SURGE ENERGY INC (SGY.CA) Stock Fundamental Analysis
TSX:SGY - Toronto Stock Exchange - CA86880Y8779 - Common Stock - Currency: CAD
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. While SGY is still in line with the averages on profitability rating, there are concerns on its financial health. SGY is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year SGY has reported negative net income.
SGY had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: SGY reported negative net income in multiple years.
In the past 5 years SGY always reported a positive cash flow from operatings.
1.2 Ratios
SGY has a Return On Assets of -3.03%. This is comparable to the rest of the industry: SGY outperforms 48.80% of its industry peers.
With a Return On Equity value of -5.72%, SGY perfoms like the industry average, outperforming 45.93% of the companies in the same industry.
With an excellent Return On Invested Capital value of 8.69%, SGY belongs to the best of the industry, outperforming 87.56% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years 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.
SGY has a Gross Margin of 68.54%. This is amongst the best in the industry. SGY outperforms 86.60% of its industry peers.
In the last couple of years the Gross Margin of SGY has remained more or less at the same level.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so SGY is still creating some value.
SGY has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for SGY has been increased compared to 5 years ago.
The debt/assets ratio for SGY has been reduced compared to a year ago.
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 66.51% of its industry peers.
SGY has a debt to FCF ratio of 2.55. This is a good value and a sign of high solvency as SGY would need 2.55 years to pay back of all of its debts.
The Debt to FCF ratio of SGY (2.55) is better than 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 | 0.1 |
ROIC/WACC1.32
WACC6.57%
2.3 Liquidity
A Current Ratio of 0.60 indicates that SGY may have some problems paying its short term obligations.
The Current ratio of SGY (0.60) is worse than 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.
Looking at the Quick ratio, with a value of 0.60, SGY is doing worse than 64.59% of the companies in the same industry.
| 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.
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
Based on estimates for the next years, SGY will show a very strong growth in Earnings Per Share. The EPS will grow by 33.75% on average per year.
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
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
SGY reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
SGY is valuated reasonably with a Price/Forward Earnings ratio of 11.52.
The rest of the industry has a similar Price/Forward Earnings ratio as SGY.
The average S&P500 Price/Forward Earnings ratio is at 22.13. SGY is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 11.52 |
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.
SGY's Price/Free Cash Flow ratio is rather cheap when compared to the industry. SGY is cheaper than 89.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.32 | ||
| EV/EBITDA | 2.39 |
4.3 Compensation for Growth
The 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.
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. Dividend
5.1 Amount
SGY has a Yearly Dividend Yield of 8.84%, which is a nice return.
SGY's Dividend Yield is rather good when compared to the industry average which is at 6.43. SGY pays more dividend than 96.17% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, SGY pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.84% |
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
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 (6/13/2025, 7:00:00 PM)
6.05
+0.17 (+2.89%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners4.23%
Inst Owner ChangeN/A
Ins Owners2.83%
Ins Owner ChangeN/A
Market Cap602.10M
Analysts78.33
Price Target8.99 (48.6%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.84% |
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 | 11.52 | ||
| P/S | 1.08 | ||
| P/FCF | 6.32 | ||
| P/OCF | 2.04 | ||
| P/B | 0.82 | ||
| P/tB | 0.82 | ||
| EV/EBITDA | 2.39 |
EPS(TTM)-0.42
EYN/A
EPS(NY)0.53
Fwd EY8.68%
FCF(TTM)0.96
FCFY15.82%
OCF(TTM)2.97
OCFY49.05%
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 | 0.1 |
F-Score6
WACC6.57%
ROIC/WACC1.32
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%