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Investor Insights

This summary was created by AI, based on 3 opinions in the last 12 months.

Source Energy Services Ltd (SHLE-T) has received mixed reviews from different experts. One expert is optimistic about its potential for growth, citing its strong operations and the upcoming LNG project. Another expert advises caution, highlighting the volatility of the stock and the potential risk associated with investing in the energy sector. However, the third expert is bullish on the company, emphasizing its dominant market position, increasing profits, and strong financials. Overall, the opinions on SHLE-T are varied, with some highlighting potential growth opportunities while others advise careful consideration due to the stock's volatility and industry risks.

Consensus
Mixed
Valuation
Fair Value
Similar
Trican,TG-T
PAST TOP PICK
(A Top Pick Feb 03/23, Up 89%)

He got his double and is still looking for a triple. It is buying back debt. Not well known with an 80 million market cap. It continues to operate very well and is the largest frac service in Western Canada. With LNG coming on this year, it should help.

Energy
RISKY

Highly volatile stock.
Good to buy when out of favor.
Service style business is the first to be cut when energy prices fall.
Good if bullish on energy(risky).
Better names for investors (Trican/Precision).

Energy
TOP PICK

Dominant in frac sand supply/distribution with over 50% market share in Canada. Profits are spiking this year because they renewed contracts earlier this year at much higher prices. Also, they have a lot of cash flow so are paying off debt. Should $500 million revenue this year, $100 million EBITDA and $40-50 million of free cash. Trades at 2x earnings. At $8-10 by end of 2024 as long as oil stays above $70.

(Analysts’ price target is $8.25)

Energy
TOP PICK

Small oilfield services company.
Large supplier of frac sand to energy business.
Long term contracts that have recently rolled over at higher price.
High debt levels are coming down.
Cash flow being used to increase balance sheet strength.

Energy
PAST TOP PICK
(A Top Pick Jan 05/18, Down 86%) He sold out of this when it became apparent oil prices were not going to finish above $70 per barrel by year end. He sold out around $6.50. Demand for frac-sand is down and their is greater competition in the US. Spending plans have declined in Canada as well. He is not holding this right now.
Energy
PAST TOP PICK
(A Top Pick Nov 15/17, Down 85%) He sold it at about $6.50. The call was on frac sand at the time. As pricing for sand has deteriorated, it has an effect on their margins. The outlook is not awesome on this name.
Energy
PAST TOP PICK

(A Top Pick January 5/18 Down 68%) He sold out of this around $8-$9 per share. The frac sector has been devastated and he admits this was a bad call, although he thought Canada would be insulted from the crash. A badly timed acquisition further hurt the position – he has lost confidence with management.

Energy
PAST TOP PICK

(A Top Pick November 15/17 Down 54%) He was disappointed with this company did an acquisition, which eliminated the free cash flow position. He would prefer other names today.

Energy
PAST TOP PICK

(A Top Pick Nov 15/17, Down 47%) Management was a little optimistic when they did their financing and last acquisition. None of the forecasts were close to the mark from 9 months ago.

Energy
DON'T BUY

This is a Canadian fracking sand company. He believes it’s a name that will be stuck in the penalty box for a while. They set expectations too high when they came to market, and then suffered from rail congestion and severe weather. There’s probably no good news coming until the Fall. There will probably be another couple of poor quarters.

Energy
TOP PICK

Dominates about 60% of Canadian frac sand. Despite the concern on ECO which is creating opportunity on Canadian services, a specialist put out an estimate on frac sand demand growing from 6 million tons last year, to about 8 million tons this year and 10 million tons next year. This company is 60% of the market, and because demand is growing so strongly they are increasing pricing. Thinks margins will hit $50 relatively soon. Trades at a 20% discount to its US peers. (Analysts' price target is $14.)

Energy
TOP PICK

A provider of sand, but thinks of them more as a logistics company. That’s their competitive edge. Very strong barriers to entry. They are fully integrated from the mine right to the well site. Looking at the frac sand dynamics in Canada, Canadian companies are lower down in the learning curve in their adoption of using more and more sand on a per well basis. The dynamic for sand, where you have got our sand market probably growing by 50% a year, this company has 60% market in Canada. (Analysts’ price target is $14.)

Energy
COMMENT

The primary long way to get exposure in the Canadian frac market of larger companies. He likes management. They are a transportation advantage within Canada, and are roughly 40% of the Canadian frac sand market. Some of the big, big wells going on in the Permian literally use 100-200 railcars for a single well. The only hindrance is that there is still a large private equity component to it, which will act as an overhang. Any time the stock rallies, there will always be a kind of concern that there will be a secondary coming into the market.

Energy
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Source Energy Services Ltd(SHLE-T) Rating

Ranking : 4 out of 5

Bullish - Buy Signals / Votes : 2

Neutral - Hold Signals / Votes : 0

Bearish - Sell Signals / Votes : 0

Total Signals / Votes : 2

Stockchase rating for Source Energy Services Ltd is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

Source Energy Services Ltd(SHLE-T) Frequently Asked Questions

What is Source Energy Services Ltd stock symbol?

Source Energy Services Ltd is a Canadian stock, trading under the symbol SHLE-T on the Toronto Stock Exchange (SHLE-CT). It is usually referred to as TSX:SHLE or SHLE-T

Is Source Energy Services Ltd a buy or a sell?

In the last year, 2 stock analysts published opinions about SHLE-T. 2 analysts recommended to BUY the stock. 0 analysts recommended to SELL the stock. The latest stock analyst recommendation is . 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 on . 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 help on deciding if you should buy, sell or hold the stock.

Is Source Energy Services Ltd worth watching?

2 stock analysts on Stockchase covered Source Energy Services Ltd In the last year. It is a trending stock that is worth watching.

What is Source Energy Services Ltd stock price?

On 2024-03-27, Source Energy Services Ltd (SHLE-T) stock closed at a price of $12.65.