15.69 USD
-0.51 (-3.15%)
We assign a fundamental rating of 3 out of 10 to SGRY. SGRY was compared to 103 industry peers in the Health Care Providers & Services industry. There are concerns on the financial health of SGRY while its profitability can be described as average. SGRY has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- SGRY had positive earnings in the past year.
- SGRY had a positive operating cash flow in the past year.
- SGRY had negative earnings in each of the past 5 years.
- Each year in the past 5 years SGRY had a positive operating cash flow.
1.2 Ratios
- SGRY has a Return On Assets (-2.16%) which is in line with its industry peers.
- SGRY has a Return On Equity of -9.94%. This is comparable to the rest of the industry: SGRY outperforms 44.66% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 5.57%, SGRY is in line with its industry, outperforming 58.25% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for SGRY is below the industry average of 9.21%.
- The 3 year average ROIC (5.03%) for SGRY is below the current ROIC(5.57%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.16% | ||
| ROE | -9.94% | ||
| ROIC | 5.57% |
ROA(3y)-1.04%
ROA(5y)-1.46%
ROE(3y)-4.24%
ROE(5y)-9.69%
ROIC(3y)5.03%
ROIC(5y)4.49%
1.3 Margins
- SGRY has a better Operating Margin (15.78%) than 94.17% of its industry peers.
- In the last couple of years the Operating Margin of SGRY has remained more or less at the same level.
- SGRY has a Gross Margin (26.57%) which is in line with its industry peers.
- SGRY's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.78% | ||
| PM (TTM) | N/A | ||
| GM | 26.57% |
OM growth 3Y3.68%
OM growth 5Y1.41%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.83%
GM growth 5Y-0.73%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SGRY is destroying value.
- SGRY has more shares outstanding than it did 1 year ago.
- SGRY has more shares outstanding than it did 5 years ago.
- SGRY has a worse debt/assets ratio than last year.
2.2 Solvency
- SGRY has an Altman-Z score of 0.77. This is a bad value and indicates that SGRY is not financially healthy and even has some risk of bankruptcy.
- With a Altman-Z score value of 0.77, SGRY is not doing good in the industry: 74.76% of the companies in the same industry are doing better.
- The Debt to FCF ratio of SGRY is 18.37, which is on the high side as it means it would take SGRY, 18.37 years of fcf income to pay off all of its debts.
- SGRY has a Debt to FCF ratio (18.37) which is in line with its industry peers.
- SGRY has a Debt/Equity ratio of 2.00. This is a high value indicating a heavy dependency on external financing.
- With a Debt to Equity ratio value of 2.00, SGRY is not doing good in the industry: 72.82% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2 | ||
| Debt/FCF | 18.37 | ||
| Altman-Z | 0.77 |
ROIC/WACC0.63
WACC8.85%
2.3 Liquidity
- SGRY has a Current Ratio of 1.88. This is a normal value and indicates that SGRY is financially healthy and should not expect problems in meeting its short term obligations.
- SGRY has a better Current ratio (1.88) than 77.67% of its industry peers.
- SGRY has a Quick Ratio of 1.72. This is a normal value and indicates that SGRY is financially healthy and should not expect problems in meeting its short term obligations.
- The Quick ratio of SGRY (1.72) is better than 72.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.88 | ||
| Quick Ratio | 1.72 |
3. Growth
3.1 Past
- SGRY shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -17.02%.
- Looking at the last year, SGRY shows a quite strong growth in Revenue. The Revenue has grown by 10.14% in the last year.
- SGRY shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.20% yearly.
EPS 1Y (TTM)-17.02%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-31.58%
Revenue 1Y (TTM)10.14%
Revenue growth 3Y11.86%
Revenue growth 5Y11.2%
Sales Q2Q%6.63%
3.2 Future
- SGRY is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.89% yearly.
- SGRY is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.88% yearly.
EPS Next Y-29.92%
EPS Next 2Y-10.69%
EPS Next 3Y0.93%
EPS Next 5Y12.89%
Revenue Next Year6.88%
Revenue Next 2Y7.52%
Revenue Next 3Y7.62%
Revenue Next 5Y7.88%
3.3 Evolution
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 20.12, which indicates a rather expensive current valuation of SGRY.
- 70.87% of the companies in the same industry are more expensive than SGRY, based on the Price/Earnings ratio.
- SGRY's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.25.
- Based on the Price/Forward Earnings ratio of 20.93, the valuation of SGRY can be described as rather expensive.
- SGRY's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. SGRY is cheaper than 61.16% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. SGRY is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.12 | ||
| Fwd PE | 20.93 |
4.2 Price Multiples
- 78.64% of the companies in the same industry are more expensive than SGRY, based on the Enterprise Value to EBITDA ratio.
- SGRY's Price/Free Cash Flow ratio is rather cheap when compared to the industry. SGRY is cheaper than 84.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.46 | ||
| EV/EBITDA | 8.46 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-10.69%
EPS Next 3Y0.93%
5. Dividend
5.1 Amount
- No dividends for SGRY!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
SURGERY PARTNERS INC / SGRY FAQ
Can you provide the ChartMill fundamental rating for SURGERY PARTNERS INC?
ChartMill assigns a fundamental rating of 3 / 10 to SGRY.
What is the valuation status for SGRY stock?
ChartMill assigns a valuation rating of 4 / 10 to SURGERY PARTNERS INC (SGRY). This can be considered as Fairly Valued.
How profitable is SURGERY PARTNERS INC (SGRY) stock?
SURGERY PARTNERS INC (SGRY) has a profitability rating of 4 / 10.
What is the financial health of SURGERY PARTNERS INC (SGRY) stock?
The financial health rating of SURGERY PARTNERS INC (SGRY) is 2 / 10.
What is the earnings growth outlook for SURGERY PARTNERS INC?
The Earnings per Share (EPS) of SURGERY PARTNERS INC (SGRY) is expected to decline by -29.92% in the next year.