SOURCE ENERGY SERVICES LTD (SHLE.CA) Stock Fundamental Analysis
Canada - TSX:SHLE - CA83615X4075 - Common Stock
12.25 CAD
-0.36 (-2.85%)
We assign a fundamental rating of 5 out of 10 to SHLE. SHLE was compared to 27 industry peers in the Energy Equipment & Services industry. There are concerns on the financial health of SHLE while its profitability can be described as average. 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
With a Return On Assets value of 6.66%, SHLE perfoms like the industry average, outperforming 59.26% of the companies in the same industry.
SHLE has a better Return On Equity (18.56%) than 81.48% of its industry peers.
With a Return On Invested Capital value of 7.49%, SHLE perfoms like the industry average, outperforming 55.56% of the companies in the same industry.
SHLE had an Average Return On Invested Capital over the past 3 years of 6.71%. This is below the industry average of 10.80%.
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
The Profit Margin of SHLE (5.43%) is comparable to the rest of the industry.
SHLE has a Operating Margin (8.86%) which is in line with its industry peers.
In the last couple of years the Operating Margin of SHLE has grown nicely.
The Gross Margin of SHLE (17.95%) is worse than 62.96% of its industry peers.
SHLE's Gross Margin has improved in the last couple of years.
| 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.
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.
Looking at the Altman-Z score, with a value of 1.52, 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.
The Debt to FCF ratio of SHLE (4.25) is comparable to the rest of the industry.
SHLE has a Debt/Equity ratio of 1.08. This is a high value indicating a heavy dependency on external financing.
SHLE has a Debt to Equity ratio of 1.08. This is in the lower half of the industry: SHLE underperforms 74.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.08 | ||
| Debt/FCF | 4.25 | ||
| Altman-Z | 1.52 |
ROIC/WACC0.93
WACC8.09%
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.
With a Current ratio value of 1.58, SHLE perfoms like the industry average, outperforming 48.15% of the companies in the same industry.
SHLE has a Quick Ratio of 1.58. This is a bad value and indicates that SHLE is not financially healthy enough and could expect problems in meeting its short term obligations.
SHLE has a Quick ratio of 1.00. This is comparable to the rest of the industry: SHLE outperforms 40.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.58 | ||
| Quick Ratio | 1 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 30.87% over the past year.
SHLE shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 18.15%.
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.
The Revenue is expected to grow by 8.71% on average over the next years. This is quite good.
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
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 6.28, which indicates a rather cheap valuation of SHLE.
88.89% of the companies in the same industry are more expensive than SHLE, based on the Price/Earnings ratio.
SHLE's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.03.
The Price/Forward Earnings ratio is 3.00, which indicates a rather cheap valuation of SHLE.
Based on the Price/Forward Earnings ratio, SHLE is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.27. SHLE is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.28 | ||
| Fwd PE | 3 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SHLE is valued cheaply inside the industry as 85.19% of the companies are valued more expensively.
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 | 2.5 | ||
| EV/EBITDA | 3.21 |
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
No dividends for SHLE!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:SHLE (11/4/2025, 7:00:00 PM)
12.25
-0.36 (-2.85%)
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 Cap162.68M
Revenue(TTM)738.48M
Net Income(TTM)40.10M
Analysts80
Price Target17.09 (39.51%)
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)-4.29%
PT rev (3m)1.52%
EPS NQ rev (1m)-71.13%
EPS NQ rev (3m)-76.16%
EPS NY rev (1m)0%
EPS NY rev (3m)20.18%
Revenue NQ rev (1m)-28.19%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)6.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.28 | ||
| Fwd PE | 3 | ||
| P/S | 0.22 | ||
| P/FCF | 2.5 | ||
| P/OCF | 1.45 | ||
| P/B | 0.75 | ||
| P/tB | 0.75 | ||
| EV/EBITDA | 3.21 |
EPS(TTM)1.95
EY15.92%
EPS(NY)4.09
Fwd EY33.35%
FCF(TTM)4.9
FCFY40.01%
OCF(TTM)8.44
OCFY68.94%
SpS55.61
BVpS16.27
TBVpS16.27
PEG (NY)0.01
PEG (5Y)N/A
Graham Number26.72
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
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-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 | 1.52 |
F-Score5
WACC8.09%
ROIC/WACC0.93
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%
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 5 / 10 to SHLE.CA.
What is the valuation status of SOURCE ENERGY SERVICES LTD (SHLE.CA) stock?
ChartMill assigns a valuation rating of 9 / 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 5 / 10.
How financially healthy is SOURCE ENERGY SERVICES LTD?
The financial health rating of SOURCE ENERGY SERVICES LTD (SHLE.CA) is 2 / 10.
What is the earnings growth outlook for SOURCE ENERGY SERVICES LTD?
The Earnings per Share (EPS) of SOURCE ENERGY SERVICES LTD (SHLE.CA) is expected to grow by 530.83% in the next year.