Source Energy Services Ltd. (SHLE) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Cematrix Corp.

Stakeholder Gold Corp.

Source Energy Services Ltd.

Select Sands Corp.

Troy Minerals, Inc.

Canadian Premium Sand, Inc.

True North Gems, Inc.

Whitemud Resources, Inc.

Athabasca Minerals, Inc.

Why is Source Energy Services Ltd. ?

With a fall in PBT of -1041.67%, the company declared Very Negative results in Jun 26

The company has declared negative results for the last 4 consecutive quarters
The company has declared negative results in Sep 25 after 2 consecutive negative quarters
NET PROFIT(Q) At CAD -5.77 MM has Fallen at -485.16%
OPERATING CASH FLOW(Y) Lowest at CAD 55.64 MM
ROCE(HY) Lowest at -6.2%

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -9.45%, its profits have fallen by -82.4%

Underperformed the market in the last 1 year

Even though the market (S&P/TSX 60) has generated returns of 28.13% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -9.45% returns

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Building Products)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Source Energy Services Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Source Energy Services Ltd.

-9.02%

0.28

48.45%

S&P/TSX 60

29.63%

2.33

12.07%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

22.61%

EBIT Growth (5y)

44.67%

EBIT to Interest (avg)

1.06

Debt to EBITDA (avg)

2.98

Net Debt to Equity (avg)

0.82

Sales to Capital Employed (avg)

1.68

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.01%

ROCE (avg)

10.49%

ROE (avg)

15.70%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.85

EV to EBIT

12.36

EV to EBITDA

3.84

EV to Capital Employed

0.92

EV to Sales

0.60

PEG Ratio

Dividend Yield

ROCE (Latest)

7.48%

ROE (Latest)

2.87%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

No Trend

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-29What is not working for the Company

NET PROFIT(Q)

At CAD -5.77 MM has Fallen at -485.16%

OPERATING CASH FLOW(Y)

Lowest at CAD 55.64 MM

ROCE(HY)

Lowest at -6.2%

DEBTORS TURNOVER RATIO(HY)

Lowest at 8.12 times

RAW MATERIAL COST(Y)

Grown by 50.72% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 143.15 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 6.19 times

NET SALES(Q)

At CAD 137.12 MM has Fallen at -15.87%

OPERATING PROFIT(Q)

Lowest at CAD 17.98 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 13.11 %

PRE-TAX PROFIT(Q)

Lowest at CAD -8.87 MM

Here's what is not working for Source Energy Services Ltd.

Pre-Tax Profit

At CAD -8.87 MM has Fallen at -1,091.79%

over average net sales of the previous four periods of CAD 0.89 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CAD MM)

Net Profit

At CAD -5.77 MM has Fallen at -485.16%

over average net sales of the previous four periods of CAD 1.5 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CAD MM)

Debtors Turnover Ratio

Lowest at 8.12 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Operating Cash Flow

Lowest at CAD 55.64 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CAD MM)

Net Sales

At CAD 137.12 MM has Fallen at -15.87%

over average net sales of the previous four periods of CAD 162.99 MM

MOJO Watch

Near term sales trend is negative

Net Sales (CAD MM)

Operating Profit

Lowest at CAD 17.98 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CAD MM)

Operating Profit Margin

Lowest at 13.11 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CAD -8.87 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CAD MM)

Debt-Equity Ratio

Highest at 143.15 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Inventory Turnover Ratio

Lowest at 6.19 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 50.72% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales