Surge Components (SPRS) AI Stock Analysis

• Market Cap: $18.26M
• Dividend Yield: N/A
• Average Volume (3M): 3.10K
• Price to Earnings (P/E): 20.4
• Beta (1Y): 0.29
• Revenue Growth: 16.01%
• EPS Growth: 82.95%
• Country: US
• Employees: 42
• Sector: Technology
• Sector Strength: 88
• Industry: Technology Distributors
• EPS (TTM): 0.08
• Shares Outstanding: 5,706,732
• 10 Day Avg. Volume: 5,331
• 30 Day Avg. Volume: 3,102
• PEG Ratio: -1.29
• Price to Book (P/B): 0.64
• Price to Sales (P/S): 0.40
• P/FCF Ratio: 6.93
• Enterprise Value/Market Cap: 0.60
• Enterprise Value/Revenue: 0.31
• Enterprise Value/Gross Profit: 1.10
• Enterprise Value/Ebitda: 7.79
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: ―

Surge Components demonstrates solid financial health with effective cash flow management and a stable balance sheet. However, the fluctuating revenue growth and slight profitability pressures present challenges. The technical indicators offer a mixed outlook, with a lack of strong momentum. Valuation is reasonable, making it appealing from a value perspective, though the absence of a dividend may deter some investors.

Positive Factors

Cash Flow Management

Surge Components' ability to maintain positive free cash flow demonstrates strong cash generation and operational efficiency, ensuring financial stability and reducing reliance on external financing.

Balance Sheet Health

A balanced debt-to-equity ratio suggests financial stability, providing Surge Components with the flexibility to invest in growth opportunities without excessive financial strain.

Gross Profit Margin

A stable gross profit margin indicates operational efficiency and pricing power, allowing Surge Components to maintain profitability even amidst fluctuating revenue growth.

Negative Factors

Revenue Growth Fluctuation

Inconsistent revenue growth poses a challenge for Surge Components, potentially impacting long-term market position and necessitating strategic adjustments to sustain growth momentum.

Profitability Pressures

Decreased net profit margins indicate rising costs or pricing challenges, which could hinder Surge Components' ability to maintain profitability and competitive advantage over time.

Asset Utilization

Improving asset utilization is crucial for Surge Components to maximize returns on investments and improve overall financial performance, addressing potential inefficiencies in resource management.

Surge Components Business Overview & Revenue Model

Company Description

Surge Components, Inc., together with its subsidiaries, supplies electronic products and components. The company offers capacitors, which are electrical energy storage devices; and discrete semiconductor components, such as rectifiers, transistors, diodes, and circuit protection devices. It also provides audible components, including audible transducers, buzzers, speakers, microphones, resonators, alarms, chimes, filters, and discriminators, as well as fuses, printed circuit boards, and switches. The company's products are used in the electronic circuitry of various industries, including automotive, computer, communications, cellular telephones, consumer electronics, garage door openers, security equipment, audio equipment, telecom products, computer related products, power supply products, utility meters, and household appliances. It sells its products to original equipment manufacturers and distributors through independent sales representatives or organizations in the United States, Canada, China, other Asian countries, South America, and Europe. The company was incorporated in 1981 and is headquartered in Deer Park, New York.

How the Company Makes Money

Surge Components makes money through the distribution and sale of electronic components to manufacturers and producers within various industries. The company's primary revenue streams are derived from the sale of capacitors and discrete semiconductors. By maintaining a diverse inventory and leveraging relationships with manufacturers and suppliers, Surge Components is able to provide its customers with timely and reliable access to necessary components. Key factors contributing to its earnings include strategic partnerships with component manufacturers, a broad customer base across multiple industries, and the ability to adapt to the changing demands of the electronics market.

Surge Components Financial Statement Overview

Summary

Surge Components exhibits a solid financial foundation with steady profitability and efficient cash flow management. However, fluctuating revenue growth and slight profitability pressures in the TTM suggest challenges in maintaining upward trajectory. The balance sheet remains robust, with manageable debt levels and strong equity, although optimizing asset utilization could enhance financial performance further.

Income Statement

The company shows a stable gross profit margin at around 28%, which is healthy for the industry. Net profit margin has slightly decreased in the TTM, reflecting some pressure on profitability. Revenue growth has been inconsistent, with a decline in the most recent year compared to previous periods, indicating potential challenges in maintaining growth momentum. EBIT and EBITDA margins remain relatively stable, suggesting operational efficiency.

Balance Sheet

The debt-to-equity ratio is reasonable, indicating a balanced capital structure with manageable leverage. However, a decrease in stockholders' equity compared to total assets suggests a potential risk if asset values decline. The equity ratio remains strong, reflecting financial stability but with some room for improvement in asset utilization.

Cash Flow

Free cash flow has shown variability but remains positive, highlighting effective cash generation. Operating cash flow to net income ratio indicates strong cash flow management, though there's a notable decrease in operating cash flow in the TTM. The company appears capable of sustaining operations without excessive reliance on external financing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	35.26M	31.21M	36.28M	51.91M	39.83M	31.72M
Gross Profit	9.95M	8.90M	9.93M	14.32M	10.89M	8.75M
EBITDA	1.40M	1.31M	1.70M	4.80M	3.67M	1.54M
Net Income	902.91K	825.68K	972.11K	3.74M	2.51M	1.52M
Balance Sheet
Total Assets	27.17M	25.44M	24.68M	24.62M	21.75M	17.86M
Cash, Cash Equivalents and Short-Term Investments	12.94M	12.74M	10.84M	8.69M	6.51M	4.39M
Total Debt	1.15M	1.21M	1.49M	1.47M	1.62M	2.13M
Total Liabilities	6.29M	5.96M	6.11M	7.12M	8.57M	7.25M
Stockholders Equity	20.88M	19.49M	18.57M	17.50M	13.18M	10.60M
Cash Flow
Free Cash Flow	1.05M	1.81M	2.15M	2.19M	2.13M	1.14M
Operating Cash Flow	1.05M	1.82M	2.19M	2.24M	2.33M	1.16M
Investing Cash Flow	-956.39K	-3.83M	-3.25M	-48.35K	-194.91K	-19.39K
Financing Cash Flow	0.00	0.00	0.00	-8.49K	-8.47K	507.17K

Surge Components Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 3.2 is above the 20-day moving average (MA) of 3.12, above the 50-day MA of 3.07, and above the 200-day MA of 2.54, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 53.48 is Neutral, neither overbought nor oversold. The STOCH value of 76.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SPRS.

Surge Components Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SPRS	66 Neutral	$18.26M	20.45	4.49%	―	16.01%	82.95%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
IZM	58 Neutral	$23.19M	18.11	7.76%	―	5.12%	―