SURGE ENERGY INC (SGY.CA) Stock Fundamental Analysis
TSX:SGY - Toronto Stock Exchange - CA86880Y8779 - Common Stock - Currency: CAD
SGY gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 217 industry peers in the Oil, Gas & Consumable Fuels industry. SGY has only an average score on both its financial health and profitability. SGY is valued quite cheap, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
SGY had negative earnings in the past year.
SGY had a positive operating cash flow in the past year.
In multiple years SGY reported negative net income over the last 5 years.
In the past 5 years SGY always reported a positive cash flow from operatings.
1.2 Ratios
SGY has a Return On Assets (-3.93%) which is in line with its industry peers.
SGY's Return On Equity of -7.27% is in line compared to the rest of the industry. SGY outperforms 42.86% of its industry peers.
SGY has a Return On Invested Capital of 7.56%. This is amongst the best in the industry. SGY outperforms 83.87% of its industry peers.
SGY had an Average Return On Invested Capital over the past 3 years of 7.95%. This is in line with the industry average of 7.24%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.93% | ||
| ROE | -7.27% | ||
| ROIC | 7.56% |
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
Looking at the Operating Margin, with a value of 22.80%, SGY is in the better half of the industry, outperforming 74.19% of the companies in the same industry.
SGY's Operating Margin has improved in the last couple of years.
SGY has a Gross Margin of 65.73%. This is in the better half of the industry: SGY outperforms 79.26% 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 | 22.8% | ||
| PM (TTM) | N/A | ||
| GM | 65.73% |
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
SGY has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying 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.
2.2 Solvency
Based on the Altman-Z score of 0.01, we must say that SGY is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.01, SGY is doing worse than 65.44% of the companies in the same industry.
SGY has a debt to FCF ratio of 2.78. This is a good value and a sign of high solvency as SGY would need 2.78 years to pay back of all of its debts.
The Debt to FCF ratio of SGY (2.78) is better than 83.41% of its industry peers.
A Debt/Equity ratio of 0.31 indicates that SGY is not too dependend on debt financing.
SGY's Debt to Equity ratio of 0.31 is in line compared to the rest of the industry. SGY outperforms 55.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 2.78 | ||
| Altman-Z | 0.01 |
ROIC/WACC0.85
WACC8.94%
2.3 Liquidity
A Current Ratio of 0.64 indicates that SGY may have some problems paying its short term obligations.
The Current ratio of SGY (0.64) is comparable to the rest of the industry.
A Quick Ratio of 0.64 indicates that SGY may have some problems paying its short term obligations.
SGY's Quick ratio of 0.64 is in line compared to the rest of the industry. SGY outperforms 50.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.64 | ||
| Quick Ratio | 0.64 |
3. Growth
3.1 Past
SGY shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -437.50%.
SGY shows a decrease in Revenue. In the last year, the revenue decreased by -3.39%.
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)-437.5%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%89.66%
Revenue 1Y (TTM)-3.39%
Revenue growth 3Y27.95%
Revenue growth 5Y9.76%
Sales Q2Q%17.43%
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
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.
The Price/Forward Earnings ratio is 5.94, 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 84.79% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.89. SGY is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 5.94 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SGY is valued cheaper than 94.47% of the companies in the same industry.
90.32% of the companies in the same industry are more expensive than SGY, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.36 | ||
| EV/EBITDA | 2.42 |
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'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 10.74%, which is a nice return.
Compared to an average industry Dividend Yield of 6.73, SGY pays a better dividend. On top of this SGY pays more dividend than 96.31% of the companies listed in the same industry.
SGY's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.74% |
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.
The dividend of SGY decreased recently.
Dividend Growth(5Y)-10.01%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
SGY has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-93.12%
EPS Next 2Y72.41%
EPS Next 3Y33.75%
TSX:SGY (5/14/2025, 7:00:00 PM)
5.34
-0.01 (-0.19%)
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 Cap531.44M
Analysts78.33
Price Target9.37 (75.47%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.74% |
Yearly Dividend0.5
Dividend Growth(5Y)-10.01%
DP-93.12%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-89.63%
Min EPS beat(2)-112.91%
Max EPS beat(2)-66.34%
EPS beat(4)0
Avg EPS beat(4)-124.2%
Min EPS beat(4)-207.4%
Max EPS beat(4)-66.34%
EPS beat(8)0
Avg EPS beat(8)-105.55%
EPS beat(12)3
Avg EPS beat(12)-61.86%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-3.81%
Min Revenue beat(2)-6.31%
Max Revenue beat(2)-1.31%
Revenue beat(4)0
Avg Revenue beat(4)-6.86%
Min Revenue beat(4)-18.15%
Max Revenue beat(4)-1.31%
Revenue beat(8)1
Avg Revenue beat(8)-7.05%
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)-8.7%
PT rev (3m)-11.18%
EPS NQ rev (1m)-4%
EPS NQ rev (3m)-20%
EPS NY rev (1m)0%
EPS NY rev (3m)-52.91%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)10%
Revenue NY rev (1m)28.89%
Revenue NY rev (3m)26.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 5.94 | ||
| P/S | 0.98 | ||
| P/FCF | 6.36 | ||
| P/OCF | 1.91 | ||
| P/B | 0.72 | ||
| P/tB | 0.72 | ||
| EV/EBITDA | 2.42 |
EPS(TTM)-0.54
EYN/A
EPS(NY)0.9
Fwd EY16.83%
FCF(TTM)0.84
FCFY15.72%
OCF(TTM)2.8
OCFY52.43%
SpS5.44
BVpS7.42
TBVpS7.42
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.93% | ||
| ROE | -7.27% | ||
| ROCE | 9.9% | ||
| ROIC | 7.56% | ||
| ROICexc | 7.61% | ||
| ROICexgc | 7.61% | ||
| OM | 22.8% | ||
| PM (TTM) | N/A | ||
| GM | 65.73% | ||
| FCFM | 15.42% |
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-Score7
Asset Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 2.78 | ||
| Debt/EBITDA | 0.73 | ||
| Cap/Depr | 103.51% | ||
| Cap/Sales | 36.02% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 89.31% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.64 | ||
| Quick Ratio | 0.64 | ||
| Altman-Z | 0.01 |
F-Score7
WACC8.94%
ROIC/WACC0.85
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)-437.5%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%89.66%
EPS Next Y266.46%
EPS Next 2Y72.41%
EPS Next 3Y33.75%
EPS Next 5YN/A
Revenue 1Y (TTM)-3.39%
Revenue growth 3Y27.95%
Revenue growth 5Y9.76%
Sales Q2Q%17.43%
Revenue Next Year18.73%
Revenue Next 2Y2.76%
Revenue Next 3Y-0.88%
Revenue Next 5Y-0.36%
EBIT growth 1Y9.3%
EBIT growth 3Y318.55%
EBIT growth 5Y41.2%
EBIT Next Year-9.34%
EBIT Next 3Y-14.57%
EBIT Next 5Y-12.73%
FCF growth 1Y-1.21%
FCF growth 3YN/A
FCF growth 5Y22.81%
OCF growth 1Y4.7%
OCF growth 3Y40.48%
OCF growth 5Y13.28%