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Source Energy Services has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
Warning Sign:
Source Energy Services Ltd displays poor financial strength. Usually, this is caused by too much debt for the company.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.
A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Source Energy Services did not have earnings to cover the interest expense.
Source Energy Services's debt to revenue ratio for the quarter that ended in Jun. 2026 was 0.53.
As of today, Source Energy Services's Altman Z-Score is 0.83.
Source Energy Services (TSX:SHLE) Financial Strength Explanation
The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Source Energy Services has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
Source Energy Services Financial Strength Related Terms
TSX:SHLE vs SLB, BKR, FTI: Financial Strength Comparison
For the Oil & Gas Equipment & Services subindustry, Source Energy Services's Financial Strength, along with its competitors' market caps and Financial Strength 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 Financial Strength vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Source Energy Services's Financial Strength distribution charts can be found below:
* The bar in red indicates where Source Energy Services's Financial Strength falls into.
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:
Source Energy Services did not have earnings to cover the interest expense.
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 Ltds earnings cannot cover its interest expense. If the situation continues, the company may have to issue more debt.
2. Debt to revenue ratio. The lower, the better.
Source Energy Services's Debt to Revenue Ratio for the quarter that ended in Jun. 2026 is
Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
The zones of discrimination were as such:
When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.
Source Energy Services has a Z-score of 0.83, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.
Warning Sign:
Altman Z-score of 0.83 is in distress zone. This implies bankruptcy possibility in the next two years.
* 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 Financial Strength of 3 as of Jun. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Source Energy Services and its competitors. This is near median its historical median of 3.00. Over the past decade, Source Energy Services' Financial Strength has ranged from 2.00 to 5.00.
Is Source Energy Services' Financial Strength too high?
Source Energy Services' current Financial Strength of 3 is near median its 10-year median of 3.00. Over the past 10 years, this metric has ranged from a low of 2.00 to a high of 5.00. Overall, Source Energy Services has a GF Score™ of 68/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Source Energy Services' Financial Strength compare to SLB and BKR?
Source Energy Services' Financial Strength of 3 can be compared against companies in the Oil & Gas industry. Historically, Source Energy Services' own Financial Strength has ranged from 2.00 to 5.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for an Oil & Gas company?
A good Financial Strength depends on the Oil & Gas industry context. However, Financial Strength should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Source Energy Services and its competitors. Source Energy Services's current Financial Strength is 3, which is near median its own 10-year median of 3.00. 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$11.75, compared to a current price of C$12.46 — trading 6% above its estimated fair value. The current Financial Strength is 3, which is near median its 10-year median of 3.00. Source Energy Services' overall GF Score™ is 68/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For Source Energy Services (TSX:SHLE), the current Financial Strength is 3 as of Jun. 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$12.46 is trading 6% above its estimated GF Value™ of C$11.75.
GuruFocus considers Source Energy Services to be Fairly Valued.
Key valuation signals for TSX:SHLE:
Financial Strength: 3 (near median its 10-year median of 3.00)
GF Value™: C$11.75 vs. price of C$12.46 (6% above fair value)
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.
68GF Score
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