Source Energy Services Ltd.
Source Energy Services Ltd. Fundamental Analysis
Source Energy Services Ltd. (SHLE.TO) shows moderate financial fundamentals with a PE ratio of 5.89, profit margin of 4.72%, and ROE of 15.59%. The company generates $0.7B in annual revenue with strong year-over-year growth of 18.29%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 52.9/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze SHLE.TO's fundamental strength across five key dimensions:
Efficiency Score
WeakSHLE.TO struggles to generate sufficient returns from assets.
Valuation Score
ExcellentSHLE.TO trades at attractive valuation levels.
Growth Score
ModerateSHLE.TO shows steady but slowing expansion.
Financial Health Score
ModerateSHLE.TO shows balanced financial health with some risks.
Profitability Score
ModerateSHLE.TO maintains healthy but balanced margins.
Key Financial Metrics
Is SHLE.TO Expensive or Cheap?
P/E Ratio
SHLE.TO trades at 5.89 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, SHLE.TO's PEG of 0.15 indicates potential undervaluation.
Price to Book
The market values Source Energy Services Ltd. at 0.93 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -1.05 times EBITDA. This is generally considered low.
How Well Does SHLE.TO Make Money?
Net Profit Margin
For every $100 in sales, Source Energy Services Ltd. keeps $4.72 as profit after all expenses.
Operating Margin
Core operations generate 6.55 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $15.59 in profit for every $100 of shareholder equity.
ROA
Source Energy Services Ltd. generates $5.36 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 $110.65M, showing steady but balanced cash generation.
Free Cash Flow
Source Energy Services Ltd. produces free cash flow of $50.79M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $3.88 in free cash annually.
FCF Yield
SHLE.TO converts 26.24% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
5.89
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.15
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.93
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.28
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.69
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.31
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.16
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How SHLE.TO Stacks Against Its Sector Peers
| Metric | SHLE.TO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 5.89 | 21.19 | Better (Cheaper) |
| ROE | 15.59% | 948.00% | Weak |
| Net Margin | 4.72% | -73259.00% (disorted) | Weak |
| Debt/Equity | 1.69 | -0.48 (disorted) | Distorted |
| Current Ratio | 1.31 | 6.31 | Neutral |
| ROA | 5.36% | -10913945.00% (disorted) | Weak |
SHLE.TO outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
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
-25.17%
Industry Style: Cyclical, Value, Commodity
DecliningEPS CAGR
103.91%
Industry Style: Cyclical, Value, Commodity
High GrowthFCF CAGR
-2.48%
Industry Style: Cyclical, Value, Commodity
Declining