SURGE ENERGY INC (SGY.CA) Stock Fundamental Analysis
TSX:SGY - CA86880Y8779 - Common Stock
6.64 CAD
+0.01 (+0.15%)
Taking everything into account, SGY scores 6 out of 10 in our fundamental rating. SGY was compared to 218 industry peers in the Oil, Gas & Consumable Fuels industry. SGY scores excellent on profitability, but there are some minor concerns on its financial health. SGY scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
SGY had positive 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.
Each year in the past 5 years SGY had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 4.06%, SGY is doing good in the industry, outperforming 75.23% of the companies in the same industry.
SGY's Return On Equity of 7.34% is fine compared to the rest of the industry. SGY outperforms 61.01% of its industry peers.
SGY has a Return On Invested Capital of 8.54%. This is amongst the best in the industry. SGY outperforms 88.99% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SGY is in line with the industry average of 6.94%.
The last Return On Invested Capital (8.54%) for SGY is above the 3 year average (7.95%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.06% | ||
| ROE | 7.34% | ||
| ROIC | 8.54% |
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
With a decent Profit Margin value of 10.03%, SGY is doing good in the industry, outperforming 72.02% of the companies in the same industry.
SGY's Operating Margin of 25.70% is fine compared to the rest of the industry. SGY outperforms 77.06% of its industry peers.
In the last couple of years the Operating Margin of SGY has grown nicely.
Looking at the Gross Margin, with a value of 69.17%, SGY belongs to the top of the industry, outperforming 87.61% of the companies in the same industry.
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 | 25.7% | ||
| PM (TTM) | 10.03% | ||
| GM | 69.17% |
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.
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
SGY has an Altman-Z score of 0.24. 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 0.24 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 2.92, which is a good value as it means it would take SGY, 2.92 years of fcf income to pay off all of its debts.
SGY has a better Debt to FCF ratio (2.92) than 85.32% 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 | 2.92 | ||
| Altman-Z | 0.24 |
ROIC/WACC1.09
WACC7.85%
2.3 Liquidity
A Current Ratio of 0.84 indicates that SGY may have some problems paying its short term obligations.
SGY has a Current ratio of 0.84. This is comparable to the rest of the industry: SGY outperforms 55.96% of its industry peers.
SGY has a Quick Ratio of 0.84. 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 better Quick ratio (0.84) than 61.01% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 166.67% over the past year.
Looking at the last year, SGY shows a decrease in Revenue. The Revenue has decreased by -3.37% in the last year.
The Revenue has been growing by 9.76% on average over the past years. This is quite good.
EPS 1Y (TTM)166.67%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%150%
Revenue 1Y (TTM)-3.37%
Revenue growth 3Y27.95%
Revenue growth 5Y9.76%
Sales Q2Q%-18.45%
3.2 Future
The Earnings Per Share is expected to grow by 42.72% on average over the next years. This is a very strong growth
Based on estimates for the next years, SGY will show a decrease in Revenue. The Revenue will decrease by -0.36% on average per year.
EPS Next Y257.11%
EPS Next 2Y77.93%
EPS Next 3Y42.72%
EPS Next 5YN/A
Revenue Next Year13.16%
Revenue Next 2Y6.25%
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
A Price/Earnings ratio of 12.30 indicates a correct valuation of SGY.
Based on the Price/Earnings ratio, SGY is valued a bit cheaper than 66.06% of the companies in the same industry.
When comparing the Price/Earnings ratio of SGY to the average of the S&P500 Index (27.07), we can say SGY is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 10.55, the valuation of SGY can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SGY indicates a somewhat cheap valuation: SGY is cheaper than 64.68% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.59, SGY is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.3 | ||
| Fwd PE | 10.55 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SGY is valued cheaper than 93.12% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, SGY is valued cheaper than 88.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.91 | ||
| EV/EBITDA | 2.66 |
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 42.72% in the coming years.
PEG (NY)0.05
PEG (5Y)N/A
EPS Next 2Y77.93%
EPS Next 3Y42.72%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.60%, SGY is a good candidate for dividend investing.
SGY's Dividend Yield is rather good when compared to the industry average which is at 5.89. SGY pays more dividend than 95.41% of the companies in the same industry.
SGY's Dividend Yield is rather good when compared to the S&P500 average which is at 2.46.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.6% |
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.
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 pays out 94.60% of its income as dividend. This is not a sustainable payout ratio.
DP94.6%
EPS Next 2Y77.93%
EPS Next 3Y42.72%
TSX:SGY (9/9/2025, 7:00:00 PM)
6.64
+0.01 (+0.15%)
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 Cap657.96M
Analysts80
Price Target9.4 (41.57%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.6% |
Yearly Dividend0.5
Dividend Growth(5Y)-10.01%
DP94.6%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-28.87%
Min EPS beat(2)-67%
Max EPS beat(2)9.25%
EPS beat(4)1
Avg EPS beat(4)-59.25%
Min EPS beat(4)-112.91%
Max EPS beat(4)9.25%
EPS beat(8)1
Avg EPS beat(8)-101.31%
EPS beat(12)3
Avg EPS beat(12)-51.53%
EPS beat(16)5
Avg EPS beat(16)8.78%
Revenue beat(2)0
Avg Revenue beat(2)-11.35%
Min Revenue beat(2)-15.92%
Max Revenue beat(2)-6.79%
Revenue beat(4)0
Avg Revenue beat(4)-7.58%
Min Revenue beat(4)-15.92%
Max Revenue beat(4)-1.31%
Revenue beat(8)1
Avg Revenue beat(8)-6.79%
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)2.43%
PT rev (3m)0.34%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-30.43%
EPS NY rev (1m)-5.62%
EPS NY rev (3m)-5.62%
Revenue NQ rev (1m)-2.5%
Revenue NQ rev (3m)-5.01%
Revenue NY rev (1m)-3.63%
Revenue NY rev (3m)-4.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.3 | ||
| Fwd PE | 10.55 | ||
| P/S | 1.2 | ||
| P/FCF | 7.91 | ||
| P/OCF | 2.37 | ||
| P/B | 0.88 | ||
| P/tB | 0.88 | ||
| EV/EBITDA | 2.66 |
EPS(TTM)0.54
EY8.13%
EPS(NY)0.63
Fwd EY9.48%
FCF(TTM)0.84
FCFY12.65%
OCF(TTM)2.81
OCFY42.26%
SpS5.51
BVpS7.53
TBVpS7.53
PEG (NY)0.05
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.06% | ||
| ROE | 7.34% | ||
| ROCE | 11.18% | ||
| ROIC | 8.54% | ||
| ROICexc | 8.59% | ||
| ROICexgc | 8.59% | ||
| OM | 25.7% | ||
| PM (TTM) | 10.03% | ||
| GM | 69.17% | ||
| FCFM | 15.24% |
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 | 0.32 | ||
| Debt/FCF | 2.92 | ||
| Debt/EBITDA | 0.7 | ||
| Cap/Depr | 100.2% | ||
| Cap/Sales | 35.69% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 83.06% | ||
| Profit Quality | 151.95% | ||
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.84 | ||
| Altman-Z | 0.24 |
F-Score7
WACC7.85%
ROIC/WACC1.09
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)166.67%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%150%
EPS Next Y257.11%
EPS Next 2Y77.93%
EPS Next 3Y42.72%
EPS Next 5YN/A
Revenue 1Y (TTM)-3.37%
Revenue growth 3Y27.95%
Revenue growth 5Y9.76%
Sales Q2Q%-18.45%
Revenue Next Year13.16%
Revenue Next 2Y6.25%
Revenue Next 3Y-0.88%
Revenue Next 5Y-0.36%
EBIT growth 1Y14.63%
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-14.13%
FCF growth 3YN/A
FCF growth 5Y22.81%
OCF growth 1Y5.65%
OCF growth 3Y40.48%
OCF growth 5Y13.28%