📊 SCGY Key Takeaways
Is Scientific Energy, Inc. (SCGY) a Good Investment?
Despite exceptional 76.2% revenue growth, the company is unprofitable with negative net income of -$1.7M and paper-thin operating margins of 0.7%, indicating fundamental scaling challenges. Acute liquidity stress (0.76x current ratio) combined with negative shareholder returns (ROE -5.1%, ROA -2.9%) and zero insider buying activity signal management concerns about business viability.
Why Buy Scientific Energy, Inc. Stock? SCGY Key Strengths
- Exceptional revenue growth of 76.2% YoY demonstrates strong market demand
- Positive free cash flow of $2.0M despite net losses shows cash generation capability
- Minimal debt burden with only $13.1K long-term debt and 0.00x debt/equity ratio provides financial flexibility
- Solid gross margin of 31.9% indicates reasonable pricing power and product/service quality
SCGY Stock Risks: Scientific Energy, Inc. Investment Risks
- Company unprofitable with -$1.7M net income despite $65.4M revenue scale
- Critical liquidity crisis: current ratio of 0.76x and quick ratio of 0.75x both below 1.0 threshold
- Operating margin of 0.7% indicates severe inability to convert revenue growth into operating profit
- Negative returns destroying shareholder value (ROE -5.1%, ROA -2.9%) despite revenue expansion
- Zero insider Form 4 filings in 90 days suggests management has lost confidence
- Significant divergence between operating cash flow and net income requires scrutiny of accrual quality
Key Metrics to Watch
- Operating margin expansion trajectory - must exceed 5% to justify growth investment
- Current ratio recovery - critical to reach 1.0+ to resolve liquidity concerns
- Path to net profitability - timeline to positive net income essential
- Insider Form 4 activity - renewed buying would signal management confidence turnaround
- Working capital management - how efficiently is revenue converting to cash operations
Scientific Energy, Inc. (SCGY) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 3.1% FCF margin may limit capital allocation flexibility. The current ratio below 1.0x warrants monitoring of short-term liquidity.
SCGY Profit Margin, ROE & Profitability Analysis
SCGY vs Market Sector: How Scientific Energy, Inc. Compares
How Scientific Energy, Inc. compares to Market sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Scientific Energy, Inc. Stock Overvalued? SCGY Valuation Analysis 2026
Based on fundamental analysis, Scientific Energy, Inc. has mixed fundamental signals relative to the Market sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Scientific Energy, Inc. Balance Sheet: SCGY Debt, Cash & Liquidity
SCGY Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Scientific Energy, Inc.'s revenue has remained relatively flat over the 5-year period, with a 0% decline.
SCGY Revenue Growth, EPS Growth & YoY Performance
SCGY Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $19.4M | $460.1K | N/A |
| Q2 2025 | $20.8M | $272.5K | N/A |
| Q1 2025 | $10.4M | $24.6K | N/A |
| Q3 2024 | $9.7M | $715.6K | N/A |
| Q2 2024 | $9.7M | $311.7K | N/A |
| Q1 2024 | $9.2M | $384.5K | N/A |
| Q3 2023 | $9.7M | -$562.3K | N/A |
| Q2 2023 | $9.7M | $311.7K | N/A |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Scientific Energy, Inc. Dividends, Buybacks & Capital Allocation
SCGY SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Scientific Energy, Inc. (CIK: 0001276531)
📋 Recent SEC Filings
❓ Frequently Asked Questions about SCGY
What is the AI rating for SCGY?
Scientific Energy, Inc. (SCGY) has an AI rating of SELL with 78% confidence, based on fundamental analysis of SEC EDGAR filings.
What are SCGY's key strengths?
Claude: Exceptional revenue growth of 76.2% YoY demonstrates strong market demand. Positive free cash flow of $2.0M despite net losses shows cash generation capability.
What are the risks of investing in SCGY?
Claude: Company unprofitable with -$1.7M net income despite $65.4M revenue scale. Critical liquidity crisis: current ratio of 0.76x and quick ratio of 0.75x both below 1.0 threshold.
What is SCGY's revenue and growth?
Scientific Energy, Inc. reported revenue of $65.4M.
Does SCGY pay dividends?
Scientific Energy, Inc. does not currently pay dividends.
Where can I find SCGY SEC filings?
Official SEC filings for Scientific Energy, Inc. (CIK: 0001276531) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is SCGY's EPS?
Scientific Energy, Inc. has a diluted EPS of $0.00.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is SCGY a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Scientific Energy, Inc. has a SELL rating with 78% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is SCGY stock overvalued or undervalued?
Valuation metrics for SCGY: ROE of -5.1% (sector avg: 15%), net margin of -2.7% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy SCGY stock in 2026?
Our dual AI analysis gives Scientific Energy, Inc. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is SCGY's free cash flow?
Scientific Energy, Inc.'s operating cash flow is $2.2M, with capital expenditures of $132.9K. FCF margin is 3.1%.
How does SCGY compare to other Market stocks?
Vs Default sector averages: Net margin -2.7% (avg: 12%), ROE -5.1% (avg: 15%), current ratio 0.76 (avg: 1.8).