Source Energy ServicesTSX:SHLE -0.37%69 Interest Coverage is 0.80 as of Mar. 2026, which is 22% below its 10-year median of 1.03. 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 728 Oil & Gas companies, Source Energy Services ranks worse than 91.76% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Source Energy Services's
Operating Income
for the
three
months ended in Mar. 2026 was C$5.8 Mil. Source Energy Services's Interest Expense for the
three
months ended in Mar. 2026 was C$-7.2 Mil.
Source Energy Services's interest coverage for the quarter that ended in Mar. 2026 was 0.80.
The higher the ratio, the stronger the company's financial strength is.
Warning Sign:
Ben Graham prefers companies' interest coverage to be at least 5. Source Energy Services Ltd interest coverage is 1.06, which is low.
The historical rank and industry rank for Source Energy Services's Interest Coverage or its related term are showing as below:
TSX:SHLE'
s Interest Coverage Range Over the Past 10 Years
Min: 0.06 Med: 1.03 Max: 1.67
Current: 1.06
TSX:SHLE's Interest Coverage is ranked worse than 91.76% of 728
companies
in the Oil & Gas industry
Industry Median: 5.84
vs TSX:SHLE: 1.06
Source Energy Services (TSX:SHLE) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Source Energy Services Interest Coverage Related Terms
Source Energy Services Interest Coverage Historical Data
* Premium members only.
The historical data trend for Source Energy Services's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
TSX:SHLE vs SLB, BKR, HAL: Interest Coverage Comparison
For the Oil & Gas Equipment & Services subindustry, Source Energy Services's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Source Energy Services's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Source Energy Services's Interest Coverage falls into.
Source Energy Services Interest Coverage Calculation
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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.
Source Energy Services (TSX:SHLE) has a Interest Coverage of 0.80 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Source Energy Services and its competitors. This is 22% below median its historical median of 1.03. Over the past decade, Source Energy Services' Interest Coverage has ranged from 0.06 to 1.67. According to the industry distribution chart, Source Energy Services ranks #668 out of 728 companies in the Oil & Gas industry, placing it in the top 91.8%.
Is Source Energy Services' Interest Coverage too high?
Source Energy Services' current Interest Coverage of 0.80 is 22% below median its 10-year median of 1.03. Over the past 10 years, this metric has ranged from a low of 0.06 to a high of 1.67. The Oil & Gas industry median Interest Coverage is 5.84. Source Energy Services' value of 0.80 is 86.3% below this industry median. Based on the distribution chart, Source Energy Services ranks #668 out of 728 companies in the Oil & Gas industry, which is in the bottom quartile relative to peers. 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' Interest Coverage compare to SLB and BKR?
According to the Oil & Gas industry distribution chart, Source Energy Services ranks #668 out of 728 companies for Interest Coverage. This places Source Energy Services in the lower half of its industry. The industry median Interest Coverage is 5.84. Source Energy Services' value of 0.80 is 86.3% below this benchmark. Historically, Source Energy Services' own Interest Coverage has ranged from 0.06 to 1.67 over the past decade. While the company's 10-year median is 1.03 vs. the industry median of 5.84, 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 Interest Coverage for an Oil & Gas company?
The median Interest Coverage among Oil & Gas companies is 5.84, based on 728 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Source Energy Services's current Interest Coverage of 0.80 is 86.3% 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Source Energy Services and its competitors. For the Oil & Gas industry, the median Interest Coverage is 5.84 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Source Energy Services's current Interest Coverage is 0.80, which is 22% below median its own 10-year median of 1.03. 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 Interest Coverage is 0.80, which is 22% below median its 10-year median of 1.03 and 86.3% below the Oil & Gas industry median of 5.84. 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 Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Source Energy Services (TSX:SHLE), the current Interest Coverage is 0.80 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:
Interest Coverage: 0.80 (22% below median its 10-year median of 1.03)
GF Value™: C$12.84 vs. price of C$13.62 (6.1% above fair value)
Industry Position: 86.3% below the Oil & Gas median (#668 of 728)
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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