Well, company is constantly pretending to be something they are not. Pull up 2015 results, all segments were down. This will never trade at a waste mgmt multiple because of that. For the rest, it is a quite nice biz.
You bring up a good point, all their division did get affected. Their PRD division in 2015 is what is most comparable to their current operations imo (Excl Metal recycling). That division had a 41% drawdown in revenues in 2015 compared to 2014 however, but only a 23% drawdown in Operating Margins , which aligns with what they say they are now 80% production exposed and 20% D&C.
No me robes mi catalana occidente!!!!! I don't mind selling stuff with a premium, its just that its a long term compounder and we have to pay taxes and stop the compounding
What's your take on SES.TO cyclicality? In 2015, O&G production in CA got blasted and all their segments got stomped.
The company claims to have gone from 40% recurring cash flows in 2014 to 80% in 2025, less exposure to D&C (drilling and completion services)
(https://www.secure-energy.com/hubfs/SES%20IR%20Presentation%20December%201%2c%202024.pdf)
SES has strategically divested more cyclical parts and reinvested in others.
But I guess we'll only find out how cyclical it still is when shit hits the fan.
Well, company is constantly pretending to be something they are not. Pull up 2015 results, all segments were down. This will never trade at a waste mgmt multiple because of that. For the rest, it is a quite nice biz.
You bring up a good point, all their division did get affected. Their PRD division in 2015 is what is most comparable to their current operations imo (Excl Metal recycling). That division had a 41% drawdown in revenues in 2015 compared to 2014 however, but only a 23% drawdown in Operating Margins , which aligns with what they say they are now 80% production exposed and 20% D&C.
Thanks for the update. Some well deserved outperformance there, especially waiting for tobacco to move.
Thanks, I'll keep in mind that maybe it's not as good a bizz as they try to make it seem.
No me robes mi catalana occidente!!!!! I don't mind selling stuff with a premium, its just that its a long term compounder and we have to pay taxes and stop the compounding