How would you rate them?
I'm assuming that as long as the producers are maintaining or increasing production, these companies have potential.
SHLE is up significantly year-to-date by 215%. Forward price-to-earnings is very cheap at 3.0x. EPS growth outlook is very strong in 2024 at 67%. The balance sheet is a bit concerning with debt at $230.5M. SHLE is generating cash from operations which is a positive at $18.1M in its most recent quarter. BMO upgraded its rating to 'outperform' last month. SHLE will likely continue to be quite volatile and the high debt level is concerning, especially considering the small size of the company. But the the forward price-to-earnings is so cheap that there could still be some value here for very aggressive investors.
STEP has struggled year-to-date, down ~32% as earnings have declined over this year. Growth outlook looks good for both EPS and revenue in 2024. Valuation is also very cheap at 3.5x forward earnings. The balance sheet is better than SHLE with total debt-to-equity at 31.9% while cash from operations in the most recent quarter was $50.7M. STEP looks OK fundementally and the high cash generation is nice to see. If STEP can achieve growth forecasts in 2024, it could have a nice year. STEP will also likely be much less volatile than SHLE.