Surge ComponentsSPRS 63 Pretax Margin % is -0.66% as of Feb. 2026. GuruFocus rates SPRS with a GF Score™ of 63/100 and a GF Value™ of $2.62 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 2,472 Hardware companies, Surge Components ranks better than 51.46% on this metric.
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Surge Components Pretax Margin % Related Terms
Surge Components Pretax Margin % Historical Data
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The historical data trend for Surge Components's Pretax 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.
SPRS vs TAIT, IZM, SNX: Pretax Margin % Comparison
For the Electronics & Computer Distribution subindustry, Surge Components's Pretax Margin %, along with its competitors' market caps and Pretax 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 Pretax Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Surge Components's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Surge Components's Pretax 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 Pretax Margin % of -0.66% as of Feb. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Surge Components and its competitors. According to the industry distribution chart, Surge Components ranks #1200 out of 2472 companies in the Hardware industry, placing it in the top 48.5%.
Is Surge Components' Pretax Margin % too high?
Surge Components' current Pretax Margin % is -0.66%. Based on the distribution chart, Surge Components ranks #1200 out of 2472 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' Pretax Margin % compare to TAIT and IZM?
According to the Hardware industry distribution chart, Surge Components ranks #1200 out of 2472 companies for Pretax Margin %. This puts Surge Components in the upper half of its industry. The industry median Pretax Margin % is 3.58. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Pretax Margin % for a Hardware company?
The median Pretax Margin % among Hardware companies is 3.58, based on 2,472 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Surge Components and its competitors. For the Hardware industry, the median Pretax Margin % is 3.58 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Surge Components's current Pretax Margin % is -0.66%. 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 Pretax Margin % is -0.66%. 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 Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Surge Components (SPRS), the current Pretax Margin % is -0.66% 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:
Pretax Margin %: -0.66%
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
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