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SURGE ENERGY INC (SGY.CA) Stock Fundamental Analysis

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

5.395  +0.01 (+0.28%)

Fundamental Rating

4

Overall SGY gets a fundamental rating of 4 out of 10. We evaluated SGY against 214 industry peers in the Oil, Gas & Consumable Fuels industry. SGY has only an average score on both its financial health and profitability. SGY has a valuation in line with the averages, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

4

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.
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.
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 0 200M -200M 400M -400M -600M

1.2 Ratios

The Return On Assets of SGY (-6.06%) is worse than 62.19% of its industry peers.
With a Return On Equity value of -10.67%, SGY is not doing good in the industry: 62.69% of the companies in the same industry are doing better.
Looking at the Return On Invested Capital, with a value of 7.92%, SGY is in the better half of the industry, outperforming 79.10% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for SGY is below the industry average of 7.73%.
The 3 year average ROIC (5.60%) for SGY is below the current ROIC(7.92%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA -6.06%
ROE -10.67%
ROIC 7.92%
ROA(3y)15.99%
ROA(5y)-13.74%
ROE(3y)36.3%
ROE(5y)N/A
ROIC(3y)5.6%
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 0 200 400 600 800 1K

1.3 Margins

Looking at the Operating Margin, with a value of 22.26%, SGY is in the better half of the industry, outperforming 71.64% of the companies in the same industry.
In the last couple of years the Operating Margin of SGY has grown nicely.
SGY has a Gross Margin of 66.67%. This is in the better half of the industry: SGY outperforms 77.11% of its industry peers.
SGY's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 22.26%
PM (TTM) N/A
GM 66.67%
OM growth 3YN/A
OM growth 5Y43.63%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y10.47%
GM growth 5Y1.26%
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 0 100 -100 -200 -300

4

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.
SGY has more shares outstanding than it did 1 year ago.
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.
SGY.CA Yearly Shares OutstandingSGY.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 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 500M 1B 1.5B

2.2 Solvency

Based on the Altman-Z score of 0.10, we must say that SGY is in the distress zone and has some risk of bankruptcy.
SGY has a worse Altman-Z score (0.10) than 70.15% of its industry peers.
SGY has a debt to FCF ratio of 2.50. This is a good value and a sign of high solvency as SGY would need 2.50 years to pay back of all of its debts.
The Debt to FCF ratio of SGY (2.50) is better than 82.59% of its industry peers.
SGY has a Debt/Equity ratio of 0.30. This is a healthy value indicating a solid balance between debt and equity.
SGY's Debt to Equity ratio of 0.30 is in line compared to the rest of the industry. SGY outperforms 51.24% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.3
Debt/FCF 2.5
Altman-Z 0.1
ROIC/WACC1.14
WACC6.96%
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 0 200M 400M 600M 800M

2.3 Liquidity

A Current Ratio of 0.66 indicates that SGY may have some problems paying its short term obligations.
With a Current ratio value of 0.66, SGY perfoms like the industry average, outperforming 40.30% of the companies in the same industry.
SGY has a Quick Ratio of 0.66. This is a bad value and indicates that SGY is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.66, SGY perfoms like the industry average, outperforming 42.79% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.66
Quick Ratio 0.66
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 100M 200M 300M

3

3. Growth

3.1 Past

The earnings per share for SGY have decreased strongly by -150.00% in the last year.
Looking at the last year, SGY shows a small growth in Revenue. The Revenue has grown by 4.22% in the last year.
SGY shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 16.88% yearly.
EPS 1Y (TTM)-150%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%6.25%
Revenue 1Y (TTM)4.22%
Revenue growth 3Y41.86%
Revenue growth 5Y16.88%
Sales Q2Q%-12.08%

3.2 Future

Based on estimates for the next years, SGY will show a very strong growth in Earnings Per Share. The EPS will grow by 63.31% on average per year.
The Revenue is expected to decrease by -5.86% on average over the next years.
EPS Next Y-62.13%
EPS Next 2Y245.41%
EPS Next 3Y63.31%
EPS Next 5YN/A
Revenue Next Year-24.85%
Revenue Next 2Y-16.11%
Revenue Next 3Y-5.49%
Revenue Next 5Y-5.86%

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 2028 0 5 -5 -10 -15

6

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for SGY. In the last year negative earnings were reported.
The Price/Forward Earnings ratio is 2.83, which indicates a rather cheap valuation of SGY.
SGY's Price/Forward Earnings ratio is rather cheap when compared to the industry. SGY is cheaper than 95.02% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 94.77. SGY is valued rather cheaply when compared to this.
Industry RankSector Rank
PE N/A
Fwd PE 2.83
SGY.CA Price Earnings VS Forward Price EarningsSGY.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 20 40 60 80

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SGY indicates a rather cheap valuation: SGY is cheaper than 92.54% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, SGY is valued cheaply inside the industry as 91.54% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 5.71
EV/EBITDA 2.39
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 earnings are expected to grow with 63.31% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y245.41%
EPS Next 3Y63.31%

5

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 9.19%, SGY is a good candidate for dividend investing.
SGY's Dividend Yield is rather good when compared to the industry average which is at 6.59. SGY pays more dividend than 95.02% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.29, SGY pays a better dividend.
Industry RankSector Rank
Dividend Yield 9.19%

5.2 History

The dividend of SGY decreases each year by -8.68%.
SGY has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of SGY decreased recently.
Dividend Growth(5Y)-8.68%
Div Incr Years1
Div Non Decr Years1
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

SGY has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-60.56%
EPS Next 2Y245.41%
EPS Next 3Y63.31%
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 0 200M -200M 400M -400M -600M

SURGE ENERGY INC

TSX:SGY (2/7/2025, 7:00:00 PM)

5.395

+0.01 (+0.28%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)11-06 2024-11-06/amc
Earnings (Next)N/A N/A
Inst Owners5.23%
Inst Owner ChangeN/A
Ins Owners2.81%
Ins Owner ChangeN/A
Market Cap545.43M
Analysts81.54
Price Target10.55 (95.55%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 9.19%
Yearly Dividend0.48
Dividend Growth(5Y)-8.68%
DP-60.56%
Div Incr Years1
Div Non Decr Years1
Ex-Date01-31 2025-01-31 (0.043333)
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-136.87%
Min EPS beat(2)-207.4%
Max EPS beat(2)-66.34%
EPS beat(4)0
Avg EPS beat(4)-146.61%
Min EPS beat(4)-207.4%
Max EPS beat(4)-66.34%
EPS beat(8)1
Avg EPS beat(8)-65.98%
EPS beat(12)4
Avg EPS beat(12)141.36%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-4%
Min Revenue beat(2)-6.31%
Max Revenue beat(2)-1.68%
Revenue beat(4)0
Avg Revenue beat(4)-11.02%
Min Revenue beat(4)-18.15%
Max Revenue beat(4)-1.68%
Revenue beat(8)1
Avg Revenue beat(8)-9.06%
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)-5.25%
PT rev (3m)-11.5%
EPS NQ rev (1m)-8%
EPS NQ rev (3m)-23.33%
EPS NY rev (1m)-20%
EPS NY rev (3m)-97.63%
Revenue NQ rev (1m)-2.56%
Revenue NQ rev (3m)-4.27%
Revenue NY rev (1m)0.15%
Revenue NY rev (3m)-3.04%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 2.83
P/S 0.96
P/FCF 5.71
P/OCF 1.86
P/B 0.72
P/tB 0.72
EV/EBITDA 2.39
EPS(TTM)-0.8
EYN/A
EPS(NY)1.91
Fwd EY35.38%
FCF(TTM)0.94
FCFY17.5%
OCF(TTM)2.9
OCFY53.82%
SpS5.6
BVpS7.48
TBVpS7.48
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -6.06%
ROE -10.67%
ROCE 10.36%
ROIC 7.92%
ROICexc 7.99%
ROICexgc 7.99%
OM 22.26%
PM (TTM) N/A
GM 66.67%
FCFM 16.86%
ROA(3y)15.99%
ROA(5y)-13.74%
ROE(3y)36.3%
ROE(5y)N/A
ROIC(3y)5.6%
ROIC(5y)N/A
ROICexc(3y)5.6%
ROICexc(5y)N/A
ROICexgc(3y)5.6%
ROICexgc(5y)N/A
ROCE(3y)7.33%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y71.62%
ROICexc growth 3YN/A
ROICexc growth 5Y71.62%
OM growth 3YN/A
OM growth 5Y43.63%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y10.47%
GM growth 5Y1.26%
F-Score6
Asset Turnover0.42
Health
Industry RankSector Rank
Debt/Equity 0.3
Debt/FCF 2.5
Debt/EBITDA 0.71
Cap/Depr 101%
Cap/Sales 35%
Interest Coverage 250
Cash Conversion 91.12%
Profit Quality N/A
Current Ratio 0.66
Quick Ratio 0.66
Altman-Z 0.1
F-Score6
WACC6.96%
ROIC/WACC1.14
Cap/Depr(3y)101.29%
Cap/Depr(5y)85.45%
Cap/Sales(3y)34.73%
Cap/Sales(5y)33.24%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-150%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%6.25%
EPS Next Y-62.13%
EPS Next 2Y245.41%
EPS Next 3Y63.31%
EPS Next 5YN/A
Revenue 1Y (TTM)4.22%
Revenue growth 3Y41.86%
Revenue growth 5Y16.88%
Sales Q2Q%-12.08%
Revenue Next Year-24.85%
Revenue Next 2Y-16.11%
Revenue Next 3Y-5.49%
Revenue Next 5Y-5.86%
EBIT growth 1Y-1.55%
EBIT growth 3YN/A
EBIT growth 5Y67.87%
EBIT Next Year178.6%
EBIT Next 3Y26.59%
EBIT Next 5Y10.33%
FCF growth 1Y-7.24%
FCF growth 3Y63.36%
FCF growth 5Y130.49%
OCF growth 1Y18.56%
OCF growth 3Y54.48%
OCF growth 5Y16.9%