SOURCE ENERGY SERVICES LTD (SHLE.CA) Stock Fundamental Analysis
TSX:SHLE - Toronto Stock Exchange - CA83615X4075 - Common Stock - Currency: CAD
SHLE gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 28 industry peers in the Energy Equipment & Services industry. SHLE has a medium profitability rating, but doesn't score so well on its financial health evaluation. SHLE is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
SHLE had positive earnings in the past year.
SHLE had a positive operating cash flow in the past year.
In the past 5 years SHLE reported 4 times negative net income.
SHLE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SHLE's Return On Assets of 33.06% is amongst the best of the industry. SHLE outperforms 96.43% of its industry peers.
SHLE has a Return On Equity of 90.72%. This is amongst the best in the industry. SHLE outperforms 96.43% of its industry peers.
SHLE has a Return On Invested Capital of 18.87%. This is amongst the best in the industry. SHLE outperforms 92.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 33.06% | ||
| ROE | 90.72% | ||
| ROIC | 18.87% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Profit Margin of SHLE (24.84%) is better than 92.86% of its industry peers.
SHLE has a Operating Margin of 10.33%. This is comparable to the rest of the industry: SHLE outperforms 57.14% of its industry peers.
In the last couple of years the Operating Margin of SHLE has grown nicely.
SHLE has a Gross Margin of 18.97%. This is in the lower half of the industry: SHLE underperforms 67.86% of its industry peers.
In the last couple of years the Gross Margin of SHLE has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.33% | ||
| PM (TTM) | 24.84% | ||
| GM | 18.97% |
OM growth 3YN/A
OM growth 5Y13.28%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y24.78%
GM growth 5Y2.92%
2. Health
2.1 Basic Checks
SHLE has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
SHLE has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
Based on the Altman-Z score of 1.18, we must say that SHLE is in the distress zone and has some risk of bankruptcy.
SHLE has a Altman-Z score of 1.18. This is in the lower half of the industry: SHLE underperforms 67.86% of its industry peers.
The Debt to FCF ratio of SHLE is 4.94, which is a neutral value as it means it would take SHLE, 4.94 years of fcf income to pay off all of its debts.
SHLE has a Debt to FCF ratio (4.94) which is in line with its industry peers.
SHLE has a Debt/Equity ratio of 0.34. This is a healthy value indicating a solid balance between debt and equity.
SHLE's Debt to Equity ratio of 0.34 is fine compared to the rest of the industry. SHLE outperforms 60.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 4.94 | ||
| Altman-Z | 1.18 |
ROIC/WACC1.44
WACC13.06%
2.3 Liquidity
A Current Ratio of 0.61 indicates that SHLE may have some problems paying its short term obligations.
SHLE has a Current ratio of 0.61. This is amonst the worse of the industry: SHLE underperforms 92.86% of its industry peers.
SHLE has a Quick Ratio of 0.61. This is a bad value and indicates that SHLE is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of SHLE (0.31) is worse than 92.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.61 | ||
| Quick Ratio | 0.31 |
3. Growth
3.1 Past
SHLE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 654.17%, which is quite impressive.
Looking at the last year, SHLE shows a very strong growth in Revenue. The Revenue has grown by 35.92%.
SHLE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.54% yearly.
EPS 1Y (TTM)654.17%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%114.29%
Revenue 1Y (TTM)35.92%
Revenue growth 3Y31.62%
Revenue growth 5Y6.54%
Sales Q2Q%46.83%
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 50.69% on average per year.
SHLE is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.98% yearly.
EPS Next Y4.3%
EPS Next 2Y58.13%
EPS Next 3Y50.69%
EPS Next 5YN/A
Revenue Next Year19.38%
Revenue Next 2Y13.52%
Revenue Next 3Y10.98%
Revenue Next 5YN/A
3.3 Evolution
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 5.90, which indicates a rather cheap valuation of SHLE.
89.29% 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 29.75.
With a Price/Forward Earnings ratio of 2.76, the valuation of SHLE can be described as very cheap.
SHLE's Price/Forward Earnings ratio is rather cheap when compared to the industry. SHLE is cheaper than 96.43% of the companies in the same industry.
SHLE is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.9 | ||
| Fwd PE | 2.76 |
4.2 Price Multiples
85.71% of the companies in the same industry are more expensive than SHLE, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, SHLE is valued cheaply inside the industry as 89.29% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.02 | ||
| EV/EBITDA | 3.09 |
4.3 Compensation for Growth
SHLE's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
SHLE has a very decent profitability rating, which may justify a higher PE ratio.
SHLE's earnings are expected to grow with 50.69% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.37
PEG (5Y)N/A
EPS Next 2Y58.13%
EPS Next 3Y50.69%
5. Dividend
5.1 Amount
No dividends for SHLE!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:SHLE (3/3/2025, 7:00:00 PM)
10.68
-1.03 (-8.8%)
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 Cap144.71M
Analysts80
Price Target18.36 (71.91%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
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)-22.17%
Min EPS beat(2)-36.97%
Max EPS beat(2)-7.36%
EPS beat(4)1
Avg EPS beat(4)-17.45%
Min EPS beat(4)-53.56%
Max EPS beat(4)28.1%
EPS beat(8)3
Avg EPS beat(8)-5.15%
EPS beat(12)6
Avg EPS beat(12)317.94%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)12.28%
Min Revenue beat(2)11.84%
Max Revenue beat(2)12.73%
Revenue beat(4)4
Avg Revenue beat(4)13.15%
Min Revenue beat(4)11.84%
Max Revenue beat(4)16.02%
Revenue beat(8)5
Avg Revenue beat(8)6.76%
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)233.33%
EPS NY rev (1m)0%
EPS NY rev (3m)12.81%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)7.89%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.9 | ||
| Fwd PE | 2.76 | ||
| P/S | 0.21 | ||
| P/FCF | 3.02 | ||
| P/OCF | 1.65 | ||
| P/B | 0.77 | ||
| P/tB | 0.77 | ||
| EV/EBITDA | 3.09 |
EPS(TTM)1.81
EY16.95%
EPS(NY)3.88
Fwd EY36.29%
FCF(TTM)3.53
FCFY33.07%
OCF(TTM)6.45
OCFY60.44%
SpS50.44
BVpS13.81
TBVpS13.81
PEG (NY)1.37
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 33.06% | ||
| ROE | 90.72% | ||
| ROCE | 26.21% | ||
| ROIC | 18.87% | ||
| ROICexc | 18.93% | ||
| ROICexgc | 18.93% | ||
| OM | 10.33% | ||
| PM (TTM) | 24.84% | ||
| GM | 18.97% | ||
| FCFM | 7% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5Y13.28%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y24.78%
GM growth 5Y2.92%
F-Score5
Asset Turnover1.33
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 4.94 | ||
| Debt/EBITDA | 0.52 | ||
| Cap/Depr | 75.49% | ||
| Cap/Sales | 5.79% | ||
| Interest Coverage | 2.76 | ||
| Cash Conversion | 71.09% | ||
| Profit Quality | 28.2% | ||
| Current Ratio | 0.61 | ||
| Quick Ratio | 0.31 | ||
| Altman-Z | 1.18 |
F-Score5
WACC13.06%
ROIC/WACC1.44
Cap/Depr(3y)42.35%
Cap/Depr(5y)33.76%
Cap/Sales(3y)3.16%
Cap/Sales(5y)3.37%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)654.17%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%114.29%
EPS Next Y4.3%
EPS Next 2Y58.13%
EPS Next 3Y50.69%
EPS Next 5YN/A
Revenue 1Y (TTM)35.92%
Revenue growth 3Y31.62%
Revenue growth 5Y6.54%
Sales Q2Q%46.83%
Revenue Next Year19.38%
Revenue Next 2Y13.52%
Revenue Next 3Y10.98%
Revenue Next 5YN/A
EBIT growth 1Y58.57%
EBIT growth 3YN/A
EBIT growth 5Y20.69%
EBIT Next Year96.48%
EBIT Next 3Y28.59%
EBIT Next 5YN/A
FCF growth 1Y54.09%
FCF growth 3Y17.66%
FCF growth 5Y49.21%
OCF growth 1Y100.32%
OCF growth 3Y26.79%
OCF growth 5Y1.13%