Source Energy Services Ltd. Fundamental Analysis
Source Energy Services Ltd. (SCEYF) shows weak financial fundamentals with a PE ratio of 32.63, profit margin of 0.95%, and ROE of 2.93%. The company generates $0.7B in annual revenue with moderate year-over-year growth of 3.91%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 21.5/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze SCEYF's fundamental strength across five key dimensions:
Efficiency Score
WeakSCEYF struggles to generate sufficient returns from assets.
Valuation Score
ModerateSCEYF shows balanced valuation metrics.
Growth Score
WeakSCEYF faces weak or negative growth trends.
Financial Health Score
ModerateSCEYF shows balanced financial health with some risks.
Profitability Score
ModerateSCEYF maintains healthy but balanced margins.
Key Financial Metrics
Is SCEYF Expensive or Cheap?
P/E Ratio
SCEYF trades at 32.63 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, SCEYF's PEG of -0.29 indicates potential undervaluation.
Price to Book
The market values Source Energy Services Ltd. at 0.96 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -0.87 times EBITDA. This is generally considered low.
How Well Does SCEYF Make Money?
Net Profit Margin
For every $100 in sales, Source Energy Services Ltd. keeps $0.95 as profit after all expenses.
Operating Margin
Core operations generate 5.10 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $2.93 in profit for every $100 of shareholder equity.
ROA
Source Energy Services Ltd. generates $1.00 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Source Energy Services Ltd. produces operating cash flow of $76.75M, showing steady but balanced cash generation.
Free Cash Flow
Source Energy Services Ltd. generates weak or negative free cash flow of $11.82M, restricting financial flexibility.
FCF Per Share
Each share generates $0.90 in free cash annually.
FCF Yield
SCEYF converts 5.86% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
32.63
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.29
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.96
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.31
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.43
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.38
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.03
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.07
vs 25 benchmark
How SCEYF Stacks Against Its Sector Peers
| Metric | SCEYF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 32.63 | 20.85 | Worse (Expensive) |
| ROE | 2.93% | 1014.00% | Weak |
| Net Margin | 0.95% | -57829.00% (disorted) | Weak |
| Debt/Equity | 1.43 | -0.46 (disorted) | Distorted |
| Current Ratio | 1.38 | 4.93 | Neutral |
| ROA | 1.00% | -10983113.00% (disorted) | Weak |
SCEYF outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Source Energy Services Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
5.83%
Industry Style: Cyclical, Value, Commodity
GrowingEPS CAGR
106.74%
Industry Style: Cyclical, Value, Commodity
High GrowthFCF CAGR
-13.09%
Industry Style: Cyclical, Value, Commodity
Declining