SOURCE ENERGY SERVICES LTD (SHLE.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:SHLE - CA83615X4075 - Common Stock
15.64 CAD
-0.79 (-4.81%)
We assign a fundamental rating of 3 out of 10 to SHLE. SHLE was compared to 27 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 has a bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
- In the past year SHLE was profitable.
- SHLE had a positive operating cash flow in the past year.
- The reported net income has been mixed in the past 5 years: SHLE reported negative net income in multiple years.
- SHLE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- SHLE has a Return On Assets (3.97%) which is comparable to the rest of the industry.
- SHLE's Return On Equity of 11.28% is in line compared to the rest of the industry. SHLE outperforms 59.26% of its industry peers.
- SHLE has a Return On Invested Capital (5.70%) which is comparable to the rest of the industry.
- Measured over the past 3 years, the Average Return On Invested Capital for SHLE 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's Profit Margin of 3.49% is in line compared to the rest of the industry. SHLE outperforms 48.15% of its industry peers.
- SHLE's Operating Margin of 7.38% is in line compared to the rest of the industry. SHLE outperforms 48.15% of its industry peers.
- SHLE's Operating Margin has improved in the last couple of years.
- With a Gross Margin value of 17.41%, SHLE is not doing good in the industry: 62.96% of the companies in the same industry are doing better.
- SHLE's Gross Margin has improved in the last couple of years.
| 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SHLE is destroying value.
- SHLE has about the same amout of shares outstanding than it did 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 1.34. This is a bad value and indicates that SHLE is not financially healthy and even has some risk of bankruptcy.
- With a Altman-Z score value of 1.34, SHLE perfoms like the industry average, outperforming 40.74% of the companies in the same industry.
- 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.
- SHLE has a Debt to FCF ratio of 4.20. This is in the better half of the industry: SHLE outperforms 70.37% of its industry peers.
- SHLE has a Debt/Equity ratio of 1.16. This is a high value indicating a heavy dependency on external financing.
- SHLE has a Debt to Equity ratio of 1.16. This is in the lower half of the industry: SHLE underperforms 77.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.16 | ||
| Debt/FCF | 4.2 | ||
| Altman-Z | 1.34 |
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 66.67% of its industry peers.
- A Quick Ratio of 0.70 indicates that SHLE may have some problems paying 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
- SHLE shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -50.83%.
- SHLE shows a decrease in Revenue. In the last year, the revenue decreased by -0.39%.
- SHLE shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 15.14% yearly.
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 86.97% on average over the next years. This is a very strong growth
- The Revenue is expected to grow by 6.59% on average over the next years.
EPS Next Y312.71%
EPS Next 2Y129.96%
EPS Next 3Y86.97%
EPS Next 5YN/A
Revenue Next Year4.76%
Revenue Next 2Y7.32%
Revenue Next 3Y6.59%
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
- Based on the Price/Earnings ratio of 17.57, the valuation of SHLE can be described as rather expensive.
- The rest of the industry has a similar Price/Earnings ratio as SHLE.
- SHLE is valuated rather cheaply when we compare the Price/Earnings ratio to 28.60, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 4.55, 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 100.00% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.83, SHLE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.57 | ||
| Fwd PE | 4.55 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, SHLE is valued a bit cheaper than 70.37% of the companies in the same industry.
- SHLE's Price/Free Cash Flow ratio is rather cheap when compared to the industry. SHLE is cheaper than 92.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.04 | ||
| EV/EBITDA | 4.14 |
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.
- A more expensive valuation may be justified as SHLE's earnings are expected to grow with 86.97% in the coming years.
PEG (NY)0.06
PEG (5Y)N/A
EPS Next 2Y129.96%
EPS Next 3Y86.97%
5. Dividend
5.1 Amount
- No dividends for SHLE!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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 3 / 10 to SHLE.CA.
Can you provide the valuation status for SOURCE ENERGY SERVICES LTD?
ChartMill assigns a valuation rating of 7 / 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.
What is the expected EPS growth for SOURCE ENERGY SERVICES LTD (SHLE.CA) stock?
The Earnings per Share (EPS) of SOURCE ENERGY SERVICES LTD (SHLE.CA) is expected to grow by 312.71% in the next year.
How sustainable is the dividend of SOURCE ENERGY SERVICES LTD (SHLE.CA) stock?
The dividend rating of SOURCE ENERGY SERVICES LTD (SHLE.CA) is 0 / 10 and the dividend payout ratio is 0%.