The historical rank and industry rank for Surge Components's Net Margin % or its related term are showing as below:
SPRS'
s Net Margin % Range Over the Past 10 Years
Min: -1.9 Med: 3.96 Max: 7.2
Current: 2.8
SPRS's Net Margin % is ranked better than 50.63% of 2473
companies
in the Hardware industry
Industry Median: 2.71
vs SPRS: 2.80
Surge Components (OTCPK:SPRS) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Surge Components Net Margin % Related Terms
Surge Components Net Margin % Historical Data
* Premium members only.
The historical data trend for Surge Components's Net Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Electronics & Computer Distribution subindustry, Surge Components's Net Margin %, along with its competitors' market caps and Net Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Surge Components Net Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Surge Components's Net Margin % distribution charts can be found below:
* The bar in red indicates where Surge Components's Net Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Surge Components (SPRS) has a Net Margin % of -0.41% as of Feb. 2026. Net margin is the ratio of total net income to net sales. View historical data on Surge Components and its competitors. According to the industry distribution chart, Surge Components ranks #1221 out of 2473 companies in the Hardware industry, placing it in the top 49.4%.
Is Surge Components' Net Margin % too high?
Surge Components' current Net Margin % is -0.41%. Based on the distribution chart, Surge Components ranks #1221 out of 2473 companies in the Hardware industry, which is above the industry midpoint. Overall, Surge Components has a GF Score™ of 63/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Surge Components' Net Margin % compare to TAIT and IZM?
According to the Hardware industry distribution chart, Surge Components ranks #1221 out of 2473 companies for Net Margin %. This puts Surge Components in the upper half of its industry. The industry median Net Margin % is 2.71. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net Margin % for a Hardware company?
The median Net Margin % among Hardware companies is 2.71, based on 2,473 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Surge Components and its competitors. For the Hardware industry, the median Net Margin % is 2.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Surge Components's current Net Margin % is -0.41%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Surge Components stock overvalued right now?
Based on GuruFocus' analysis, Surge Components (SPRS) is currently considered Significantly Overvalued. The stock's GF Value™ is $2.62, compared to a current price of $3.60 — trading 37.4% above its estimated fair value. The current Net Margin % is -0.41%. Surge Components' overall GF Score™ is 63/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Surge Components (SPRS), the current Net Margin % is -0.41% as of Feb. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Surge Components (SPRS) Overvalued in 2026?
Based on GuruFocus' analysis, Surge Components stock appears to be overvalued.
The current stock price of $3.60 is trading 37.4% above its estimated GF Value™ of $2.62.
GuruFocus considers Surge Components to be Significantly Overvalued.
Key valuation signals for SPRS:
Net Margin %: -0.41%
GF Value™: $2.62 vs. price of $3.60 (37.4% above fair value)
No single metric tells the full story. See the SPRS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Surge Components Inc is a supplier of electronic products and components. The company's products include capacitors, which are electrical energy storage devices, and discrete components, such as rectifiers, switches, transistors, voltage suppressors, and diodes. Its marketed products are utilized in the electronic circuitry of products, comprising of automobiles, telecom, audio, cellular telephones, computers, consumer electronics, garage door openers, household appliances, power supplies, and security equipment. In addition, the company's products are also sold to original equipment manufacturers and distributors.
63GF Score
Get the complete analysis for SPRS
Net Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
SPRS has been successfully added to your 
