SECURE Waste Infrastructure Corp. Fundamental Analysis (TSX: SES.TO)
SECURE Waste Infrastructure Corp. Fundamental Analysis (TSX: SES.TO)
SECURE Waste Infrastructure Corp. (TSX: SES.TO) shows weak financial fundamentals with a PE ratio of 39.89, profit margin of -4.56%, and ROE of 16.77%. The company generates $-2.9B in annual revenue with weak year-over-year growth of -86.21%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -58.1/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze SES.TO's fundamental strength across five key dimensions:
Efficiency Score
WeakSES.TO struggles to generate sufficient returns from assets.
Valuation Score
ModerateSES.TO shows balanced valuation metrics.
Growth Score
WeakSES.TO faces weak or negative growth trends.
Financial Health Score
ModerateSES.TO shows balanced financial health with some risks.
Profitability Score
ModerateSES.TO maintains healthy but balanced margins.
Key Financial Metrics
Is SES.TO Expensive or Cheap?
P/E Ratio
SES.TO trades at 39.89 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, SES.TO's PEG of -1.44 indicates potential undervaluation.
Price to Book
The market values SECURE Waste Infrastructure Corp. at 6.54 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 8.62 times EBITDA. This is generally considered low.
How Well Does SES.TO Make Money?
Net Profit Margin
For every $100 in sales, SECURE Waste Infrastructure Corp. keeps $-4.56 as profit after all expenses.
Operating Margin
Core operations generate -9.91 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $16.77 in profit for every $100 of shareholder equity.
ROA
SECURE Waste Infrastructure Corp. generates $5.06 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
SECURE Waste Infrastructure Corp. generates limited operating cash flow of $422.01M, signaling weaker underlying cash strength.
Free Cash Flow
SECURE Waste Infrastructure Corp. generates weak or negative free cash flow of $191.00M, restricting financial flexibility.
FCF Per Share
Each share generates $0.88 in free cash annually.
FCF Yield
SES.TO converts 3.63% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
39.89
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.44
vs 25 benchmark
P/B Ratio
Price to book value ratio
6.54
vs 25 benchmark
P/S Ratio
Price to sales ratio
-1.82
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.26
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.20
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.17
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.14
vs 25 benchmark
How SES.TO Stacks Against Its Sector Peers
| Metric | SES.TO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 39.89 | 29.34 | Worse (Expensive) |
| ROE | 16.77% | 1104.00% | Weak |
| Net Margin | -4.56% | -25189.00% (disorted) | Weak |
| Debt/Equity | 1.26 | 0.95 | Weak (High Leverage) |
| Current Ratio | 1.20 | 21.76 | Neutral |
| ROA | 5.06% | -1328228.00% (disorted) | Weak |
SES.TO outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews SECURE Waste Infrastructure Corp.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-42.67%
Industry Style: Cyclical, Value, Infrastructure
DecliningEPS CAGR
202.79%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
30.15%
Industry Style: Cyclical, Value, Infrastructure
High Growth