SSC Security Services (SECU) AI Stock Analysis

• Market Cap: C$45.71M
• Dividend Yield: 4.85%
• Average Volume (3M): 11.08K
• Price to Earnings (P/E): 119.7
• Beta (1Y): 0.38
• Revenue Growth: -0.76%
• EPS Growth: -143.20%
• Country: CA
• Employees: 3,000
• Sector: Industrials
• Sector Strength: 89
• Industry: Security & Protection Services
• EPS (TTM): >-0.01
• Shares Outstanding: 18,356,087
• 10 Day Avg. Volume: 6,282
• 30 Day Avg. Volume: 11,077
• PEG Ratio: -3.32
• Price to Book (P/B): 0.70
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 10.52
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

SSC Security Services is underpinned by strong revenue growth and a robust balance sheet, which are counterbalanced by challenges in profitability and valuation. The stock benefits from positive corporate events, including a major contract and solid dividend policy, which provide a buffer against its high P/E ratio and profitability concerns. Investors seeking growth and income may find it attractive, but should be mindful of its valuation and operational efficiency needs.

SSC Security Services Business Overview & Revenue Model

Company Description

SSC Security Services (SECU) is a prominent player in the security services industry, specializing in providing comprehensive security solutions to a diverse client base. The company operates across various sectors, including commercial, industrial, and governmental, offering a wide range of services such as manned guarding, electronic surveillance, risk assessments, and security consulting. SSC Security Services is dedicated to ensuring the safety and security of its clients through innovative and reliable services.

How the Company Makes Money

SSC Security Services generates revenue primarily through the provision of security services to its clients. The company's key revenue streams include contracts for manned guarding, where it provides trained security personnel to safeguard client premises, and electronic surveillance services, which involve the installation and monitoring of security systems such as CCTV and alarm systems. Additionally, the company earns from consulting services, offering expert advice on risk management and security strategy. Partnerships with technology providers enhance their service offerings, contributing to their ability to meet client needs effectively and maintain a competitive edge in the market.

SSC Security Services Financial Statement Overview

Summary

SSC Security Services shows strong revenue growth and a solid balance sheet with low leverage, which are significant strengths. However, profitability is a concern with negative EBIT margins, and cash flow management needs attention to ensure alignment with profitability metrics. The company is well-positioned for growth, but focus on improving operational efficiency could drive better profitability and cash flow alignment.

Income Statement

SSC Security Services has demonstrated a robust revenue growth trajectory, with significant increases over the past years. The gross profit margin is healthy, indicating efficient cost management. However, the net profit margin is low, and EBIT margins are negative, signaling challenges in operational profitability. Improvement in controlling operating expenses could enhance profitability.

Balance Sheet

The balance sheet of SSC Security Services is strong, characterized by a solid equity base and a low debt-to-equity ratio, reflecting financial stability and a conservative leverage approach. The equity ratio is high, indicating a substantial portion of assets are financed by shareholders' equity, which reduces financial risk.

Cash Flow

The company's operating cash flow is positive and improving, which is a positive sign for liquidity. However, the free cash flow growth rate shows some volatility, and the free cash flow to net income ratio suggests that cash generation needs to be more aligned with profitability. Continued focus on enhancing cash flow stability is recommended.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
118.94M	120.62M	109.06M	49.70M	20.28M	25.59M
	Gross Profit
17.07M	17.57M	16.25M	8.47M	3.16M	4.17M
	EBIT
-716.07K	-504.04K	-1.88M	-3.98M	-1.09M	-29.75K
	EBITDA
3.74M	5.14M	3.78M	502.06K	3.50M	-204.97K
	Net Income Common Stockholders
404.34K	595.67K	87.14K	-981.38K	1.89M	-730.75K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
256.13K	13.51M	14.84M	11.73M	30.28M	27.31M
	Total Assets
260.54K	81.22M	84.78M	87.67M	84.89M	81.90M
	Total Debt
0.00	1.47M	1.75M	1.34M	2.92M	7.87M
	Net Debt
-256.13K	-11.87M	-13.10M	-9.86M	-25.88M	-19.36M
	Total Liabilities
19.81K	16.71M	17.09M	17.02M	9.02M	10.87M
	Stockholders Equity
240.73K	64.52M	67.69M	70.64M	75.87M	71.03M
Cash Flow		Free Cash Flow
4.21M	879.20K	1.35M	-5.19M	-501.77K	15.61M
	Operating Cash Flow
5.38M	1.96M	2.49M	-4.20M	998.00K	16.32M
	Investing Cash Flow
1.05M	1.46M	5.20M	-6.27M	9.44M	26.16M
	Financing Cash Flow
-4.78M	-4.92M	-4.04M	-7.13M	-8.88M	-26.73M

SSC Security Services Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.48
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:SECU, the sentiment is Positive. The current price of 2.48 is above the 20-day moving average (MA) of 2.44, above the 50-day MA of 2.40, and below the 200-day MA of 2.48, indicating a neutral trend. The MACD of 0.01 indicates Negative momentum. The RSI at 54.82 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:SECU.

SSC Security Services Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SECU	69 Neutral	C$45.71M	119.71	0.64%	4.85%	-0.76%	-143.20%
TTNM	65 Neutral	C$69.86M	―	-25.37%	5.75%	4.74%	-478.84%
Sector *	64 Neutral	$4.43B	12.01	5.15%	249.50%	3.98%	-11.60%
ZDC	63 Neutral	C$347.76M	187.15	7.39%	―	32.56%	-51.23%
GSI	63 Neutral	C$48.73M	144.83	-12.44%	―	-4.94%	-145.86%
XX	50 Neutral	C$26.92M	―	-26.97%	―	37.38%	-41.34%
SCAN	38 Underperform	$17.23M	―	216.65%	―	113.56%	31.13%

SSC Security Services Corporate Events

SSC Security Services Corp. Declares 35th Dividend Payment

SSC Security Services Corp. has announced its thirty-fifth dividend payment, declaring a cash dividend of $0.03 per common share for the quarter ending June 30, 2025. This announcement reflects the company’s commitment to providing returns to its shareholders and may enhance its attractiveness to investors, particularly those residing in Canada who can benefit from the enhanced dividend tax credit.

Spark’s Take on TSE:SECU Stock

According to Spark, TipRanks’ AI Analyst, TSE:SECU is a Neutral.

SSC Security Services is supported by strong revenue growth and a solid balance sheet, though profitability remains a challenge. The recent major contract is a significant positive corporate event, countering some valuation concerns. Investors may find the stock appealing for its growth potential and attractive dividend yield, but should be cautious of its high P/E ratio and current profitability challenges.

To see Spark’s full report on TSE:SECU stock, click here.

SSC Security Services Corp. Achieves Strong Margins and Consistent EBITDA in Q2 2025

SSC Security Services Corp. reported its second-quarter results, highlighting improved profit margins and consistent adjusted EBITDA despite a slight decline in revenue due to fewer temporary contracts compared to the previous year. The company emphasized its focus on operational management, gross margin growth, and share buybacks, maintaining a strong financial position with no long-term debt and significant cash reserves, which positions it well for future opportunities.

Spark’s Take on TSE:SECU Stock

According to Spark, TipRanks’ AI Analyst, TSE:SECU is a Neutral.

SSC Security Services is supported by strong revenue growth and a solid balance sheet, though profitability remains a challenge. The recent major contract is a significant positive corporate event, countering some valuation concerns. Investors may find the stock appealing for its growth potential and attractive dividend yield, but should be cautious of its high P/E ratio and current profitability challenges.

To see Spark’s full report on TSE:SECU stock, click here.

SSC Security Services Secures Major Contract with Canada’s Largest Airline

SSC Security Services Corp. has secured a long-term contract with Canada’s largest airline, effective May 1, 2025, to provide security services at all commercial and cargo screening locations, catering partner facilities, and hangars nationwide. This partnership represents a significant expansion in SSC’s aviation sector presence, highlighting its ability to attract major national accounts and reinforcing its expertise in the Canadian aviation security industry.

Spark’s Take on TSE:SECU Stock

According to Spark, TipRanks’ AI Analyst, TSE:SECU is a Neutral.

The overall stock score for SSC Security Services is 64, reflecting strong fundamentals in revenue growth and balance sheet strength, yet balanced by challenges in profitability and bearish technical indicators. The attractive dividend yield and positive corporate events provide some buffer against high valuation concerns. Continued focus on improving operational efficiency and profitability could enhance the stock’s attractiveness further.

To see Spark’s full report on TSE:SECU stock, click here.