Executive Summary
Secure Energy Services Inc., an energy services company, provides specialized solutions to upstream oil and natural gas companies operating primarily in Western Canadian Sedimentary Basin and the United States.
Rewards
Risk Analysis
Dividend of 28.72% is not well covered by earnings or forecast to be in the next 3 years
Snowflake Analysis
Fair value with moderate growth potential.
Similar Companies
Share Price & News
How has Secure Energy Services's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: SES's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
-6.0%
SES
-5.0%
CA Energy Services
7.1%
CA Market
1 Year Return
-88.5%
SES
-72.0%
CA Energy Services
-25.3%
CA Market
Return vs Industry: SES underperformed the Canadian Energy Services industry which returned -72% over the past year.
Return vs Market: SES underperformed the Canadian Market which returned -25.3% over the past year.
Shareholder returns
| SES | Industry | Market | |
|---|---|---|---|
| 7 Day | -6.0% | -5.0% | 7.1% |
| 30 Day | -76.0% | -52.4% | -24.1% |
| 90 Day | -81.2% | -61.4% | -26.7% |
| 1 Year | -88.0%-88.5% | -70.5%-72.0% | -22.9%-25.3% |
| 3 Year | -89.3%-90.4% | -79.9%-81.9% | -15.6%-23.4% |
| 5 Year | -93.0%-94.1% | -81.8%-84.3% | -3.2%-17.5% |
Price Volatility Vs. Market
How volatile is Secure Energy Services's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 weeks ago | Simply Wall St
How Does Secure Energy Services Inc. (TSE:SES) Affect Your Portfolio Volatility?1 month ago | Simply Wall St
How Does Secure Energy Services Inc. (TSE:SES) Fare As A Dividend Stock?2 months ago | Simply Wall St
Don't Race Out To Buy Secure Energy Services Inc. (TSE:SES) Just Because It's Going Ex-DividendValuation
Is Secure Energy Services undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: SES (CA$0.94) is trading below our estimate of fair value (CA$7.47)
Significantly Below Fair Value: SES is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: SES is poor value based on its PE Ratio (93.4x) compared to the Energy Services industry average (9.2x).
PE vs Market: SES is poor value based on its PE Ratio (93.4x) compared to the Canadian market (10.6x).
Price to Earnings Growth Ratio
PEG Ratio: SES is poor value based on its PEG Ratio (3.9x)
Price to Book Ratio
PB vs Industry: SES is good value based on its PB Ratio (0.2x) compared to the CA Energy Services industry average (0.3x).
Next Steps
Future Growth
How is Secure Energy Services forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?
24.0%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: SES's forecast earnings growth (24% per year) is above the savings rate (1.4%).
Earnings vs Market: SES's earnings (24% per year) are forecast to grow faster than the Canadian market (7.8% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: SES's revenue is expected to decline over the next 3 years (-1.6% per year).
High Growth Revenue: SES's revenue is forecast to decline over the next 3 years (-1.6% per year).
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: SES's Return on Equity is forecast to be low in 3 years time (2.5%).
Next Steps
Past Performance
How has Secure Energy Services performed over the past 5 years?
36.0%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: SES has high quality earnings.
Growing Profit Margin: SES's current net profit margins (0.05%) are lower than last year (0.7%).
Past Earnings Growth Analysis
Earnings Trend: SES has become profitable over the past 5 years, growing earnings by 36% per year.
Accelerating Growth: SES's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: SES had negative earnings growth (-92%) over the past year, making it difficult to compare to the Energy Services industry average (18.1%).
Return on Equity
High ROE: SES's Return on Equity (0.02%) is considered low.
Next Steps
Financial Health
How is Secure Energy Services's financial position?
Financial Position Analysis
Short Term Liabilities: SES's short term assets (CA$314.5M) exceed its short term liabilities (CA$210.3M).
Long Term Liabilities: SES's short term assets (CA$314.5M) do not cover its long term liabilities (CA$624.7M).
Debt to Equity History and Analysis
Debt Level: SES's debt to equity ratio (55.8%) is considered high.
Reducing Debt: SES's debt to equity ratio has increased from 51.8% to 55.8% over the past 5 years.
Balance Sheet
Inventory Level: SES has a high level of physical assets or inventory.
Debt Coverage by Assets: SES's debt is not covered by short term assets (assets are 0.7x debt).
Cash Runway Analysis
For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.
Stable Cash Runway: SES is profitable, therefore cash runway is not a concern.
Forecast Cash Runway: SES is profitable, therefore cash runway is not a concern.
Next Steps
Dividend
What is Secure Energy Services's current dividend yield, its reliability and sustainability?
28.72%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: SES's dividend (28.72%) is higher than the bottom 25% of dividend payers in the Canadian market (2.75%).
High Dividend: SES's dividend (28.72%) is in the top 25% of dividend payers in the Canadian market (8.79%)
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, SES has been paying a dividend for less than 10 years.
Growing Dividend: SES's dividend payments have increased, but the company has only paid a dividend for 7 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (2683.1%), SES's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: SES is forecast to pay a dividend in 3 years whilst incurring a loss, therefore the dividend is not forecast to be well covered.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.5yrs
Average management tenure
CEO
Rene Amirault (58yo)
13s
Tenure
CA$2,804,481
Compensation
Mr. Rene E. Amirault, CGA, has been the President and Chief Executive Officer at Secure Energy Services Inc. (formerly Secure Energy Services Ltd.) since March 2007. Mr. Amirault served as the Chief Execut ...
CEO Compensation Analysis
Compensation vs Market: Rene's total compensation ($USD1.99M) is above average for companies of similar size in the Canadian market ($USD157.44K).
Compensation vs Earnings: Rene's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 13yrs | CA$2.80m | 2.17% CA$3.5m | |
| Chief Financial Officer | 2.5yrs | CA$1.41m | 0.072% CA$117.3k | |
| Executive Vice President of Corporate Development | 0.83yr | CA$1.54m | 0.14% CA$234.2k | |
| Chief Operating Officer of Midstream | 0.92yr | CA$2.16m | 0.29% CA$468.6k | |
| Executive Vice President of Commercial & Transportation | 2.5yrs | CA$1.77m | 0.051% CA$83.1k | |
| Executive Vice President of Operations | 0.83yr | CA$1.88m | 0.16% CA$256.4k | |
| Executive Vice President of Drilling & Production Services | 7.25yrs | CA$1.12m | 0.40% CA$652.5k | |
| Executive Vice President of Corporate Services | 0.83yr | CA$1.06m | 0.10% CA$166.4k | |
| Executive Vice President of Environmental Solutions | 6.92yrs | CA$1.06m | 0.28% CA$450.8k |
2.5yrs
Average Tenure
50yo
Average Age
Experienced Management: SES's management team is considered experienced (2.5 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 13yrs | CA$2.80m | 2.17% CA$3.5m | |
| Independent Director | 10.92yrs | CA$187.00k | 0.030% CA$48.9k | |
| Independent Director | 12.5yrs | CA$195.34k | 0.047% CA$76.7k | |
| Lead Independent Director | 10.25yrs | CA$207.34k | 0.25% CA$402.5k | |
| Independent Director | 12.75yrs | CA$199.95k | 0.27% CA$448.2k | |
| Independent Director | 1.08yrs | CA$177.50k | 0.021% CA$34.3k | |
| Director | 4.83yrs | CA$185.63k | 0.40% CA$654.4k | |
| Independent Director | 0.92yr | CA$102.67k | no data | |
| Independent Director | 6.83yrs | CA$179.50k | 0.011% CA$17.8k | |
| Independent Director | 1.58yrs | CA$172.00k | 0.0091% CA$14.9k |
8.5yrs
Average Tenure
58yo
Average Age
Experienced Board: SES's board of directors are considered experienced (8.5 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: SES insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Secure Energy Services Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Secure Energy Services Inc.
- Ticker: SES
- Exchange: TSX
- Founded:
- Industry: Oil and Gas Equipment and Services
- Sector: Energy
- Market Cap: CA$163.747m
- Shares outstanding: 157.45m
- Website: https://www.secure-energy.com
Number of Employees
Location
- Secure Energy Services Inc.
- Bow Valley Square 2
- Suite 3600
- Calgary
- Alberta
- T2P 2V7
- Canada
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| SES | TSX (The Toronto Stock Exchange) | Yes | Common Shares | CA | CAD | Mar 2010 |
| SEP | DB (Deutsche Boerse AG) | Yes | Common Shares | DE | EUR | Mar 2010 |
| SECY.F | OTCPK (Pink Sheets LLC) | Yes | Common Shares | US | USD | Mar 2010 |
Biography
Secure Energy Services Inc., an energy services company, provides specialized solutions to upstream oil and natural gas companies operating primarily in Western Canadian Sedimentary Basin and the United States. The company’s Midstream Infrastructure division provides services, such as clean oil terminalling, rail transloading, pipeline transportation, marketing and custom treating of crude oil, produced and waste water disposal, oilfield waste processing, and purchase/resale of oil services through its full service terminals, rail facilities, crude oil pipelines, crude oil terminalling facilities, water disposal facilities, and landfills. Its Environmental Solutions division offers pipeline integrity projects; demolition, decommissioning, reclamation, and remediation of former well sites, facilities, and commercial and industrial properties; environmental construction projects; onsite integrated fluid solutions for water management, recycling, pumping, and storage; naturally occurring radioactive material management; waste container services; and emergency response services. The company’s Technical Solutions division provides product solutions for drilling, completion, and production operations for oil and gas producers; and design and implementation of drilling fluid systems for producers drilling for oil, bitumen, and natural gas. This division also offers equipment and chemical solutions for chemicals and enhanced oil recovery line. Secure Energy Services Inc. is headquartered in Calgary, Canada.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/03/28 01:51 |
| End of Day Share Price | 2020/03/27 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.