SOURCE ENERGY SERVICES LTD (SHLE.CA) Stock Fundamental Analysis
Canada - TSX:SHLE - CA83615X4075 - Common Stock
11.79 CAD
+0.01 (+0.08%)
SHLE gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 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. SHLE may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
In the past year SHLE was profitable.
SHLE had a positive operating cash flow in the past year.
In multiple years SHLE reported negative net income over the last 5 years.
In the past 5 years SHLE always reported a positive cash flow from operatings.
1.2 Ratios
SHLE has a Return On Assets of 6.66%. This is comparable to the rest of the industry: SHLE outperforms 59.26% of its industry peers.
SHLE has a Return On Equity of 18.56%. This is in the better half of the industry: SHLE outperforms 77.78% of its industry peers.
The Return On Invested Capital of SHLE (7.49%) is comparable to the rest of the industry.
SHLE had an Average Return On Invested Capital over the past 3 years of 6.71%. This is below the industry average of 11.19%.
The last Return On Invested Capital (7.49%) for SHLE is above the 3 year average (6.71%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.66% | ||
| ROE | 18.56% | ||
| ROIC | 7.49% |
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
SHLE has a Profit Margin (5.43%) which is comparable to the rest of the industry.
SHLE has a Operating Margin of 8.86%. This is comparable to the rest of the industry: SHLE outperforms 51.85% of its industry peers.
In the last couple of years the Operating Margin of SHLE has grown nicely.
SHLE has a worse Gross Margin (17.95%) than 62.96% of its industry peers.
In the last couple of years the Gross Margin of SHLE has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.86% | ||
| PM (TTM) | 5.43% | ||
| GM | 17.95% |
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.
SHLE has about the same amout of shares outstanding than it did 1 year ago.
SHLE has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, SHLE has about the same debt to assets ratio.
2.2 Solvency
SHLE has an Altman-Z score of 1.50. This is a bad value and indicates that SHLE is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.50, SHLE is in line with its industry, outperforming 48.15% of the companies in the same industry.
The Debt to FCF ratio of SHLE is 4.25, which is a neutral value as it means it would take SHLE, 4.25 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 4.25, SHLE perfoms like the industry average, outperforming 51.85% of the companies in the same industry.
SHLE has a Debt/Equity ratio of 1.08. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.08, SHLE is doing worse than 74.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.08 | ||
| Debt/FCF | 4.25 | ||
| Altman-Z | 1.5 |
ROIC/WACC0.93
WACC8.05%
2.3 Liquidity
A Current Ratio of 1.58 indicates that SHLE should not have too much problems paying its short term obligations.
SHLE has a Current ratio of 1.58. This is comparable to the rest of the industry: SHLE outperforms 51.85% of its industry peers.
SHLE has a Quick Ratio of 1.58. This is a bad value and indicates that SHLE is not financially healthy enough and could expect problems in meeting its short term obligations.
SHLE has a Quick ratio (1.00) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.58 | ||
| Quick Ratio | 1 |
3. Growth
3.1 Past
SHLE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 30.87%, which is quite impressive.
Looking at the last year, SHLE shows a quite strong growth in Revenue. The Revenue has grown by 18.15% in the last year.
Measured over the past years, SHLE shows a quite strong growth in Revenue. The Revenue has been growing by 15.14% on average per year.
EPS 1Y (TTM)30.87%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%124.44%
Revenue 1Y (TTM)18.15%
Revenue growth 3Y28.2%
Revenue growth 5Y15.14%
Sales Q2Q%14.48%
3.2 Future
The Earnings Per Share is expected to grow by 150.69% on average over the next years. This is a very strong growth
SHLE is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.71% yearly.
EPS Next Y530.83%
EPS Next 2Y150.69%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year13.25%
Revenue Next 2Y8.71%
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 cheaply with a Price/Earnings ratio of 6.05.
Based on the Price/Earnings ratio, SHLE is valued cheaply inside the industry as 88.89% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.91, SHLE is valued rather cheaply.
A Price/Forward Earnings ratio of 2.89 indicates a rather cheap valuation of SHLE.
100.00% of the companies in the same industry are more expensive than SHLE, based on the Price/Forward Earnings ratio.
SHLE is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.92, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.05 | ||
| Fwd PE | 2.89 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SHLE indicates a rather cheap valuation: SHLE is cheaper than 92.59% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, SHLE is valued cheaply inside the industry as 92.59% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.41 | ||
| EV/EBITDA | 3.12 |
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 150.69% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.01
PEG (5Y)N/A
EPS Next 2Y150.69%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for SHLE!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:SHLE (10/24/2025, 7:00:00 PM)
11.79
+0.01 (+0.08%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners10.93%
Inst Owner ChangeN/A
Ins Owners2.04%
Ins Owner ChangeN/A
Market Cap156.57M
Revenue(TTM)738.48M
Net Income(TTM)40.10M
Analysts80
Price Target17.85 (51.4%)
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)2
Avg EPS beat(2)40.1%
Min EPS beat(2)35.64%
Max EPS beat(2)44.55%
EPS beat(4)2
Avg EPS beat(4)-53.71%
Min EPS beat(4)-287.67%
Max EPS beat(4)44.55%
EPS beat(8)4
Avg EPS beat(8)-29.1%
EPS beat(12)6
Avg EPS beat(12)281.4%
EPS beat(16)8
Avg EPS beat(16)59.92%
Revenue beat(2)1
Avg Revenue beat(2)6.26%
Min Revenue beat(2)-2.74%
Max Revenue beat(2)15.26%
Revenue beat(4)3
Avg Revenue beat(4)7.43%
Min Revenue beat(4)-2.74%
Max Revenue beat(4)15.26%
Revenue beat(8)6
Avg Revenue beat(8)8.34%
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)0%
PT rev (3m)6.06%
EPS NQ rev (1m)-24.65%
EPS NQ rev (3m)-37.79%
EPS NY rev (1m)0%
EPS NY rev (3m)20.18%
Revenue NQ rev (1m)-37.52%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)6.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.05 | ||
| Fwd PE | 2.89 | ||
| P/S | 0.21 | ||
| P/FCF | 2.41 | ||
| P/OCF | 1.4 | ||
| P/B | 0.72 | ||
| P/tB | 0.72 | ||
| EV/EBITDA | 3.12 |
EPS(TTM)1.95
EY16.54%
EPS(NY)4.09
Fwd EY34.65%
FCF(TTM)4.9
FCFY41.57%
OCF(TTM)8.44
OCFY71.63%
SpS55.61
BVpS16.27
TBVpS16.27
PEG (NY)0.01
PEG (5Y)N/A
Graham Number26.72
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.66% | ||
| ROE | 18.56% | ||
| ROCE | 14.06% | ||
| ROIC | 7.49% | ||
| ROICexc | 8.27% | ||
| ROICexgc | 8.27% | ||
| OM | 8.86% | ||
| PM (TTM) | 5.43% | ||
| GM | 17.95% | ||
| FCFM | 8.81% |
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
ROICexgc growth 3Y107.74%
ROICexgc 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-Score5
Asset Turnover1.23
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.08 | ||
| Debt/FCF | 4.25 | ||
| Debt/EBITDA | 1.88 | ||
| Cap/Depr | 79.45% | ||
| Cap/Sales | 6.37% | ||
| Interest Coverage | 2.42 | ||
| Cash Conversion | 89.97% | ||
| Profit Quality | 162.32% | ||
| Current Ratio | 1.58 | ||
| Quick Ratio | 1 | ||
| Altman-Z | 1.5 |
F-Score5
WACC8.05%
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)30.87%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%124.44%
EPS Next Y530.83%
EPS Next 2Y150.69%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)18.15%
Revenue growth 3Y28.2%
Revenue growth 5Y15.14%
Sales Q2Q%14.48%
Revenue Next Year13.25%
Revenue Next 2Y8.71%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-1.12%
EBIT growth 3Y160.34%
EBIT growth 5YN/A
EBIT Next Year93.5%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-18.24%
FCF growth 3Y87.51%
FCF growth 5Y25.11%
OCF growth 1Y15.52%
OCF growth 3Y88.87%
OCF growth 5Y21.41%
SOURCE ENERGY SERVICES LTD / SHLE.CA FAQ
What is the ChartMill fundamental rating of SOURCE ENERGY SERVICES LTD (SHLE.CA) stock?
ChartMill assigns a fundamental rating of 5 / 10 to SHLE.CA.
What is the valuation status of SOURCE ENERGY SERVICES LTD (SHLE.CA) stock?
ChartMill assigns a valuation rating of 9 / 10 to SOURCE ENERGY SERVICES LTD (SHLE.CA). This can be considered as Undervalued.
How profitable is SOURCE ENERGY SERVICES LTD (SHLE.CA) stock?
SOURCE ENERGY SERVICES LTD (SHLE.CA) has a profitability rating of 5 / 10.
How financially healthy is SOURCE ENERGY SERVICES LTD?
The financial health rating of SOURCE ENERGY SERVICES LTD (SHLE.CA) is 2 / 10.
What is the earnings growth outlook for SOURCE ENERGY SERVICES LTD?
The Earnings per Share (EPS) of SOURCE ENERGY SERVICES LTD (SHLE.CA) is expected to grow by 530.83% in the next year.