SurgePays (SURG) AI Stock Analysis

• Market Cap: $36.19M
• Dividend Yield: N/A
• Average Volume (3M): 134.77K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.29
• Revenue Growth: -39.75%
• EPS Growth: -89.61%
• Country: US
• Employees: 130
• Sector: Communication Services
• Sector Strength: 97
• Industry: Software - Application
• EPS (TTM): -0.38
• Shares Outstanding: 21,041,454
• 10 Day Avg. Volume: 139,615
• 30 Day Avg. Volume: 134,769
• PEG Ratio: <0.01
• Price to Book (P/B): 2.22
• Price to Sales (P/S): 0.56
• P/FCF Ratio: -1.56
• Enterprise Value/Market Cap: 1.81
• Enterprise Value/Revenue: 1.30
• Enterprise Value/Gross Profit: -3.36
• Enterprise Value/Ebitda: -1.61
• 1Y Price Target: $9.50
• Price Target Upside: 247.99% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): -0.98
• Revenue Forecast (FY): $63.94M

• Rating: 40 Underperform
• Price Target: $1.50 ▼(-45.05% Downside)

SurgePays' overall stock score is primarily impacted by its challenging financial performance and weak technical indicators. The company's financial struggles, including negative profit margins and cash flow constraints, are significant concerns. The technical analysis further reflects bearish sentiment, with the stock trading below key moving averages and indicators in oversold territory. Valuation metrics are also unfavorable, with a negative P/E ratio and no dividend yield.

Positive Factors

Revenue Growth

The substantial revenue growth indicates strong market demand and effective business strategies, positioning SurgePays for continued expansion and increased market share.

Subscriber Growth

Significant subscriber growth reflects successful customer acquisition strategies and enhances recurring revenue potential, supporting long-term business sustainability.

Strategic Partnerships

Strategic partnerships expand service offerings and revenue streams, strengthening SurgePays' competitive position and fostering long-term growth opportunities.

Negative Factors

Net Loss and Cash Position

The significant net loss and reduced cash position raise concerns about financial sustainability and liquidity, potentially impacting future operations and investment capacity.

Revenue Volatility

Revenue volatility and negative margins indicate operational challenges and profitability issues, which could hinder long-term financial stability and growth prospects.

CFO Departure

The departure of the CFO may lead to leadership instability and strategic uncertainty, potentially disrupting financial management and strategic execution.

SurgePays Business Overview & Revenue Model

Company Description

SurgePays, Inc., a financial technology and telecommunications company, provides services to the underbanked community in the United States. Its blockchain platform utilizes a suite of financial and prepaid products to convert corner stores and bodegas into tech-hubs for underbanked neighborhoods. The company offers voice and SMS text messaging services to subsidized and direct retail prepaid customers, as well as to low-income consumers. It also offers subsidized mobile broadband services to consumers in California, Colorado, Florida, Illinois, Maryland, Mississippi, Missouri, Nevada, New Jersey, Ohio, Oklahoma, Rhode Island, Tennessee, and Texas, as well as prepaid wireless plans. In addition, the company provides marketing business intelligence, plaintiff generation, and case load management solutions primarily to law firms in the mass tort industry. Further, it operates a bilingual operations center offering the Company with sales support, customer service, IT infrastructure design, graphic media, database programming, software development, revenue assurance, lead generation, and other various operational support services. The company is headquartered in Bartlett, Tennessee.

How the Company Makes Money

SurgePays generates revenue through multiple streams. The primary revenue sources include mobile service subscriptions, where customers pay for prepaid wireless plans, and transaction fees from payment processing services. Additionally, the company earns money from retail commissions and partnerships with various mobile network operators and financial service providers. SurgePays also benefits from the growing demand for financial inclusion products, positioning itself as a key player in serving underserved demographics, which further enhances its earning potential.

SurgePays Financial Statement Overview

Summary

SurgePays is facing significant financial challenges, with declining revenues, negative profit margins, and cash flow constraints. While there is a reduction in debt, the overall financial health is concerning due to operational inefficiencies and negative cash flow.

Income Statement

SurgePays has experienced significant revenue volatility with a major decline from 2023 to 2024. Gross and net profit margins have turned negative, indicating a challenging profitability environment. The company faces substantial EBIT and EBITDA losses, which reflect operational difficulties and inefficiencies.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio, suggesting manageable leverage. However, the equity ratio indicates a reliance on liabilities. The decline in stockholders' equity over recent periods is a concern, although the reduction in total debt is a positive aspect.

Cash Flow

The cash flow position is strained, with negative operating and free cash flow in 2024. This marks a sharp reversal from the previous year's positive cash flow, raising concerns about cash management and sustainability. The operating cash flow to net income ratio is negative, highlighting cash flow inefficiencies.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	50.37M	60.88M	137.14M	121.54M	51.06M	54.41M
Gross Profit	-19.42M	-14.32M	35.64M	13.47M	6.17M	2.47M
EBITDA	-40.48M	-41.22M	20.08M	2.39M	-5.10M	-5.40M
Net Income	-42.02M	-45.73M	20.62M	-680.76K	-13.53M	-10.72M
Balance Sheet
Total Assets	14.49M	23.98M	41.93M	34.00M	19.50M	7.33M
Cash, Cash Equivalents and Short-Term Investments	2.74M	11.79M	14.62M	7.04M	6.28M	674.00K
Total Debt	12.38M	4.59M	5.44M	8.11M	7.68M	7.67M
Total Liabilities	20.92M	8.71M	13.52M	28.89M	15.95M	18.05M
Stockholders Equity	-6.37M	15.32M	28.25M	4.99M	3.55M	-10.73M
Cash Flow
Free Cash Flow	-25.65M	-21.83M	10.01M	94.69K	-15.34M	-4.33M
Operating Cash Flow	-25.63M	-21.31M	10.29M	793.27K	-15.29M	-4.33M
Investing Cash Flow	7.56M	-3.00M	-281.30K	-1.50M	-376.72K	8.35K
Financing Cash Flow	6.93M	22.48M	-2.42M	1.46M	21.27M	4.65M

SurgePays Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.73
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SURG, the sentiment is Negative. The current price of 2.73 is above the 20-day moving average (MA) of 1.78, above the 50-day MA of 2.30, and above the 200-day MA of 2.54, indicating a bearish trend. The MACD of -0.20 indicates Negative momentum. The RSI at 40.22 is Neutral, neither overbought nor oversold. The STOCH value of 43.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SURG.

SurgePays Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NTWK	62 Neutral	$36.10M	75.18	1.40%	―	7.70%	-36.01%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
LPSN	46 Neutral	$56.08M	-0.17	-605.44%	―	-23.03%	-107.34%
INLX	45 Neutral	$37.51M	-20.87	-15.71%	―	-7.76%	-291.41%
HKIT	45 Neutral	$55.08M	-22.60	-6.17%	―	-47.44%	-318.95%
SURG	40 Underperform	$36.19M	―	-313.72%	―	-39.75%	-89.61%
PHUN	37 Underperform	$37.55M	-3.15	-18.69%	―	―	―

SurgePays Corporate Events

SurgePays CFO Anthony Evers to Depart by Year-End

SurgePays, Inc. has announced that the employment agreement of its Chief Financial Officer, Anthony Evers, will not be renewed upon its expiration on December 31, 2025. The company and Mr. Evers plan to discuss his future role and continued service with SurgePays.