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SURGE ENERGY INC (SGY.CA) Stock Fundamental Analysis

TSX:SGY - Toronto Stock Exchange - CA86880Y8779 - Common Stock - Currency: CAD

5.58  +0.13 (+2.39%)

Fundamental Rating

4

Overall SGY gets a fundamental rating of 4 out of 10. We evaluated SGY against 209 industry peers in the Oil, Gas & Consumable Fuels industry. SGY has a medium profitability rating, but doesn't score so well on its financial health evaluation. SGY is valued correctly, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

6

1. Profitability

1.1 Basic Checks

SGY had negative earnings in the past year.
In the past year SGY had a positive cash flow from operations.
In multiple years SGY reported negative net income over the last 5 years.
SGY had a positive operating cash flow in each of the past 5 years.
SGY.CA Yearly Net Income VS EBIT VS OCF VS FCFSGY.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M -200M 400M -400M -600M

1.2 Ratios

SGY's Return On Assets of -3.03% is in line compared to the rest of the industry. SGY outperforms 48.80% of its industry peers.
Looking at the Return On Equity, with a value of -5.72%, SGY is in line with its industry, outperforming 45.93% of the companies in the same industry.
The Return On Invested Capital of SGY (8.69%) is better than 87.56% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SGY is in line with the industry average of 7.47%.
The last Return On Invested Capital (8.69%) for SGY is above the 3 year average (7.95%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA -3.03%
ROE -5.72%
ROIC 8.69%
ROA(3y)4.03%
ROA(5y)-12.3%
ROE(3y)7.41%
ROE(5y)N/A
ROIC(3y)7.95%
ROIC(5y)N/A
SGY.CA Yearly ROA, ROE, ROICSGY.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200 400 600 800 1K

1.3 Margins

Looking at the Operating Margin, with a value of 25.67%, SGY is in the better half of the industry, outperforming 76.08% of the companies in the same industry.
In the last couple of years the Operating Margin of SGY has grown nicely.
The Gross Margin of SGY (68.54%) is better than 86.60% of its industry peers.
SGY's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 25.67%
PM (TTM) N/A
GM 68.54%
OM growth 3Y227.11%
OM growth 5Y28.65%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y6.13%
GM growth 5Y-0.01%
SGY.CA Yearly Profit, Operating, Gross MarginsSGY.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100 -100 -200 -300

3

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so SGY is still creating some value.
The number of shares outstanding for SGY remains at a similar level compared to 1 year ago.
Compared to 5 years ago, SGY has more shares outstanding
The debt/assets ratio for SGY has been reduced compared to a year ago.
SGY.CA Yearly Shares OutstandingSGY.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M 100M
SGY.CA Yearly Total Debt VS Total AssetsSGY.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B

2.2 Solvency

SGY has an Altman-Z score of 0.07. This is a bad value and indicates that SGY is not financially healthy and even has some risk of bankruptcy.
SGY's Altman-Z score of 0.07 is on the low side compared to the rest of the industry. SGY is outperformed by 66.51% of its industry peers.
The Debt to FCF ratio of SGY is 2.55, which is a good value as it means it would take SGY, 2.55 years of fcf income to pay off all of its debts.
SGY's Debt to FCF ratio of 2.55 is amongst the best of the industry. SGY outperforms 82.78% of its industry peers.
A Debt/Equity ratio of 0.32 indicates that SGY is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.32, SGY perfoms like the industry average, outperforming 55.98% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.32
Debt/FCF 2.55
Altman-Z 0.07
ROIC/WACC1.11
WACC7.84%
SGY.CA Yearly LT Debt VS Equity VS FCFSGY.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M 400M 600M 800M

2.3 Liquidity

SGY has a Current Ratio of 0.60. This is a bad value and indicates that SGY is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of SGY (0.60) is worse than 71.29% of its industry peers.
A Quick Ratio of 0.60 indicates that SGY may have some problems paying its short term obligations.
SGY has a worse Quick ratio (0.60) than 64.59% of its industry peers.
Industry RankSector Rank
Current Ratio 0.6
Quick Ratio 0.6
SGY.CA Yearly Current Assets VS Current LiabilitesSGY.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M

3

3. Growth

3.1 Past

SGY shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -1300.00%.
SGY shows a small growth in Revenue. In the last year, the Revenue has grown by 3.56%.
Measured over the past years, SGY shows a quite strong growth in Revenue. The Revenue has been growing by 9.76% on average per year.
EPS 1Y (TTM)-1300%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%300%
Revenue 1Y (TTM)3.56%
Revenue growth 3Y27.95%
Revenue growth 5Y9.76%
Sales Q2Q%2.99%

3.2 Future

SGY is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 33.75% yearly.
SGY is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.36% yearly.
EPS Next Y266.46%
EPS Next 2Y72.41%
EPS Next 3Y33.75%
EPS Next 5YN/A
Revenue Next Year18.73%
Revenue Next 2Y2.76%
Revenue Next 3Y-0.88%
Revenue Next 5Y-0.36%

3.3 Evolution

When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
SGY.CA Yearly Revenue VS EstimatesSGY.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 200M 400M 600M
SGY.CA Yearly EPS VS EstimatesSGY.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0 5 -5 -10 -15

6

4. Valuation

4.1 Price/Earnings Ratio

SGY reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
With a Price/Forward Earnings ratio of 10.62, the valuation of SGY can be described as very reasonable.
The rest of the industry has a similar Price/Forward Earnings ratio as SGY.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.30, SGY is valued rather cheaply.
Industry RankSector Rank
PE N/A
Fwd PE 10.62
SGY.CA Price Earnings VS Forward Price EarningsSGY.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 10 -10 20

4.2 Price Multiples

SGY's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. SGY is cheaper than 93.30% of the companies in the same industry.
89.47% of the companies in the same industry are more expensive than SGY, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 5.83
EV/EBITDA 2.31
SGY.CA Per share dataSGY.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 4 6

4.3 Compensation for Growth

SGY's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of SGY may justify a higher PE ratio.
A more expensive valuation may be justified as SGY's earnings are expected to grow with 33.75% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y72.41%
EPS Next 3Y33.75%

5

5. Dividend

5.1 Amount

SGY has a Yearly Dividend Yield of 9.54%, which is a nice return.
SGY's Dividend Yield is rather good when compared to the industry average which is at 6.54. SGY pays more dividend than 96.17% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, SGY pays a better dividend.
Industry RankSector Rank
Dividend Yield 9.54%

5.2 History

The dividend of SGY decreases each year by -10.01%.
SGY has been paying a dividend for at least 10 years, so it has a reliable track record.
SGY has decreased its dividend in the last 3 years.
Dividend Growth(5Y)-10.01%
Div Incr Years2
Div Non Decr Years2
SGY.CA Yearly Dividends per shareSGY.CA Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2022 2023 2024 2025 5 10 15

5.3 Sustainability

The earnings of SGY are negative and hence is the payout ratio. SGY will probably not be able to sustain this dividend level.
DP-121.79%
EPS Next 2Y72.41%
EPS Next 3Y33.75%
SGY.CA Yearly Income VS Free CF VS DividendSGY.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M -200M 400M -400M -600M

SURGE ENERGY INC

TSX:SGY (6/6/2025, 7:00:00 PM)

5.58

+0.13 (+2.39%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)05-07 2025-05-07/amc
Earnings (Next)07-28 2025-07-28
Inst Owners4.87%
Inst Owner ChangeN/A
Ins Owners2.83%
Ins Owner ChangeN/A
Market Cap555.32M
Analysts78.33
Price Target8.99 (61.11%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 9.54%
Yearly Dividend0.5
Dividend Growth(5Y)-10.01%
DP-121.79%
Div Incr Years2
Div Non Decr Years2
Ex-Date05-30 2025-05-30 (0.043333)
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-89.96%
Min EPS beat(2)-112.91%
Max EPS beat(2)-67%
EPS beat(4)0
Avg EPS beat(4)-113.41%
Min EPS beat(4)-207.4%
Max EPS beat(4)-66.34%
EPS beat(8)0
Avg EPS beat(8)-108.17%
EPS beat(12)3
Avg EPS beat(12)-42.61%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-8.62%
Min Revenue beat(2)-15.92%
Max Revenue beat(2)-1.31%
Revenue beat(4)0
Avg Revenue beat(4)-6.31%
Min Revenue beat(4)-15.92%
Max Revenue beat(4)-1.31%
Revenue beat(8)1
Avg Revenue beat(8)-6.5%
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-9.62%
PT rev (3m)-14.29%
EPS NQ rev (1m)-29.17%
EPS NQ rev (3m)-37.04%
EPS NY rev (1m)0%
EPS NY rev (3m)-52.91%
Revenue NQ rev (1m)-7.86%
Revenue NQ rev (3m)-2.88%
Revenue NY rev (1m)0%
Revenue NY rev (3m)28.89%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 10.62
P/S 0.99
P/FCF 5.83
P/OCF 1.88
P/B 0.76
P/tB 0.76
EV/EBITDA 2.31
EPS(TTM)-0.42
EYN/A
EPS(NY)0.53
Fwd EY9.41%
FCF(TTM)0.96
FCFY17.15%
OCF(TTM)2.97
OCFY53.18%
SpS5.61
BVpS7.35
TBVpS7.35
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -3.03%
ROE -5.72%
ROCE 11.37%
ROIC 8.69%
ROICexc 8.77%
ROICexgc 8.77%
OM 25.67%
PM (TTM) N/A
GM 68.54%
FCFM 17.05%
ROA(3y)4.03%
ROA(5y)-12.3%
ROE(3y)7.41%
ROE(5y)N/A
ROIC(3y)7.95%
ROIC(5y)N/A
ROICexc(3y)7.97%
ROICexc(5y)N/A
ROICexgc(3y)7.97%
ROICexgc(5y)N/A
ROCE(3y)10.41%
ROCE(5y)N/A
ROICexcg growth 3Y301.62%
ROICexcg growth 5Y43.96%
ROICexc growth 3Y301.62%
ROICexc growth 5Y43.96%
OM growth 3Y227.11%
OM growth 5Y28.65%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y6.13%
GM growth 5Y-0.01%
F-Score6
Asset Turnover0.4
Health
Industry RankSector Rank
Debt/Equity 0.32
Debt/FCF 2.55
Debt/EBITDA 0.69
Cap/Depr 101.24%
Cap/Sales 35.83%
Interest Coverage 250
Cash Conversion 86.61%
Profit Quality N/A
Current Ratio 0.6
Quick Ratio 0.6
Altman-Z 0.07
F-Score6
WACC7.84%
ROIC/WACC1.11
Cap/Depr(3y)104.95%
Cap/Depr(5y)91.53%
Cap/Sales(3y)33.35%
Cap/Sales(5y)33.42%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-1300%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%300%
EPS Next Y266.46%
EPS Next 2Y72.41%
EPS Next 3Y33.75%
EPS Next 5YN/A
Revenue 1Y (TTM)3.56%
Revenue growth 3Y27.95%
Revenue growth 5Y9.76%
Sales Q2Q%2.99%
Revenue Next Year18.73%
Revenue Next 2Y2.76%
Revenue Next 3Y-0.88%
Revenue Next 5Y-0.36%
EBIT growth 1Y58.05%
EBIT growth 3Y318.55%
EBIT growth 5Y41.2%
EBIT Next Year-5.21%
EBIT Next 3Y-13.48%
EBIT Next 5Y-12.73%
FCF growth 1Y-9.99%
FCF growth 3YN/A
FCF growth 5Y22.81%
OCF growth 1Y6.08%
OCF growth 3Y40.48%
OCF growth 5Y13.28%