good chance of winning. 9x earnings, share buybacks. Yield is 6.10%.
(Analysts’ price target is $8.73)(A Top Pick July 5/16. Up 5.41%.) *Long* (Pairs trade with a Short on Precision Drilling (PD-T). This operates in the environmental reclamation business. Environmental liabilities are something that are becoming increasingly important, particularly in Canada where they have most of their market share. He is still quite fond of this.
Secure Energy Services Inc. is a Canadian stock, trading under the symbol SES-T on the Toronto Stock Exchange (SES-CT). It is usually referred to as TSX:SES or SES-T
In the last year, 6 stock analysts published opinions about SES-T. 2 analysts recommended to BUY the stock. 2 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Secure Energy Services Inc..
Secure Energy Services Inc. was recommended as a Top Pick by on . Read the latest stock experts ratings for Secure Energy Services Inc..
Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.
6 stock analysts on Stockchase covered Secure Energy Services Inc. In the last year. It is a trending stock that is worth watching.
On 2025-05-16, Secure Energy Services Inc. (SES-T) stock closed at a price of $14.34.
SES holds a basket of waste services and recycling assets that has recently expanded to include metals recycling -- not exciting business, but stable. It trades at 6x earnings and supports a 52% ROE. Cash flow is strong and growing rapidly to allow for aggressive debt retirement and shares buyback. We recommend setting a stop-loss at $9, looking to achieve $17 -- upside potential of 25%. Yield 0%
(Analysts’ price target is $17.93)