OTCPK:SURG

Stock Analysis Report

Executive Summary

Surge Holdings, Inc., through its subsidiaries, provides financial and telecommunications services in the United States.

Snowflake

Fundamentals

Weak fundamentals or lack of information.

Share Price & News

How has Surge Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-12.5%

SURG

1.4%

US Wireless Telecom

0.4%

US Market


1 Year Return

-32.5%

SURG

3.3%

US Wireless Telecom

6.9%

US Market

Return vs Industry: SURG underperformed the US Wireless Telecom industry which returned 3.3% over the past year.

Return vs Market: SURG underperformed the US Market which returned 6.9% over the past year.


Shareholder returns

SURGIndustryMarket
7 Day-12.5%1.4%0.4%
30 Day-3.4%-0.5%-1.1%
90 Day-57.5%-2.9%-0.5%
1 Year-32.5%-32.5%4.5%3.3%9.3%6.9%
3 Yearn/a35.0%30.1%45.8%36.4%
5 Yearn/a51.8%38.1%62.9%45.1%

Price Volatility Vs. Market

How volatile is Surge Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Surge Holdings undervalued compared to its fair value and its price relative to the market?


In this section, we usually try to help investors determine whether Surge Holdings is trading at an attractive price based on the cash flow it is expected to produce in the future. But as Surge Holdings has not provided consistent financial data, and the stock also has no analyst forecast or coverage, its intrinsic value cannot be reliably calculated by extrapolating past data or using analyst consensus cash flow predictions.

This is quite a rare situation as 89% of companies covered by Simply Wall St do have a valuation analysis.


Next Steps

  • Take a look at our analysis of SURG’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • When valuing a company like this, investors focus more on how they perceive the size of the opportunity, the company's ability to deliver and scale, and the strength of the team. While we are not analysing this type of data at the moment, if you don’t know where to start, we recommend reading through Surge Holdings regulatory filings here.
  • Explore potentially undervalued companies in the Telecom industry.

Future Growth

How is Surge Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

15.8%

Forecasted Telecom industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Surge Holdings has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

  • Take a look at our analysis of SURG’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • While we do not consider unaudited financials to be a reliable enough to include in our analysis, you can access them on the OTC Markets Website. If you are looking for more of a qualitative research into the company, you can access Surge Holdings's filings and announcements here.
  • Explore growth companies in the Telecom industry.

Past Performance

How has Surge Holdings performed over the past 5 years?

-291.9%

Last years earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SURG is unprofitable, and there is insufficient past data to establish if their past 5-year earnings growth rate was positive.

Accelerating Growth: Unable to compare SURG's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: SURG is unprofitable, making it difficult to compare its past year earnings growth to the Wireless Telecom industry (7.7%).


Return on Equity

High ROE: SURG's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Return on Assets

ROA vs Industry: SURG is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: SURG is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Surge Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: SURG has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: SURG has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: SURG has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: SURG's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet

Inventory Level: SURG has a low level of unsold assets or inventory.

Debt Coverage by Assets: SURG has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: SURG has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: SURG has less than a year of cash runway if free cash flow continues to reduce at historical rates of -100.7% each year


Next Steps

Dividend

What is Surge Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage8.0%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate SURG's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate SURG's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if SURG's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SURG's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SURG's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Surge Holdings's salary, the management and board of directors tenure and is there insider trading?

1.6yrs

Average management tenure


CEO

Kevin Cox (44yo)

2.3yrs

Tenure

0

Mr. Kevin Brian Cox serves as the Chairman and Chief Executive officer of Surge Holdings, Inc. Mr. Cox served as the Chairman, Chief Executive Officer, President, Secretary and Treasurer of KSIX Media Hold ...


Management Age and Tenure

1.6yrs

Average Tenure

44yo

Average Age

Experienced Management: SURG's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Age and Tenure

2.2yrs

Average Tenure

49yo

Average Age

Experienced Board: SURG's board of directors are not considered experienced ( 2.2 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Carter Matzinger (44yo)

    President of Surge Logics & Director

    • Tenure: 0yrs
    • Compensation: US$120.00k
  • Anthony Nuzzo (49yo)

    President

    • Tenure: 3.3yrs
  • Kevin Cox (44yo)

    Chairman & CEO

    • Tenure: 2.3yrs
  • David Ansani (54yo)

    Chief Administrative Officer

    • Tenure: 2.2yrs
    • Compensation: US$200.41k
  • Brian Speck (44yo)

    Chief Financial Officer

    • Tenure: 1.6yrs
  • John Mott

    Chief Technology Officer

    • Tenure: 0yrs

Board Members

  • David Keys (62yo)

    Independent Director

    • Tenure: 0.3yrs
  • Carter Matzinger (44yo)

    President of Surge Logics & Director

    • Tenure: 0yrs
    • Compensation: US$120.00k
  • Anthony Nuzzo (49yo)

    President

    • Tenure: 3.3yrs
  • Kevin Cox (44yo)

    Chairman & CEO

    • Tenure: 2.3yrs
  • David Ansani (54yo)

    Chief Administrative Officer

    • Tenure: 2.2yrs
    • Compensation: US$200.41k

Company Information

Surge Holdings, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Surge Holdings, Inc.
  • Ticker: SURG
  • Exchange: OTCPK
  • Founded:
  • Industry: Wireless Telecommunication Services
  • Sector: Telecom
  • Market Cap: US$27.310m
  • Shares outstanding: 97.53m
  • Website: https://www.surgeholdings.com

Number of Employees


Location

  • Surge Holdings, Inc.
  • 3124 Brother Boulevard
  • Suite 104
  • Bartlett
  • Tennessee
  • 38133
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SURGOTCPK (Pink Sheets LLC)YesCommon StockUSUSDApr 2018

Biography

Surge Holdings, Inc., through its subsidiaries, provides financial and telecommunications services in the United States. It offers subsidized wireless service to qualifying low income customers; discounted ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 00:48
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.