SOURCE ENERGY SERVICES LTD (SHLE.CA) Stock Fundamental Analysis
Canada - TSX:SHLE - CA83615X4075 - Common Stock
12.61 CAD
+0.3 (+2.44%)
Taking everything into account, SHLE scores 5 out of 10 in our fundamental rating. 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.
SHLE had a positive operating cash flow in the past year.
In multiple years SHLE reported negative net income over the last 5 years.
Each year in the past 5 years SHLE had a positive operating cash flow.
1.2 Ratios
SHLE has a Return On Assets (6.66%) which is comparable to the rest of the industry.
The Return On Equity of SHLE (18.56%) is better than 81.48% of its industry peers.
SHLE has a Return On Invested Capital (7.49%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for SHLE 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
SHLE has a Profit Margin (5.43%) which is in line with its industry peers.
SHLE has a Operating Margin (8.86%) which is in line with its industry peers.
SHLE's Operating Margin has improved in the last couple of years.
SHLE has a Gross Margin of 17.95%. This is in the lower half of the industry: SHLE underperforms 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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.
Compared to 1 year ago, SHLE has about the same debt to assets ratio.
2.2 Solvency
SHLE has an Altman-Z score of 1.52. 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 1.52, SHLE perfoms like the industry average, outperforming 48.15% of the companies in the same industry.
SHLE has a debt to FCF ratio of 4.25. This is a neutral value as SHLE would need 4.25 years to pay back of all of its debts.
SHLE's Debt to FCF ratio of 4.25 is in line compared to the rest of the industry. SHLE outperforms 51.85% of its industry peers.
A Debt/Equity ratio of 1.08 is on the high side and indicates that SHLE has dependencies on debt financing.
SHLE has a worse Debt to Equity ratio (1.08) than 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
WACC8.08%
2.3 Liquidity
A Current Ratio of 1.58 indicates that SHLE should not have too much problems paying its short term obligations.
SHLE's Current ratio of 1.58 is in line compared to the rest of the industry. SHLE outperforms 48.15% of its industry peers.
A Quick Ratio of 1.00 indicates that SHLE may have some problems paying its short term obligations.
With a Quick ratio value of 1.00, SHLE perfoms like the industry average, outperforming 40.74% of the companies in the same industry.
| 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.
The Revenue has grown by 18.15% in the past year. This is quite good.
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
Based on the Price/Earnings ratio of 6.47, the valuation of SHLE can be described as very cheap.
Based on the Price/Earnings ratio, SHLE is valued cheaply inside the industry as 88.89% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.03, SHLE is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 3.09, the valuation of SHLE can be described as very cheap.
100.00% 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 22.27, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.47 | ||
| Fwd PE | 3.09 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SHLE indicates a rather cheap valuation: SHLE is cheaper than 85.19% of the companies listed in the same industry.
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 | 2.57 | ||
| EV/EBITDA | 3.21 |
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 150.69% in the coming years. This may justify a more expensive valuation.
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 (11/3/2025, 7:00:00 PM)
12.61
+0.3 (+2.44%)
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 Cap167.46M
Revenue(TTM)738.48M
Net Income(TTM)40.10M
Analysts80
Price Target17.09 (35.53%)
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 | 6.47 | ||
| Fwd PE | 3.09 | ||
| P/S | 0.23 | ||
| P/FCF | 2.57 | ||
| P/OCF | 1.49 | ||
| P/B | 0.78 | ||
| P/tB | 0.78 | ||
| EV/EBITDA | 3.21 |
EPS(TTM)1.95
EY15.46%
EPS(NY)4.09
Fwd EY32.4%
FCF(TTM)4.9
FCFY38.87%
OCF(TTM)8.44
OCFY66.97%
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
WACC8.08%
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.