$SurgePays (SURG.US)$In the analysis of November 30, 2022, i...

The US company listed in 2021 is mainly engaged in mobile communication related business. Single US market, current price is 4.06.

After a slight contraction in revenue since listing, it grew sharply for two years. The growth rate fell to 12.8% in 2023. Operating profit increased sharply to $19 million in 2023 due to an increase in gross margin, and net profit reached 21 million in 2023 due to income tax rebates. Interest expenses account for 3.2% of operating profit in 2023, and the interest burden is very light. The gross margin increased sharply from 12.1% to 26% in the past 3 years, the net margin reached 15.1% in 2023, and the return on net assets was 124%.

However, revenue has been shrinking continuously in the past 2 quarters, and operating profit almost returned to zero in 23Q4 due to the sharp increase in management expenses. It seems that both revenue and profit growth have been greatly hindered.

Currently, the price-earnings ratio is only 3. Considering that the current scale is still very small, we can continue to observe.