SOURCE ENERGY SERVICES LTD (SHLE.CA) Stock Fundamental Analysis
TSX:SHLE - Toronto Stock Exchange - CA83615X4075 - Common Stock - Currency: CAD
Taking everything into account, SHLE scores 4 out of 10 in our fundamental rating. SHLE was compared to 27 industry peers in the Energy Equipment & Services industry. There are concerns on the financial health of SHLE while its profitability can be described as average. A decent growth rate in combination with a cheap valuation! Better keep an eye on SHLE.
1. Profitability
1.1 Basic Checks
SHLE had positive earnings in the past year.
SHLE had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: SHLE reported negative net income in multiple years.
In the past 5 years SHLE always reported a positive cash flow from operatings.
1.2 Ratios
SHLE's Return On Assets of 1.59% is in line compared to the rest of the industry. SHLE outperforms 40.74% of its industry peers.
With a Return On Equity value of 5.01%, SHLE perfoms like the industry average, outperforming 40.74% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 7.60%, SHLE is in line with its industry, outperforming 48.15% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SHLE is below the industry average of 9.49%.
The 3 year average ROIC (6.71%) for SHLE is below the current ROIC(7.60%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.59% | ||
| ROE | 5.01% | ||
| ROIC | 7.6% |
ROA(3y)11.19%
ROA(5y)-8.84%
ROE(3y)-16.81%
ROE(5y)-196.91%
ROIC(3y)6.71%
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 1.41%, SHLE is in line with its industry, outperforming 40.74% of the companies in the same industry.
With a decent Operating Margin value of 9.69%, SHLE is doing good in the industry, outperforming 62.96% of the companies in the same industry.
In the last couple of years the Operating Margin of SHLE has grown nicely.
The Gross Margin of SHLE (18.89%) is comparable to the rest of the industry.
SHLE's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.69% | ||
| PM (TTM) | 1.41% | ||
| GM | 18.89% |
OM growth 3Y103.08%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y15.43%
GM growth 5Y10.85%
2. Health
2.1 Basic Checks
SHLE has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, SHLE has about the same amount of shares outstanding.
The number of shares outstanding for SHLE has been increased compared to 5 years ago.
The debt/assets ratio for SHLE has remained at the same level compared to a year ago.
2.2 Solvency
SHLE has an Altman-Z score of 1.24. This is a bad value and indicates that SHLE is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.24, SHLE is not doing good in the industry: 70.37% of the companies in the same industry are doing better.
The Debt to FCF ratio of SHLE is 5.57, which is a neutral value as it means it would take SHLE, 5.57 years of fcf income to pay off all of its debts.
SHLE has a Debt to FCF ratio (5.57) which is comparable to the rest of the industry.
SHLE has a Debt/Equity ratio of 1.30. This is a high value indicating a heavy dependency on external financing.
SHLE has a worse Debt to Equity ratio (1.30) than 74.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.3 | ||
| Debt/FCF | 5.57 | ||
| Altman-Z | 1.24 |
ROIC/WACC0.93
WACC8.21%
2.3 Liquidity
SHLE has a Current Ratio of 1.51. This is a normal value and indicates that SHLE is financially healthy and should not expect problems in meeting its short term obligations.
SHLE has a Current ratio (1.51) which is in line with its industry peers.
SHLE has a Quick Ratio of 1.51. This is a bad value and indicates that SHLE is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of SHLE (0.87) is worse than 70.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.51 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
The earnings per share for SHLE have decreased strongly by -58.06% in the last year.
SHLE shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 18.29%.
The Revenue has been growing by 15.14% on average over the past years. This is quite good.
EPS 1Y (TTM)-58.06%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-236.73%
Revenue 1Y (TTM)18.29%
Revenue growth 3Y28.2%
Revenue growth 5Y15.14%
Sales Q2Q%-6.12%
3.2 Future
SHLE is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 170.71% yearly.
SHLE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.14% yearly.
EPS Next Y424.91%
EPS Next 2Y170.71%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year6.48%
Revenue Next 2Y6.14%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
SHLE is valuated correctly with a Price/Earnings ratio of 14.51.
SHLE's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 28.18, SHLE is valued a bit cheaper.
The Price/Forward Earnings ratio is 2.76, which indicates a rather cheap valuation of SHLE.
SHLE's Price/Forward Earnings ratio is rather cheap when compared to the industry. SHLE is cheaper than 100.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.81. SHLE is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.51 | ||
| Fwd PE | 2.76 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SHLE is valued cheaply inside the industry as 81.48% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, SHLE is valued cheaper than 88.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.59 | ||
| EV/EBITDA | 3.14 |
4.3 Compensation for Growth
SHLE's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
SHLE's earnings are expected to grow with 170.71% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.03
PEG (5Y)N/A
EPS Next 2Y170.71%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for SHLE!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:SHLE (5/2/2025, 7:00:00 PM)
9.43
+0.27 (+2.95%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners14.56%
Inst Owner ChangeN/A
Ins Owners1.56%
Ins Owner ChangeN/A
Market Cap127.78M
Analysts80
Price Target15.81 (67.66%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-147.52%
Min EPS beat(2)-287.67%
Max EPS beat(2)-7.36%
EPS beat(4)0
Avg EPS beat(4)-96.39%
Min EPS beat(4)-287.67%
Max EPS beat(4)-7.36%
EPS beat(8)3
Avg EPS beat(8)-40.89%
EPS beat(12)6
Avg EPS beat(12)301.33%
EPS beat(16)7
Avg EPS beat(16)31.24%
Revenue beat(2)2
Avg Revenue beat(2)8.6%
Min Revenue beat(2)4.47%
Max Revenue beat(2)12.73%
Revenue beat(4)4
Avg Revenue beat(4)10.27%
Min Revenue beat(4)4.47%
Max Revenue beat(4)12.73%
Revenue beat(8)6
Avg Revenue beat(8)7.96%
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-13.89%
PT rev (3m)-13.89%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-22.34%
EPS NY rev (1m)0%
EPS NY rev (3m)-11.97%
Revenue NQ rev (1m)1.49%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)4.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.51 | ||
| Fwd PE | 2.76 | ||
| P/S | 0.19 | ||
| P/FCF | 2.59 | ||
| P/OCF | 1.35 | ||
| P/B | 0.67 | ||
| P/tB | 0.67 | ||
| EV/EBITDA | 3.14 |
EPS(TTM)0.65
EY6.89%
EPS(NY)3.41
Fwd EY36.18%
FCF(TTM)3.64
FCFY38.65%
OCF(TTM)6.97
OCFY73.87%
SpS49.74
BVpS14.01
TBVpS14.01
PEG (NY)0.03
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.59% | ||
| ROE | 5.01% | ||
| ROCE | 14.28% | ||
| ROIC | 7.6% | ||
| ROICexc | 8.19% | ||
| ROICexgc | 8.19% | ||
| OM | 9.69% | ||
| PM (TTM) | 1.41% | ||
| GM | 18.89% | ||
| FCFM | 7.33% |
ROA(3y)11.19%
ROA(5y)-8.84%
ROE(3y)-16.81%
ROE(5y)-196.91%
ROIC(3y)6.71%
ROIC(5y)N/A
ROICexc(3y)6.91%
ROICexc(5y)N/A
ROICexgc(3y)6.91%
ROICexgc(5y)N/A
ROCE(3y)12.6%
ROCE(5y)N/A
ROICexcg growth 3Y107.74%
ROICexcg growth 5YN/A
ROICexc growth 3Y107.74%
ROICexc growth 5YN/A
OM growth 3Y103.08%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y15.43%
GM growth 5Y10.85%
F-Score4
Asset Turnover1.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.3 | ||
| Debt/FCF | 5.57 | ||
| Debt/EBITDA | 2.1 | ||
| Cap/Depr | 85.93% | ||
| Cap/Sales | 6.68% | ||
| Interest Coverage | 2.36 | ||
| Cash Conversion | 80.22% | ||
| Profit Quality | 519.33% | ||
| Current Ratio | 1.51 | ||
| Quick Ratio | 0.87 | ||
| Altman-Z | 1.24 |
F-Score4
WACC8.21%
ROIC/WACC0.93
Cap/Depr(3y)63.97%
Cap/Depr(5y)44.19%
Cap/Sales(3y)4.71%
Cap/Sales(5y)3.53%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-58.06%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-236.73%
EPS Next Y424.91%
EPS Next 2Y170.71%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)18.29%
Revenue growth 3Y28.2%
Revenue growth 5Y15.14%
Sales Q2Q%-6.12%
Revenue Next Year6.48%
Revenue Next 2Y6.14%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y7.47%
EBIT growth 3Y160.34%
EBIT growth 5YN/A
EBIT Next Year97.79%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-15.05%
FCF growth 3Y87.51%
FCF growth 5Y25.11%
OCF growth 1Y17.63%
OCF growth 3Y88.87%
OCF growth 5Y21.41%