MeritValue

SURGE COMPONENTS INC

SPRSdata completeness 88%16 fiscal years on file

Data notes: no data for concept 'totalDebt'

The thesis, from the filings

SURGE COMPONENTS INC earns about 20% on invested capital, far above its ~9% cost of capital, but has diluted owners by 2% over 5 years — a real edge showing up in the numbers. The estimate methods put fair value between $2.03 and $5.38 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$39.8M1$51.9M1$36.3M2$5.2M3$5.7M3
Net income$2.51M4$3.74M5$972,1106$825,6777$1.14M7
Operating cash flow$2.33M8$2.24M9$2.19M10$1.82M11$916,14711
Capital expenditure$194,90912$48,35113$43,36814$10,99115$121,95015
Free cash flow (derived)$2.13M8$2.19M9$2.15M10$1.81M11$794,19711
Total debt—————
Cash & equivalents$6.51M16$8.69M17$7.63M18$5.63M19$5.33M19
Diluted shares5.7M5.7M5.7M5.8M5.8M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$36.89
your share of equity
Profit it earned you last year
$1.96
Free cash flow it threw off
$1.37
Debt you’d be carrying
—

10 shares is a claim on $36.89 of net worth that earned you $1.96 and generated $1.37 of cash last year.

iii. Is this a good business?
Moat signal · return on invested capital
20% avg · 5y
FY21 38%FY22 42%FY23 9%FY24 6%FY25 7%

It earned about 20% on invested capital, year after year, against a ~9% cost of capital — the footprint of real pricing power. Competition usually drags returns like this back down; here it hasn't.

seeing a moat in the numbers →
Management signal · capital allocation
+2% shares · 5y

Share count is up 2% over 5 years — owners have been diluted. Worth asking what they got for it.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0

The 3 estimate methods that apply put fair value between $2.03 and $5.38 a share. They rest on different assumptions, so where they diverge is the story; the Graham Number is a stricter floor, not a target.

DCF · Growth Exit 10Y
$5.05
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth0.0%
  • fcfBase$1.81M
DCF · Growth Exit 5Y
$5.38
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth0.0%
  • fcfBase$1.81M
Earnings Power Value
$2.03
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$1.14M
  • growthAssumed0.0%
Graham Number
$4.07
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

v. The price question — last, on purpose
Is today’s price fair?
See live price ↗
Type a price. The ledger answers.
Or set your own belief
FCF growth, next 5 years0.0%
Discount rate (WACC)8.93%
Terminal growth2.5%
At your growth, a share is worth $5.38
The three cases
Bear0.0%$5.38
Base0.0%$5.38
Bull5.0%$6.46

Bear/base/bull growth = 0% / filed history / history + 5pp. Type a price to see the return each case implies.

Default growth 0.0%= this company’s own filed history (median-to-median FCF CAGR, clamped 0–20%). Your adjustments are recorded anonymously. They become the “what do owners actually believe” dataset.

Sources — the receipts
  1. 10-K · period ending 2021-11-30 · accession 0001213900-23-015040 (RevenueFromContractWithCustomerIncludingAssessedTax)
  2. 10-K · period ending 2023-11-30 · accession 0001213900-25-018755 (Revenues)
  3. 10-K · period ending 2024-11-30 · accession 0001213900-26-021131 (RevenueFromContractWithCustomerIncludingAssessedTax)
  4. 10-K · period ending 2021-11-30 · accession 0001213900-23-015040 (NetIncomeLoss)
  5. 10-K · period ending 2022-11-30 · accession 0001213900-24-017771 (NetIncomeLoss)
  6. 10-K · period ending 2023-11-30 · accession 0001213900-25-018755 (NetIncomeLoss)
  7. 10-K · period ending 2024-11-30 · accession 0001213900-26-021131 (NetIncomeLoss)
  8. 10-K · period ending 2021-11-30 · accession 0001213900-23-015040 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2022-11-30 · accession 0001213900-24-017771 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2023-11-30 · accession 0001213900-25-018755 (NetCashProvidedByUsedInOperatingActivities)
  11. 10-K · period ending 2024-11-30 · accession 0001213900-26-021131 (NetCashProvidedByUsedInOperatingActivities)
  12. 10-K · period ending 2021-11-30 · accession 0001213900-23-015040 (PaymentsToAcquirePropertyPlantAndEquipment)
  13. 10-K · period ending 2022-11-30 · accession 0001213900-24-017771 (PaymentsToAcquirePropertyPlantAndEquipment)
  14. 10-K · period ending 2023-11-30 · accession 0001213900-25-018755 (PaymentsToAcquirePropertyPlantAndEquipment)
  15. 10-K · period ending 2024-11-30 · accession 0001213900-26-021131 (PaymentsToAcquirePropertyPlantAndEquipment)
  16. 10-K · period ending 2021-11-30 · accession 0001213900-22-009597 (CashAndCashEquivalentsAtCarryingValue)
  17. 10-K · period ending 2022-11-30 · accession 0001213900-24-017771 (CashAndCashEquivalentsAtCarryingValue)
  18. 10-K · period ending 2023-11-30 · accession 0001213900-25-018755 (CashAndCashEquivalentsAtCarryingValue)
  19. 10-K · period ending 2024-11-30 · accession 0001213900-26-021131 (CashAndCashEquivalentsAtCarryingValue)