SOURCE ENERGY SERVICES LTD (SHLE.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:SHLE - CA83615X4075 - Common Stock
15.58 CAD
+0.06 (+0.39%)
SHLE gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 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 is cheap, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year SHLE was profitable.
SHLE had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: SHLE reported negative net income in multiple years.
SHLE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SHLE's Return On Assets of 3.97% is in line compared to the rest of the industry. SHLE outperforms 48.15% of its industry peers.
With a Return On Equity value of 11.28%, SHLE perfoms like the industry average, outperforming 59.26% of the companies in the same industry.
SHLE has a Return On Invested Capital (5.70%) which is in line with its industry peers.
SHLE had an Average Return On Invested Capital over the past 3 years of 6.71%. This is significantly below the industry average of 169.80%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.97% | ||
| ROE | 11.28% | ||
| ROIC | 5.7% |
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 3.49%, SHLE perfoms like the industry average, outperforming 48.15% of the companies in the same industry.
SHLE has a Operating Margin (7.38%) which is in line with its industry peers.
SHLE's Operating Margin has improved in the last couple of years.
The Gross Margin of SHLE (17.41%) is worse than 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 | 7.38% | ||
| PM (TTM) | 3.49% | ||
| GM | 17.41% |
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.
SHLE has more shares outstanding than it did 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 1.34, we must say that SHLE is in the distress zone and has some risk of bankruptcy.
SHLE has a Altman-Z score (1.34) which is in line with its industry peers.
The Debt to FCF ratio of SHLE is 4.20, which is a neutral value as it means it would take SHLE, 4.20 years of fcf income to pay off all of its debts.
SHLE has a better Debt to FCF ratio (4.20) than 70.37% of its industry peers.
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 77.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.16 | ||
| Debt/FCF | 4.2 | ||
| Altman-Z | 1.34 |
ROIC/WACC0.72
WACC7.93%
2.3 Liquidity
SHLE has a Current Ratio of 1.42. 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 1.42 is on the low side compared to the rest of the industry. SHLE is outperformed by 66.67% of its industry peers.
A Quick Ratio of 0.70 indicates that SHLE may have some problems paying its short term obligations.
SHLE has a worse Quick ratio (0.70) than 88.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.42 | ||
| Quick Ratio | 0.7 |
3. Growth
3.1 Past
SHLE shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -50.83%.
Looking at the last year, SHLE shows a decrease in Revenue. The Revenue has decreased by -0.39% in the last year.
The Revenue has been growing by 15.14% on average over the past years. This is quite good.
EPS 1Y (TTM)-50.83%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-176.67%
Revenue 1Y (TTM)-0.39%
Revenue growth 3Y28.2%
Revenue growth 5Y15.14%
Sales Q2Q%-31.54%
3.2 Future
Based on estimates for the next years, SHLE will show a very strong growth in Earnings Per Share. The EPS will grow by 87.04% on average per year.
The Revenue is expected to grow by 6.59% on average over the next years.
EPS Next Y382.54%
EPS Next 2Y134.02%
EPS Next 3Y87.04%
EPS Next 5YN/A
Revenue Next Year4.76%
Revenue Next 2Y7.32%
Revenue Next 3Y6.59%
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 17.51, the valuation of SHLE can be described as rather expensive.
SHLE's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 27.19. SHLE is valued slightly cheaper when compared to this.
SHLE is valuated cheaply with a Price/Forward Earnings ratio of 4.38.
100.00% of the companies in the same industry are more expensive than SHLE, based on the Price/Forward Earnings ratio.
SHLE's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.51 | ||
| Fwd PE | 4.38 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SHLE is valued a bit cheaper than the industry average as 62.96% of the companies are valued more expensively.
88.89% 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 | 3.03 | ||
| EV/EBITDA | 4.14 |
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 87.04% in the coming years.
PEG (NY)0.05
PEG (5Y)N/A
EPS Next 2Y134.02%
EPS Next 3Y87.04%
5. Dividend
5.1 Amount
SHLE does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
TSX:SHLE (1/8/2026, 7:00:00 PM)
15.58
+0.06 (+0.39%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners11.58%
Inst Owner ChangeN/A
Ins Owners2.05%
Ins Owner ChangeN/A
Market Cap205.50M
Revenue(TTM)680.75M
Net Income(TTM)23.73M
Analysts80
Price Target17.09 (9.69%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)-137.72%
Min EPS beat(2)-319.99%
Max EPS beat(2)44.55%
EPS beat(4)2
Avg EPS beat(4)-131.87%
Min EPS beat(4)-319.99%
Max EPS beat(4)44.55%
EPS beat(8)3
Avg EPS beat(8)-74.66%
EPS beat(12)5
Avg EPS beat(12)-47.39%
EPS beat(16)8
Avg EPS beat(16)205.49%
Revenue beat(2)0
Avg Revenue beat(2)-2.15%
Min Revenue beat(2)-2.74%
Max Revenue beat(2)-1.56%
Revenue beat(4)2
Avg Revenue beat(4)3.86%
Min Revenue beat(4)-2.74%
Max Revenue beat(4)15.26%
Revenue beat(8)6
Avg Revenue beat(8)8.51%
Revenue beat(12)7
Avg Revenue beat(12)5.79%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)-4.29%
EPS NQ rev (1m)0%
EPS NQ rev (3m)165.22%
EPS NY rev (1m)0%
EPS NY rev (3m)-23.51%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-7.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.51 | ||
| Fwd PE | 4.38 | ||
| P/S | 0.3 | ||
| P/FCF | 3.03 | ||
| P/OCF | 1.57 | ||
| P/B | 0.98 | ||
| P/tB | 0.98 | ||
| EV/EBITDA | 4.14 |
EPS(TTM)0.89
EY5.71%
EPS(NY)3.56
Fwd EY22.85%
FCF(TTM)5.15
FCFY33.05%
OCF(TTM)9.92
OCFY63.7%
SpS51.61
BVpS15.95
TBVpS15.95
PEG (NY)0.05
PEG (5Y)N/A
Graham Number17.87
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.97% | ||
| ROE | 11.28% | ||
| ROCE | 10.71% | ||
| ROIC | 5.7% | ||
| ROICexc | 6.1% | ||
| ROICexgc | 6.1% | ||
| OM | 7.38% | ||
| PM (TTM) | 3.49% | ||
| GM | 17.41% | ||
| FCFM | 9.98% |
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
ROICexgc growth 3Y107.74%
ROICexgc 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-Score4
Asset Turnover1.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.16 | ||
| Debt/FCF | 4.2 | ||
| Debt/EBITDA | 2.19 | ||
| Cap/Depr | 103.21% | ||
| Cap/Sales | 9.25% | ||
| Interest Coverage | 1.89 | ||
| Cash Conversion | 117.62% | ||
| Profit Quality | 286.28% | ||
| Current Ratio | 1.42 | ||
| Quick Ratio | 0.7 | ||
| Altman-Z | 1.34 |
F-Score4
WACC7.93%
ROIC/WACC0.72
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)-50.83%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-176.67%
EPS Next Y382.54%
EPS Next 2Y134.02%
EPS Next 3Y87.04%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.39%
Revenue growth 3Y28.2%
Revenue growth 5Y15.14%
Sales Q2Q%-31.54%
Revenue Next Year4.76%
Revenue Next 2Y7.32%
Revenue Next 3Y6.59%
Revenue Next 5YN/A
EBIT growth 1Y-28.76%
EBIT growth 3Y160.34%
EBIT growth 5YN/A
EBIT Next Year76.46%
EBIT Next 3Y27.17%
EBIT Next 5YN/A
FCF growth 1Y11.59%
FCF growth 3Y87.51%
FCF growth 5Y25.11%
OCF growth 1Y68.89%
OCF growth 3Y88.87%
OCF growth 5Y21.41%
SOURCE ENERGY SERVICES LTD / SHLE.CA FAQ
What is the ChartMill fundamental rating of SOURCE ENERGY SERVICES LTD (SHLE.CA) stock?
ChartMill assigns a fundamental rating of 3 / 10 to SHLE.CA.
Can you provide the valuation status for SOURCE ENERGY SERVICES LTD?
ChartMill assigns a valuation rating of 7 / 10 to SOURCE ENERGY SERVICES LTD (SHLE.CA). This can be considered as Undervalued.
How profitable is SOURCE ENERGY SERVICES LTD (SHLE.CA) stock?
SOURCE ENERGY SERVICES LTD (SHLE.CA) has a profitability rating of 4 / 10.
What is the expected EPS growth for SOURCE ENERGY SERVICES LTD (SHLE.CA) stock?
The Earnings per Share (EPS) of SOURCE ENERGY SERVICES LTD (SHLE.CA) is expected to grow by 382.54% in the next year.
How sustainable is the dividend of SOURCE ENERGY SERVICES LTD (SHLE.CA) stock?
The dividend rating of SOURCE ENERGY SERVICES LTD (SHLE.CA) is 0 / 10 and the dividend payout ratio is 0%.