Surge ComponentsSPRS -2.44%59 3-Year ROIIC % is 171.04 as of Nov. 2025, which is 408% above its 10-year median of 33.64. GuruFocus rates SPRS with a GF Score™ of 59/100 and a GF Value™ of $2.61 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 2,371 Hardware companies, Surge Components ranks better than 94.18% on this metric.
3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
Surge Components's 3-Year ROIIC % for the quarter that ended in Nov. 2025 was 171.04%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Surge Components's 3-Year ROIIC % or its related term are showing as below:
SPRS's 3-Year ROIIC % is ranked better than 94.18% of 2371
companies
in the Hardware industry
Industry Median: 2.33
vs SPRS: 171.04
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Surge Components 3-Year ROIIC % Related Terms
Surge Components 3-Year ROIIC % Historical Data
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The historical data trend for Surge Components's 3-Year ROIIC % 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 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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 3-Year ROIIC % vs Hardware Industry
For the Hardware industry and Technology sector, Surge Components's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Surge Components's 3-Year ROIIC % falls into.
Surge Components's 3-Year ROIIC % for the quarter that ended in Nov. 2025 is calculated as:
3-Year ROIIC %
=
3-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
3-Year Incremental Invested Capital**
=
( 0.8850732 (Nov. 2025) - 3.5943864 (Nov. 2022) )
/
( 8.704 (Nov. 2025) - 10.288 (Nov. 2022) )
=
-2.7093132
/
-1.584
=
171.04%***
* 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.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Surge Components (SPRS) has a 3-Year ROIIC % of 171.04 as of Nov. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Surge Components and its competitors. This is 408% above median its historical median of 33.64. According to the industry distribution chart, Surge Components ranks #138 out of 2371 companies in the Hardware industry, placing it in the top 5.8%.
Is Surge Components' 3-Year ROIIC % too high?
Surge Components' current 3-Year ROIIC % of 171.04 is 408% above median its 10-year median of 33.64. The Hardware industry median 3-Year ROIIC % is 2.33. Surge Components' value of 171.04 is 7240.8% above this industry median. Based on the distribution chart, Surge Components ranks #138 out of 2371 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, Surge Components has a GF Score™ of 59/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Surge Components' 3-Year ROIIC % compare to TAIT and IZM?
According to the Hardware industry distribution chart, Surge Components ranks #138 out of 2371 companies for 3-Year ROIIC %. This places Surge Components in the top 6% of its industry — outperforming the majority of peers. The industry median 3-Year ROIIC % is 2.33. Surge Components' value of 171.04 is 7240.8% above this benchmark. While the company's 10-year median is 33.64 vs. the industry median of 2.33, Surge Components has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year ROIIC % for a Hardware company?
The median 3-Year ROIIC % among Hardware companies is 2.33, based on 2,371 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Surge Components's current 3-Year ROIIC % of 171.04 is 7240.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Surge Components and its competitors. For the Hardware industry, the median 3-Year ROIIC % is 2.33 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Surge Components's current 3-Year ROIIC % is 171.04, which is 408% above median its own 10-year median of 33.64. 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 $2.61, compared to a current price of $3.60 — trading 37.9% above its estimated fair value. The current 3-Year ROIIC % is 171.04, which is 408% above median its 10-year median of 33.64 and 7240.8% above the Hardware industry median of 2.33. Surge Components' overall GF Score™ is 59/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For Surge Components (SPRS), the current 3-Year ROIIC % is 171.04 as of Nov. 2025. 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 37.9% above its estimated GF Value™ of $2.61.
GuruFocus considers Surge Components to be Significantly Overvalued.
Key valuation signals for SPRS:
3-Year ROIIC %: 171.04 (408% above median its 10-year median of 33.64)
GF Value™: $2.61 vs. price of $3.60 (37.9% above fair value)
Industry Position: 7240.8% above the Hardware median (#138 of 2371)
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.
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