SOURCE ENERGY SERVICES LTD (SHLE.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:SHLE - CA83615X4075 - Common Stock
15 CAD
+0.01 (+0.07%)
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. SHLE has a medium profitability rating, but doesn't score so well on its financial health evaluation. SHLE is cheap, but on the other hand it scores bad 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.
The reported net income has been mixed in the past 5 years: SHLE reported negative net income in multiple years.
In the past 5 years SHLE always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of SHLE (3.97%) is comparable to the rest of the industry.
SHLE has a better Return On Equity (11.28%) than 62.96% of its industry peers.
SHLE has a Return On Invested Capital (5.70%) which is comparable to the rest of the 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 177.00%.
| 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.
SHLE has a Operating Margin of 7.38%. This is comparable to the rest of the industry: SHLE outperforms 48.15% of its industry peers.
In the last couple of years the Operating Margin of SHLE has grown nicely.
SHLE's Gross Margin of 17.41% is on the low side compared to the rest of the industry. SHLE is outperformed by 62.96% of its industry peers.
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
SHLE has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, SHLE has about the same amount of shares outstanding.
Compared to 5 years ago, SHLE has more shares outstanding
SHLE has about the same debt/assets ratio as last year.
2.2 Solvency
SHLE has an Altman-Z score of 1.33. This is a bad value and indicates that SHLE is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.33, SHLE is in line with its industry, outperforming 44.44% of the companies in the same industry.
The Debt to FCF ratio of SHLE is 4.20, which is a neutral value as it means it would take SHLE, 4.20 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.20, SHLE is in the better half of the industry, outperforming 70.37% of the companies in the same industry.
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 74.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.16 | ||
| Debt/FCF | 4.2 | ||
| Altman-Z | 1.33 |
ROIC/WACC0.71
WACC8.07%
2.3 Liquidity
A Current Ratio of 1.42 indicates that SHLE should not have too much problems paying its short term obligations.
With a Current ratio value of 1.42, SHLE is not doing good in the industry: 62.96% of the companies in the same industry are doing better.
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.
The Quick ratio of SHLE (0.70) is worse than 85.19% 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%.
The Revenue has decreased by -0.39% in the past year.
The Revenue has been growing by 15.14% on average over the past years. This is quite good.
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
SHLE is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 87.04% yearly.
The Revenue is expected to grow by 6.59% on average over the next years.
EPS Next Y382.54%
EPS Next 2Y134.02%
EPS Next 3Y87.04%
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
With a Price/Earnings ratio of 16.85, SHLE is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of SHLE is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 26.77. SHLE is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 4.21, 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.
The average S&P500 Price/Forward Earnings ratio is at 23.35. SHLE is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.85 | ||
| Fwd PE | 4.21 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SHLE indicates a somewhat cheap valuation: SHLE is cheaper than 70.37% 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 | 2.91 | ||
| EV/EBITDA | 4.07 |
4.3 Compensation for Growth
The 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 87.04% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.04
PEG (5Y)N/A
EPS Next 2Y134.02%
EPS Next 3Y87.04%
5. Dividend
5.1 Amount
SHLE does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
TSX:SHLE (12/30/2025, 7:00:00 PM)
15
+0.01 (+0.07%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners11.68%
Inst Owner ChangeN/A
Ins Owners2.05%
Ins Owner ChangeN/A
Market Cap197.85M
Revenue(TTM)680.75M
Net Income(TTM)23.73M
Analysts80
Price Target17.09 (13.93%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)0%
PT rev (3m)-4.29%
EPS NQ rev (1m)0%
EPS NQ rev (3m)165.22%
EPS NY rev (1m)-14.94%
EPS NY rev (3m)-23.51%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.95%
Revenue NY rev (3m)-7.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.85 | ||
| Fwd PE | 4.21 | ||
| P/S | 0.29 | ||
| P/FCF | 2.91 | ||
| P/OCF | 1.51 | ||
| P/B | 0.94 | ||
| P/tB | 0.94 | ||
| EV/EBITDA | 4.07 |
EPS(TTM)0.89
EY5.93%
EPS(NY)3.56
Fwd EY23.73%
FCF(TTM)5.15
FCFY34.33%
OCF(TTM)9.92
OCFY66.17%
SpS51.61
BVpS15.95
TBVpS15.95
PEG (NY)0.04
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 | 1.33 |
F-Score4
WACC8.07%
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 Y382.54%
EPS Next 2Y134.02%
EPS Next 3Y87.04%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.39%
Revenue growth 3Y28.2%
Revenue growth 5Y15.14%
Sales Q2Q%-31.54%
Revenue Next Year4.76%
Revenue Next 2Y7.32%
Revenue Next 3Y6.59%
Revenue Next 5YN/A
EBIT growth 1Y-28.76%
EBIT growth 3Y160.34%
EBIT growth 5YN/A
EBIT Next Year76.46%
EBIT Next 3Y27.17%
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 382.54% in the next year.