Overall SGRY gets a fundamental rating of 3 out of 10. We evaluated SGRY against 103 industry peers in the Health Care Providers & Services industry. While SGRY is still in line with the averages on profitability rating, there are concerns on its financial health. SGRY is not valued too expensively and it also shows a decent growth rate.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year SGRY was profitable.
SGRY had a positive operating cash flow in the past year.
In the past 5 years SGRY always reported negative net income.
Each year in the past 5 years SGRY had a positive operating cash flow.

1.2 Ratios

With a Return On Assets value of -2.16%, SGRY perfoms like the industry average, outperforming 42.72% of the companies in the same industry.
With a Return On Equity value of -9.94%, SGRY perfoms like the industry average, outperforming 44.66% of the companies in the same industry.
With a Return On Invested Capital value of 5.57%, SGRY perfoms like the industry average, 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

Looking at the Operating Margin, with a value of 15.78%, SGRY belongs to the top of the industry, outperforming 94.17% of the companies in the same industry.
In the last couple of years the Operating Margin of SGRY has remained more or less at the same level.
The Gross Margin of SGRY (26.57%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of SGRY has remained more or less at the same level.

		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%

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ROA

ROE

ROIC

Operating and Profit Margin

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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.
The number of shares outstanding for SGRY has been increased compared to 5 years ago.
SGRY has a worse debt/assets ratio than last year.

2.2 Solvency

Based on the Altman-Z score of 0.77, we must say that SGRY is in the distress zone and has some risk of bankruptcy.
SGRY's Altman-Z score of 0.77 is on the low side compared to the rest of the industry. SGRY is outperformed by 74.76% of its industry peers.
SGRY has a debt to FCF ratio of 18.37. This is a negative value and a sign of low solvency as SGRY would need 18.37 years to pay back of all of its debts.
SGRY has a Debt to FCF ratio (18.37) which is in line with its industry peers.
A Debt/Equity ratio of 2.00 is on the high side and indicates that SGRY has dependencies on debt financing.
SGRY has a worse Debt to Equity ratio (2.00) than 72.82% of its industry peers.

		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's Current ratio of 1.88 is fine compared to the rest of the industry. SGRY outperforms 77.67% of its industry peers.
A Quick Ratio of 1.72 indicates that SGRY should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.72, SGRY is in the better half of the industry, outperforming 72.82% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	1.88
Quick Ratio	1.72

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WACC

Debt/Equity

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Altman-Z score

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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%.
SGRY shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.14%.
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

Based on estimates for the next years, SGRY will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.89% on average per year.
The Revenue is expected to grow by 7.88% on average over the next years.

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

When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 20.69, which indicates a rather expensive current valuation of SGRY.
Compared to the rest of the industry, the Price/Earnings ratio of SGRY indicates a somewhat cheap valuation: SGRY is cheaper than 70.87% of the companies listed in the same industry.
SGRY is valuated rather cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 21.53, the valuation of SGRY can be described as rather expensive.
61.16% of the companies in the same industry are more expensive than SGRY, based on the Price/Forward Earnings ratio.
SGRY's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.98.

		Industry Rank	Sector Rank
PE	20.69
Fwd PE	21.53

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, SGRY is valued a bit cheaper than the industry average as 77.67% of the companies are valued more expensively.
SGRY's Price/Free Cash Flow ratio is rather cheap when compared to the industry. SGRY is cheaper than 85.44% of the companies in the same industry.