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Verdict
Quantitative factor alignment verified for current market regime.
Quant Score
Rank
#4854
Positioning
Market Dominance
Transportation, Communications, Electric, Gas, And Sanitary Services
Transportation
$184M
Sudhin Shahani
Surf Air Mobility is building a regional air mobility ecosystem that will aim to sustainably connect the world’s communities. Surf Air, Inc. was incorporated under the laws of Delaware in 2011, and Surf Air Global Ltd. was formed under the laws of the British Virgin Islands and became the parent company of the Surf Air group in 2016. SAM was incorporated under the laws of Delaware on January 5, 2021. SAM is a wholly-owned subsidiary of Surf Air formed for the purpose of holding all of the equity securities, assets, business and operations of Surf Air and Southern. The mailing address of SAM’s principal executive office is 12111 S. Crenshaw Boulevard, Hawthorne, California.
Headcount
—
HQ Base
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| Stock | Rating | Score▼ | Quality | Value | Momentum | P/E | EV/EBITDA | ROE | ROA | Gross Mgn | Op Mgn | Net Mgn | Rev Growth | Div Yield | D/E | Mkt Cap | AUDIT |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
$UGP ULTRAPAR HOLDINGS INC | 79 | 90 | 95 | 87 | - | - | 29.5% | 5.7% | 7.3% | 3.8% | 1.9% | -16.9% | 4.9% | 22.0x | $2.8B | VS | |
$TNK TEEKAY TANKERS LTD. | 78 | 94 | 97 | 82 | - | - | 24.4% | 20.6% | 67.0% | 30.9% | 32.8% | -16.6% | 7.6% | 0.0x | $1.3B | VS | |
$DHT DHT Holdings, Inc. | 75 | 84 | 88 | 78 | - | - | 17.5% | 12.2% | 54.8% | 36.8% | 31.7% | 2.0% | 10.9% | 40.0x | $1.5B | VS | |
$STNG Scorpio Tankers Inc. | 75 | 86 | 95 | 74 | - | - | 24.7% | 16.6% | 63.1% | 61.5% | 53.8% | -7.2% | 3.3% | 30.0x | $2.6B | VS | |
$NAT NORDIC AMERICAN TANKERS Ltd | 75 | 82 | 88 | 87 | - | - | 8.9% | 5.5% | 64.4% | 22.1% | 13.3% | -10.7% | 18.0% | 53.0x | $465M | VS | |
$AMX AMERICA MOVIL SAB DE CV/ | 74 | 86 | 81 | 68 | - | - | 5.8% | 1.5% | 61.1% | 20.7% | 3.2% | -13.7% | 3.5% | 202.0x | $44.7B | VS | |
$PAC Pacific Airport Group | 73 | 94 | 80 | 78 | - | - | 35.2% | 10.8% | 84.4% | 44.8% | 26.4% | -18.0% | 5.6% | 81.0x | $8.5B | VS | |
$GSL Global Ship Lease, Inc. | 73 | 82 | 94 | 81 | - | - | 26.7% | 15.6% | 100.0% | 53.7% | 50.1% | 5.8% | 7.7% | 47.0x | $753M | VS | |
$TRMD TORM plc | 73 | 86 | 94 | 65 | - | - | 32.7% | 19.3% | 58.8% | 40.9% | 38.0% | 2.5% | 30.1% | 59.0x | $1.7B | VS | |
$VIV TELEFONICA BRASIL S.A. | 73 | 82 | 90 | 78 | - | - | 7.0% | 4.0% | 43.9% | 15.5% | 10.0% | -15.9% | 5.6% | 0.0x | $12.5B | VS | |
$SRFM SURF AIR MOBILITY INC. | 19 | 17 | 6 | 4 | - | - | 63.5% | -80.4% | 5.0% | -56.0% | -79.2% | -9.9% | 0.0% | - | $184M | ||
| SECTOR BENCH | - | - | - | - | - | 16.9x | 6.1x | 11.9% | 3.5% | 55.1% | 17.6% | 10.4% | 4.0% | 1.5% | 1.0x | - | REF |
SURF AIR MOBILITY INC. (SRFM) receives a "Avoid" rating with a composite score of 18.9/100. It ranks #4854 out of 7,333 stocks in our coverage universe and carries a 1-star rating. Ratings are driven by a 6-factor quantitative model measuring quality, value, momentum, investment, stability, and short interest.
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YOY expansion rate
Core pricing power
Operating efficiency
Bottom-line conversion
Equity capital efficiency
Asset base utilization
Direct cash return
Sudhin Shahani
Chief Executive Officer
17
24
7
Audit Verdict: Lower quality and stability scores may indicate governance concerns.
No recent insider transactions available for SRFM
Pending Verification
Lagging peers — losers tend to keep underperforming
Expensive relative to fundamentals — limited margin of safety
Weak fundamentals — higher risk of value trap
High volatility — wider range of outcomes increases timing risk
Aggressive spending — empire-building risk, dilutive growth
Below-average composite — caution warranted
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Relative valuation derived from Transportation, Communications, Electric, Gas, And Sanitary Services sector benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Re-calculated daily.
No analyst ratings for SRFM.
View All RatingsMaterial decline in asset turnover efficiency detected
High margin volatility — erratic forensic earnings quality
| Factor | Global | Sector | Tilt |
|---|---|---|---|
| PROFITABILITY | 17 | 4 | +13ALPHA |
| MOMENTUM | 4 | 1 | +3NEUTRAL |
| VALUATION | 6 | 3 | +3NEUTRAL |
| INVESTMENT | 24 | 9 | +15ALPHA |
| STABILITY | 7 | 3 | +4NEUTRAL |
| SHORT INT | 50 | 49 | +1NEUTRAL |
Global = full universe. Sector = relative to industry peers. Positive tilt indicates idiosyncratic strength.
ROIC -23.0% vs WACC 7.8% (spread -30.8%)
GM 5% vs sector 55%, OM -56% vs sector 18%
Capital turnover 0.51x
Rev growth -10%, 3yr history
Interest coverage -5.1x
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation and elite competitive moats.
Profit generated per dollar of shareholder equity
Efficiency of asset utilization
Pricing power and cost efficiency
Core business profitability
Bottom-line profitability
The Quality factor evaluates the persistence and magnitude of realized cash flows. Companies with scores >70 exhibit superior pricing power and structural financial resilience through diverse economic regimes.
Our uncertainty rating tracks the predictability of future cash flows and potential for permanent capital loss. Moderate visibility with standard industry cyclicality.
Our quantitative model flags SURF AIR MOBILITY INC. with an Avoid rating, assigning a composite score of 18.9/100 and 1 out of 5 stars. Ranked #4854 of 7,333 stocks, SRFM falls in the bottom tier across key factors. Historically, stocks with this profile have faced elevated risk of underperformance and capital loss.
SURF AIR MOBILITY INC. registers a weak quality score of just 17/100, indicating significant profitability challenges. The company reports a return on equity of 63.5% (sector avg: 11.9%), gross margins of 5.0% (sector avg: 55.1%), net margins of -79.2% (sector avg: 10.4%). Low quality scores are often associated with businesses in turnaround mode, early-stage growth, or structurally challenged industries.
SRFM registers a value score of just 6/100, suggesting the stock trades at a significant premium to its fundamental metrics. High-premium valuations like this require strong future execution to avoid multiple compression, and downside risk is elevated if growth disappoints.
SURF AIR MOBILITY INC.'s investment score of 24/100 suggests limited reinvestment activity. Key growth metrics include revenue growth of -9.9% vs. a sector average of 4.0% and a return on assets of -80.4% (sector: 3.5%). While this can be positive for mature, cash-generative businesses returning capital to shareholders, it may also signal a lack of growth opportunities or management conservatism.
SURF AIR MOBILITY INC. is experiencing notably weak momentum with a score of just 4/100. The stock has underperformed its peers and is trending below major moving averages. Revenue growth stands at -9.9% year-over-year, while a beta of 2.38 reflects its sensitivity to broader market moves. While deep momentum weakness can occasionally present value opportunities, it often reflects deteriorating fundamentals or structural headwinds that may persist.
SURF AIR MOBILITY INC. registers a low stability score of 7/100, indicating high volatility and potentially stressed financial conditions. Key stability metrics include a beta of 2.38. Stocks at this level carry elevated capital loss risk and may be unsuitable for conservative portfolios without careful risk management.
The short interest score of 50/100 for SRFM suggests somewhat elevated bearish positioning by institutional traders. Specific risk factors include high market sensitivity (beta: 2.38), micro-cap liquidity risk. With a $184M market cap (micro-cap), SURF AIR MOBILITY INC. may experience above-average volatility. Investors should consider whether the short thesis has merit or if it creates a potential short-squeeze opportunity.
SURF AIR MOBILITY INC. is a micro-cap company in the Transportation, Communications, Electric, Gas, And Sanitary Services sector, ranked #0 of 50 in its sector (100th percentile) and #4854 of 7,333 overall (34th percentile). Key comparisons include ROE of 63.5% exceeding the 11.9% sector median and operating margins of -56.0% below the 17.6% sector average. This top-quartile standing reflects exceptional competitive strength relative to Transportation, Communications, Electric, Gas, And Sanitary Services peers.
While SRFM currently exhibits a AVOID profile, superior opportunities exist within the TRANSPORTATION, COMMUNICATIONS, ELECTRIC, GAS, AND SANITARY SERVICES sector. Our model identifies several "Strong Buy" candidates with higher quality scores and more attractive valuations among direct industry competitors.
View Top Transportation, Communications, Electric, Gas, And Sanitary Services Alpha →Quant Factor Profile
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Improvement in Momentum (4) would have the largest impact on the composite score.
ROE 432% ABOVE SECTOR MEDIAN (FAVORABLE)
Gross Margin 91% BELOW SECTOR MEDIAN
Op. Margin 419% BELOW SECTOR MEDIAN
AUDIT DATA AS OF SEP 30, 2025 (Q2 FY2025)
We rate SURF AIR MOBILITY INC. (SRFM) as Avoid with a composite score of 18.9/100 at a current price of $1.93. The stock falls in the bottom quintile of our universe across key quantitative factors, and the multi-factor weakness suggests a high probability of continued underperformance.
The rating is primarily driven by strength in investment (24th percentile) and quality (17th percentile), which together account for the majority of the composite score. Offsetting weakness in momentum (4th percentile) and value (6th percentile) tempers our overall conviction. We assign a No Moat rating (19/100), Very High uncertainty, and Poor capital allocation.
Key items to watch: momentum to confirm whether the current price trend has legs; the path to profitability; valuation compression risk if growth disappoints. Any material change in these dynamics could warrant a reassessment of our rating. The moat trend is stable, which suggests the competitive landscape is stable for now.
SURF AIR MOBILITY INC. holds a top-quartile position (#0 of 50) within the Transportation, Communications, Electric, Gas, And Sanitary Services sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 18.9/100 places it at rank #4854 in our full 7,333-stock universe. At $184M in market capitalization, SURF AIR MOBILITY INC. is a small-cap player in the Transportation, Communications, Electric, Gas, And Sanitary Services space, which limits certain scale advantages but may allow for more agile strategic execution.
Revenue contraction of -10% combined with momentum at the 4th percentile paints a cautious picture of the near-term business outlook. The market appears to be pricing in continued challenges, and a catalyst for reversal is not clearly visible from current data.
The margin cascade tells an important story: gross margins of 5% (-50.1pp vs sector) narrow to operating margins of -56% (-73.6pp vs sector) and net margins of -79.2%, yielding a gross-to-net conversion rate of -1585%. The significant margin erosion from gross to net suggests elevated operating expenses, high interest costs, or other structural drags that warrant monitoring.
At a current price of $1.93, SURF AIR MOBILITY INC. is trading at a premium to fundamental value. Our value factor score of 6/100 reflects a composite assessment across multiple valuation metrics including price-to-earnings, price-to-book, EV/EBITDA, and price-to-sales ratios relative to both sector peers and the broader market. The premium valuation implies the market is pricing in significant future growth or quality improvements that are not yet fully reflected in current fundamentals.
The stock currently trades at P/S of 1.1x. We evaluate these multiples in the context of both absolute levels and sector-relative positioning to form our valuation view.
Returns on equity of 63.5% exceed the cost of equity for most companies, indicating genuine shareholder value creation and a reinvestment engine that compounds wealth over time.
The Avoid rating (composite 18.9/100) reflects multi-factor weakness, and historically, stocks in this scoring range have underperformed the market by a meaningful margin.
Revenue decline of -10% signals business deterioration — declining revenues make it difficult to grow into the current valuation and often precede further negative revisions.
Thin net margins of -79.2% provide limited cushion against cost pressures, competitive pricing, or macroeconomic headwinds — even small changes in costs could swing the company to a loss.
Weak momentum (4th percentile) suggests institutional selling pressure and unfavorable technical dynamics that may persist.
We assign a Very High uncertainty rating to SURF AIR MOBILITY INC.. The stock exhibits multiple compounding risk factors: elevated market sensitivity (beta of 2.38), current negative profitability (net margin -79.2%), below-average price stability (7th percentile). The extreme uncertainty around future cash flows makes precise valuation difficult, and the range of outcomes is exceptionally wide. Only investors with high risk tolerance and extended time horizons should consider this name.
Specific risk factors that inform our assessment include: elevated market sensitivity (beta of 2.38); current negative profitability (net margin -79.2%); below-average price stability (7th percentile); weak quality scores (17th percentile). Each of these factors independently widens the distribution of potential outcomes, and in combination they create a risk profile that demands careful position sizing. The stability factor at the 7th percentile and quality factor at the 17th percentile provide a quantitative summary of the overall risk landscape.
We identify limited risk mitigants at this time, which contributes to our very high uncertainty assessment. Investors should monitor for improvement in balance sheet metrics, margin stability, and business predictability that could warrant a downgrade in our risk assessment over time.
We rate SURF AIR MOBILITY INC.'s capital allocation as Poor. Key concerns include negative profitability, weak asset returns (ROA -80.4%). Exemplary capital allocators generate ROE above 20% and maintain conservative leverage — SURF AIR MOBILITY INC. significantly underperforms these benchmarks, raising questions about management's ability to create shareholder value.
Investors should scrutinize management's reinvestment decisions and balance sheet trajectory before committing capital. Poor capital allocation often compounds over time: overlevered balance sheets limit strategic flexibility, while low returns on capital destroy shareholder value. We would need to see sustained improvement in profitability metrics and balance sheet discipline before considering an upgrade.
In summary, SURF AIR MOBILITY INC. receives a Avoid rating with a composite score of 18.9/100 (rank #4854 of 7,333). Our quantitative framework assigns a No Moat (19/100, trend: stable), Very High uncertainty, and Poor capital allocation. The average factor score across quality, value, momentum, stability, and investment is 12/100.
Our analysis does not support a constructive view on SURF AIR MOBILITY INC. at this time. The combination of limited competitive advantages, very high uncertainty, and poor capital allocation suggests unfavorable risk-reward at current levels. We recommend investors avoid new positions and existing holders consider reducing exposure.
Analysis derived from Blank Capital Research quantitative terminal. For informational purposes only. No trade solicitation. Past performance not indicative of future results. Consult a qualified advisor.
We do not assign SURF AIR MOBILITY INC. a meaningful economic moat, scoring 19/100 on our composite assessment. The ROIC-WACC spread of -30.8% is the primary signal of economic value creation. Current fundamentals do not demonstrate the kind of durable competitive advantages — such as superior returns on invested capital, margin superiority, or reinvestment efficiency — that would protect the company from competitive erosion over the long term. The highest-scoring pillar, growth durability, reached only 11.7/20.
The strongest moat sources are growth durability (11.7/20) and economic value creation (2.6/20). Rev growth -10%, 3yr history. ROIC -23.0% vs WACC 7.8% (spread -30.8%). These pillars form the core of SURF AIR MOBILITY INC.'s competitive identity and are the primary drivers of excess returns in our framework.
Areas of relative weakness include reinvestment efficiency (0/20) and financial resilience (2.5/20). Capital turnover 0.51x. Improvement in these areas could meaningfully widen the moat over time, while deterioration would be an early warning of competitive erosion.
Our moat trend assessment is Stable. Multi-year ROIC and operating margin trajectories show neither meaningful improvement nor deterioration, suggesting the competitive position is steady. We expect SURF AIR MOBILITY INC.'s moat profile to remain largely unchanged absent a material shift in return on capital or industry dynamics.
Key profit drivers include declining revenues (-10%) that pressure the earnings outlook, returns on equity of 63.5% driving shareholder value creation. The margin cascade from 5% gross to -56% operating to -79.2% net reveals the company's cost structure and reinvestment intensity. Our analysis indicates that profit quality raises some durability concerns, with the quality factor at the 17th percentile.
The margin profile shows gross margins of 5%, operating margins of -56%, net margins of -79.2%. Return metrics include ROE of 63.5% and ROA of -80.4%. Relative to the Transportation, Communications, Electric, Gas, And Sanitary Services sector, gross margins are 50.1 percentage points below the sector median of 55%, and ROE of 63.5% compares to a sector median of 11.9%.
The balance sheet reflects revenue growth of -10%. Overall balance sheet health is adequate for the current business environment.
Below-average quality (17th percentile) raises durability concerns about the fundamental profile and increases the risk of negative earnings surprises.
Surf Air Mobility is investing approximately $22.4 million by the end of 2026 into its Mokulele Airlines operations in Hawaii to prepare for Advanced Air Mobility (AAM) aircraft. Mokulele Airlines, which operates the largest interisland network in Hawaii, is seen as an ideal launch partner due to its short routes and existing demand, which are well-suited for the mission profiles of next-generation electrified aircraft. These investments include fleet upgrades, improved customer experience through refreshed lounges and a new loyalty program, and strengthening local leadership with experienced aviation executives.
Surf Air Mobility (SRFM) rose 19.0% after reporting strong Q3 2025 results, exceeding revenue guidance and raising its full-year outlook. The company also expanded its SurfOS software platform through a new partnership with Palantir, focusing on the regional air mobility segment. These developments led to a Zacks Rank #2 upgrade for SRFM, highlighting improved earnings estimates and a more positive outlook for both its airline business and software ambitions.
Surf Air Mobility (NYSE: SRFM) is investing $22.4 million into its Mokulele Airlines operations in Hawaii by the end of 2026. These investments aim to modernize aircraft, upgrade airports and lounges, and enhance network capacity. The company views Hawaii's short interisland routes as an ideal testing ground for Advanced Air Mobility (AAM) aircraft, including new electrified models, to improve operating efficiency and customer experience.
Surf Air Mobility (SRFM) has secured a $100 million strategic deal to advance its AI-enabled SurfOS software, with a 2026 rollout planned in collaboration with Palantir Technologies. Despite a recent stock surge of 9.75% fueled by positive travel industry forecasts, the company faces significant financial challenges, including negative profitability and high debt, as highlighted by expert analysis. CEO Deanna White's participation in the Needham Growth Conference aims to attract investors, yet the company's current financial instability may hinder its ambitious expansion plans.
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Surf Air Mobility's CEO, Deanna White, will attend and host virtual meetings at the 28th Annual Needham Growth Conference on January 16th. Interested parties can schedule meetings through their Needham representative or via email. Surf Air Mobility is an air mobility platform based in Los Angeles, utilizing its AI-enabled SurfOS software and electrification programs to modernize air operations and support next-generation aircraft.
Above 50MA
37.18%
Net New Highs
+51081