Source Energy ServicesTSX:SHLE -0.37%69 Gross Margin % is 13.75% as of Mar. 2026, which is 10% below its 10-year median of 15.31. GuruFocus rates TSX:SHLE with a GF Score™ of 69/100 and a GF Value™ of C$12.84 (Fairly Valued). The stock has 7 warning signs investors should review. Among 867 Oil & Gas companies, Source Energy Services ranks worse than 66.67% on this metric.
TSX:SHLE's Gross Margin % is ranked worse than 66.67% of 867
companies
in the Oil & Gas industry
Industry Median: 25.7
vs TSX:SHLE: 15.62
Source Energy Services had a gross margin of 13.75% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Source Energy Services was 12.80% per year.
Source Energy Services (TSX:SHLE) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Source Energy Services had a gross margin of 13.75% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Source Energy Services Gross Margin % Related Terms
Source Energy Services Gross Margin % Historical Data
* Premium members only.
The historical data trend for Source Energy Services's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
TSX:SHLE vs SLB, BKR, HAL: Gross Margin % Comparison
For the Oil & Gas Equipment & Services subindustry, Source Energy Services's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Source Energy Services Gross Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Source Energy Services's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Source Energy Services's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Source Energy Services (TSX:SHLE) has a Gross Margin % of 13.75% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Source Energy Services and its competitors. This is 10% below median its historical median of 15.31. Over the past decade, Source Energy Services' Gross Margin % has ranged from 5.68 to 19.20. According to the industry distribution chart, Source Energy Services ranks #578 out of 867 companies in the Oil & Gas industry, placing it in the top 66.7%.
Is Source Energy Services' Gross Margin % too high?
Source Energy Services' current Gross Margin % of 13.75% is 10% below median its 10-year median of 15.31. Over the past 10 years, this metric has ranged from a low of 5.68 to a high of 19.20. The Oil & Gas industry median Gross Margin % is 25.70. Source Energy Services' value of 13.75% is 46.5% below this industry median. Based on the distribution chart, Source Energy Services ranks #578 out of 867 companies in the Oil & Gas industry, which is below the industry midpoint. Overall, Source Energy Services has a GF Score™ of 69/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Source Energy Services' Gross Margin % compare to SLB and BKR?
According to the Oil & Gas industry distribution chart, Source Energy Services ranks #578 out of 867 companies for Gross Margin %. This places Source Energy Services in the lower half of its industry. The industry median Gross Margin % is 25.70. Source Energy Services' value of 13.75% is 46.5% below this benchmark. Historically, Source Energy Services' own Gross Margin % has ranged from 5.68 to 19.20 over the past decade. While the company's 10-year median is 15.31 vs. the industry median of 25.70, Source Energy Services has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for an Oil & Gas company?
The median Gross Margin % among Oil & Gas companies is 25.70, based on 867 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Source Energy Services's current Gross Margin % of 13.75% is 46.5% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Source Energy Services and its competitors. For the Oil & Gas industry, the median Gross Margin % is 25.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Source Energy Services's current Gross Margin % is 13.75%, which is 10% below median its own 10-year median of 15.31. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Source Energy Services stock overvalued right now?
Based on GuruFocus' analysis, Source Energy Services (TSX:SHLE) is currently considered Fairly Valued. The stock's GF Value™ is C$12.84, compared to a current price of C$13.62 — trading 6.1% above its estimated fair value. The current Gross Margin % is 13.75%, which is 10% below median its 10-year median of 15.31 and 46.5% below the Oil & Gas industry median of 25.70. Source Energy Services' overall GF Score™ is 69/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Source Energy Services (TSX:SHLE), the current Gross Margin % is 13.75% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Source Energy Services (TSX:SHLE) Overvalued in 2026?
Based on GuruFocus' analysis, Source Energy Services stock appears to be overvalued.
The current stock price of C$13.62 is trading 6.1% above its estimated GF Value™ of C$12.84.
GuruFocus considers Source Energy Services to be Fairly Valued.
Key valuation signals for TSX:SHLE:
Gross Margin %: 13.75% (10% below median its 10-year median of 15.31)
GF Value™: C$12.84 vs. price of C$13.62 (6.1% above fair value)
Industry Position: 46.5% below the Oil & Gas median (#578 of 867)
No single metric tells the full story. See the TSX:SHLE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Source Energy Services Ltd is a Canada-based company engaged in the integrated production and distribution of frac sand as well as the distribution of other bulk oil and gas well completion materials that aren't produced by Source. It provides customers with an end-to-end solution for frac sand supported by its Wisconsin, United States, and Peace River, Alberta, Canada mines and processing facilities, its Western Canadian terminal network, and its last-mile logistics capabilities, including its trucking operations, and Sahara, a proprietary well site mobile sand storage and handling system. The geographical segments of the group are the USA Operations and Canadian Operations.
69GF Score
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