SOURCE ENERGY SERVICES LTD (SHLE.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:SHLE - CA83615X4075 - Common Stock
14.86 CAD
-0.04 (-0.27%)
We assign a fundamental rating of 4 out of 10 to SHLE. SHLE was compared to 29 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 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.
Each year in the past 5 years SHLE had a positive operating cash flow.
1.2 Ratios
SHLE's Return On Assets of 3.97% is in line compared to the rest of the industry. SHLE outperforms 55.17% of its industry peers.
Looking at the Return On Equity, with a value of 11.28%, SHLE is in the better half of the industry, outperforming 65.52% of the companies in the same industry.
SHLE has a Return On Invested Capital of 5.70%. This is comparable to the rest of the industry: SHLE outperforms 44.83% of its industry peers.
SHLE had an Average Return On Invested Capital over the past 3 years of 6.71%. This is significantly below the industry average of 163.40%.
| 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.
In the last couple of years the Operating Margin of SHLE has grown nicely.
SHLE has a Gross Margin (17.41%) which is comparable to the rest of the industry.
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.
SHLE has about the same amout of shares outstanding than it did 1 year ago.
SHLE has more shares outstanding than it did 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 1.33. 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 48.28% 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.
SHLE's Debt to FCF ratio of 4.20 is fine compared to the rest of the industry. SHLE outperforms 68.97% 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.
Looking at the Debt to Equity ratio, with a value of 1.16, SHLE is doing worse than 75.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.16 | ||
| Debt/FCF | 4.2 | ||
| Altman-Z | 1.33 |
ROIC/WACC0.71
WACC8.02%
2.3 Liquidity
A Current Ratio of 1.42 indicates that SHLE should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.42, SHLE is doing worse than 62.07% of the companies in the same industry.
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 86.21% 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%.
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 87.04% 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 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
A Price/Earnings ratio of 16.70 indicates a correct valuation of SHLE.
The rest of the industry has a similar Price/Earnings ratio as SHLE.
Compared to an average S&P500 Price/Earnings ratio of 26.61, SHLE is valued a bit cheaper.
With a Price/Forward Earnings ratio of 4.17, 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 96.55% of the companies listed in the same industry.
SHLE is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.01, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.7 | ||
| Fwd PE | 4.17 |
4.2 Price Multiples
62.07% of the companies in the same industry are more expensive than SHLE, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SHLE indicates a rather cheap valuation: SHLE is cheaper than 89.66% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.89 | ||
| EV/EBITDA | 4.05 |
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.
A more expensive valuation may be justified as SHLE's earnings are expected to grow with 87.04% in the coming years.
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 (12/22/2025, 7:00:00 PM)
14.86
-0.04 (-0.27%)
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 Cap196.00M
Revenue(TTM)680.75M
Net Income(TTM)23.73M
Analysts80
Price Target17.09 (15.01%)
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 | 16.7 | ||
| Fwd PE | 4.17 | ||
| P/S | 0.29 | ||
| P/FCF | 2.89 | ||
| P/OCF | 1.5 | ||
| P/B | 0.93 | ||
| P/tB | 0.93 | ||
| EV/EBITDA | 4.05 |
EPS(TTM)0.89
EY5.99%
EPS(NY)3.56
Fwd EY23.96%
FCF(TTM)5.15
FCFY34.65%
OCF(TTM)9.92
OCFY66.79%
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
WACC8.02%
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.