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 5 out of 10 in our fundamental rating. SHLE was compared to 26 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 may be a bit undervalued, certainly considering the very reasonable score on growth
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.
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
The Return On Assets of SHLE (5.30%) is comparable to the rest of the industry.
SHLE has a Return On Equity of 14.63%. This is in the better half of the industry: SHLE outperforms 69.23% of its industry peers.
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 10.82%.
The 3 year average ROIC (6.71%) for SHLE is below the current ROIC(7.06%), indicating increased profibility in the last year.
| 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 has a Profit Margin (4.38%) which is in line with its industry peers.
SHLE's Operating Margin of 8.91% is in line compared to the rest of the industry. SHLE outperforms 57.69% of its industry peers.
SHLE's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 18.02%, SHLE is doing worse than 69.23% 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.
The number of shares outstanding for SHLE remains at a similar level compared to 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
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.
SHLE has a Altman-Z score (1.52) which 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.
With a Debt to FCF ratio value of 3.83, SHLE perfoms like the industry average, outperforming 53.85% 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 has a worse Debt to Equity ratio (1.16) than 73.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.16 | ||
| Debt/FCF | 3.83 | ||
| Altman-Z | 1.52 |
ROIC/WACC0.85
WACC8.3%
2.3 Liquidity
A Current Ratio of 1.80 indicates that SHLE should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.80, SHLE is in the better half of the industry, outperforming 61.54% of the companies in the same industry.
SHLE has a Quick Ratio of 1.02. This is a normal value and indicates that SHLE is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.02, SHLE perfoms like the industry average, outperforming 42.31% of the companies in the same industry.
| 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.
The Revenue has grown by 23.86% in the past year. This is a very strong growth!
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
The Earnings Per Share is expected to grow by 170.71% on average over the next years. This is a very strong growth
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 10.01, the valuation of SHLE can be described as reasonable.
Based on the Price/Earnings ratio, SHLE is valued a bit cheaper than 61.54% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.29, SHLE is valued rather cheaply.
The Price/Forward Earnings ratio is 2.92, which indicates a rather cheap valuation of SHLE.
Based on the Price/Forward Earnings ratio, SHLE is valued cheaper than 96.15% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.06, SHLE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.01 | ||
| Fwd PE | 2.92 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SHLE is valued a bit cheaper than 69.23% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, SHLE is valued cheaply inside the industry as 88.46% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.6 | ||
| EV/EBITDA | 3.63 |
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
SHLE does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:SHLE (7/16/2025, 7:00:00 PM)
13.91
-0.11 (-0.78%)
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 Cap188.48M
Analysts80
Price Target16.83 (20.99%)
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)0%
PT rev (3m)-8.33%
EPS NQ rev (1m)-17.36%
EPS NQ rev (3m)-27.44%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
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 | 10.01 | ||
| Fwd PE | 2.92 | ||
| P/S | 0.26 | ||
| P/FCF | 2.6 | ||
| P/OCF | 1.59 | ||
| P/B | 0.88 | ||
| P/tB | 0.88 | ||
| EV/EBITDA | 3.63 |
EPS(TTM)1.39
EY9.99%
EPS(NY)4.76
Fwd EY34.24%
FCF(TTM)5.34
FCFY38.4%
OCF(TTM)8.78
OCFY63.09%
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
WACC8.3%
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%