SOURCE ENERGY SERVICES LTD (SHLE.CA) Stock Fundamental Analysis
TSX:SHLE - Toronto Stock Exchange - CA83615X4075 - Common Stock - Currency: CAD
We assign a fundamental rating of 4 out of 10 to SHLE. SHLE was compared to 26 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.
In multiple years SHLE reported negative net income over the last 5 years.
In the past 5 years SHLE always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.59%, SHLE is in line with its industry, outperforming 46.15% of the companies in the same industry.
SHLE's Return On Equity of 5.01% is in line compared to the rest of the industry. SHLE outperforms 46.15% of its industry peers.
With a Return On Invested Capital value of 7.60%, SHLE perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for SHLE is below the industry average of 9.31%.
The last Return On Invested Capital (7.60%) for SHLE is above the 3 year average (6.71%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.59% | ||
| ROE | 5.01% | ||
| ROIC | 7.6% |
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's Profit Margin of 1.41% is in line compared to the rest of the industry. SHLE outperforms 46.15% of its industry peers.
SHLE's Operating Margin of 9.69% is fine compared to the rest of the industry. SHLE outperforms 65.38% 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 18.89%, SHLE is doing worse than 61.54% of the companies in the same industry.
SHLE's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.69% | ||
| PM (TTM) | 1.41% | ||
| GM | 18.89% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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.
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 1.26, we must say that SHLE is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.26, SHLE is not doing good in the industry: 69.23% of the companies in the same industry are doing better.
SHLE has a debt to FCF ratio of 5.57. This is a neutral value as SHLE would need 5.57 years to pay back of all of its debts.
The Debt to FCF ratio of SHLE (5.57) is comparable to the rest of the industry.
A Debt/Equity ratio of 1.30 is on the high side and indicates that SHLE has dependencies on debt financing.
SHLE has a worse Debt to Equity ratio (1.30) than 76.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.3 | ||
| Debt/FCF | 5.57 | ||
| Altman-Z | 1.26 |
ROIC/WACC0.94
WACC8.1%
2.3 Liquidity
SHLE has a Current Ratio of 1.51. 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 (1.51) which is comparable to the rest of the industry.
A Quick Ratio of 0.87 indicates that SHLE may have some problems paying its short term obligations.
SHLE has a Quick ratio of 0.87. This is in the lower half of the industry: SHLE underperforms 76.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.51 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
SHLE shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -58.06%.
SHLE shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 18.29%.
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)-58.06%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-236.73%
Revenue 1Y (TTM)18.29%
Revenue growth 3Y28.2%
Revenue growth 5Y15.14%
Sales Q2Q%-6.12%
3.2 Future
SHLE is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 170.71% yearly.
SHLE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.14% yearly.
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
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
A Price/Earnings ratio of 15.51 indicates a correct valuation of SHLE.
SHLE's Price/Earnings ratio is in line with the industry average.
SHLE is valuated rather cheaply when we compare the Price/Earnings ratio to 28.79, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 2.95, the valuation of SHLE can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SHLE indicates a rather cheap valuation: SHLE is cheaper than 100.00% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of SHLE to the average of the S&P500 Index (21.38), we can say SHLE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.51 | ||
| Fwd PE | 2.95 |
4.2 Price Multiples
73.08% of the companies in the same industry are more expensive than SHLE, based on the Enterprise Value to EBITDA ratio.
88.46% 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 | 2.77 | ||
| EV/EBITDA | 3.22 |
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)0.04
PEG (5Y)N/A
EPS Next 2Y170.71%
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 (4/24/2025, 7:00:00 PM)
10.08
+0.75 (+8.04%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners14.56%
Inst Owner ChangeN/A
Ins Owners1.56%
Ins Owner ChangeN/A
Market Cap136.58M
Analysts80
Price Target18.36 (82.14%)
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)0
Avg EPS beat(2)-147.52%
Min EPS beat(2)-287.67%
Max EPS beat(2)-7.36%
EPS beat(4)0
Avg EPS beat(4)-96.39%
Min EPS beat(4)-287.67%
Max EPS beat(4)-7.36%
EPS beat(8)3
Avg EPS beat(8)-40.89%
EPS beat(12)6
Avg EPS beat(12)301.33%
EPS beat(16)7
Avg EPS beat(16)31.24%
Revenue beat(2)2
Avg Revenue beat(2)8.6%
Min Revenue beat(2)4.47%
Max Revenue beat(2)12.73%
Revenue beat(4)4
Avg Revenue beat(4)10.27%
Min Revenue beat(4)4.47%
Max Revenue beat(4)12.73%
Revenue beat(8)6
Avg Revenue beat(8)7.96%
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)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-22.34%
EPS NY rev (1m)-11.97%
EPS NY rev (3m)-1.33%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)4.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.51 | ||
| Fwd PE | 2.95 | ||
| P/S | 0.2 | ||
| P/FCF | 2.77 | ||
| P/OCF | 1.45 | ||
| P/B | 0.72 | ||
| P/tB | 0.72 | ||
| EV/EBITDA | 3.22 |
EPS(TTM)0.65
EY6.45%
EPS(NY)3.41
Fwd EY33.85%
FCF(TTM)3.64
FCFY36.16%
OCF(TTM)6.97
OCFY69.11%
SpS49.74
BVpS14.01
TBVpS14.01
PEG (NY)0.04
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.59% | ||
| ROE | 5.01% | ||
| ROCE | 14.28% | ||
| ROIC | 7.6% | ||
| ROICexc | 8.19% | ||
| ROICexgc | 8.19% | ||
| OM | 9.69% | ||
| PM (TTM) | 1.41% | ||
| GM | 18.89% | ||
| FCFM | 7.33% |
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-Score4
Asset Turnover1.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.3 | ||
| Debt/FCF | 5.57 | ||
| Debt/EBITDA | 2.1 | ||
| Cap/Depr | 85.93% | ||
| Cap/Sales | 6.68% | ||
| Interest Coverage | 2.36 | ||
| Cash Conversion | 80.22% | ||
| Profit Quality | 519.33% | ||
| Current Ratio | 1.51 | ||
| Quick Ratio | 0.87 | ||
| Altman-Z | 1.26 |
F-Score4
WACC8.1%
ROIC/WACC0.94
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)-58.06%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-236.73%
EPS Next Y424.91%
EPS Next 2Y170.71%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)18.29%
Revenue growth 3Y28.2%
Revenue growth 5Y15.14%
Sales Q2Q%-6.12%
Revenue Next Year6.48%
Revenue Next 2Y6.14%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y7.47%
EBIT growth 3Y160.34%
EBIT growth 5YN/A
EBIT Next Year97.79%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-15.05%
FCF growth 3Y87.51%
FCF growth 5Y25.11%
OCF growth 1Y17.63%
OCF growth 3Y88.87%
OCF growth 5Y21.41%