SOURCE ENERGY SERVICES LTD (SHLE.CA) Stock Fundamental Analysis
TSX:SHLE - Toronto Stock Exchange - CA83615X4075 - Common Stock - Currency: CAD
Overall SHLE gets a fundamental rating of 5 out of 10. We evaluated SHLE against 28 industry peers in the Energy Equipment & Services industry. While SHLE is still in line with the averages on profitability rating, there are concerns on its financial health. SHLE is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
In the past year SHLE was profitable.
In the past year SHLE had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: SHLE reported negative net income in multiple years.
Each year in the past 5 years SHLE had a positive operating cash flow.
1.2 Ratios
SHLE's Return On Assets of 5.30% is fine compared to the rest of the industry. SHLE outperforms 60.71% of its industry peers.
Looking at the Return On Equity, with a value of 14.63%, SHLE is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
SHLE has a Return On Invested Capital (7.06%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for SHLE is below the industry average of 10.68%.
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
Looking at the Profit Margin, with a value of 4.38%, SHLE is in line with its industry, outperforming 50.00% of the companies in the same industry.
SHLE has a Operating Margin of 8.91%. This is comparable to the rest of the industry: SHLE outperforms 57.14% of its industry peers.
In the last couple of years the Operating Margin of SHLE has grown nicely.
Looking at the Gross Margin, with a value of 18.02%, SHLE is doing worse than 64.29% of the companies in the same industry.
In the last couple of years the Gross Margin of SHLE has grown nicely.
| 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.
Compared to 1 year ago, SHLE has about the same amount of shares outstanding.
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
Based on the Altman-Z score of 1.52, we must say that SHLE is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.52, SHLE perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
SHLE has a debt to FCF ratio of 3.83. This is a good value and a sign of high solvency as SHLE would need 3.83 years to pay back of all of its debts.
The Debt to FCF ratio of SHLE (3.83) is comparable to the rest of the industry.
SHLE has a Debt/Equity ratio of 1.16. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.16, SHLE is doing worse than 67.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.16 | ||
| Debt/FCF | 3.83 | ||
| Altman-Z | 1.52 |
ROIC/WACC0.84
WACC8.38%
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 in the better half of the industry: SHLE outperforms 64.29% of its industry peers.
A Quick Ratio of 1.02 indicates that SHLE should not have too much problems paying its short term obligations.
SHLE has a Quick ratio (1.02) which is in line with its industry peers.
| 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%.
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)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
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
A Price/Earnings ratio of 10.15 indicates a reasonable valuation of SHLE.
Based on the Price/Earnings ratio, SHLE is valued a bit cheaper than 64.29% of the companies in the same industry.
SHLE's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.45.
Based on the Price/Forward Earnings ratio of 2.96, the valuation of SHLE can be described as very cheap.
96.43% of the companies in the same industry are more expensive than SHLE, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of SHLE to the average of the S&P500 Index (21.90), we can say SHLE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.15 | ||
| Fwd PE | 2.96 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SHLE is valued a bit cheaper than 75.00% 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 89.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.64 | ||
| EV/EBITDA | 3.65 |
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)0.02
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 (7/4/2025, 7:00:00 PM)
14.11
+0.05 (+0.36%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners8.65%
Inst Owner ChangeN/A
Ins Owners2.02%
Ins Owner ChangeN/A
Market Cap191.19M
Analysts80
Price Target16.83 (19.28%)
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)6.45%
PT rev (3m)-8.33%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-12.2%
EPS NY rev (1m)0%
EPS NY rev (3m)-11.97%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.15 | ||
| Fwd PE | 2.96 | ||
| P/S | 0.27 | ||
| P/FCF | 2.64 | ||
| P/OCF | 1.61 | ||
| P/B | 0.9 | ||
| P/tB | 0.9 | ||
| EV/EBITDA | 3.65 |
EPS(TTM)1.39
EY9.85%
EPS(NY)4.76
Fwd EY33.76%
FCF(TTM)5.34
FCFY37.85%
OCF(TTM)8.78
OCFY62.2%
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 | 1.52 |
F-Score5
WACC8.38%
ROIC/WACC0.84
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%