OTCPK:SECY.F

Stock Analysis Report

Secure Energy Services

Executive Summary

Secure Energy Services Inc., an energy services company, provides specialized solutions to upstream oil and natural gas companies operating primarily in the Western Canadian Sedimentary Basin and North Dakota.

Snowflake

Fundamentals

Moderate growth potential and slightly overvalued.


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


Market Performance


7 Day Return

-9.0%

OTCPK:SECY.F

-5.0%

US Energy Services

-0.7%

US Market


1 Year Return

-28.6%

OTCPK:SECY.F

-47.5%

US Energy Services

-0.5%

US Market

SECY.F outperformed the Energy Services industry which returned -47.1% over the past year.

SECY.F underperformed the Market in United States of America which returned -0.4% over the past year.


Share holder returns

SECY.FIndustryMarket
7 Day-9.0%-5.0%-0.7%
30 Day-15.6%-15.0%-3.0%
90 Dayn/a-21.3%0.9%
1 Year-26.0%-28.6%-46.2%-47.5%1.7%-0.5%
3 Year-29.0%-35.4%-54.2%-59.6%39.5%30.4%
5 Year-78.7%-81.4%-71.0%-75.2%54.1%37.0%

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

No news available

Valuation

Is Secure Energy Services undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Secure Energy Services's share price is below the future cash flow value, and at a moderate discount (> 20%).

Secure Energy Services's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Secure Energy Services is overvalued based on earnings compared to the US Energy Services industry average.

Secure Energy Services is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Secure Energy Services is poor value based on expected growth next year.


Price Based on Value of Assets

Secure Energy Services is overvalued based on assets compared to the US Energy Services industry average.


Next Steps

Future Growth

How is Secure Energy Services expected to perform in the next 1 to 3 years based on estimates from 10 analysts?

42.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Secure Energy Services's revenue is expected to grow by 4.5% yearly, however this is not considered high growth (20% yearly).

Secure Energy Services's earnings are expected to grow significantly at over 20% yearly.

Secure Energy Services's revenue growth is positive but not above the United States of America market average.

Secure Energy Services's earnings growth is expected to exceed the United States of America market average.

Secure Energy Services's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Secure Energy Services will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Secure Energy Services performed over the past 5 years?

5.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Secure Energy Services's year on year earnings growth rate has been positive over the past 5 years.

Secure Energy Services has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.

Secure Energy Services has become profitable in the last year making it difficult to compare the US Energy Services industry average.


Return on Equity

Secure Energy Services has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Secure Energy Services used its assets less efficiently than the US Energy Services industry average last year based on Return on Assets.


Return on Capital Employed

Secure Energy Services has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).


Next Steps

Financial Health

How is Secure Energy Services's financial position?


Financial Position Analysis

Secure Energy Services is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Secure Energy Services's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Secure Energy Services's level of debt (52%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (25.3% vs 52% today).

Debt is well covered by operating cash flow (43.7%, greater than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 2.4x annual interest expense, ideally 3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.6x debt.


Next Steps

Dividend

What is Secure Energy Services's current dividend yield, its reliability and sustainability?

4.43%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase Secure Energy Services before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

Secure Energy Services's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

Secure Energy Services's dividend is above the markets top 25% of dividend payers in United States of America (3.84%).

Whilst dividend payments have been stable, Secure Energy Services has been paying a dividend for less than 10 years.

Dividend payments have increased, but Secure Energy Services only paid a dividend in the past 6 years.


Current Payout to Shareholders

Dividends paid are not well covered by earnings (0.5x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Secure Energy Services's salary, the management and board of directors tenure and is there insider trading?

1.9yrs

Average management tenure


CEO

Rene Amirault (58yo)

12.4yrs

Tenure

CA$2,552,840

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

Rene's remuneration is about average for companies of similar size in United States of America.

Rene's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

1.9yrs

Average Tenure

50yo

Average Age

The average tenure for the Secure Energy Services management team is less than 2 years, this suggests a new team.


Board Age and Tenure

8.0yrs

Average Tenure

58yo

Average Age

The tenure for the Secure Energy Services board of directors is about average.


Insider Trading

More shares have been bought than sold by Secure Energy Services individual insiders in the past 3 months.


Recent Insider Transactions

SellCA$39,80208 Jul 19
George Wadsworth
EntityIndividual
Role
Senior Key Executive
Executive Vice President of Drilling & Production Services
Shares7,432
Max PriceCA$5.36
BuyCA$15,92903 Jul 19
Richard Wise
EntityIndividual
Role
Member of the Board of Directors
Director
Shares3,000
Max PriceCA$5.31
BuyCA$75,00811 Jun 19
Michele Harradence
EntityIndividual
Role
Member of the Board of Directors
Director
Shares14,285
Max PriceCA$5.25
BuyCA$10,67128 May 19
Richard Wise
EntityIndividual
Role
Member of the Board of Directors
Director
Shares2,000
Max PriceCA$5.34
SellCA$10506 May 19
David Engel
EntityIndividual
Role
Chief Operating Officer
Executive Vice President of Operations
Shares19
Max PriceCA$5.52
BuyCA$14,25402 May 19
Richard Wise
EntityIndividual
Role
Member of the Board of Directors
Director
Shares2,500
Max PriceCA$5.82
SellCA$103,11522 Mar 19
George Wadsworth
EntityIndividual
Role
Senior Key Executive
Executive Vice President of Drilling & Production Services
Shares16,000
Max PriceCA$6.44
SellCA$63,67006 Mar 19
George Wadsworth
EntityIndividual
Role
Senior Key Executive
Executive Vice President of Drilling & Production Services
Shares10,000
Max PriceCA$6.37
SellCA$19,83405 Mar 19
George Wadsworth
EntityIndividual
Role
Senior Key Executive
Executive Vice President of Drilling & Production Services
Shares3,066
Max PriceCA$6.47
SellCA$161,82505 Mar 19
Daniel Steinke
EntityIndividual
Role
Member of the Board of Directors
Director
Shares25,103
Max PriceCA$6.45
BuyCA$22,21804 Mar 19
Richard Wise
EntityIndividual
Role
Member of the Board of Directors
Director
Shares3,500
Max PriceCA$6.37
SellCA$17711 Nov 18
Corey Higham
EntityIndividual
Role
Head of Corporate Development
Executive Vice President of Corporate Development
Shares27
Max PriceCA$6.54
BuyCA$2,99705 Sep 18
Shaun Paterson
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares500
Max PriceCA$5.99

Ownership Breakdown


Management Team

  • Rene Amirault (58yo)

    Chairman

    • Tenure: 12.4yrs
    • Compensation: CA$2.55m
  • Brian K. McGurk

    Executive Vice President of Corporate Services

    • Tenure: 0.3yrs
    • Compensation: CA$1.06m
  • David Mattinson

    Executive Vice President of OnSite Services

    • Tenure: 6.3yrs
    • Compensation: CA$1.06m
  • Brad Markel

    Corporate Secretary

    • Tenure: 0.0yrs
  • Mike Mikuska (50yo)

    Executive Vice President of Commercial & Transportation

    • Tenure: 1.9yrs
  • Allen Gransch

    Chief Operating Officer of Midstream

    • Tenure: 0.3yrs
    • Compensation: CA$1.40m
  • George Wadsworth (47yo)

    Executive Vice President of Drilling & Production Services

    • Tenure: 6.7yrs
    • Compensation: CA$1.12m
  • Chad Magus

    Chief Financial Officer

    • Tenure: 1.9yrs
    • Compensation: CA$1.20m
  • Corey Higham

    Executive Vice President of Corporate Development

    • Tenure: 0.3yrs
    • Compensation: CA$1.31m
  • Dave Engel

    Executive Vice President of Operations

    • Tenure: 0.3yrs
    • Compensation: CA$1.88m

Board Members

  • Brad Munro (59yo)

    Independent Director

    • Tenure: 10.3yrs
    • Compensation: CA$244.50k
  • Rene Amirault (58yo)

    Chairman

    • Tenure: 12.4yrs
    • Compensation: CA$2.55m
  • Kevin Nugent (53yo)

    Independent Director

    • Tenure: 11.9yrs
    • Compensation: CA$247.50k
  • Murray Cobbe (70yo)

    Lead Independent Director

    • Tenure: 9.7yrs
    • Compensation: CA$255.50k
  • Dave Johnson (68yo)

    Independent Director

    • Tenure: 12.2yrs
    • Compensation: CA$244.50k
  • Rick Wise (58yo)

    Director

    • Tenure: 0.5yrs
  • Dan Steinke (54yo)

    Director

    • Tenure: 4.3yrs
    • Compensation: CA$1.64m
  • Deanna Zumwalt (49yo)

    Director

    • Tenure: 0.3yrs
  • Shaun Paterson (65yo)

    Independent Director

    • Tenure: 6.3yrs
    • Compensation: CA$229.50k
  • Michele Harradence (50yo)

    Director

    • Tenure: 1.0yrs
    • Compensation: CA$92.00k

Company Information

Secure Energy Services Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Secure Energy Services Inc.
  • Ticker: SECY.F
  • Exchange: OTCPK
  • Founded:
  • Industry: Oil and Gas Equipment and Services
  • Sector: Energy
  • Market Cap: CA$962.228m
  • Listing Market Cap: CA$724.019m
  • Shares outstanding: 158.00m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SESTSX (The Toronto Stock Exchange)YesCommon SharesCACADMar 2010
SEPDB (Deutsche Boerse AG)YesCommon SharesDEEURMar 2010
SECY.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDMar 2010

Biography

Secure Energy Services Inc., an energy services company, provides specialized solutions to upstream oil and natural gas companies operating primarily in the Western Canadian Sedimentary Basin and North Dak ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/19 00:35
End of Day Share Price2019/08/15 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.