Source Energy Services Ltd.

TSX:SHLE Stock Report

Market Cap: CA$177.0m

Source Energy Services Valuation

Is SHLE undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of SHLE when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Discounted Cash Flow
Simply Wall St
CA$47.83
Fair Value
72.7% undervalued intrinsic discount
2
Number of Analysts

Below Fair Value: SHLE (CA$13.07) is trading below our estimate of fair value (CA$47.83)

Significantly Below Fair Value: SHLE is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SHLE?

Key metric: As SHLE is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for SHLE. This is calculated by dividing SHLE's market cap by their current earnings.
What is SHLE's PE Ratio?
PE Ratio1x
EarningsCA$169.73m
Market CapCA$177.03m

Price to Earnings Ratio vs Peers

How does SHLE's PE Ratio compare to its peers?

The above table shows the PE ratio for SHLE vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average9.7x
CFW Calfrac Well Services
11.9x34.6%CA$334.9m
STEP STEP Energy Services
7.9x18.3%CA$325.6m
MCB McCoy Global
9.3xn/aCA$67.9m
TOT Total Energy Services
9.7xn/aCA$414.8m
SHLE Source Energy Services
1x-41.0%CA$177.0m

Price-To-Earnings vs Peers: SHLE is good value based on its Price-To-Earnings Ratio (1x) compared to the peer average (9.7x).

Price to Earnings Ratio vs Industry

How does SHLE's PE Ratio compare vs other companies in the CA Energy Services Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.12.4x27.7%
SHLE Source Energy Services
 1x-41.0%US$124.41m
CWC CWC Energy Services
2.1xn/aUS$59.79m
No more companies available in this PE range
SHLE 1.0xIndustry Avg. 12.4xNo. of Companies7PE01020304050+
2 CompaniesEstimated GrowthMarket Cap
Industry Avg.12.4x27.7%
SHLE Source Energy Services
 1x-41.0%US$124.41m
No more companies

Price-To-Earnings vs Industry: SHLE is good value based on its Price-To-Earnings Ratio (1x) compared to the North American Energy Services industry average (12.4x).

Price to Earnings Ratio vs Fair Ratio

What is SHLE's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SHLE PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio1x
Fair PE Ratio5.1x

Price-To-Earnings vs Fair Ratio: SHLE is good value based on its Price-To-Earnings Ratio (1x) compared to the estimated Fair Price-To-Earnings Ratio (5.1x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst SHLE forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCA$13.07
CA$18.00
+37.7%
11.1%CA$20.00CA$16.00n/a2
Feb ’26CA$13.55
CA$18.00
+32.8%
11.1%CA$20.00CA$16.00n/a2
Jan ’26CA$16.24
CA$18.00
+10.8%
11.1%CA$20.00CA$16.00n/a2
Dec ’25CA$16.55
CA$18.00
+8.8%
11.1%CA$20.00CA$16.00n/a2
Nov ’25CA$13.35
CA$15.50
+16.1%
9.7%CA$17.00CA$14.00n/a2
Oct ’25CA$11.91
CA$18.50
+55.3%
8.1%CA$20.00CA$17.00n/a2
Sep ’25CA$13.25
CA$18.50
+39.6%
8.1%CA$20.00CA$17.00n/a2
Aug ’25CA$14.43
CA$17.00
+17.8%
5.9%CA$18.00CA$16.00n/a2
Jul ’25CA$10.45
CA$17.00
+62.7%
5.9%CA$18.00CA$16.00n/a2
Jun ’25CA$10.36
CA$17.00
+64.1%
5.9%CA$18.00CA$16.00n/a2
May ’25CA$15.61
CA$16.75
+7.3%
7.5%CA$18.00CA$15.50n/a2
Apr ’25CA$12.80
CA$15.75
+23.0%
1.6%CA$16.00CA$15.50n/a2
Mar ’25CA$8.55
CA$13.50
+57.9%
11.1%CA$15.00CA$12.00n/a2
Feb ’25CA$8.85
CA$12.00
+35.6%
25.0%CA$15.00CA$9.00CA$13.552
Jan ’25CA$5.96
CA$9.50
+59.4%
5.3%CA$10.00CA$9.00CA$16.242
Dec ’24CA$7.35
CA$9.50
+29.3%
5.3%CA$10.00CA$9.00CA$16.552
Nov ’24CA$6.10
CA$9.25
+51.6%
8.1%CA$10.00CA$8.50CA$13.352
Oct ’24CA$5.60
CA$8.75
+56.3%
14.3%CA$10.00CA$7.50CA$11.912
Sep ’24CA$4.50
CA$8.75
+94.4%
14.3%CA$10.00CA$7.50CA$13.252
Aug ’24CA$5.60
CA$8.75
+56.3%
14.3%CA$10.00CA$7.50CA$14.432
Jul ’24CA$4.30
CA$8.25
+91.9%
21.2%CA$10.00CA$6.50CA$10.452
Jun ’24CA$5.07
CA$8.25
+62.7%
21.2%CA$10.00CA$6.50CA$10.362
May ’24CA$4.60
CA$7.00
+52.2%
28.6%CA$9.00CA$5.00CA$15.612
Apr ’24CA$3.21
CA$6.25
+94.7%
44.0%CA$9.00CA$3.50CA$12.802
Mar ’24CA$3.20
CA$6.00
+87.5%
50.0%CA$9.00CA$3.00CA$8.552
Analyst Price Target
Consensus Narrative from 2 Analysts
CA$18.00
Fair Value
27.4% undervalued intrinsic discount
2
Number of Analysts

Analyst Forecast: Target price is more than 20% higher than the current share price, but there are not enough analysts covering the stock to determine statistical confidence in agreement.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/02/22 18:22
End of Day Share Price 2025/02/21 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Source Energy Services Ltd. is covered by 16 analysts. 2 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Nick CorcoranAcumen Capital Finance Partners Limited
Tim MonachelloATB Capital Markets
Randy OllenbergerBMO Capital Markets Equity Research