TSE:SHLE
Source Energy Services Ltd (SHLE.TO)
Financials 
Technical Analysis 
Jun 30, 2026, 12:00 amThis summary was created by AI, based on 2 opinions in the last 12 months.
Source Energy Services Ltd (SHLE-T) is currently viewed as a compelling investment opportunity due to its long-term contracts with significant energy companies and its role in providing essential frack sand to the oil sector. Despite a recent dip of 16% and a weak quarterly performance, the demand for sand is expected to rise, particularly driven by new LNG projects. The stock is trading at a low valuation of just 2x EBITDA and 4x earnings, making it attractively priced despite a 13% decline year-to-date. Insider ownership at 14% and their recent net purchases suggest a level of confidence in the company's future. While it exhibits a mixed history of earnings volatility and presents some risks due to its small size and cyclical nature, the potential for earnings growth—expected to surge this year and continue to rise in 2026—provides an optimistic outlook for investors.
The stock is exceptionally cheap at 4X earnings but that has not prevented a 13% YTD decline. The balance sheet is a bit levered but nothing too concerning. Insiders own 14% and have been net buyers in 2025. It's interesting, but very small and cyclical. Certainly at its valuation some other companies might be interested but we doubt management would be. EPS is expected to surge this year, and rise 10% in 2026. Still, it has a mixed history of volatile earnings, including losses. Its small size is a drawback, but the stock is picking up steam, up more than 100% since the market's April lows. We would consider it OK, mainly because of the very low valuation, offsetting its other risks.
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EPS was $1.74 for the Q1 and it is buying back stock as well. The stock is exceptionally cheap but that has not prevented a 29% YTD decline. The balance sheet is a bit levered but nothing too concerning. Insiders own 14% and have been net buyers in 2025. It's interesting, but very small and cyclical. We would not add until there is some stabilization in share price.
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One of his favourites. Has come off with rest of energy services names. Came off on tariff concerns, has applied for an exemption. Extremely cheap at 2x EBITDA. Strategic and highly profitable asset, could be takeover target.
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Premium contentOur PAST TOP PICK with SHLE has triggered its stop at $13. To remain disciplined, we recommend covering the position at this time. When combined with our previous guidance, this will result in a net investment gain of 14%.
Canada's largest provider of frac sand. Demand for frac sand is quite high, especially with LNG coming on. Executing very well. Refinanced debt at lower rate, pushing it out to 2029. Easily an $18-20 stock in the next year. US and potential Canadian governments are much more pro-energy. No dividend.
(Analysts’ price target is $18.00)
Jordan ZinbergPremium contentPremium contentExcellent prospects - energy service company with recurring revenues. Able to reduce debt. Recent M&A very strong - Trican partnership very good. Trading at 4x earnings - still cheap. Will continue to own. Expecting further share price appreciation.
Jordan ZinbergPremium contentWe reiterate SHLE, provider of frac sands as a TOP PICK. Last reported earnings confirmed a 136% increase in free cash flow and 31% expansion in margins, which was allowing for continued retirement of debt. It trades at 4x earnings, under book value, and a robust ROE of 168%. We continue to recommend a stop at $10.50, looking to achieve $15.50 -- upside potential of 19%. Yield 0%
(Analysts’ price target is $15.50)Premium contentWe reiterate SHLE, a frac sand distributor as a TOP PICK. The company recently announced a partnership with Trican Well Service to develop a world-class storage facility in NE BC, capable of receiving unit trains -- this should make it a key player in the development of this region. It trades at 4x earnings and under book value. We recommend trailing up the stop (from $9.50) to $10.50, looking to achieve $15.00 -- upside potential of 28%. Yield 0%
(Analysts’ price target is $18.50)Premium contentOilfield services company that continues to own. Has been able to consistently generate revenues and profits. Recently announced joint venture with Trican Well Services. Expecting ~$20/share price going forward. LNG will also boost demand for services as well.
Jordan ZinbergPremium contentThe Calgary based frac sand supplier recently reported 98% utilization in its trucking fleet -- an increase from 89% from a year ago. Its rail facility in NE BC has achieved unit train size capacity, which will add further revenues. We like that it trades at 4x earnings and under book value. We recommend setting a stop-loss at $8.50, looking to achieve $14.00 -- upside potential of 27%. Yield 0%
(Analysts’ price target is $17.00)It is one of the largest providers of frack sand in Western Canada and the prices of the contracts have increased. Its priority is to pay down debt. There are lots of catalysts and at expected $4 per share earnings next year, it is still trading at a good valuation.
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Source Energy Services Ltd (SHLE.TO) Frequently Asked Questions
What is Source Energy Services Ltd stock symbol?
Source Energy Services Ltd is a Canadian stock, trading under the symbol SHLE.TO (previously SHLE-T on Stockchase) on the Toronto Stock Exchange (SHLE-CT). It is usually referred to as TSX:SHLE or SHLE.TO
Is Source Energy Services Ltd a buy or a sell?
In the last year, 2 stock analysts issued a Buy, Sell, or Hold rating on SHLE.TO (previously SHLE-T on Stockchase). 2 analysts recommended to BUY and 0 analysts recommended to SELL the stock. The latest stock analyst rating is PAST TOP PICK. Read the latest stock experts' ratings for Source Energy Services Ltd.
Is Source Energy Services Ltd a good investment or a top pick?
Source Energy Services Ltd was recommended as a Top Pick by Jordan Zinberg on 2024-04-08. Read the latest stock experts ratings for Source Energy Services Ltd.
Why is Source Energy Services Ltd stock dropping?
Earnings reports or recent company news can cause the stock price to drop. Read stock experts' recommendations for Source Energy Services Ltd.
Is Source Energy Services Ltd worth watching?
Source Energy Services Ltd is followed by 46 investors on Stockchase and is a trending stock that is worth watching.
What is Source Energy Services Ltd stock price?
On 2026-06-30, Source Energy Services Ltd (SHLE.TO) stock closed at a price of $13.93.
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They have long-term contracts with big energy companies. Their quarter was a little weak. They supply much-needed frack sand to oil companies. The new LNG project is increasing sand demand. Trades at a cheap 2x EBITDA. Will get bought out eventually.