📊 SRCO Key Takeaways
Is Sparta Commercial Services, Inc.. (SRCO) a Good Investment?
SRCO is in severe financial distress with negative stockholders' equity of -$12.2M and a critical liquidity crisis (current ratio 0.08x). Despite a healthy 92% gross margin and 22.7% revenue growth, operating losses of $761.7K dwarf revenues of $288.2K, resulting in massive unsustainable cash burn of -$725.1K operationally with only $70.1K in cash reserves.
Why Buy Sparta Commercial Services, Inc.. Stock? SRCO Key Strengths
- Strong gross margin of 92.1% indicates viable core service business model if scaled
- Revenue growth of 22.7% YoY demonstrates market demand
- Recent insider activity (5 Form 4 filings) suggests some stakeholder confidence
SRCO Stock Risks: Sparta Commercial Services, Inc.. Investment Risks
- Negative stockholders' equity of -$12.2M represents accounting insolvency
- Critical liquidity crisis with current ratio 0.08x and only $70.1K cash against massive operating burn
- Operating losses of $761.7K are 2.6x total revenue - business model is not scalable at current cost structure
- Debt of $807.4K represents 87% of total assets - minimal margin for error
- Negative operating cash flow of -$725.1K indicates cash runway measured in weeks at current burn
Key Metrics to Watch
- Operating cash flow and cash balance runway (survival metric)
- Revenue growth rate and path to positive unit economics
- Total operating expenses relative to gross profit (cost structure reduction needed)
Sparta Commercial Services, Inc.. (SRCO) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
SRCO Profit Margin, ROE & Profitability Analysis
SRCO vs Services Sector: How Sparta Commercial Services, Inc.. Compares
How Sparta Commercial Services, Inc.. compares to Services sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Sparta Commercial Services, Inc.. Stock Overvalued? SRCO Valuation Analysis 2026
Based on fundamental analysis, Sparta Commercial Services, Inc.. has mixed fundamental signals relative to the Services 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.
Sparta Commercial Services, Inc.. Balance Sheet: SRCO Debt, Cash & Liquidity
SRCO Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Sparta Commercial Services, Inc..'s revenue has declined by 27% over the 5-year period, indicating business contraction. The most recent EPS of $-0.02 indicates the company is currently unprofitable.
SRCO Revenue Growth, EPS Growth & YoY Performance
SRCO Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | $79.0K | -$405.3K | $-0.01 |
| Q2 2026 | $47.8K | -$417.8K | $-0.01 |
| Q1 2026 | $41.6K | -$474.4K | $-0.01 |
| Q3 2025 | $36.7K | -$96.0K | $0.00 |
| Q2 2025 | $41.6K | -$208.6K | $-0.01 |
| Q1 2025 | $41.6K | -$208.6K | $-0.01 |
| Q3 2024 | $36.7K | -$150.2K | $-0.01 |
| Q2 2024 | $52.4K | -$208.6K | $-0.02 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Sparta Commercial Services, Inc.. Dividends, Buybacks & Capital Allocation
SRCO SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Sparta Commercial Services, Inc.. (CIK: 0000318299)
📋 Recent SEC Filings
❓ Frequently Asked Questions about SRCO
What is the AI rating for SRCO?
Sparta Commercial Services, Inc.. (SRCO) has an AI rating of STRONG SELL with 95% confidence, based on fundamental analysis of SEC EDGAR filings.
What are SRCO's key strengths?
Claude: Strong gross margin of 92.1% indicates viable core service business model if scaled. Revenue growth of 22.7% YoY demonstrates market demand.
What are the risks of investing in SRCO?
Claude: Negative stockholders' equity of -$12.2M represents accounting insolvency. Critical liquidity crisis with current ratio 0.08x and only $70.1K cash against massive operating burn.
What is SRCO's revenue and growth?
Sparta Commercial Services, Inc.. reported revenue of $288.2K.
Does SRCO pay dividends?
Sparta Commercial Services, Inc.. pays dividends, with $0.1M distributed to shareholders in the trailing twelve months.
Where can I find SRCO SEC filings?
Official SEC filings for Sparta Commercial Services, Inc.. (CIK: 0000318299) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is SRCO's EPS?
Sparta Commercial Services, Inc.. has a diluted EPS of $-0.03.
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 SRCO a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Sparta Commercial Services, Inc.. has a STRONG SELL rating with 95% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is SRCO stock overvalued or undervalued?
Valuation metrics for SRCO: ROE of N/A (sector avg: 16%), net margin of -485.6% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy SRCO stock in 2026?
Our dual AI analysis gives Sparta Commercial Services, Inc.. a combined STRONG SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is SRCO's free cash flow?
Sparta Commercial Services, Inc..'s operating cash flow is $-725.1K, with capital expenditures of $0.0. FCF margin is -251.6%.
How does SRCO compare to other Services stocks?
Vs Services sector averages: Net margin -485.6% (avg: 10%), ROE N/A (avg: 16%), current ratio 0.08 (avg: 1.5).