• EN

    • -+ 0.00%
    -+ 0.00%
    -+ 0.00%

    SECURE Waste Infrastructure (TSX:SES) Stock Can Earnings Momentum Justify A 40x P/E

    Simply Wall St·07/31/2026 05:30:02
    Listen to the news

    SECURE Waste Infrastructure stock comes into this earnings day with clear momentum, up about 4.6% over the past week and almost 9.3% over the past month to close at CA$24.22 on 30 July. The headline this quarter is earnings power. Q2 basic earnings per share landed at CA$0.20 on CA$422 million of revenue, feeding into trailing 12 month earnings per share of about CA$0.61 and an 8.6% net margin over the past year.

    The market is still treating SECURE as a high growth, higher risk waste and energy infrastructure play, with the stock on roughly 40x earnings and trading well below one analyst discounted cash flow fair value estimate. The key question now is how that earnings profile and valuation line up with its heavy debt load and the multi year growth forecasts. This article will unpack those points in detail.

    Is SECURE Waste Infrastructure really trading at a deep discount to its CA$52.96 analyst DCF estimate, or does the 40x P/E signal extra risk that the market sees? Compare that gap directly in our valuation analysis for SECURE Waste Infrastructure

    Q2 2026 Earnings Summary

    • Revenue (Q2 2026 vs. Q2 2025): CA$422 million vs. CA$355 million (up about 18.9%)
    • Net Income (Q2 2026 vs. Q2 2025): CA$43 million vs. CA$31 million (up about 38.7%)
    • Basic EPS (Q2 2026 vs. Q2 2025): CA$0.197 vs. CA$0.138 (up about 42.6%)
    • Trailing 12 month Net Margin (to Q2 2026 vs. prior year): 8.6% compared with a 5.9% loss in the prior year, reflecting a shift to a positive margin

    Prefer clean, visual charts instead of another dense block of earnings numbers and ratios? See SECURE Waste Infrastructure’s full financial picture, including a clear view of its balance sheet strength, in our company report for SECURE Waste Infrastructure.

    TSX:SES Trailing 12-Month Revenue & Expenses Breakdown as at Jul 2026
    TSX:SES Trailing 12-Month Revenue & Expenses Breakdown as at Jul 2026

    SECURE bull case leans on improving earnings mix

    The latest quarter gives some support to a constructive view on SECURE Waste Infrastructure. Revenue of CA$422 million and net income of CA$43 million both moved ahead of last year, and basic EPS increased to about CA$0.20. That sits within a trailing 12 month earnings profile of roughly CA$0.61 and an 8.6% net margin. For investors who see SECURE as a critical waste and infrastructure platform, this shift to sustained profitability aligns with the idea of a more recurring, infrastructure style earnings base.

    SECURE bear case still hinges on risk and leverage

    The numbers also leave room for a cautious read. The business has only recently shifted from a prior year loss to an 8.6% net margin, so the track record of consistent profitability is still developing. Management plans about CA$100 million of growth capital in 2026, and the agreed C$6.4b acquisition value highlights a sizeable balance sheet. For investors worried about leverage and execution risk around integrating assets and maintaining returns on new projects, those concerns remain relevant despite the stronger Q2 print.

    Reveal where the surface looks calm for SECURE Waste Infrastructure at around CA$24, yet the multi year curves in the street models start to bend. Access the full revenue, EPS and free cash flow analyst estimates for SECURE Waste Infrastructure

    Own Your Next Investing Move

    If the mix of higher earnings multiples, debt, and that wide gap to the CA$52.96 DCF estimate has you watching SECURE Waste Infrastructure closely, register for free with Simply Wall St and add it to a Watchlist to keep an eye on price versus fair value and wait for your preferred entry point. After you are invested, use the Portfolio Command Center to cut through market noise and focus on the updates that matter for your holdings. For longer term context on SECURE Waste Infrastructure and other stocks, turn to the Community to see how different investors are thinking through the same risks and opportunities. This way you can surface potential catalysts and red flags early and stay ahead of the market.

    Seeking Fresh Alternatives Beyond SECURE Waste Infrastructure?

    Markets move fast and the next breakout ideas can shift before most investors react. Scan fresh momentum and stocks still under the radar for now. Act now.

    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.