TSX:SHLE

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Source Energy Services

Executive Summary

Source Energy Services Ltd. produces, supplies, and distributes Northern White frac sand used primarily in oil and gas exploration and production in Western Canada and the United States.


Snowflake Analysis

Adequate balance sheet with concerning outlook.


Similar Companies

Share Price & News

How has Source Energy Services's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SHLE's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0%

SHLE

-0.3%

CA Energy Services

0.005%

CA Market


1 Year Return

-85.0%

SHLE

-60.2%

CA Energy Services

-5.8%

CA Market

Return vs Industry: SHLE underperformed the Canadian Energy Services industry which returned -60.9% over the past year.

Return vs Market: SHLE underperformed the Canadian Market which returned -6.3% over the past year.


Shareholder returns

SHLEIndustryMarket
7 Day0%-0.3%0.005%
30 Day-21.7%-8.1%4.5%
90 Day-18.2%8.8%9.7%
1 Year-85.0%-85.0%-58.0%-60.2%-2.5%-5.8%
3 Year-98.8%-98.8%-71.3%-74.2%8.5%-2.0%
5 Yearn/a-73.4%-77.4%29.1%9.4%

Price Volatility Vs. Market

How volatile is Source Energy Services's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Source Energy Services undervalued compared to its fair value and its price relative to the market?

0.34x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate SHLE's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate SHLE's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: SHLE is unprofitable, so we can't compare its PE Ratio to the CA Energy Services industry average.

PE vs Market: SHLE is unprofitable, so we can't compare its PE Ratio to the Canadian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate SHLE's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SHLE's PB Ratio (0.3x) is in line with the CA Energy Services industry average.


Next Steps

Future Growth

How is Source Energy Services forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

76.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SHLE is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: SHLE is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: SHLE is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: SHLE's revenue (8.5% per year) is forecast to grow faster than the Canadian market (5.8% per year).

High Growth Revenue: SHLE's revenue (8.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SHLE is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has Source Energy Services performed over the past 5 years?

-70.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SHLE is currently unprofitable.

Growing Profit Margin: SHLE is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SHLE is unprofitable, and losses have increased over the past 5 years at a rate of 70.5% per year.

Accelerating Growth: Unable to compare SHLE's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: SHLE is unprofitable, making it difficult to compare its past year earnings growth to the Energy Services industry (4.4%).


Return on Equity

High ROE: SHLE has a negative Return on Equity (-2453.67%), as it is currently unprofitable.


Next Steps

Financial Health

How is Source Energy Services's financial position?


Financial Position Analysis

Short Term Liabilities: SHLE's short term assets (CA$77.5M) exceed its short term liabilities (CA$61.5M).

Long Term Liabilities: SHLE's short term assets (CA$77.5M) do not cover its long term liabilities (CA$215.8M).


Debt to Equity History and Analysis

Debt Level: SHLE's debt to equity ratio (1543.8%) is considered high.

Reducing Debt: SHLE had negative shareholder equity 5 years ago, but is now positive and has therefore improved.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable SHLE has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: SHLE is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 58.1% per year.


Next Steps

Dividend

What is Source Energy Services's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate SHLE's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate SHLE's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if SHLE's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SHLE's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SHLE's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.3yrs

Average board tenure


CEO

Brad Thomson (63 yo)

no data

Tenure

CA$1,134,442

Compensation

Mr. Bradley J. Thomson, also known as Brad, serves as the Chief Executive Officer and President of Source Energy Services Ltd and Source Energy Services Canada LP. Mr. Thomson has been the Vice President o ...


CEO Compensation Analysis

Compensation vs Market: Brad's total compensation ($USD846.34K) is above average for companies of similar size in the Canadian market ($USD178.97K).

Compensation vs Earnings: Brad's compensation has been consistent with company performance over the past year.


Board Members

NamePositionTenureCompensationOwnership
Bradley Thomson
CEO, President & Directorno dataCA$1.13m5.5%
CA$ 301.6k
Jeff Belford
Independent Director3.5yrsCA$129.29kno data
Michael MacBean
Independent Director1.5yrsCA$128.70kno data
James McMahon
Independent Director3.5yrsCA$146.79k19.14%
CA$ 1.0m
Alan Hanlon
Independent Chairman of the Board1.5yrsCA$169.26k0.34%
CA$ 18.4k
Carrie Lonardelli
Independent Director1.42yrsCA$129.08kno data
Kenneth Seitz
Independent Director2.25yrsCA$140.78kno data

2.3yrs

Average Tenure

55yo

Average Age

Experienced Board: SHLE's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Source Energy Services Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Source Energy Services Ltd.
  • Ticker: SHLE
  • Exchange: TSX
  • Founded: 2017
  • Industry: Oil and Gas Equipment and Services
  • Sector: Energy
  • Implied Market Cap: CA$5.486m
  • Market Cap: CA$5.369m
  • Shares outstanding: 60.95m
  • Website: https://www.sourceenergyservices.com

Number of Employees


Location

  • Source Energy Services Ltd.
  • 438 — 11th Avenue S.E.
  • Suite 500
  • Calgary
  • Alberta
  • T2G 0Y4
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SHLETSX (The Toronto Stock Exchange)YesCommon SharesCACADApr 2017
S4ODB (Deutsche Boerse AG)YesCommon SharesDEEURApr 2017
SCEY.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDApr 2017

Biography

Source Energy Services Ltd. produces, supplies, and distributes Northern White frac sand used primarily in oil and gas exploration and production in Western Canada and the United States. It also provides s ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/04 00:22
End of Day Share Price2020/07/31 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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 here.