Stockchase Opinions

Stockchase Insights Secure Energy Services SES-T BUY Jan 27, 2025

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

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. 
Unlock Premium - Try 5i Free

$14.970

Stock price when the opinion was issued

oil gas
It's the ideal tool to help you make quicker, more informed decisions for managing and tracking your investments.

You might be interested:

PAST TOP PICK
(A Top Pick Nov 17/05. Up 17%.) They hired some very key executives from Precision Drilling. This was a stunning endorsement of the company and what they are doing. Added some Canadian assets.
DON'T BUY
Some of the service sector has not been doing as well as the energy themselves. It certainly has decent upside potential, more than $10. Would prefer to be in other areas of the energy sector.
PAST TOP PICK
(A Top Pick Nov 17/05. Down 1%.) An oil/gas service company. Dropped with the rest of them. Still likes it. Longer term energy services play.
BUY
Has been bouncing around a little bit because of sector rotation but with oil going back up its coming back. Excellent management team. There is a window of opportunity from 6 to 9 months for high prices to the oil service sector. There is also the potential for them to convert into a trust.
COMMENT
Has excellent management. Diversified their assets into North America, away from South America. Well run. There is a complete rotation in the sector with drilling being out of favour. Good hold for when it come back in favour.
DON'T BUY
Very high quality management. Unfortunately, they got caught in a downdraft in the energy services market and were not able to do all the acquisitions they were hoping for. Would prefer a lower price.
TOP PICK
An international oil/gas well drilling and service company. Service companies have been struggling because of the low price of gas. Earnings are expected to go from $.20 in his 2006 to $.42 in 2007 with another 32% growth in 2008. Ranks 22 one of 700.
WATCH
Ranks top third at 231 in his database. Looks like oil/gas service stocks are bottoming out. Not a Buy outright, but they are expected to grow earnings from $0.31 to $0.46 (48%) between 07 and 08.
PAST TOP PICK
(A Top Pick July 10/07. Down 1%.) Oil/gas drillers. The whole group is basically coming back.
WEAK BUY

Wish he had owned more shares. They did a good job selling off assets after the competition forced them.  The easy money has been made, unless they buy companies that reduces dependency to oil/gas.