Surge Components Inc (SPRS)
OTHER OTC:SPRS
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Surge Components
(OTC:SPRS)
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Rating:65Neutral
Price Target:
$3.50
▲(4.79% Upside)
Action:ReiteratedDate:02/28/26
The score is driven primarily by solid financial stability (low leverage and positive free cash flow) but tempered by weaker recent profitability and cash generation versus prior peak years. Technicals are supportive with an upward bias, while valuation looks only fair given thin margins and no dividend yield support.
Positive Factors
Conservative leverage / strong balance sheet
Very low debt and steadily growing equity give Surge durable financial flexibility. A conservative capital structure reduces refinancing risk, supports working capital for distribution, and permits opportunistic investments or weathering cyclical downturns without stressing liquidity over the next several months.
Negative Factors
Weakening operating cash flow
A sharp decline in operating cash flow signals deteriorating cash generation tied to inventory, receivables, or margin pressure. For a distribution business, weakened OCF reduces the ability to fund working capital and capital expenditures internally and increases sensitivity to supplier/customer credit terms over coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative leverage / strong balance sheet
Very low debt and steadily growing equity give Surge durable financial flexibility. A conservative capital structure reduces refinancing risk, supports working capital for distribution, and permits opportunistic investments or weathering cyclical downturns without stressing liquidity over the next several months.
Read all positive factors
Surge Components (SPRS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$19.67M
Dividend YieldN/A
Average Volume (3M)3.10K
Price to Earnings (P/E)15.9
Beta (1Y)0.20
Revenue Growth16.01%
EPS Growth82.95%
CountryUS
Employees42
SectorTechnology
Sector Strength88
IndustryTechnology Distributors
Share Statistics
EPS (TTM)0.09
Shares Outstanding5,716,792
10 Day Avg. Volume5,331
30 Day Avg. Volume3,102
Financial Highlights & Ratios
PEG Ratio0.48
Price to Book (P/B)0.84
Price to Sales (P/S)0.50
P/FCF Ratio22.71
Enterprise Value/Market Cap0.84
Enterprise Value/Revenue0.45
Enterprise Value/Gross Profit1.57
Enterprise Value/Ebitda12.43
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. The company offers capacitors, which are electrical energy storage devices; and discrete semiconductor components, such as rectifiers, transistors...
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 semiconduc...
Surge Components Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
78
Positive
Cash Flow
55
Neutral
| Breakdown | Nov 2025 | Nov 2024 | Nov 2023 | Feb 2023 | Feb 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 36.32M | 31.21M | 36.28M | 51.91M | 39.83M |
| Gross Profit | 10.46M | 8.90M | 9.93M | 14.32M | 10.89M |
| EBITDA | 1.33M | 1.31M | 1.70M | 4.80M | 3.67M |
| Net Income | 1.14M | 825.68K | 972.11K | 3.74M | 2.51M |
Balance Sheet | |||||
| Total Assets | 27.12M | 25.44M | 24.68M | 24.62M | 21.75M |
| Cash, Cash Equivalents and Short-Term Investments | 13.77M | 12.74M | 10.84M | 8.69M | 6.51M |
| Total Debt | 1.79M | 1.21M | 1.49M | 1.47M | 1.62M |
| Total Liabilities | 5.72M | 5.96M | 6.11M | 7.12M | 8.57M |
| Stockholders Equity | 21.40M | 19.49M | 18.57M | 17.50M | 13.18M |
Cash Flow | |||||
| Free Cash Flow | 794.20K | 1.81M | 2.15M | 2.19M | 2.13M |
| Operating Cash Flow | 916.15K | 1.82M | 2.19M | 2.24M | 2.33M |
| Investing Cash Flow | -1.35M | -3.83M | -3.25M | -48.35K | -194.91K |
| Financing Cash Flow | 138.00K | 0.00 | 0.00 | -8.49K | -8.47K |
Surge Components Technical Analysis
Positive
3.34
Price Trends
3.42
Positive
3.29
Positive
2.94
Positive
Market Momentum
<0.01
Positive
48.16
Neutral
53.70
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 3.51, below the 50-day MA of 3.42, and above the 200-day MA of 2.94, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 48.16 is Neutral, neither overbought nor oversold. The STOCH value of 53.70 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
3.44
1.24
56.36%
TAIT
Taitron Components
1.53
-0.53
-25.87%
IZM
ICZOOM Group, Inc. Class A
0.49
-1.20
-71.24%
Surge Components Corporate Events
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Surge Components Holds Annual Meeting, Elects Directors
Neutral
Dec 2, 2025
On November 25, 2025, Surge Components held its Annual Meeting where six directors were elected to serve until the 2026 Annual Meeting. Additionally, the appointment of Seligson Giannattasio, LLP as the independent registered public accounting fi...
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.