A Business at a Glance
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SURGE COMPONENTS INC
SPRS
$22M
Mkt Cap
$3.84
+0.26%
SURGE COMPONENTS INC (SPRS) has a current P/E ratio of 19.2, compared to its historical median P/E of 8.1. The stock is currently considered Expensive based on its historical valuation range.
SURGE COMPONENTS INC (SPRS) has a 5-year average return on invested capital (ROIC) of 21.8%. This indicates strong capital allocation and a potential competitive advantage.
SURGE COMPONENTS INC (SPRS) has a market capitalization of $22M. It is classified as a small-cap stock.
SURGE COMPONENTS INC (SPRS) does not currently pay a regular dividend.
Based on historical P/E analysis, SURGE COMPONENTS INC (SPRS) appears expensive. The current P/E of 19.2 is 138% above its historical median of 8.1. The estimated fair value CAGR (P/E method) is -10.6%.
SURGE COMPONENTS INC (SPRS) operates in the Wholesale-Electronic Parts & Equipment, Nec industry, within the Consumer Cyclical sector.
SURGE COMPONENTS INC (SPRS) reported annual revenue of $36 million in its most recent fiscal year, based on SEC EDGAR filings.
Item 1. Business. References to “we,” “us,” “our”, “our company” and “the company” refer to Surge Components, Inc. (“Surge” or the “Company”) and, unless the context indicates otherwise, includes Surge’s wholly-owned subsidiaries, Challenge/Surge, Inc. (“Challenge”), and Surge Components, Limited (“Surge Limited”). We were incorporated under the laws of the State of New York on November 24, 1981, and re-incorporated in Nevada on August 26, 2010. We completed an initial public offering of our securities in 1984 and a second offering in August 1996. Our principal executive offices are located at 95 East Jefryn Boulevard, Deer Park, New York 11729 and our telephone number is (631) 595-1818. We are a supplier of electronic products and components.
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 37M | 36M | 31M | 36M | 52M | 40M |
| Net Income | 1.0M | 1.1M | 821K | 967K | 3.7M | 2.5M |
| EPS | $0.18 | $0.20 | $0.14 | $0.17 | $0.65 | $0.44 |
| Free Cash Flow | 0 | 794K | 1.8M | 2.1M | 2.2M | 2.1M |
| ROIC | 12.3% | 12.3% | 8.9% | 11.8% | 45.6% | 30.4% |
| Gross Margin | 29.0% | 28.8% | 28.5% | 27.4% | 27.6% | 27.3% |
| Debt/Equity | 0.00 | 0.05 | 0.06 | 0.08 | 0.01 | 0.12 |
| Dividends/Share | $0.00 | - | - | - | - | - |
| Operating Income | 1.1M | 1.3M | 904K | 1.5M | 4.7M | 3.2M |
| Operating Margin | 2.9% | 3.5% | 2.9% | 4.2% | 9.1% | 7.9% |
| ROE | 4.9% | 5.5% | 4.3% | 5.4% | 24.3% | 21.1% |
| Shares Outstanding | 6M | 6M | 6M | 6M | 6M | 6M |
| Metric | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 27M | 30M | 30M | 30M | 32M | 32M | 32M | 40M | 52M | 36M | 31M | 36M | 37M |
| Gross Margin | 24.5% | 25.0% | 25.2% | 25.2% | 25.6% | 28.5% | 27.6% | 27.3% | 27.6% | 27.4% | 28.5% | 28.8% | 29.0% |
| R&D | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A | 3.6M | 3.9M | 5.4M | 4.6M | 4.1M | 2.7M | 2.4M | 2.6M | 3.3M | 3.0M | 5.2M | 6.2M | 6.6M |
| EBIT | 713K | 1.1M | -475K | 336K | 1.5M | 1.9M | 1.5M | 3.2M | 4.7M | 1.5M | 904K | 1.3M | 1.1M |
| Op. Margin | 2.6% | 3.7% | -1.6% | 1.1% | 4.7% | 6.0% | 4.7% | 7.9% | 9.1% | 4.2% | 2.9% | 3.5% | 2.9% |
| Net Income | 427K | 858K | -567K | 352K | 2.0M | 2.0M | 1.5M | 2.5M | 3.7M | 967K | 821K | 1.1M | 1.0M |
| Net Margin | 1.6% | 2.9% | -1.9% | 1.2% | 6.0% | 6.2% | 4.8% | 6.3% | 7.2% | 2.7% | 2.6% | 3.1% | 2.8% |
| Non-Recurring | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Returns on Capital | |||||||||||||
| ROIC | 8.3% | 18.5% | -4.9% | 7.9% | 31.0% | N/A | 23.9% | 30.4% | 45.6% | 11.8% | 8.9% | 12.3% | 12.3% |
| ROE | 4.1% | 7.6% | -4.8% | 4.3% | 34.3% | N/A | 14.3% | 21.1% | 24.3% | 5.4% | 4.3% | 5.5% | 4.9% |
| ROA | 2.8% | 5.4% | -3.4% | 2.5% | 16.5% | N/A | N/A | 11.5% | 16.1% | 3.9% | 3.3% | 4.3% | 3.8% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 1.9M | 910K | -138K | 666K | 1.2M | 1.0M | 1.2M | 2.3M | 2.2M | 2.2M | 1.8M | 916K | 2.1M |
| Free Cash Flow | 1.9M | 851K | -147K | 616K | 1.2M | 985K | 1.1M | 2.1M | 2.2M | 2.1M | 1.8M | 794K | 0 |
| Owner Earnings | -209K | -1.3M | -2.4M | -1.6M | -1.1M | 901K | 906K | 2.2M | 1.6M | 2.0M | 1.7M | 307K | -217K |
| CapEx | 59K | 60K | 9K | 50K | 27K | 44K | 19K | 195K | 48K | 43K | 11K | 122K | 0 |
| Maint. CapEx | 2.1M | 2.2M | 2.2M | 2.2M | 2.3M | 39K | 38K | 70K | 78K | 70K | 70K | 71K | 2.0M |
| Growth CapEx | 0 | 0 | 0 | 0 | 0 | 5K | 0 | 125K | 0 | 0 | 0 | 51K | 0 |
| D&A | 2.1M | 2.2M | 2.2M | 2.2M | 2.3M | 39K | 38K | 70K | 78K | 70K | 70K | 71K | 2.0M |
| CapEx/OCF | 3.0% | 6.5% | N/A | 7.4% | 2.2% | 4.3% | 1.7% | 8.4% | 2.2% | 2.0% | 0.6% | 13.3% | 0.0% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividend Yield | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | 0 | 500K | 50K | 7.2M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Buyback Yield | N/A | 7.0% | 0.5% | 106.8% | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 0.0% |
| Stock-Based Comp | 39K | 92K | 74K | N/A | N/A | 89K | 217K | 75K | 590K | 98K | 15K | 538K | 384K |
| Debt Repayment | 0 | 0 | 0 | 500K | 506K | 8K | 0 | 0 | 8K | 0 | 0 | 0 | 0 |
| Balance Sheet | |||||||||||||
| Net Debt | N/A | N/A | N/A | -548K | -1.7M | -2.7M | N/A | -4.9M | -8.5M | -9.4M | -12M | -13M | -15M |
| Cash & Equiv. | 6.2M | 7.2M | 7.1M | 1.1M | 1.8M | 2.7M | 4.4M | 6.5M | 8.7M | 7.6M | 5.6M | 5.3M | 15M |
| Long-Term Debt | N/A | N/A | N/A | 39K | 33K | 25K | N/A | N/A | 8K | N/A | N/A | N/A | N/A |
| Debt/Equity | 0.44 | 0.37 | 0.46 | 0.11 | 0.00 | N/A | 0.68 | 0.12 | 0.01 | 0.08 | 0.06 | 0.05 | 0.00 |
| Interest Coverage | N/A | N/A | N/A | 15.0 | 96.3 | 722.0 | 743.4 | 2704.3 | 11660.3 | N/A | N/A | N/A | N/A |
| Equity | 11M | 12M | 12M | 4.7M | 6.7M | N/A | 11M | 13M | 18M | 19M | 19M | 21M | 21M |
| Total Assets | 15M | 16M | 17M | 11M | 12M | N/A | N/A | 22M | 25M | 25M | 25M | 27M | 27M |
| Total Liabilities | 4.7M | 4.4M | 5.3M | 6.8M | 5.6M | 4.5M | 7.3M | 8.6M | 7.1M | 6.1M | 6.0M | 5.7M | 5.9M |
| Intangibles | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Retained Earnings | -12M | -12M | -12M | -12M | -9.9M | -7.9M | -6.4M | -3.8M | -115K | 852K | 1.7M | 2.8M | 2.8M |
| Working Capital | 9.8M | 11M | 11M | 4.0M | 5.6M | 7.5M | 9.4M | 12M | 17M | 18M | 19M | 21M | 21M |
| Current Assets | 14M | 15M | 16M | 11M | 11M | 12M | 15M | 20M | 23M | 23M | 24M | 26M | 26M |
| Current Liabilities | 4.6M | 4.4M | 5.2M | 6.7M | 5.5M | 4.4M | 5.4M | 7.3M | 6.0M | 5.0M | 5.1M | 5.0M | 5.2M |
| Per Share Data | |||||||||||||
| EPS | 0.04 | 0.09 | -0.06 | 0.05 | 0.37 | 0.37 | 0.27 | 0.44 | 0.65 | 0.17 | 0.14 | 0.20 | 0.18 |
| Owner EPS | -0.02 | -0.14 | -0.25 | -0.22 | -0.20 | 0.16 | 0.16 | 0.38 | 0.27 | 0.36 | 0.30 | 0.05 | -0.04 |
| Book Value | 1.00 | 1.25 | 1.22 | 0.67 | 1.27 | N/A | 1.89 | 2.31 | 3.05 | 3.26 | 3.32 | 3.78 | 3.73 |
| Cash Flow/Share | 0.18 | 0.10 | -0.01 | 0.09 | 0.22 | 0.19 | 0.21 | 0.41 | 0.39 | 0.39 | 0.31 | 0.16 | 0.53 |
| Dividends/Share | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 0.00 |
| Shares Out. | 10.7M | 9.5M | 9.5M | 7.0M | 5.3M | 5.5M | 5.6M | 5.7M | 5.7M | 5.7M | 5.9M | 5.7M | 5.7M |
| Valuation | |||||||||||||
| P/E Ratio | 22.5 | 8.3 | N/A | 19.0 | 2.5 | 8.1 | 8.0 | 7.8 | 5.3 | 15.8 | 16.1 | 15.8 | 21.1 |
| P/FCF | 5.1 | 8.4 | N/A | 10.9 | 4.2 | 16.7 | 10.5 | 9.2 | 9.0 | 7.1 | 7.3 | 22.5 | N/A |
| EV/EBIT | N/A | N/A | N/A | 18.3 | 2.1 | 7.1 | N/A | 4.7 | 2.1 | 2.9 | N/A | N/A | 6.5 |
| Price/Book | 0.9 | 0.6 | 0.9 | 1.4 | 0.7 | N/A | 1.1 | 1.5 | 1.1 | 0.8 | 0.7 | 0.8 | 1.0 |
| Price/Sales | 0.3 | 0.3 | 0.3 | 0.2 | 0.2 | 0.4 | 0.3 | 0.4 | 0.4 | 0.5 | 0.5 | 0.4 | 0.6 |
| FCF Yield | 19.6% | 11.9% | -1.5% | 9.2% | 23.6% | 6.0% | 9.5% | 10.9% | 11.1% | 14.1% | 13.7% | 4.4% | N/A |
| Market Cap | 9.6M | 7.1M | 9.9M | 6.7M | 4.9M | 16M | 12M | 20M | 20M | 15M | 13M | 18M | 22M |
| Avg. Price | 0.82 | 0.79 | 0.80 | 0.88 | 1.09 | 2.19 | 1.67 | 2.75 | 3.45 | 3.18 | 2.58 | 2.42 | 3.84 |
| Year-End Price | 0.90 | 0.75 | 1.05 | 0.95 | 0.93 | 2.99 | 2.15 | 3.45 | 3.43 | 2.68 | 2.25 | 3.16 | 3.84 |
SURGE COMPONENTS INC passes 3 of 9 quality checks, indicating weak fundamentals.
SURGE COMPONENTS INC trades at 19.2x trailing earnings, compared to its 15-year median P/E of 8.1x, suggesting it is currently Expensive relative to its historical range. On a free-cash-flow basis, the stock trades at 27.4x vs a median of 9.2x. The company's 5-year average ROIC is 21.8% with a gross margin of 27.9%. At current prices, the estimated annualized return to fair value is +5.6%.
SURGE COMPONENTS INC (SPRS) has a net profit margin of 3.1%. This is a modest margin.
SURGE COMPONENTS INC (SPRS) generated $794 thousand in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
SURGE COMPONENTS INC (SPRS) has a debt-to-equity ratio of 0.05. This indicates a conservatively financed balance sheet.
SURGE COMPONENTS INC (SPRS) reported earnings per share (EPS) of $0.20 in its most recent fiscal year.
SURGE COMPONENTS INC (SPRS) has a return on equity (ROE) of 5.5%. This indicates moderate shareholder returns.
SURGE COMPONENTS INC (SPRS) has a 5-year average gross margin of 27.9%. This lower margin is typical of capital-intensive or commodity businesses.
The Ledger Terminal provides 16 years of financial data for SURGE COMPONENTS INC (SPRS), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
SURGE COMPONENTS INC (SPRS) has a book value per share of $3.78, based on its most recent annual SEC filing.