# Surge Energy Inc. (SGY.TO) fundamentals

Data as of 2026-09-08. TSX, Canada. Sector: Energy / Oil, Gas & Consumable Fuels. Price C$11.16, market value C$1.1 billion.

## Valuation
- **P/E (trailing): 25.4×** (5-yr avg 13.4×, 3-yr avg 25.2×). Surge Energy Inc. trades at 25.4× trailing earnings, well above its own five-year average of 13.4×: investors are paying up relative to the company's past. The Energy median in the September 2026 study was 16.8×. Forward P/E is 7.0×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 0.04**. A PEG of 0.04 means the P/E is low relative to expected earnings growth: the market is not paying much for that growth.
- **Price / sales: 1.9×**. Each dollar of revenue is priced at 1.9×.
- **Price / book: 1.5×**. The shares trade at 1.5× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 3.9×**. Enterprise value is 3.9× operating earnings before depreciation, the multiple that ignores how the company is financed; below 8× is inexpensive for most sectors.
- **Free-cash-flow yield: 11.7%** (5-yr avg 12.4%). Free cash flow equals 11.7% of the market value, in line with its five-year average of 12.4%. Above 5% is generally attractive.
- **Earnings yield: 3.9%**. The inverse of the P/E: 3.9% of the price is earned each year.

## Profitability
- **Gross margin: 44.2%**. Surge Energy Inc. keeps 44.2% of revenue after the direct cost of what it sells.
- **Operating margin: 24.8%**. 24.8% of revenue is left after running the business, a healthy level in most sectors.
- **Net margin: 8.4%**. 8.4% of each dollar of sales reaches the bottom line.
- **Return on equity: 5.6%**. 5.6% on shareholders' equity is weak; the business earns little on the capital its owners have in it.
- **Return on invested capital: 11.8%**. Return on all capital, debt included, is 11.8%.
- **Return on assets: 3.4%**. Each dollar of assets produces 3.4% of profit.

## Growth
- **Revenue growth (1 yr): -27.7%** (3-yr -13.2%/yr, 5-yr 17.4%/yr). Revenue fell 27.7% over the last year, against 17.4% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): 175.5%** (3-yr -46.8%/yr). Earnings per share rose 175.5%, faster than revenue, so margins expanded or the share count shrank.
- **Free-cash-flow growth (3 yr): -1.8%/yr**. Free cash flow has compounded at -1.8% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Debt to equity: 0.34**. Debt is 0.34 times equity: a conservative balance sheet.
- **Net debt / EBITDA: 0.7×**. It would take 0.7 years of operating earnings to repay net borrowings, within the comfortable range.
- **Interest coverage: 4.8×**. Operating profit covers interest 4.8× over, a safe margin.
- **Current ratio: 0.78** (quick 0.78). Current liabilities exceed current assets, so the company depends on ongoing cash generation or refinancing to pay the next year's bills.
- **Altman Z-score: 2.42**. A Z-score of 2.42 is in the grey zone; not distressed, not clearly safe.
- **Piotroski F-score: 5/9**. 5 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 4.66%** (C$0.52 per share, trailing). Surge Energy Inc. yields 4.66%, an income-level yield.
- **Payout ratio: 128%** (40% of free cash flow). The dividend exceeds earnings (128% payout), though free cash flow still covers it.
- **Consecutive years of increases: 4**. 4 straight years of increases.
- **Dividend growth (5 yr): 29.0%/yr** (1-yr 3.6%). The dividend has compounded at 29.0% a year over five years, doubling roughly every 2 years at that pace.
- **Shareholder yield: 6.2%**. Dividends plus net buybacks return 6.2% of the market value a year.

## Analyst view
- **Analyst consensus: strong_buy** (9 analysts). 9 analysts cover Surge Energy Inc.; the consensus is strong_buy, with an average price target of C$13.25 (+19% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): 72.1%** (YTD 66.5%, 3-mo 11.3%). The shares are up 72.1% over twelve months including dividends.
- **From 52-week high: -2.4%** (73.8% above the low). Trading within 5% of its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 59**. An RSI of 59 is neutral.
- **Beta (1 yr): 0.09** (volatility 37%). Beta of 0.09 against the S&P/TSX Composite: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=SGY.TO · Page: https://foliofundamentals.com/stocks/sgy.to

Not investment advice.