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Surge Components Inc. (SPRS) Stock Fundamental Analysis & AI Rating 2026

SPRS OTC Wholesale-Electronic Parts & Equipment, NEC NY CIK: 0000747540
Recently Updated • Analysis: Apr 16, 2026 • SEC Data: 2026-02-28
HOLD
72% Conf
Pending
Analysis scheduled

📊 SPRS Key Takeaways

Revenue: $8.2M
Net Margin: -0.4%
Free Cash Flow: $968.6K
Current Ratio: 4.99x
Debt/Equity: 0.00x
EPS: $-0.01
AI Rating: HOLD with 72% confidence
Surge Components Inc. (SPRS) receives a HOLD rating with 72% confidence from our AI fundamental analysis based on SEC 10-K filings. With revenue of $8.2M, net profit margin of -0.4%, and return on equity (ROE) of -0.2%, Surge Components Inc. demonstrates mixed fundamentals in the Technology sector. Below is our complete SPRS stock analysis for 2026.

Is Surge Components Inc. (SPRS) a Good Investment?

Claude

SPRS demonstrates exceptional revenue growth (537.6% YoY) and generates positive operating cash flow ($1.1M), indicating operational viability. However, current unprofitability (-0.4% net margin, -1.9% operating margin) and modest absolute scale require demonstrated path to sustainable profitability before increasing conviction.

Why Buy Surge Components Inc. Stock? SPRS Key Strengths

Claude
  • + Exceptional 537.6% revenue growth demonstrates strong market traction
  • + Positive operating cash flow ($1.1M) and 11.8% FCF margin despite net losses
  • + Fortress balance sheet with zero debt, 4.99x current ratio, and $6.4M cash

SPRS Stock Risks: Surge Components Inc. Investment Risks

Claude
  • ! Currently unprofitable with negative operating margin despite revenue growth
  • ! Small absolute scale ($8.2M revenue) with limited financial flexibility
  • ! Rapid growth sustainability unproven; execution risk in competitive wholesale electronics sector

Key Metrics to Watch

Claude
  • * Path to operating profitability as revenues scale and operating leverage emerges
  • * Operating expense ratio trends and gross margin sustainability at higher volumes
  • * Revenue growth rate deceleration point and competitive market dynamics

Surge Components Inc. (SPRS) Financial Metrics & Key Ratios

Revenue
$8.2M
Net Income
$-34.3K
EPS (Diluted)
$-0.01
Free Cash Flow
$968.6K
Total Assets
$27.3M
Cash Position
$6.4M

💡 AI Analyst Insight

Strong liquidity with a 4.99x current ratio provides a solid financial cushion.

SPRS Profit Margin, ROE & Profitability Analysis

Gross Margin 29.4%
Operating Margin -1.9%
Net Margin -0.4%
ROE -0.2%
ROA -0.1%
FCF Margin 11.8%

SPRS vs Technology Sector: How Surge Components Inc. Compares

How Surge Components Inc. compares to Technology sector averages

Net Margin
SPRS -0.4%
vs
Sector Avg 18.0%
SPRS Sector
ROE
SPRS -0.2%
vs
Sector Avg 22.0%
SPRS Sector
Current Ratio
SPRS 5.0x
vs
Sector Avg 2.5x
SPRS Sector
Debt/Equity
SPRS 0.0x
vs
Sector Avg 0.5x
SPRS Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

Is Surge Components Inc. Stock Overvalued? SPRS Valuation Analysis 2026

Based on fundamental analysis, Surge Components Inc. has mixed fundamental signals relative to the Technology sector in 2026.

Return on Equity
-0.2%
Sector avg: 22%
Net Profit Margin
-0.4%
Sector avg: 18%
Revenue Growth
N/A
Year-over-year
Debt/Equity
0.00x
Sector avg: 0.5x

Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.

Surge Components Inc. Balance Sheet: SPRS Debt, Cash & Liquidity

Current Ratio
4.99x
Quick Ratio
4.03x
Debt/Equity
0.00x
Debt/Assets
21.8%
Interest Coverage
-389.73x
Long-term Debt
N/A

SPRS Revenue & Earnings Growth: 5-Year Financial Trend

SPRS 5-year financial data: Year 2019: Revenue $32.5M, Net Income N/A, EPS N/A. Year 2020: Revenue $32.5M, Net Income N/A, EPS N/A. Year 2021: Revenue $39.8M, Net Income $1.5M, EPS $0.27. Year 2022: Revenue $51.9M, Net Income $2.5M, EPS $0.44. Year 2025: Revenue $5.7M, Net Income $825.7K, EPS $0.14.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: Surge Components Inc.'s revenue has declined by 82% over the 5-year period, indicating business contraction. The most recent EPS of $0.14 reflects profitable operations.

SPRS Revenue Growth, EPS Growth & YoY Performance

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
11.8%
Free cash flow / Revenue

SPRS Quarterly Earnings & Performance

Quarterly financial performance data for Surge Components Inc. including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q1 2026 $1.0M -$34.3K $0.01
Q3 2023 $8.9M $133.3K $0.02
Q2 2023 $10.2M $524.3K $0.09
Q1 2023 $9.2M $395.2K $0.07
Q3 2022 $10.6M $881.2K $0.15
Q2 2022 $9.6M $704.1K $0.12
Q1 2022 $8.2M $277.7K $0.05
Q3 2021 $8.7M $503.0K $0.09

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

Surge Components Inc. Dividends, Buybacks & Capital Allocation

Operating Cash Flow
$1.1M
Cash generated from operations
Stock Buybacks
$7.2M
Shares repurchased (TTM)
Capital Expenditures
$122.0K
Investment in assets
Dividends
None
No dividend program

SPRS SEC Filings: Latest 10-K & 10-Q Analysis

Access official SEC EDGAR filings for Surge Components Inc. (CIK: 0000747540)

📋 Recent SEC Filings

Date Form Document Action
Apr 14, 2026 10-Q ea0285457-10q_surge.htm View →
Apr 2, 2026 4 xslF345X06/ownership.xml View →
Feb 27, 2026 10-K ea0277686-10k_surgecomp.htm View →
Dec 2, 2025 8-K ea0268111-8k_surgecomp.htm View →
Nov 3, 2025 DEF 14A ea0262003-03.htm View →

Frequently Asked Questions about SPRS

What is the AI rating for SPRS?

Surge Components Inc. (SPRS) has an AI rating of HOLD with 72% confidence, based on fundamental analysis of SEC EDGAR filings.

What are SPRS's key strengths?

Claude: Exceptional 537.6% revenue growth demonstrates strong market traction. Positive operating cash flow ($1.1M) and 11.8% FCF margin despite net losses.

What are the risks of investing in SPRS?

Claude: Currently unprofitable with negative operating margin despite revenue growth. Small absolute scale ($8.2M revenue) with limited financial flexibility.

What is SPRS's revenue and growth?

Surge Components Inc. reported revenue of $8.2M.

Does SPRS pay dividends?

Surge Components Inc. does not currently pay dividends.

Where can I find SPRS SEC filings?

Official SEC filings for Surge Components Inc. (CIK: 0000747540) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is SPRS's EPS?

Surge Components Inc. has a diluted EPS of $-0.01.

How is the AI analysis conducted?

Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.

Is SPRS a good stock to buy right now?

Based on our AI fundamental analysis in April 2026, Surge Components Inc. has a HOLD rating with 72% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.

Is SPRS stock overvalued or undervalued?

Valuation metrics for SPRS: ROE of -0.2% (sector avg: 22%), net margin of -0.4% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.

Should I buy SPRS stock in 2026?

Our dual AI analysis gives Surge Components Inc. a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.

What is SPRS's free cash flow?

Surge Components Inc.'s operating cash flow is $1.1M, with capital expenditures of $122.0K. FCF margin is 11.8%.

How does SPRS compare to other Technology stocks?

Vs Technology sector averages: Net margin -0.4% (avg: 18%), ROE -0.2% (avg: 22%), current ratio 4.99 (avg: 2.5).

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Disclaimer: This analysis is generated by Claude AI (Anthropic) and ChatGPT (OpenAI) based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: Apr 16, 2026 | Data as of: 2026-02-28 | Powered by Claude AI