Source Energy Services Ltd (SHLE-T)
TSE:SHLE
10.40
0.25
(2.35%) 1d
Financials
Technical Analysis
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This summary was created by AI, based on 10 opinions in the last 12 months.
Source Energy Services Ltd (SHLE) has garnered significant attention from analysts, reflecting strong optimism about its future prospects. The company, which is the largest provider of frac sand in Canada, has shown a remarkable capability to increase free cash flow and expand profit margins, highlighting its operational effectiveness. Analysts noted SHLE's recent refinancing of debt at a lower rate, extending the maturity to 2029, which positively influences its financial stability. The rising demand for frac sand, particularly with the growth of LNG projects, is expected to drive the stock towards price targets between $15 and $20. Despite no dividend, the stock is trading at attractive multiples, suggesting it may be undervalued in the current market landscape.
Our 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)
We 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)We 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)The 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.
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)
Source Energy Services Ltd(SHLE-T) Rating
Ranking : 5 out of 5
Bullish - Buy Signals / Votes : 7
Neutral - Hold Signals / Votes : 0
Bearish - Sell Signals / Votes : 0
Total Signals / Votes : 7
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, 7 stock analysts published opinions about SHLE-T. 7 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?
7 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 2025-05-08, Source Energy Services Ltd (SHLE-T) stock closed at a price of $10.4.
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.