Source Energy Services Ltd
Source Energy Services Ltd provides mineral resources and construction materials, primarily generating revenue through the sale of these materials and related services.
Business. Source Energy Services Ltd (SHLE.TO) is a construction materials company operating within the mineral resources industry. The firm is headquartered in Canada and is primarily listed on the Toronto Stock Exchange. Specific details regarding its operating segments and geographic mix are not available.
Analyst recommendations
2 analysts · consensus BuyAt a glance
What drives this business
The watch-list the newsroom runs for this company — derived from its sector path, sharpened layer by layer. Not investment advice.
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- Macro
- Rate decisionBank of England rate decision (press conf.)2026-08-06 · GB
- Rate decisionReserve Bank of Australia rate decision (press conf.)2026-08-12 · AU
- Rate decisionNorges Bank rate decision (press conf.)2026-08-20 · NO
- Rate decisionSveriges Riksbank rate decision (press conf.)2026-09-03 · SE
- Rate decisionBank of Canada rate decision (press conf.)2026-09-09 · CA
- Rate decisionEuropean Central Bank rate decision (press conf.)2026-09-10 · EU
- Macro & political
- ElectionSE Swedish Election2026-09-14 · SE
- ElectionUS U.S. Midterms2026-11-03 · US
- ElectionFR French Legislative2027-06-01 · FR
Pre-earnings brief
Signals & dispatch
Composite-score breakdown
Synthesis
Source Energy Services Ltd (SHLE.TO) is a construction materials company operating within the mineral resources industry. The firm is headquartered in Canada and is primarily listed on the Toronto Stock Exchange. Specific details regarding its operating segments and geographic mix are not available.
Source Energy Services Ltd has a debt-to-equity ratio of 1.23, indicating a moderate level of leverage, and a current ratio of 0.59, suggesting potential liquidity constraints. The company's liquidity position is assessed as medium, with free cash flow of 7.68 million CAD and operating cash flow of 44.77 million CAD, but net cash is negative after subtracting total debt.
Profitability metrics show a return on equity of 2.61% and a return on assets of 0.91%, both below the industry median for construction materials firms. This suggests that the company is underperforming in terms of capital efficiency and asset utilization.
The company's revenue is concentrated in a single business segment, with no disclosed geographic diversification. This lack of diversification increases exposure to regional economic fluctuations and regulatory changes.
Outlook data indicates a modest growth trajectory, with revenue expected to increase in the current fiscal year. However, the magnitude of the increase is not specified, and no projections are provided for the next fiscal year.
Risk factors include a medium liquidity risk and a low dilution risk. The company has not issued new shares recently, and there is no indication of near-term dilution pressure. However, the negative net cash position and high debt levels could pose challenges in the event of a liquidity crunch.
Recent events include analyst price targets ranging from 17.00 CAD to 19.50 CAD, with a mean recommendation of 2.50, indicating a neutral stance. No recent filings or transcripts have been disclosed that would suggest significant operational or strategic changes.
- Source Energy Services Ltd has a moderate debt load and liquidity constraints, as indicated by a debt-to-equity ratio of 1.23 and a current ratio of 0.59.
- The company's profitability metrics, including a return on equity of 2.61% and a return on assets of 0.91%, are below industry medians, suggesting underperformance in capital efficiency and asset utilization.
- Revenue is concentrated in a single business segment, with no geographic diversification, increasing exposure to regional economic and regulatory risks.
- Analysts have a neutral stance on the company, with a mean recommendation of 2.50 and price targets ranging from 17.00 CAD to 19.50 CAD.
Bull / Bear case
Generated · model-assistedRevenue grew at a 21.6% CAGR over four years, reaching CAD 700.3 million in fiscal 2026.
Free cash flow surged 132.9% year-over-year to CAD 39.6 million in fiscal 2026.
Analysts project 32.7% upside to a mean price target of CAD 18.25 from current levels.
Cash conversion ratio of 9.56 ranks as best-in-class compared to the cohort median of 1.2.
Debt-to-equity ratio of 1.23 sits in the bottom quartile versus the 0.25 cohort median.
The company faces high credit risk and medium liquidity risk according to internal risk assessments.
In focus — financials by report
Revenue C$160.2M, −23,2% YoY; Operating income −70,6% YoY.
- ▍Revenue C$160.2M, −23,2% YoY
- ▍Operating income −70,6% YoY
- ▍Net income −114,0% YoY
- ▍Free cash flow −96,9% YoY
- ▍Net margin -2.1%
Revenue C$164.5M, +13,5% YoY; Operating income −2,1% YoY.
- ▍Revenue C$164.5M, +13,5% YoY
- ▍Operating income −2,1% YoY
- ▍Net income +129,5% YoY
- ▍Free cash flow +204,9% YoY
- ▍Net margin 1.3%
Revenue C$125.3M, −31,5% YoY; Operating income −78,8% YoY.
- ▍Revenue C$125.3M, −31,5% YoY
- ▍Operating income −78,8% YoY
- ▍Net income −161,2% YoY
- ▍Free cash flow −198,2% YoY
- ▍Net margin -5.0%
Revenue C$201.9M, +14,5% YoY; Operating income +19,3% YoY.
- ▍Revenue C$201.9M, +14,5% YoY
- ▍Operating income +19,3% YoY
- ▍Net income +189,6% YoY
- ▍Free cash flow +154,7% YoY
- ▍Net margin 6.7%
Revenue C$208.6M; Operating income C$19.2M.
- ▍Revenue C$208.6M
- ▍Operating income C$19.2M
- ▍Net margin 11.3%
Revenue C$145.0M; Operating income C$7.0M.
- ▍Revenue C$145.0M
- ▍Operating income C$7.0M
- ▍Net margin -5.0%
Revenue C$183.1M; Operating income C$18.7M.
- ▍Revenue C$183.1M
- ▍Operating income C$18.7M
- ▍Net margin 5.5%
Revenue C$176.4M; Operating income C$14.8M.
- ▍Revenue C$176.4M
- ▍Operating income C$14.8M
- ▍Net margin 2.7%
Revenue C$700.3M, +3,9% YoY; Operating income −20,8% YoY.
- ▍Revenue C$700.3M, +3,9% YoY
- ▍Operating income −20,8% YoY
- ▍Net income +247,9% YoY
- ▍Free cash flow +132,9% YoY
- ▍Net margin 4.7%
Revenue C$674.0M, +18,3% YoY; Operating income −68,2% YoY.
- ▍Revenue C$674.0M, +18,3% YoY
- ▍Operating income −68,2% YoY
- ▍Net income −94,3% YoY
- ▍Free cash flow −90,8% YoY
- ▍Net margin 1.4%
Revenue C$569.7M, +37,0% YoY; Operating income +1 332,0% YoY.
- ▍Revenue C$569.7M, +37,0% YoY
- ▍Operating income +1 332,0% YoY
- ▍Net income +2 008,2% YoY
- ▍Free cash flow +2 191,6% YoY
- ▍Net margin 29.4%
Revenue C$415.9M, +30,0% YoY; Operating income +428,3% YoY.
- ▍Revenue C$415.9M, +30,0% YoY
- ▍Operating income +428,3% YoY
- ▍Net income +64,1% YoY
- ▍Free cash flow +14 501,8% YoY
- ▍Net margin -2.1%
Valuation TTM
Revenue by segment
Business relationships
Supply chain
Peer comparison
Market position
Stress test
Predictor forecast
| Metric | Our forecast | Guidance | Consensus |
|---|---|---|---|
| EPS | —no estimate | —no estimate | 3,23 |
| Revenue | —no estimate | —no estimate | 726,2M CAD |
| Operating income | —no estimate | —no estimate | —no estimate |
Options
Short squeeze
Earnings-call key lines
Consensus distribution
sell-side coverageEstimate revisions
consensus EPS · 26-week trendSell-side observations
Themes
ESG
Risk factors
- Net cash is negative after subtracting total debt.
Benchmarks vs cohort
Corporate actions / M&A
FX exposure
Comparable transactions
Derivatives & instruments
Actions
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- ESG data
- Dilution Ratio(shares_outstanding_diluted - shares_outstanding_basic) / shares_outstanding_basic
- Net Cashcash_and_equivalents + short_term_investments - short_term_debt - long_term_debt
- Capex To Revenuecapital_expenditure / revenue
- Return On Equitynet_income / total_equity
- Debt To Equity(short_term_debt + long_term_debt) / total_equity
- Cash Conversion Ratiooperating_cash_flow / net_income
- Source Energy Services Ltd Market data — financials · 2026-05-29
- Source Energy Services Ltd Market data — analyst estimates · 2026-05-29
Ownership & reference
Leadership
- Scott MelbournPresident, Chief Executive Officer, Director