ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Source Energy Services's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 3.27%.
As of today (2026-06-26), Source Energy Services's WACC % is 10.93%. Source Energy Services's ROIC % is 6.58% (calculated using TTM income statement data).
Source Energy Services earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Source Energy Services (TSX:SHLE) ROIC % Explanation
ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.
There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.
Why is ROIC % important?
Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, Source Energy Services's WACC % is 10.93%. Source Energy Services's ROIC % is 6.58% (calculated using TTM income statement data).
Source Energy Services earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Be Aware
Like ROE % and ROA %, ROIC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
* 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.
For the Oil & Gas Equipment & Services subindustry, Source Energy Services's ROIC %, along with its competitors' market caps and ROIC % 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 ROIC % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Source Energy Services's ROIC % distribution charts can be found below:
* The bar in red indicates where Source Energy Services's ROIC % falls into.
Note:
The Operating Income data used here is four times the quarterly (Mar. 2026) data.
The tax rate is limited to between 0% and 100%.
* 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 ROIC % of 3.27% as of Mar. 2026. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Source Energy Services and its competitors.
Is Source Energy Services' ROIC % too high?
Source Energy Services' current ROIC % is 3.27%. The Oil & Gas industry median ROIC % is 3.63. Source Energy Services' value of 3.27% is 9.9% below this industry median. 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' ROIC % compare to SLB and BKR?
Source Energy Services' ROIC % of 3.27% can be compared against companies in the Oil & Gas industry. The industry median ROIC % is 3.63. Source Energy Services' value of 3.27% is 9.9% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROIC % for an Oil & Gas company?
The median ROIC % among Oil & Gas companies is 3.63, based on 997 companies in the industry. Companies in the top quartile (top 25%) have a ROIC % significantly above this median, while those in the bottom quartile fall well below. However, ROIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Source Energy Services's current ROIC % of 3.27% is 9.9% 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 ROIC % mean?
A high ROIC % can signal that a stock is expensive relative to its fundamentals. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Source Energy Services and its competitors. For the Oil & Gas industry, the median ROIC % is 3.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Source Energy Services's current ROIC % is 3.27%. 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 ROIC % is 3.27% and 9.9% below the Oil & Gas industry median of 3.63. 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 ROIC % calculated?
ROIC % is calculated from a company's financial statements. For Source Energy Services (TSX:SHLE), the current ROIC % is 3.27% 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:
ROIC %: 3.27%
GF Value™: C$12.84 vs. price of C$13.62 (6.1% above fair value)
Industry Position: 9.9% below the Oil & Gas median
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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