SOURCE ENERGY SERVICES LTD (SHLE.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:SHLE - CA83615X4075 - Common Stock
14.31 CAD
-0.28 (-1.92%)
We assign a fundamental rating of 4 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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
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.
Each year in the past 5 years SHLE had a positive operating cash flow.
1.2 Ratios
SHLE has a Return On Assets (3.97%) which is in line with its industry peers.
The Return On Equity of SHLE (11.28%) is better than 62.96% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.70%, SHLE is in line with its industry, outperforming 44.44% 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 significantly below the industry average of 169.81%.
| 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
SHLE has a Profit Margin (3.49%) which is in line with its industry peers.
The Operating Margin of SHLE (7.38%) is comparable to the rest of the industry.
SHLE's Operating Margin has improved in the last couple of years.
SHLE has a worse Gross Margin (17.41%) 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
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
SHLE has an Altman-Z score of 1.32. 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 (1.32) which is in line with its industry peers.
SHLE has a debt to FCF ratio of 4.20. This is a neutral value as SHLE would need 4.20 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 4.20, SHLE is doing good in the industry, outperforming 66.67% of the companies in the same industry.
A Debt/Equity ratio of 1.16 is on the high side and indicates that SHLE has dependencies on debt financing.
SHLE has a worse Debt to Equity ratio (1.16) than 77.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.16 | ||
| Debt/FCF | 4.2 | ||
| Altman-Z | 1.32 |
ROIC/WACC0.71
WACC8.06%
2.3 Liquidity
A Current Ratio of 1.42 indicates that SHLE should not have too much problems paying its short term obligations.
The Current ratio of SHLE (1.42) is worse than 62.96% of its industry peers.
SHLE has a Quick Ratio of 1.42. 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's Quick ratio of 0.70 is on the low side compared to the rest of the industry. SHLE is outperformed by 88.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.42 | ||
| Quick Ratio | 0.7 |
3. Growth
3.1 Past
The earnings per share for SHLE have decreased strongly by -50.83% in the last year.
SHLE shows a decrease in Revenue. In the last year, the revenue decreased by -0.39%.
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)-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
The Earnings Per Share is expected to grow by 102.61% 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 8.07% yearly.
EPS Next Y467.28%
EPS Next 2Y135.03%
EPS Next 3Y102.61%
EPS Next 5YN/A
Revenue Next Year3.77%
Revenue Next 2Y7.07%
Revenue Next 3Y8.07%
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
Based on the Price/Earnings ratio of 16.08, the valuation of SHLE can be described as correct.
SHLE's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 26.41. SHLE is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 3.99, the valuation of SHLE can be described as very cheap.
96.30% of the companies in the same industry are more expensive than SHLE, based on the Price/Forward Earnings ratio.
SHLE is valuated cheaply when we compare the Price/Forward Earnings ratio to 35.40, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.08 | ||
| Fwd PE | 3.99 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SHLE is valued a bit cheaper than the industry average as 66.67% 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 | 2.78 | ||
| EV/EBITDA | 3.99 |
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 102.61% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.03
PEG (5Y)N/A
EPS Next 2Y135.03%
EPS Next 3Y102.61%
5. Dividend
5.1 Amount
No dividends for SHLE!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:SHLE (12/4/2025, 7:00:00 PM)
14.31
-0.28 (-1.92%)
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 Cap188.75M
Revenue(TTM)680.75M
Net Income(TTM)23.73M
Analysts80
Price Target17.09 (19.43%)
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)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)-4.29%
PT rev (3m)-4.29%
EPS NQ rev (1m)165.22%
EPS NQ rev (3m)165.22%
EPS NY rev (1m)-10.07%
EPS NY rev (3m)-10.07%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-8.37%
Revenue NY rev (3m)-8.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.08 | ||
| Fwd PE | 3.99 | ||
| P/S | 0.28 | ||
| P/FCF | 2.78 | ||
| P/OCF | 1.44 | ||
| P/B | 0.9 | ||
| P/tB | 0.9 | ||
| EV/EBITDA | 3.99 |
EPS(TTM)0.89
EY6.22%
EPS(NY)3.59
Fwd EY25.09%
FCF(TTM)5.15
FCFY35.99%
OCF(TTM)9.92
OCFY69.36%
SpS51.61
BVpS15.95
TBVpS15.95
PEG (NY)0.03
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 | 1.32 |
F-Score4
WACC8.06%
ROIC/WACC0.71
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 Y467.28%
EPS Next 2Y135.03%
EPS Next 3Y102.61%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.39%
Revenue growth 3Y28.2%
Revenue growth 5Y15.14%
Sales Q2Q%-31.54%
Revenue Next Year3.77%
Revenue Next 2Y7.07%
Revenue Next 3Y8.07%
Revenue Next 5YN/A
EBIT growth 1Y-28.76%
EBIT growth 3Y160.34%
EBIT growth 5YN/A
EBIT Next Year93.5%
EBIT Next 3YN/A
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 4 / 10 to SHLE.CA.
What is the valuation status of SOURCE ENERGY SERVICES LTD (SHLE.CA) stock?
ChartMill assigns a valuation rating of 8 / 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.
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 467.28% in the next year.