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Source Energy Services

TSX:SHLE
Snowflake Description

Overvalued with concerning outlook.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
SHLE
TSX
CA$43M
Imp Market Cap
  1. Home
  2. CA
  3. Energy
Company description

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. The last earnings update was 79 days ago. More info.


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  • Source Energy Services has significant price volatility in the past 3 months.
SHLE Share Price and Events
7 Day Returns
0%
TSX:SHLE
-2.4%
CA Energy Services
-0.4%
CA Market
1 Year Returns
-86.6%
TSX:SHLE
-31.7%
CA Energy Services
-2.8%
CA Market
SHLE Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Source Energy Services (SHLE) 0% -9.3% -57.8% -86.6% - -
CA Energy Services -2.4% -3.9% -16.4% -31.7% -25.4% -71.9%
CA Market -0.4% 0.3% -2.4% -2.8% 7.7% 0.1%
1 Year Return vs Industry and Market
  • SHLE underperformed the Energy Services industry which returned -31.7% over the past year.
  • SHLE underperformed the Market in Canada which returned -2.8% over the past year.
Price Volatility
SHLE
Industry
5yr Volatility vs Market

SHLE Value

 Is Source Energy Services undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Source Energy Services to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Source Energy Services.

TSX:SHLE Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 8 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 13.9%
Perpetual Growth Rate 10-Year CA Government Bond Rate 1.9%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for TSX:SHLE
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year CA Govt Bond Rate 1.9%
Equity Risk Premium S&P Global 6%
Energy Services Unlevered Beta Simply Wall St/ S&P Global 1.07
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.069 (1 + (1- 26.5%) (575.76%))
4.076
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
2
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.95% + (2 * 5.96%)
13.87%

Discounted Cash Flow Calculation for TSX:SHLE using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Source Energy Services is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

TSX:SHLE DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CAD, Millions) Source Present Value
Discounted (@ 13.87%)
2020 1.67 Analyst x3 1.46
2021 2.51 Est @ 50.69% 1.94
2022 3.42 Est @ 36.07% 2.31
2023 4.30 Est @ 25.83% 2.56
2024 5.10 Est @ 18.67% 2.67
2025 5.80 Est @ 13.65% 2.66
2026 6.39 Est @ 10.14% 2.57
2027 6.88 Est @ 7.68% 2.43
2028 7.29 Est @ 5.96% 2.27
2029 7.64 Est @ 4.76% 2.08
Present value of next 10 years cash flows CA$22.96
TSX:SHLE DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= CA$7.64 × (1 + 1.95%) ÷ (13.87% – 1.95%)
CA$65.30
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CA$65.30 ÷ (1 + 13.87%)10
CA$17.82
TSX:SHLE Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CA$22.96 + CA$17.82
CA$40.78
Equity Value per Share
(CAD)
= Total value / Shares Outstanding
= CA$40.78 / 61.70
CA$0.66
TSX:SHLE Discount to Share Price
Calculation Result
Value per share (CAD) From above. CA$0.66
Current discount Discount to share price of CA$0.68
= -1 x (CA$0.68 - CA$0.66) / CA$0.66
-2.9%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Source Energy Services is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Source Energy Services's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Source Energy Services's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
TSX:SHLE PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in CAD CA$-0.21
TSX:SHLE Share Price ** TSX (2019-07-18) in CAD CA$0.68
Canada Energy Services Industry PE Ratio Median Figure of 17 Publicly-Listed Energy Services Companies 21.86x
Canada Market PE Ratio Median Figure of 538 Publicly-Listed Companies 15.04x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Source Energy Services.

TSX:SHLE PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TSX:SHLE Share Price ÷ EPS (both in CAD)

= 0.68 ÷ -0.21

-3.24x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Source Energy Services is loss making, we can't compare its value to the CA Energy Services industry average.
  • Source Energy Services is loss making, we can't compare the value of its earnings to the Canada market.
Price based on expected Growth
Does Source Energy Services's expected growth come at a high price?
Raw Data
TSX:SHLE PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -3.24x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts
-11.5%per year
Canada Energy Services Industry PEG Ratio Median Figure of 13 Publicly-Listed Energy Services Companies 0.72x
Canada Market PEG Ratio Median Figure of 247 Publicly-Listed Companies 1.17x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Source Energy Services, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Source Energy Services's assets?
Raw Data
TSX:SHLE PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in CAD CA$4.81
TSX:SHLE Share Price * TSX (2019-07-18) in CAD CA$0.68
Canada Energy Services Industry PB Ratio Median Figure of 39 Publicly-Listed Energy Services Companies 1.06x
Canada Market PB Ratio Median Figure of 2,441 Publicly-Listed Companies 1.44x
TSX:SHLE PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSX:SHLE Share Price ÷ Book Value per Share (both in CAD)

= 0.68 ÷ 4.81

0.14x

* Primary Listing of Source Energy Services.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Source Energy Services is good value based on assets compared to the CA Energy Services industry average.
X
Value checks
We assess Source Energy Services's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Energy Services industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Energy Services industry average (and greater than 0)? (1 check)
  5. Source Energy Services has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

SHLE Future Performance

 How is Source Energy Services expected to perform in the next 1 to 3 years based on estimates from 8 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-11.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Source Energy Services expected to grow at an attractive rate?
  • Unable to compare Source Energy Services's earnings growth to the low risk savings rate as it is expected to be loss making during the next 1-3 years.
Growth vs Market Checks
  • Unable to compare Source Energy Services's earnings growth to the Canada market average as it is expected to be loss making during the next 1-3 years.
  • Source Energy Services's revenue growth is expected to exceed the Canada market average.
Annual Growth Rates Comparison
Raw Data
TSX:SHLE Future Growth Rates Data Sources
Data Point Source Value (per year)
TSX:SHLE Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts -11.5%
TSX:SHLE Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 8 Analysts 9.6%
Canada Energy Services Industry Earnings Growth Rate Market Cap Weighted Average 47.6%
Canada Energy Services Industry Revenue Growth Rate Market Cap Weighted Average 7.7%
Canada Market Earnings Growth Rate Market Cap Weighted Average 14%
Canada Market Revenue Growth Rate Market Cap Weighted Average 5.7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
TSX:SHLE Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
All numbers in CAD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
TSX:SHLE Future Estimates Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 533 1
2020-12-31 436 29 -22 8
2019-12-31 395 25 -28 8
TSX:SHLE Past Financials Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income *
2019-03-31 418 66 -13
2018-12-31 415 76 -2
2018-09-30 436 75 10
2018-06-30 394 40 15
2018-03-31 330 8 -3
2017-12-31 289 6 -9
2017-09-30 260 -32 -17
2017-06-30 204 -32 -32
2017-03-31 160 -18 -43
2016-12-31 139 -9 -43

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Source Energy Services is not considered high growth as it is expected to be loss making for the next 1-3 years.
  • Source Energy Services's revenue is expected to grow by 9.6% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
TSX:SHLE Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below

All data from Source Energy Services Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:SHLE Future Estimates Data
Date (Data in CAD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31
2020-12-31 -0.58 -0.44 -0.89 4.00
2019-12-31 -0.52 -0.35 -0.82 6.00
TSX:SHLE Past Financials Data
Date (Data in CAD Millions) EPS *
2019-03-31 -0.21
2018-12-31 -0.04
2018-09-30 0.17
2018-06-30 0.25
2018-03-31 -0.05
2017-12-31 -0.19
2017-09-30 -0.46
2017-06-30 -1.09
2017-03-31 -607.44
2016-12-31 -1.82

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Source Energy Services will efficiently use shareholders’ funds in the future (Return on Equity greater than 20%) as it is not expected to be profitable.
X
Future performance checks
We assess Source Energy Services's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Canada market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Canada market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Source Energy Services has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

SHLE Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Source Energy Services's growth in the last year to its industry (Energy Services).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Source Energy Services does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.
  • Unable to compare Source Energy Services's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Source Energy Services's 1-year growth to the CA Energy Services industry average as it is not currently profitable.
Earnings and Revenue History
Source Energy Services's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Source Energy Services Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:SHLE Past Revenue, Cash Flow and Net Income Data
Date (Data in CAD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 417.79 -12.85 37.68
2018-12-31 415.03 -2.21 35.73
2018-09-30 436.15 10.49 35.64
2018-06-30 394.00 14.62 35.52
2018-03-31 330.44 -2.93 36.16
2017-12-31 289.50 -8.52 31.13
2017-09-30 260.36 -16.53 27.89
2017-06-30 203.86 -32.12 24.67
2017-03-31 160.30 -43.11 22.98
2016-12-31 139.20 -43.40 23.87
2015-12-31 153.14 -9.77 18.18
2014-12-31 146.51 17.04 18.91

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Source Energy Services has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • Source Energy Services used its assets less efficiently than the CA Energy Services industry average last year based on Return on Assets.
  • It is difficult to establish if Source Energy Services improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Source Energy Services's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Energy Services industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Source Energy Services has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

SHLE Health

 How is Source Energy Services's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Source Energy Services's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Source Energy Services is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Source Energy Services's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Source Energy Services's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.7x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Source Energy Services Company Filings, last reported 3 months ago.

TSX:SHLE Past Debt and Equity Data
Date (Data in CAD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 290.82 172.37
2018-12-31 304.67 146.93 4.57
2018-09-30 304.26 146.36 4.62
2018-06-30 309.99 160.03
2018-03-31 294.51 145.16
2017-12-31 282.19 127.58
2017-09-30 193.85 105.68
2017-06-30 196.46 92.06 10.23
2017-03-31 -62.19 248.10
2016-12-31 -59.22 234.60
2015-12-31 -4.84 179.14 0.28
2014-12-31 -1.16 148.42 3.20
  • Source Energy Services's level of debt (59.3%) compared to net worth is high (greater than 40%).
  • Unable to establish if Source Energy Services's debt level has increased without past 5-year debt data.
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.

  • Source Energy Services has less than a year of cash runway based on current free cash flow.
  • Source Energy Services has less than a year of cash runway if free cash flow continues to reduce at historical rates of -52.4% each year.
X
Financial health checks
We assess Source Energy Services's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Source Energy Services has a total score of 1/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

SHLE Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Source Energy Services dividends. Estimated to be 0% next year.
If you bought CA$2,000 of Source Energy Services shares you are expected to receive CA$0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Source Energy Services's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Source Energy Services's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
TSX:SHLE Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
Canada Energy Services Industry Average Dividend Yield Market Cap Weighted Average of 12 Stocks 4.2%
Canada Market Average Dividend Yield Market Cap Weighted Average of 336 Stocks 3.5%
Canada Minimum Threshold Dividend Yield 10th Percentile 1.1%
Canada Bottom 25% Dividend Yield 25th Percentile 2.1%
Canada Top 25% Dividend Yield 75th Percentile 5.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

TSX:SHLE Future Dividends Estimate Data
Date (Data in CA$) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.00 1.00
2020-12-31 0.00 1.00
2019-12-31 0.00 1.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Source Energy Services has not reported any payouts.
  • Unable to verify if Source Energy Services's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Source Energy Services's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Source Energy Services has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Source Energy Services's dividends in 3 years as they are not expected to pay a notable one for Canada.
X
Income/ dividend checks
We assess Source Energy Services's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Source Energy Services afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Source Energy Services has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

SHLE Management

 What is the CEO of Source Energy Services's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Brad Thomson
COMPENSATION CA$1,494,662
AGE 62
CEO Bio

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 of Power Infrastructure Development at TransCanada Corp. since September 2005. Mr. Thomson joined Source in June 2012. Mr. Thomson has extensive experience in fast growth organizations as a founder, officer and director of a number of business success stories. Mr. Thomson has been a Manager of CCS Income Trust since May 14, 2003. He was a founder and officer of an oil and gas investment fund - AGF Resource Capital and Metronet Communications - Allstream Canada. Mr. Thomson served as Executive Vice President of Business Development - ZEEP Canada at Zero Emission Energy Plants, Inc. until August 18, 2015. Mr. Thomson served as a Business Consultant since January 2001. He first joined TransCanada in 1994. While at TransCanada, he spear-headed the creation of TransCanada Power LP , which is now traded as Capital Power Corporation. Mr. Thomson served as the Principal and the Chief Financial Officer of the Northridge Group of Companies. He served as a Consultant at TransCanada and TransCanada Power LP from 2001 to September 2005. Mr. Thomson served as a Senior Vice President of Corporate Development at TransCanada Energy Ltd., a subsidiary of TransCanada Pipelines Ltd. until July 1998. Mr. Thomson served as Partner at Northridge Capital Inc., a privately held venture capital firm from July 1998 to January 2001. Mr. Thomson served as the Chief Financial Officer of E-Zone Networks Inc. He has held senior positions at Northridge Canada Inc. and KPMG Peat Marwick. He has over 25 years of leadership experience in the energy industry. He served at KPMG from 1979 to 1987 as Senior Manager of Taxation in Calgary and at the Toronto National tax practice. Mr. Thomson serves as an Independent Director of Canadian Crude Separators Inc. He has been a Director of Source Energy Services Ltd since February 2017. He has been an Independent Director at CCS Corporation since May 15, 2003 and CE Franklin Ltd. since April 6, 2010. He serves on the Board of CCS Income Trust and was granted ICD.U designation from the Institute of Corporate Directors fron Canadian Institute of Directors in 2005. He served as a Director of Tervita Corporation since May 14, 2003. He served as a Director of Bruce Power, L.P. He is a Chartered Professional Accountant and received his Bachelor of Commerce degree from the University of Calgary.

CEO Compensation
  • Brad's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Brad's remuneration is higher than average for companies of similar size in Canada.
Management Team

Brad Thomson

TITLE
CEO, President & Director
COMPENSATION
CA$1M
AGE
62

Derren Newell

TITLE
Chief Financial Officer
COMPENSATION
CA$806K
AGE
50

Scott Melbourn

TITLE
Chief Operating Officer
COMPENSATION
CA$834K

Joe Jackson

TITLE
Senior Vice President of Commercial Development
COMPENSATION
CA$929K
TENURE
5.8 yrs

Orson Ross

TITLE
Vice-President of Finance
COMPENSATION
CA$327K

Shawn Furlong

TITLE
Health & Safety Director
COMPENSATION
CA$295K
Board of Directors Tenure

Average tenure and age of the Source Energy Services board of directors in years:

1.2
Average Tenure
54
Average Age
  • The average tenure for the Source Energy Services board of directors is less than 3 years, this suggests a new board.
Board of Directors

Stew Hanlon

TITLE
Chairman of the Board
COMPENSATION
CA$150K
AGE
59
TENURE
0.4 yrs

Brad Thomson

TITLE
CEO, President & Director
COMPENSATION
CA$1M
AGE
62
TENURE
2.4 yrs

Jim McMahon

TITLE
Independent Director
COMPENSATION
CA$142K
AGE
60
TENURE
2.4 yrs

Mick MacBean

TITLE
Independent Director
AGE
51
TENURE
0.4 yrs

Carrie Lonardelli

TITLE
Independent Director
AGE
43
TENURE
0.3 yrs

Jeff Belford

TITLE
Independent Director
COMPENSATION
CA$131K
AGE
54
TENURE
2.4 yrs

Ken Seitz

TITLE
Independent Director
COMPENSATION
CA$112K
AGE
48
TENURE
1.2 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (CA$) Value (CA$)
05. Dec 18 Buy Bradley Thomson Individual 30. Nov 18 30. Nov 18 3,475 CA$1.28 CA$4,448
18. Nov 18 Buy Bradley Thomson Individual 16. Nov 18 16. Nov 18 3,000 CA$1.47 CA$4,410
06. Nov 18 Buy Alan Hanlon Individual 06. Nov 18 06. Nov 18 100,000 CA$1.91 CA$191,000
06. Nov 18 Sell James McMahon Individual 06. Nov 18 06. Nov 18 -100,000 CA$1.91 CA$-191,000
06. Nov 18 Buy Derren Newell Individual 06. Nov 18 06. Nov 18 5,900 CA$1.92 CA$11,298
X
Management checks
We assess Source Energy Services's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Source Energy Services has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

SHLE News

Simply Wall St News

Source Energy Services (TSE:SHLE) Use Of Debt Could Be Considered Risky

TSX:SHLE Historical Debt, July 2nd 2019 A Look At Source Energy Services's Liabilities Zooming in on the latest balance sheet data, we can see that Source Energy Services had liabilities of CA$76.2m due within 12 months and liabilities of CA$241.8m due beyond that. … Either way, since Source Energy Services does have more debt than cash, it's worth keeping an eye on its balance sheet. … While Source Energy Services's debt to EBITDA ratio (4.27) suggests that it uses debt fairly modestly, its interest cover is very weak, at 0.01.

Simply Wall St -

Imagine Owning Source Energy Services (TSE:SHLE) And Trying To Stomach The 81% Share Price Drop

See our latest analysis for Source Energy Services Because Source Energy Services is loss-making, we think the market is probably more focussed on revenue and revenue growth, at least for now. … In the last year Source Energy Services saw its revenue grow by 26%. … A Different Perspective While Source Energy Services shareholders are down 81% for the year, the market itself is up 0.7%.

Simply Wall St -

Source Energy Services Ltd.'s (TSE:SHLE) Path To Profitability

Source Energy Services Ltd.'s (TSE:SHLE):. … I’ve put together a brief outline of industry analyst expectations for SHLE, its year of breakeven and its implied growth rate … Check out our latest analysis for Source Energy Services

Simply Wall St -

How Much Of Source Energy Services Ltd. (TSE:SHLE) Do Insiders Own?

A look at the shareholders of Source Energy Services Ltd. … Source Energy Services is a smaller company with a market capitalization of CA$83m, so it may still be flying under the radar of many institutional investors. … See our latest analysis for Source Energy Services

Simply Wall St -

Imagine Owning Source Energy Services And Trying To Stomach The 81% Share Price Drop

Source Energy Services may have better days ahead, of course; we've only looked at a one year period. … One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). … During the last year Source Energy Services grew its earnings per share, moving from a loss to a profit.

Simply Wall St -

Does Source Energy Services Ltd.’s (TSE:SHLE) ROCE Reflect Well On The Business?

Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … Return On Capital Employed (ROCE): What is it? … ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business.

Simply Wall St -

What You Must Know About Source Energy Services Ltd.'s (TSE:SHLE) Financial Strength

Investors are always looking for growth in small-cap stocks like Source Energy Services Ltd. … Companies operating in the Energy Services industry,. … Evaluating financial health as part of your investment thesis is

Simply Wall St -

Do Insiders Own Lots Of Shares In Source Energy Services Ltd (TSE:SHLE)?

The big shareholder groups in Source Energy Services Ltd (TSE:SHLE) have power over the company. … Source Energy Services is a smaller company with a market capitalization of CA$155m, so it may still be flying under the radar of many institutional investors. … See our latest analysis for Source Energy Services

Simply Wall St -

Looking At Source Energy Services Ltd (TSE:SHLE) From All Angles

Source Energy Services Ltd (TSE:SHLE) is a stock with outstanding fundamental characteristics. … When we build an investment case, we need to look at the stock with a holistic perspective. … In the case of SHLE, it.

Simply Wall St -

Is Source Energy Services Ltd's (TSE:SHLE) PE Ratio A Signal To Sell For Investors?

Source Energy Services Ltd (TSE:SHLE) trades with a trailing P/E of 20.4x, which is higher than the industry average of 17.4x. … While SHLE might seem like a stock to avoid or sell if you own it, it is important to understand the assumptions behind the P/E ratio before you make any investment decisions. … See our latest analysis for Source Energy Services

Simply Wall St -

SHLE Company Info

Description

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 storage and logistics services for other bulk oil and gas well completion materials; and develops wellsite mobile sand storage and handling system. The company was founded in 2017 and is headquartered in Calgary, Canada.

Details
Name: Source Energy Services Ltd.
SHLE
Exchange: TSX
Founded: 2017
CA$42,575,559
CA$41,074,418
61,703,710
Website: http://www.sourceenergyservices.com
Address: Source Energy Services Ltd.
438 — 11th Avenue S.E.,
Suite 500,
Calgary,
Alberta, T2G 0Y4,
Canada
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSX SHLE Common Shares The Toronto Stock Exchange CA CAD 13. Apr 2017
OTCPK SCEY.F Common Shares Pink Sheets LLC US USD 13. Apr 2017
DB S4O Common Shares Deutsche Boerse AG DE EUR 13. Apr 2017
Number of employees
Current staff
Staff numbers
444
Source Energy Services employees.
Industry
Oil and Gas Equipment and Services
Energy
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/19 00:58
End of day share price update: 2019/07/18 00:00
Last estimates confirmation: 2019/07/17
Last earnings filing: 2019/05/01
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.