Surge Energy, Inc. (SGY) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Surge Energy, Inc.

Topaz Energy Corp.

Parex Resources, Inc.

ARC Resources Ltd.

MEG Energy Corp.

Cardinal Energy Ltd.

Vermilion Energy, Inc.

Advantage Energy Ltd.

Frontera Energy Corp.

Crew Energy, Inc.

Obsidian Energy Ltd.

Why is Surge Energy, Inc. ?

Healthy long term growth as Net Sales has grown by an annual rate of 15.77% and Operating profit at 37.42%

With ROE of 6.21%, it has a very attractive valuation with a 0.94 Price to Book Value

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 19.21%, its profits have fallen by -41.3%

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Surge Energy, Inc. should be less than 10%
Overall Portfolio exposure to Oil should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Oil)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Surge Energy, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Surge Energy, Inc.

-100.0%

0.04

36.84%

S&P/TSX 60

19.1%

1.54

14.62%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

15.77%

EBIT Growth (5y)

37.42%

EBIT to Interest (avg)

3.48

Debt to EBITDA (avg)

1.42

Net Debt to Equity (avg)

0.29

Sales to Capital Employed (avg)

0.53

Tax Ratio

23.47%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

12.12%

ROE (avg)

11.50%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.91

EV to EBIT

8.50

EV to EBITDA

2.90

EV to Capital Employed

0.93

EV to Sales

1.72

PEG Ratio

Dividend Yield

ROCE (Latest)

10.97%

ROE (Latest)

6.21%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Sideways

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

No Trend

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

5What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at CAD 9.77

PRE-TAX PROFIT(Q)

Highest at CAD 24.78 MM

EPS(Q)

Highest at CAD 0.32

-8What is not working for the Company

NET PROFIT(9M)

At CAD 33.63 MM has Grown at -39.21%

RAW MATERIAL COST(Y)

Grown by 20.01% (YoY

NET SALES(Q)

Lowest at CAD 118.98 MM

OPERATING PROFIT(Q)

Lowest at CAD 69.53 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 58.44 %

Here's what is working for Surge Energy, Inc.

Pre-Tax Profit

At CAD 24.78 MM has Grown at 171.77%

over average net sales of the previous four periods of CAD 9.12 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CAD MM)

Pre-Tax Profit

Highest at CAD 24.78 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CAD MM)

EPS

Highest at CAD 0.32

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CAD)

Dividend per share

Highest at CAD 9.77

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (CAD)

Here's what is not working for Surge Energy, Inc.

Net Profit

At CAD 33.63 MM has Grown at -39.21%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CAD MM)

Net Sales

Lowest at CAD 118.98 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CAD MM)

Net Sales

At CAD 118.98 MM has Fallen at -13.36%

over average net sales of the previous four periods of CAD 137.32 MM

MOJO Watch

Near term sales trend is negative

Net Sales (CAD MM)

Operating Profit

Lowest at CAD 69.53 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CAD MM)

Operating Profit Margin

Lowest at 58.44 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Raw Material Cost

Grown by 20.01% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales