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Surge Components
(OTC:SPRS)
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Rating:71Outperform
Price Target:
$4.00
▲(19.76% Upside)
Action:Upgraded
Date:07/15/26
The score is driven primarily by solid financial stability (low leverage and improved cash generation) alongside constructive technical momentum (price above key moving averages with positive MACD). The main offset is only modest profitability (thin operating/net margins and low ROE) combined with a mid-to-high P/E (~23) and no dividend yield provided.
Positive Factors
Conservative Balance Sheet
Very low leverage provides durable financial flexibility: the company can fund working capital, absorb supply shocks, and invest in growth without relying on costly external financing. This conservatism reduces solvency risk and supports multi-quarter resilience through business cycles.
Negative Factors
Thin Profitability
Low operating and net margins limit the company’s ability to absorb cost inflation or price pressure; small margin improvements must be consistent to materially raise returns. Persistently thin margins make earnings highly sensitive to component cost swings and demand softness over multiple quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative Balance Sheet
Very low leverage provides durable financial flexibility: the company can fund working capital, absorb supply shocks, and invest in growth without relying on costly external financing. This conservatism reduces solvency risk and supports multi-quarter resilience through business cycles.
Read all positive factors
Surge Components (SPRS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$21.67M
Dividend YieldN/A
Average Volume (3M)3.10K
Price to Earnings (P/E)23.3
Beta (1Y)0.24
Revenue Growth18.77%
EPS Growth7.11%
CountryUS
Employees46
SectorTechnology
Sector Strength88
IndustryTechnology Distributors
Share Statistics
EPS (TTM)0.23
Shares Outstanding5,716,792
10 Day Avg. Volume5,331
30 Day Avg. Volume3,102
Financial Highlights & Ratios
PEG Ratio0.47
Price to Book (P/B)0.84
Price to Sales (P/S)0.50
P/FCF Ratio22.71
Enterprise Value/Market Cap0.68
Enterprise Value/Revenue0.39
Enterprise Value/Gross Profit1.33
Enterprise Value/Ebitda9.97
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Surge Components Business Overview & Revenue Model
Company Description
Surge Components, Inc., together with its subsidiaries, supplies electronic products and components. It offers capacitors comprising electrical energy storage devices; and discrete components, such as semiconductor rectifiers, transistors, diodes,...
How the Company Makes Money
Surge Components primarily makes money by purchasing electronic components from manufacturers and reselling them to customers at a markup. Revenue is generated through the sale of its component inventory (notably passive components such as capacit...
Surge Components Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
82
Very Positive
Cash Flow
74
Positive
| Breakdown | TTM | Nov 2025 | Nov 2024 | Nov 2023 | Feb 2023 | Feb 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 37.73M | 36.32M | 31.21M | 36.28M | 51.91M | 39.83M |
| Gross Profit | 11.02M | 10.46M | 8.90M | 9.93M | 14.32M | 10.89M |
| EBITDA | 1.47M | 1.33M | 1.31M | 1.70M | 4.80M | 3.67M |
| Net Income | 1.33M | 1.14M | 825.68K | 972.11K | 3.74M | 2.51M |
Balance Sheet | ||||||
| Total Assets | 28.36M | 27.12M | 25.44M | 24.68M | 24.62M | 21.75M |
| Cash, Cash Equivalents and Short-Term Investments | 15.03M | 13.77M | 12.74M | 10.84M | 8.69M | 6.51M |
| Total Debt | 1.07M | 1.79M | 1.21M | 1.49M | 1.47M | 1.62M |
| Total Liabilities | 6.59M | 5.72M | 5.96M | 6.11M | 7.12M | 8.57M |
| Stockholders Equity | 21.77M | 21.40M | 19.49M | 18.57M | 17.50M | 13.18M |
Cash Flow | ||||||
| Free Cash Flow | 3.23M | 794.20K | 1.81M | 2.15M | 2.19M | 2.13M |
| Operating Cash Flow | 3.23M | 916.15K | 1.82M | 2.19M | 2.24M | 2.33M |
| Investing Cash Flow | -1.02M | -1.35M | -3.83M | -3.25M | -48.35K | -194.91K |
| Financing Cash Flow | 32.25K | 138.00K | 0.00 | 0.00 | -8.49K | -8.47K |
Surge Components Technical Analysis
Positive
3.34
Price Trends
3.52
Positive
3.49
Positive
3.28
Positive
Market Momentum
0.05
Negative
57.96
Neutral
55.49
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SPRS, the sentiment is Positive. The current price of 3.34 is below the 20-day moving average (MA) of 3.59, below the 50-day MA of 3.52, and above the 200-day MA of 3.28, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 57.96 is Neutral, neither overbought nor oversold. The STOCH value of 55.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SPRS.
Surge Components Risk Analysis
Surge Components disclosed 13 risk factors in its most recent earnings report. Surge Components reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Surge Components Peers Comparison
UnderperformOutperform
Sector (61)
SPRS
Surge Components
3.75
1.23
48.81%
TAIT
Taitron Components
1.66
-0.41
-19.96%
IZM
ICZOOM Group, Inc. Class A
0.28
-2.25
-89.09%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.