SOURCE ENERGY SERVICES LTD (SHLE.CA) Stock Fundamental Analysis
Canada - TSX:SHLE - CA83615X4075 - Common Stock
13.93 CAD
-0.16 (-1.14%)
Taking everything into account, SHLE scores 5 out of 10 in our fundamental rating. SHLE was compared to 27 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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
In the past year SHLE was profitable.
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
The Return On Assets of SHLE (6.66%) is comparable to the rest of the industry.
SHLE has a better Return On Equity (18.56%) than 77.78% of its industry peers.
The Return On Invested Capital of SHLE (7.49%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for SHLE is below the industry average of 11.19%.
The 3 year average ROIC (6.71%) for SHLE is below the current ROIC(7.49%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.66% | ||
| ROE | 18.56% | ||
| ROIC | 7.49% |
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 5.43%, SHLE perfoms like the industry average, outperforming 48.15% of the companies in the same industry.
With a Operating Margin value of 8.86%, SHLE perfoms like the industry average, outperforming 51.85% of the companies in the same industry.
SHLE's Operating Margin has improved in the last couple of years.
SHLE has a Gross Margin of 17.95%. This is in the lower half of the industry: SHLE underperforms 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 | 8.86% | ||
| PM (TTM) | 5.43% | ||
| GM | 17.95% |
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.
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 1.55. This is a bad value and indicates that SHLE is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.55, SHLE is in line with its industry, outperforming 48.15% of the companies in the same industry.
The Debt to FCF ratio of SHLE is 4.25, which is a neutral value as it means it would take SHLE, 4.25 years of fcf income to pay off all of its debts.
SHLE has a Debt to FCF ratio (4.25) which is comparable to the rest of the industry.
A Debt/Equity ratio of 1.08 is on the high side and indicates that SHLE has dependencies on debt financing.
SHLE's Debt to Equity ratio of 1.08 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 | 1.08 | ||
| Debt/FCF | 4.25 | ||
| Altman-Z | 1.55 |
ROIC/WACC0.89
WACC8.45%
2.3 Liquidity
SHLE has a Current Ratio of 1.58. This is a normal value and indicates that SHLE is financially healthy and should not expect problems in meeting its short term obligations.
SHLE's Current ratio of 1.58 is in line compared to the rest of the industry. SHLE outperforms 51.85% of its industry peers.
A Quick Ratio of 1.00 indicates that SHLE may have some problems paying its short term obligations.
SHLE has a Quick ratio (1.00) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.58 | ||
| Quick Ratio | 1 |
3. Growth
3.1 Past
SHLE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 30.87%, which is quite impressive.
SHLE shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 18.15%.
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)30.87%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%124.44%
Revenue 1Y (TTM)18.15%
Revenue growth 3Y28.2%
Revenue growth 5Y15.14%
Sales Q2Q%14.48%
3.2 Future
The Earnings Per Share is expected to grow by 150.69% on average over the next years. This is a very strong growth
SHLE is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.71% yearly.
EPS Next Y530.83%
EPS Next 2Y150.69%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year13.25%
Revenue Next 2Y8.71%
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 7.14, the valuation of SHLE can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of SHLE indicates a rather cheap valuation: SHLE is cheaper than 85.19% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of SHLE to the average of the S&P500 Index (27.76), we can say SHLE is valued rather cheaply.
With a Price/Forward Earnings ratio of 3.41, the valuation of SHLE can be described as very cheap.
Based on the Price/Forward Earnings ratio, SHLE is valued cheaper than 100.00% of the companies in the same industry.
SHLE's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.18.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.14 | ||
| Fwd PE | 3.41 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SHLE is valued cheaper than 88.89% of the companies in the same industry.
96.30% 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 | 2.84 | ||
| EV/EBITDA | 3.35 |
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 150.69% in the coming years.
PEG (NY)0.01
PEG (5Y)N/A
EPS Next 2Y150.69%
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 (9/29/2025, 7:00:00 PM)
13.93
-0.16 (-1.14%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners10.93%
Inst Owner ChangeN/A
Ins Owners2.04%
Ins Owner ChangeN/A
Market Cap184.99M
Analysts80
Price Target17.85 (28.14%)
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)2
Avg EPS beat(2)40.1%
Min EPS beat(2)35.64%
Max EPS beat(2)44.55%
EPS beat(4)2
Avg EPS beat(4)-53.71%
Min EPS beat(4)-287.67%
Max EPS beat(4)44.55%
EPS beat(8)4
Avg EPS beat(8)-29.1%
EPS beat(12)6
Avg EPS beat(12)281.4%
EPS beat(16)8
Avg EPS beat(16)59.92%
Revenue beat(2)1
Avg Revenue beat(2)6.26%
Min Revenue beat(2)-2.74%
Max Revenue beat(2)15.26%
Revenue beat(4)3
Avg Revenue beat(4)7.43%
Min Revenue beat(4)-2.74%
Max Revenue beat(4)15.26%
Revenue beat(8)6
Avg Revenue beat(8)8.34%
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)6.06%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-34.26%
EPS NY rev (1m)0%
EPS NY rev (3m)20.18%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)6.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.14 | ||
| Fwd PE | 3.41 | ||
| P/S | 0.25 | ||
| P/FCF | 2.84 | ||
| P/OCF | 1.65 | ||
| P/B | 0.86 | ||
| P/tB | 0.86 | ||
| EV/EBITDA | 3.35 |
EPS(TTM)1.95
EY14%
EPS(NY)4.09
Fwd EY29.33%
FCF(TTM)4.9
FCFY35.18%
OCF(TTM)8.44
OCFY60.62%
SpS55.61
BVpS16.27
TBVpS16.27
PEG (NY)0.01
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.66% | ||
| ROE | 18.56% | ||
| ROCE | 14.06% | ||
| ROIC | 7.49% | ||
| ROICexc | 8.27% | ||
| ROICexgc | 8.27% | ||
| OM | 8.86% | ||
| PM (TTM) | 5.43% | ||
| GM | 17.95% | ||
| FCFM | 8.81% |
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 Turnover1.23
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.08 | ||
| Debt/FCF | 4.25 | ||
| Debt/EBITDA | 1.88 | ||
| Cap/Depr | 79.45% | ||
| Cap/Sales | 6.37% | ||
| Interest Coverage | 2.42 | ||
| Cash Conversion | 89.97% | ||
| Profit Quality | 162.32% | ||
| Current Ratio | 1.58 | ||
| Quick Ratio | 1 | ||
| Altman-Z | 1.55 |
F-Score5
WACC8.45%
ROIC/WACC0.89
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)30.87%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%124.44%
EPS Next Y530.83%
EPS Next 2Y150.69%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)18.15%
Revenue growth 3Y28.2%
Revenue growth 5Y15.14%
Sales Q2Q%14.48%
Revenue Next Year13.25%
Revenue Next 2Y8.71%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-1.12%
EBIT growth 3Y160.34%
EBIT growth 5YN/A
EBIT Next Year93.5%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-18.24%
FCF growth 3Y87.51%
FCF growth 5Y25.11%
OCF growth 1Y15.52%
OCF growth 3Y88.87%
OCF growth 5Y21.41%