SOURCE ENERGY SERVICES LTD (SHLE.CA) Stock Fundamental Analysis
TSX:SHLE - Toronto Stock Exchange - CA83615X4075 - Common Stock - Currency: CAD
We assign a fundamental rating of 5 out of 10 to SHLE. 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. SHLE is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
SHLE had positive earnings in the past year.
In the past year SHLE had a positive cash flow from operations.
In multiple years SHLE reported negative net income over the last 5 years.
SHLE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.30%, SHLE is in line with its industry, outperforming 48.15% of the companies in the same industry.
With a decent Return On Equity value of 14.63%, SHLE is doing good in the industry, outperforming 70.37% of the companies in the same industry.
SHLE has a Return On Invested Capital (7.06%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SHLE is below the industry average of 10.85%.
The last Return On Invested Capital (7.06%) for SHLE is above the 3 year average (6.71%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.3% | ||
| ROE | 14.63% | ||
| ROIC | 7.06% |
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's Profit Margin of 4.38% is in line compared to the rest of the industry. SHLE outperforms 40.74% of its industry peers.
Looking at the Operating Margin, with a value of 8.91%, SHLE is in line with its industry, outperforming 55.56% of the companies in the same industry.
SHLE's Operating Margin has improved in the last couple of years.
SHLE's Gross Margin of 18.02% is on the low side compared to the rest of the industry. SHLE is outperformed by 62.96% of its industry peers.
SHLE's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.91% | ||
| PM (TTM) | 4.38% | ||
| GM | 18.02% |
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.
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 1.47. 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 (1.47) is comparable to the rest of the industry.
The Debt to FCF ratio of SHLE is 3.83, which is a good value as it means it would take SHLE, 3.83 years of fcf income to pay off all of its debts.
SHLE has a Debt to FCF ratio (3.83) which is comparable to the rest of the industry.
A Debt/Equity ratio of 1.16 is on the high side and indicates that SHLE has dependencies on debt financing.
SHLE has a Debt to Equity ratio of 1.16. This is in the lower half of the industry: SHLE underperforms 74.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.16 | ||
| Debt/FCF | 3.83 | ||
| Altman-Z | 1.47 |
ROIC/WACC0.85
WACC8.29%
2.3 Liquidity
SHLE has a Current Ratio of 1.80. 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 of 1.80. This is comparable to the rest of the industry: SHLE outperforms 59.26% of its industry peers.
A Quick Ratio of 1.02 indicates that SHLE should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.02, SHLE is not doing good in the industry: 62.96% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.8 | ||
| Quick Ratio | 1.02 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 12.10% over the past year.
Looking at the last year, SHLE shows a very strong growth in Revenue. The Revenue has grown by 23.86%.
The Revenue has been growing by 15.14% on average over the past years. This is quite good.
EPS 1Y (TTM)12.1%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%274.07%
Revenue 1Y (TTM)23.86%
Revenue growth 3Y28.2%
Revenue growth 5Y15.14%
Sales Q2Q%23%
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.
Based on estimates for the next years, SHLE will show a small growth in Revenue. The Revenue will grow by 6.14% on average per year.
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
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
Based on the Price/Earnings ratio of 8.19, the valuation of SHLE can be described as reasonable.
Based on the Price/Earnings ratio, SHLE is valued a bit cheaper than the industry average as 62.96% of the companies are valued more expensively.
SHLE is valuated cheaply when we compare the Price/Earnings ratio to 26.25, which is the current average of the S&P500 Index.
SHLE is valuated cheaply with a Price/Forward Earnings ratio of 2.39.
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.
SHLE is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.15, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.19 | ||
| Fwd PE | 2.39 |
4.2 Price Multiples
SHLE's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SHLE is cheaper than 74.07% of the companies in the same industry.
SHLE's Price/Free Cash Flow ratio is rather cheap when compared to the industry. SHLE is cheaper than 88.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.13 | ||
| EV/EBITDA | 3.36 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as SHLE's earnings are expected to grow with 170.71% in the coming years.
PEG (NY)0.02
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 (5/30/2025, 7:00:00 PM)
11.38
-0.19 (-1.64%)
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 Cap154.20M
Analysts80
Price Target15.81 (38.93%)
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)1
Avg EPS beat(2)-126.02%
Min EPS beat(2)-287.67%
Max EPS beat(2)35.64%
EPS beat(4)1
Avg EPS beat(4)-74.09%
Min EPS beat(4)-287.67%
Max EPS beat(4)35.64%
EPS beat(8)3
Avg EPS beat(8)-36.51%
EPS beat(12)6
Avg EPS beat(12)300.92%
EPS beat(16)8
Avg EPS beat(16)62.23%
Revenue beat(2)2
Avg Revenue beat(2)9.87%
Min Revenue beat(2)4.47%
Max Revenue beat(2)15.26%
Revenue beat(4)4
Avg Revenue beat(4)11.07%
Min Revenue beat(4)4.47%
Max Revenue beat(4)15.26%
Revenue beat(8)6
Avg Revenue beat(8)8.39%
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)-12.2%
EPS NQ rev (3m)-12.2%
EPS NY rev (1m)0%
EPS NY rev (3m)-11.97%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.19 | ||
| Fwd PE | 2.39 | ||
| P/S | 0.22 | ||
| P/FCF | 2.13 | ||
| P/OCF | 1.3 | ||
| P/B | 0.72 | ||
| P/tB | 0.72 | ||
| EV/EBITDA | 3.36 |
EPS(TTM)1.39
EY12.21%
EPS(NY)4.76
Fwd EY41.86%
FCF(TTM)5.34
FCFY46.94%
OCF(TTM)8.78
OCFY77.12%
SpS52.62
BVpS15.74
TBVpS15.74
PEG (NY)0.02
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.3% | ||
| ROE | 14.63% | ||
| ROCE | 13.26% | ||
| ROIC | 7.06% | ||
| ROICexc | 7.58% | ||
| ROICexgc | 7.58% | ||
| OM | 8.91% | ||
| PM (TTM) | 4.38% | ||
| GM | 18.02% | ||
| FCFM | 10.15% |
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-Score5
Asset Turnover1.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.16 | ||
| Debt/FCF | 3.83 | ||
| Debt/EBITDA | 2.07 | ||
| Cap/Depr | 83.52% | ||
| Cap/Sales | 6.53% | ||
| Interest Coverage | 2.29 | ||
| Cash Conversion | 99.74% | ||
| Profit Quality | 231.86% | ||
| Current Ratio | 1.8 | ||
| Quick Ratio | 1.02 | ||
| Altman-Z | 1.47 |
F-Score5
WACC8.29%
ROIC/WACC0.85
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)12.1%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%274.07%
EPS Next Y424.91%
EPS Next 2Y170.71%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)23.86%
Revenue growth 3Y28.2%
Revenue growth 5Y15.14%
Sales Q2Q%23%
Revenue Next Year6.48%
Revenue Next 2Y6.14%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y1.97%
EBIT growth 3Y160.34%
EBIT growth 5YN/A
EBIT Next Year99.24%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y0.97%
FCF growth 3Y87.51%
FCF growth 5Y25.11%
OCF growth 1Y36.6%
OCF growth 3Y88.87%
OCF growth 5Y21.41%