SURGERY PARTNERS INC (SGRY) Stock Fundamental Analysis
NASDAQ:SGRY - Nasdaq - US86881A1007 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to SGRY. SGRY was compared to 107 industry peers in the Health Care Providers & Services industry. SGRY may be in some trouble as it scores bad on both profitability and health. SGRY is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year SGRY was profitable.
In the past year SGRY had a positive cash flow from operations.
In the past 5 years SGRY always reported negative net income.
SGRY had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of -0.80%, SGRY is in line with its industry, outperforming 49.07% of the companies in the same industry.
The Return On Equity of SGRY (-3.20%) is comparable to the rest of the industry.
The Return On Invested Capital of SGRY (5.08%) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.8% | ||
| ROE | -3.2% | ||
| ROIC | 5.08% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
SGRY's Operating Margin of 14.98% is amongst the best of the industry. SGRY outperforms 90.74% of its industry peers.
SGRY's Operating Margin has been stable in the last couple of years.
SGRY has a Gross Margin (26.59%) which is in line with its industry peers.
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 | 14.98% | ||
| PM (TTM) | N/A | ||
| GM | 26.59% |
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
SGRY has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
SGRY has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
SGRY has an Altman-Z score of 0.87. This is a bad value and indicates that SGRY is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of SGRY (0.87) is worse than 66.67% of its industry peers.
SGRY has a debt to FCF ratio of 19.53. This is a negative value and a sign of low solvency as SGRY would need 19.53 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 19.53, SGRY is in line with its industry, outperforming 50.00% of the companies in the same industry.
A Debt/Equity ratio of 1.63 is on the high side and indicates that SGRY has dependencies on debt financing.
SGRY has a Debt to Equity ratio of 1.63. This is in the lower half of the industry: SGRY underperforms 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.63 | ||
| Debt/FCF | 19.53 | ||
| Altman-Z | 0.87 |
ROIC/WACC0.62
WACC8.24%
2.3 Liquidity
SGRY has a Current Ratio of 1.80. 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 Current ratio of 1.80. This is in the better half of the industry: SGRY outperforms 67.59% of its industry peers.
SGRY has a Quick Ratio of 1.66. This is a normal value and indicates that SGRY is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.66, SGRY is in the better half of the industry, outperforming 62.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.8 | ||
| Quick Ratio | 1.66 |
3. Growth
3.1 Past
SGRY shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -5.05%.
SGRY shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.52%.
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)-5.05%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%0%
Revenue 1Y (TTM)13.52%
Revenue growth 3Y11.86%
Revenue growth 5Y11.2%
Sales Q2Q%17.54%
3.2 Future
Based on estimates for the next years, SGRY will show a very strong growth in Earnings Per Share. The EPS will grow by 23.83% on average per year.
Based on estimates for the next years, SGRY will show a quite strong growth in Revenue. The Revenue will grow by 9.87% on average per year.
EPS Next Y4.2%
EPS Next 2Y14.59%
EPS Next 3Y23.83%
EPS Next 5YN/A
Revenue Next Year9.71%
Revenue Next 2Y9.5%
Revenue Next 3Y9.87%
Revenue Next 5YN/A
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 25.59 indicates a quite expensive valuation of SGRY.
60.19% of the companies in the same industry are more expensive than SGRY, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 29.35, SGRY is valued at the same level.
SGRY is valuated rather expensively with a Price/Forward Earnings ratio of 24.55.
The rest of the industry has a similar Price/Forward Earnings ratio as SGRY.
SGRY's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.10.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.59 | ||
| Fwd PE | 24.55 |
4.2 Price Multiples
75.00% of the companies in the same industry are more expensive than SGRY, based on the Enterprise Value to EBITDA ratio.
72.22% of the companies in the same industry are more expensive than SGRY, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.71 | ||
| EV/EBITDA | 10.09 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates SGRY does not grow enough to justify the current Price/Earnings ratio.
A more expensive valuation may be justified as SGRY's earnings are expected to grow with 23.83% in the coming years.
PEG (NY)6.1
PEG (5Y)N/A
EPS Next 2Y14.59%
EPS Next 3Y23.83%
5. Dividend
5.1 Amount
No dividends for SGRY!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
24.05
-0.11 (-0.46%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners74.2%
Inst Owner Change3.79%
Ins Owners1.27%
Ins Owner Change8.17%
Market Cap3.06B
Analysts80
Price Target33.36 (38.71%)
Short Float %13.57%
Short Ratio7.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-11.52%
Min EPS beat(2)-26.04%
Max EPS beat(2)2.99%
EPS beat(4)3
Avg EPS beat(4)6.96%
Min EPS beat(4)-26.04%
Max EPS beat(4)37.02%
EPS beat(8)7
Avg EPS beat(8)279.34%
EPS beat(12)8
Avg EPS beat(12)143.98%
EPS beat(16)12
Avg EPS beat(16)146.7%
Revenue beat(2)1
Avg Revenue beat(2)-0.15%
Min Revenue beat(2)-1.88%
Max Revenue beat(2)1.58%
Revenue beat(4)2
Avg Revenue beat(4)-0.59%
Min Revenue beat(4)-2.77%
Max Revenue beat(4)1.58%
Revenue beat(8)3
Avg Revenue beat(8)-0.76%
Revenue beat(12)4
Avg Revenue beat(12)-1.17%
Revenue beat(16)6
Avg Revenue beat(16)-0.97%
PT rev (1m)-1.85%
PT rev (3m)-10.63%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.19%
EPS NY rev (1m)0%
EPS NY rev (3m)-6.63%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.03%
Revenue NY rev (1m)-0.2%
Revenue NY rev (3m)-0.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.59 | ||
| Fwd PE | 24.55 | ||
| P/S | 1.02 | ||
| P/FCF | 18.71 | ||
| P/OCF | 12.16 | ||
| P/B | 1.61 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.09 |
EPS(TTM)0.94
EY3.91%
EPS(NY)0.98
Fwd EY4.07%
FCF(TTM)1.29
FCFY5.35%
OCF(TTM)1.98
OCFY8.22%
SpS23.49
BVpS14.92
TBVpS-23.33
PEG (NY)6.1
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.8% | ||
| ROE | -3.2% | ||
| ROCE | 6.43% | ||
| ROIC | 5.08% | ||
| ROICexc | 5.24% | ||
| ROICexgc | 18.83% | ||
| OM | 14.98% | ||
| PM (TTM) | N/A | ||
| GM | 26.59% | ||
| FCFM | 5.47% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
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%
F-Score4
Asset Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.63 | ||
| Debt/FCF | 19.53 | ||
| Debt/EBITDA | 5.18 | ||
| Cap/Depr | 58.68% | ||
| Cap/Sales | 2.94% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 42.09% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.8 | ||
| Quick Ratio | 1.66 | ||
| Altman-Z | 0.87 |
F-Score4
WACC8.24%
ROIC/WACC0.62
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-5.05%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%0%
EPS Next Y4.2%
EPS Next 2Y14.59%
EPS Next 3Y23.83%
EPS Next 5YN/A
Revenue 1Y (TTM)13.52%
Revenue growth 3Y11.86%
Revenue growth 5Y11.2%
Sales Q2Q%17.54%
Revenue Next Year9.71%
Revenue Next 2Y9.5%
Revenue Next 3Y9.87%
Revenue Next 5YN/A
EBIT growth 1Y10.64%
EBIT growth 3Y15.97%
EBIT growth 5Y12.77%
EBIT Next Year49.95%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y11.38%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y5.41%
OCF growth 3YN/A
OCF growth 5YN/A