SOURCE ENERGY SERVICES LTD (SHLE.CA) Stock Fundamental Analysis
Canada • Toronto Stock Exchange • TSX:SHLE • CA83615X4075
16.21 CAD
+0.59 (+3.78%)
Last: Feb 6, 2026, 07:00 PM
We assign a fundamental rating of 3 out of 10 to SHLE. SHLE was compared to 28 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 has a bad growth rate and is valued cheaply.
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.
- In multiple years SHLE reported negative net income over the last 5 years.
- Each year in the past 5 years SHLE had a positive operating cash flow.
1.2 Ratios
- SHLE has a Return On Assets (3.97%) which is in line with its industry peers.
- The Return On Equity of SHLE (11.28%) is better than 62.96% of its industry peers.
- SHLE has a Return On Invested Capital (5.70%) which is in line with its industry peers.
- SHLE had an Average Return On Invested Capital over the past 3 years of 6.71%. This is significantly below the industry average of 177.00%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.97% | ||
| ROE | 11.28% | ||
| ROIC | 5.7% |
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
- With a Profit Margin value of 3.49%, SHLE perfoms like the industry average, outperforming 51.85% of the companies in the same industry.
- With a Operating Margin value of 7.38%, SHLE perfoms like the industry average, outperforming 48.15% of the companies in the same industry.
- SHLE's Operating Margin has improved in the last couple of years.
- SHLE has a worse Gross Margin (17.41%) 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 | 7.38% | ||
| PM (TTM) | 3.49% | ||
| GM | 17.41% |
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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SHLE is destroying value.
- Compared to 1 year ago, SHLE has about the same amount of shares outstanding.
- Compared to 5 years ago, SHLE has more shares outstanding
- SHLE has about the same debt/assets ratio as last year.
2.2 Solvency
- SHLE has an Altman-Z score of 1.35. This is a bad value and indicates that SHLE is not financially healthy and even has some risk of bankruptcy.
- The Altman-Z score of SHLE (1.35) is comparable to the rest of the industry.
- The Debt to FCF ratio of SHLE is 4.20, which is a neutral value as it means it would take SHLE, 4.20 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 4.20, SHLE is in the better half of the industry, outperforming 70.37% of the companies in the same industry.
- SHLE has a Debt/Equity ratio of 1.16. This is a high value indicating a heavy dependency on external financing.
- SHLE's Debt to Equity ratio of 1.16 is on the low side compared to the rest of the industry. SHLE is outperformed by 74.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.16 | ||
| Debt/FCF | 4.2 | ||
| Altman-Z | 1.35 |
ROIC/WACC0.71
WACC8.01%
2.3 Liquidity
- A Current Ratio of 1.42 indicates that SHLE should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.42, SHLE is doing worse than 62.96% of the companies in the same industry.
- A Quick Ratio of 0.70 indicates that SHLE may have some problems paying its short term obligations.
- The Quick ratio of SHLE (0.70) is worse than 85.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.42 | ||
| Quick Ratio | 0.7 |
3. Growth
3.1 Past
- SHLE shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -50.83%.
- SHLE shows a decrease in Revenue. In the last year, the revenue decreased by -0.39%.
- SHLE shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 15.14% yearly.
EPS 1Y (TTM)-50.83%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-176.67%
Revenue 1Y (TTM)-0.39%
Revenue growth 3Y28.2%
Revenue growth 5Y15.14%
Sales Q2Q%-31.54%
3.2 Future
- Based on estimates for the next years, SHLE will show a very strong growth in Earnings Per Share. The EPS will grow by 86.97% on average per year.
- SHLE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.59% yearly.
EPS Next Y312.71%
EPS Next 2Y129.96%
EPS Next 3Y86.97%
EPS Next 5YN/A
Revenue Next Year4.76%
Revenue Next 2Y7.32%
Revenue Next 3Y6.59%
Revenue Next 5YN/A
3.3 Evolution
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 18.21 indicates a rather expensive valuation of SHLE.
- SHLE's Price/Earnings is on the same level as the industry average.
- SHLE's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.93.
- A Price/Forward Earnings ratio of 4.72 indicates a rather cheap valuation of SHLE.
- Based on the Price/Forward Earnings ratio, SHLE is valued cheaper than 100.00% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of SHLE to the average of the S&P500 Index (27.77), we can say SHLE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.21 | ||
| Fwd PE | 4.72 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SHLE indicates a somewhat cheap valuation: SHLE is cheaper than 74.07% of the companies listed in the same industry.
- 92.59% of the companies in the same industry are more expensive than SHLE, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.15 | ||
| EV/EBITDA | 4.21 |
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 86.97% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.06
PEG (5Y)N/A
EPS Next 2Y129.96%
EPS Next 3Y86.97%
5. Dividend
5.1 Amount
- No dividends for SHLE!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
TSX:SHLE (2/6/2026, 7:00:00 PM)
16.21
+0.59 (+3.78%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)11-06 2025-11-06/amc
Earnings (Next)02-26 2026-02-26/amc
Inst Owners11.58%
Inst Owner ChangeN/A
Ins Owners2.05%
Ins Owner ChangeN/A
Market Cap213.81M
Revenue(TTM)680.75M
Net Income(TTM)23.73M
Analysts80
Price Target18.11 (11.72%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-137.72%
Min EPS beat(2)-319.99%
Max EPS beat(2)44.55%
EPS beat(4)2
Avg EPS beat(4)-131.87%
Min EPS beat(4)-319.99%
Max EPS beat(4)44.55%
EPS beat(8)3
Avg EPS beat(8)-74.66%
EPS beat(12)5
Avg EPS beat(12)-47.39%
EPS beat(16)8
Avg EPS beat(16)205.49%
Revenue beat(2)0
Avg Revenue beat(2)-2.15%
Min Revenue beat(2)-2.74%
Max Revenue beat(2)-1.56%
Revenue beat(4)2
Avg Revenue beat(4)3.86%
Min Revenue beat(4)-2.74%
Max Revenue beat(4)15.26%
Revenue beat(8)6
Avg Revenue beat(8)8.51%
Revenue beat(12)7
Avg Revenue beat(12)5.79%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)5.97%
PT rev (3m)5.97%
EPS NQ rev (1m)-46.72%
EPS NQ rev (3m)41.3%
EPS NY rev (1m)-14.47%
EPS NY rev (3m)-34.58%
Revenue NQ rev (1m)7.73%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-7.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.21 | ||
| Fwd PE | 4.72 | ||
| P/S | 0.31 | ||
| P/FCF | 3.15 | ||
| P/OCF | 1.63 | ||
| P/B | 1.02 | ||
| P/tB | 1.02 | ||
| EV/EBITDA | 4.21 |
EPS(TTM)0.89
EY5.49%
EPS(NY)3.44
Fwd EY21.21%
FCF(TTM)5.15
FCFY31.77%
OCF(TTM)9.92
OCFY61.23%
SpS51.61
BVpS15.95
TBVpS15.95
PEG (NY)0.06
PEG (5Y)N/A
Graham Number17.87
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.97% | ||
| ROE | 11.28% | ||
| ROCE | 10.71% | ||
| ROIC | 5.7% | ||
| ROICexc | 6.1% | ||
| ROICexgc | 6.1% | ||
| OM | 7.38% | ||
| PM (TTM) | 3.49% | ||
| GM | 17.41% | ||
| FCFM | 9.98% |
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-Score4
Asset Turnover1.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.16 | ||
| Debt/FCF | 4.2 | ||
| Debt/EBITDA | 2.19 | ||
| Cap/Depr | 103.21% | ||
| Cap/Sales | 9.25% | ||
| Interest Coverage | 1.89 | ||
| Cash Conversion | 117.62% | ||
| Profit Quality | 286.28% | ||
| Current Ratio | 1.42 | ||
| Quick Ratio | 0.7 | ||
| Altman-Z | 1.35 |
F-Score4
WACC8.01%
ROIC/WACC0.71
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)-50.83%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-176.67%
EPS Next Y312.71%
EPS Next 2Y129.96%
EPS Next 3Y86.97%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.39%
Revenue growth 3Y28.2%
Revenue growth 5Y15.14%
Sales Q2Q%-31.54%
Revenue Next Year4.76%
Revenue Next 2Y7.32%
Revenue Next 3Y6.59%
Revenue Next 5YN/A
EBIT growth 1Y-28.76%
EBIT growth 3Y160.34%
EBIT growth 5YN/A
EBIT Next Year76.46%
EBIT Next 3Y27.17%
EBIT Next 5YN/A
FCF growth 1Y11.59%
FCF growth 3Y87.51%
FCF growth 5Y25.11%
OCF growth 1Y68.89%
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 3 / 10 to SHLE.CA.
Can you provide the valuation status for SOURCE ENERGY SERVICES LTD?
ChartMill assigns a valuation rating of 7 / 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 4 / 10.
What is the expected EPS growth for SOURCE ENERGY SERVICES LTD (SHLE.CA) stock?
The Earnings per Share (EPS) of SOURCE ENERGY SERVICES LTD (SHLE.CA) is expected to grow by 312.71% in the next year.
How sustainable is the dividend of SOURCE ENERGY SERVICES LTD (SHLE.CA) stock?
The dividend rating of SOURCE ENERGY SERVICES LTD (SHLE.CA) is 0 / 10 and the dividend payout ratio is 0%.