Investment Thesis
SPRS demonstrates exceptional revenue growth (537.6% YoY) and generates positive operating cash flow ($1.1M), indicating operational viability. However, current unprofitability (-0.4% net margin, -1.9% operating margin) and modest absolute scale require demonstrated path to sustainable profitability before increasing conviction.
Strengths
- Exceptional 537.6% revenue growth demonstrates strong market traction
- Positive operating cash flow ($1.1M) and 11.8% FCF margin despite net losses
- Fortress balance sheet with zero debt, 4.99x current ratio, and $6.4M cash
Risks
- Currently unprofitable with negative operating margin despite revenue growth
- Small absolute scale ($8.2M revenue) with limited financial flexibility
- Rapid growth sustainability unproven; execution risk in competitive wholesale electronics sector
Key Metrics to Watch
- Path to operating profitability as revenues scale and operating leverage emerges
- Operating expense ratio trends and gross margin sustainability at higher volumes
- Revenue growth rate deceleration point and competitive market dynamics
Financial Metrics
Revenue
8.2M
Net Income
-34.3K
EPS (Diluted)
$-0.01
Free Cash Flow
968.6K
Total Assets
27.3M
Cash
6.4M
Profitability Ratios
Gross Margin
29.4%
Operating Margin
-1.9%
Net Margin
-0.4%
ROE
-0.2%
ROA
-0.1%
FCF Margin
11.8%
Balance Sheet & Liquidity
Current Ratio
4.99x
Quick Ratio
4.03x
Debt/Equity
0.00x
Debt/Assets
21.8%
Interest Coverage
-389.73x
Long-term Debt
N/A
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-04-16T12:03:33.821600 |
Data as of: 2026-02-28 |
Powered by Claude AI