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SOURCE ENERGY SERVICES LTD (SHLE.CA) Stock Fundamental Analysis

TSX:SHLE - Toronto Stock Exchange - CA83615X4075 - Common Stock - Currency: CAD

13.91  -0.11 (-0.78%)

Fundamental Rating

5

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


Dividend Valuation Growth Profitability Health

5

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.
SHLE.CA Yearly Net Income VS EBIT VS OCF VS FCFSHLE.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100M -100M

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 RankSector 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
SHLE.CA Yearly ROA, ROE, ROICSHLE.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200 -200 -400

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 RankSector 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%
SHLE.CA Yearly Profit, Operating, Gross MarginsSHLE.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 -40 -60

3

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.
SHLE.CA Yearly Shares OutstandingSHLE.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2M 4M 6M 8M 10M
SHLE.CA Yearly Total Debt VS Total AssetsSHLE.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M 500M

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 RankSector Rank
Debt/Equity 1.16
Debt/FCF 3.83
Altman-Z 1.52
ROIC/WACC0.85
WACC8.3%
SHLE.CA Yearly LT Debt VS Equity VS FCFSHLE.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100M 200M 300M

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 RankSector Rank
Current Ratio 1.8
Quick Ratio 1.02
SHLE.CA Yearly Current Assets VS Current LiabilitesSHLE.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M 200M

5

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.
SHLE.CA Yearly Revenue VS EstimatesSHLE.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 200M 400M 600M
SHLE.CA Yearly EPS VS EstimatesSHLE.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 -10 -20 -30 -40

8

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 RankSector Rank
PE 10.01
Fwd PE 2.92
SHLE.CA Price Earnings VS Forward Price EarningsSHLE.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

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 RankSector Rank
P/FCF 2.6
EV/EBITDA 3.63
SHLE.CA Per share dataSHLE.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40 50

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

0

5. Dividend

5.1 Amount

SHLE does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

SOURCE ENERGY SERVICES LTD

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)05-08 2025-05-08/amc
Earnings (Next)07-30 2025-07-30
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 RankSector 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 RankSector 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 RankSector 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 RankSector 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%