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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 Nev…
$3.50
$0.10 (-2.78%)
Price from 40 days ago
Operating margin is thin at 3.45%. Limited cushion if revenue slows or costs rise, not the profile of a wide-moat business.
Revenue grew 16.4%, still solid. Free cash flow declined 56% despite revenue growth, conversion is weakening.
Free cash flow declined 56% versus the prior year, cash generation momentum has weakened.
19.4x earnings, 25.2x FCF. Valuation is in a reasonable range. The main question is whether the business can re-accelerate or if current trajectory is already priced in.
Based on TTM earnings · Diluted shares
Profitability & Returns
Revenue (TTM)
$37M
▲ +16.4% YoY
Net Income (TTM)
$1M
▲ +37.7% YoY
Op. Margin
2.95%
▲ +0.6pp YoY
ROIC
3.21%
▲ +1.2pp YoY
Cash Flow & Balance Sheet
FCF (FY)
$794K
▼ -56.2% YoY
Op. Cash Flow (TTM)
$2M
▼ -49.8% YoY
Net Debt
-$14M
Net Cash Position
Cash & Equiv.
$15M
5Y CAGR: +2.7%
5Y CAGR: -7.0%
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