SURGE ENERGY INC (SGY.CA) Stock Fundamental Analysis
TSX:SGY - Toronto Stock Exchange - CA86880Y8779 - Common Stock - Currency: CAD
We assign a fundamental rating of 4 out of 10 to SGY. SGY was compared to 209 industry peers in the Oil, Gas & Consumable Fuels industry. There are concerns on the financial health of SGY while its profitability can be described as average. SGY has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year SGY has reported negative net income.
In the past year SGY had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: SGY reported negative net income in multiple years.
SGY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of SGY (-3.03%) is comparable to the rest of the industry.
SGY's Return On Equity of -5.72% is in line compared to the rest of the industry. SGY outperforms 45.93% of its industry peers.
SGY has a Return On Invested Capital of 8.69%. This is amongst the best in the industry. SGY outperforms 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 Rank | Sector 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
1.3 Margins
SGY has a better Operating Margin (25.67%) than 76.08% of its industry peers.
SGY's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 68.54%, SGY belongs to the best of the industry, outperforming 86.60% of the companies in the same industry.
SGY's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SGY is creating some value.
Compared to 1 year ago, SGY has about the same amount of shares outstanding.
SGY has more shares outstanding than it did 5 years ago.
The debt/assets ratio for SGY has been reduced compared to a year ago.
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.
With a Altman-Z score value of 0.07, SGY is not doing good in the industry: 66.51% of the companies in the same industry are doing better.
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.
SGY has a Debt/Equity ratio of 0.32. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of SGY (0.32) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 2.55 | ||
| Altman-Z | 0.07 |
ROIC/WACC1.11
WACC7.84%
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.
SGY's Current ratio of 0.60 is on the low side compared to the rest of the industry. SGY is outperformed by 71.29% of its industry peers.
SGY has a Quick 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.
SGY has a worse Quick ratio (0.60) than 64.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.6 | ||
| Quick Ratio | 0.6 |
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%.
The Revenue has been growing slightly by 3.56% in the past year.
SGY shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.76% yearly.
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for SGY. In the last year negative earnings were reported.
Based on the Price/Forward Earnings ratio of 10.62, the valuation of SGY can be described as reasonable.
The rest of the industry has a similar Price/Forward Earnings ratio as SGY.
The average S&P500 Price/Forward Earnings ratio is at 22.27. SGY is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 10.62 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SGY indicates a rather cheap valuation: SGY is cheaper than 89.47% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.83 | ||
| EV/EBITDA | 2.31 |
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.
SGY has a very decent profitability rating, which may justify a higher PE ratio.
SGY's earnings are expected to grow with 33.75% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y72.41%
EPS Next 3Y33.75%
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 Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.54% |
5.2 History
The dividend of SGY decreases each year by -10.01%.
SGY has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of SGY decreased in the last 3 years.
Dividend Growth(5Y)-10.01%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
SGY has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-121.79%
EPS Next 2Y72.41%
EPS Next 3Y33.75%
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)
Earnings (Next)
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 Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.54% |
Yearly Dividend0.5
Dividend Growth(5Y)-10.01%
DP-121.79%
Div Incr Years2
Div Non Decr Years2
Ex-Date
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 Rank | Sector 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 Rank | Sector 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 Rank | Sector 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%