SOURCE ENERGY SERVICES LTD (SHLE.CA) Stock Fundamental Analysis
TSX:SHLE - CA83615X4075 - Common Stock
13.93 CAD
+0.12 (+0.87%)
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.
In the past year SHLE had a positive cash flow from operations.
In multiple years SHLE reported negative net income over the last 5 years.
SHLE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SHLE has a Return On Assets of 6.66%. This is comparable to the rest of the industry: SHLE outperforms 59.26% of its industry peers.
With a decent Return On Equity value of 18.56%, SHLE is doing good in the industry, outperforming 77.78% of the companies in the same industry.
SHLE's Return On Invested Capital of 7.49% is in line compared to the rest of the industry. SHLE outperforms 55.56% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SHLE is below the industry average of 11.19%.
The last Return On Invested Capital (7.49%) for SHLE is above the 3 year average (6.71%), which is a sign of increasing profitability.
| 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
SHLE has a Profit Margin of 5.43%. This is comparable to the rest of the industry: SHLE outperforms 48.15% of its industry peers.
The Operating Margin of SHLE (8.86%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of SHLE has grown nicely.
With a Gross Margin value of 17.95%, SHLE is not doing good in the industry: 62.96% of the companies in the same industry are doing better.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SHLE 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.
Compared to 1 year ago, SHLE has about the same debt to assets ratio.
2.2 Solvency
SHLE has an Altman-Z score of 1.54. This is a bad value and indicates that SHLE is not financially healthy and even has some risk of bankruptcy.
SHLE has a Altman-Z score of 1.54. This is comparable to the rest of the industry: SHLE outperforms 48.15% of its industry peers.
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 of 4.25. This is comparable to the rest of the industry: SHLE outperforms 51.85% of its industry peers.
A Debt/Equity ratio of 1.08 is on the high side and indicates that SHLE has dependencies on debt financing.
With a Debt to Equity ratio value of 1.08, SHLE is not doing good in the industry: 74.07% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.08 | ||
| Debt/FCF | 4.25 | ||
| Altman-Z | 1.54 |
ROIC/WACC0.89
WACC8.4%
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 has a Current ratio (1.58) which is comparable to the rest of the industry.
A Quick Ratio of 1.00 indicates that SHLE may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.00, SHLE is in line with its industry, outperforming 44.44% of the companies in the same industry.
| 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.
The Revenue has grown by 18.15% in the past year. This is quite good.
The Revenue has been growing by 15.14% on average over the past years. This is quite good.
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
Based on estimates for the next years, SHLE will show a very strong growth in Earnings Per Share. The EPS will grow by 150.69% on average per year.
Based on estimates for the next years, SHLE will show a quite strong growth in Revenue. The Revenue will grow by 8.71% on average per year.
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
A Price/Earnings ratio of 7.14 indicates a rather cheap valuation of SHLE.
Based on the Price/Earnings ratio, SHLE is valued a bit cheaper than 74.07% 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 27.06.
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 cheaply inside the industry as 100.00% of the companies are valued more expensively.
SHLE's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.69.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.14 | ||
| Fwd PE | 3.41 |
4.2 Price Multiples
SHLE's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. SHLE is cheaper than 81.48% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SHLE indicates a rather cheap valuation: SHLE is cheaper than 92.59% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.84 | ||
| EV/EBITDA | 3.34 |
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.
SHLE's earnings are expected to grow with 150.69% in the coming years. This may justify a more expensive valuation.
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 (9/5/2025, 7:00:00 PM)
13.93
+0.12 (+0.87%)
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 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)6.06%
PT rev (3m)12.9%
EPS NQ rev (1m)-17.44%
EPS NQ rev (3m)-34.26%
EPS NY rev (1m)20.18%
EPS NY rev (3m)20.18%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-2.98%
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 | 3.34 |
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 | 1.54 |
F-Score5
WACC8.4%
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 Year99.24%
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%