Taking everything into account, SGRY scores 3 out of 10 in our fundamental rating. 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 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.
SGRY had negative earnings in each of the past 5 years.
SGRY had a positive operating cash flow in each of the past 5 years.

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.
SGRY has a Return On Invested Capital (5.57%) which is comparable to the rest of the industry.
SGRY had an Average Return On Invested Capital over the past 3 years of 5.03%. This is below the industry average of 9.16%.
The last Return On Invested Capital (5.57%) for SGRY is above the 3 year average (5.03%), which is a sign of increasing profitability.

		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's Operating Margin of 15.78% is amongst the best of the industry. SGRY outperforms 93.20% of its industry peers.
In the last couple of years the Operating Margin of SGRY has remained more or less at the same level.
With a Gross Margin value of 26.57%, SGRY perfoms like the industry average, outperforming 56.31% of the companies in the same 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.
Compared to 1 year ago, SGRY has more shares outstanding
SGRY has more shares outstanding than it did 5 years ago.
The debt/assets ratio for SGRY is higher compared to a year ago.

2.2 Solvency

Based on the Altman-Z score of 0.75, we must say that SGRY is in the distress zone and has some risk of bankruptcy.
SGRY's Altman-Z score of 0.75 is on the low side compared to the rest of the industry. SGRY is outperformed by 71.84% of its industry peers.
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.
A Debt/Equity ratio of 2.00 is on the high side and indicates that SGRY has dependencies on debt financing.
SGRY's Debt to Equity ratio of 2.00 is on the low side compared to the rest of the industry. SGRY is outperformed by 72.82% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	2
Debt/FCF	18.37
Altman-Z	0.75

ROIC/WACC0.63

WACC8.79%

2.3 Liquidity

A Current Ratio of 1.88 indicates that SGRY should not have too much problems paying its short term obligations.
SGRY has a better Current ratio (1.88) than 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

The earnings per share for SGRY have decreased strongly by -17.02% in the last year.
SGRY shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.14%.
Measured over the past years, SGRY shows a quite strong growth in Revenue. The Revenue has been growing by 11.20% on average per year.

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

SGRY is valuated rather expensively with a Price/Earnings ratio of 19.05.
Based on the Price/Earnings ratio, SGRY is valued a bit cheaper than the industry average as 72.82% of the companies are valued more expensively.
SGRY is valuated rather cheaply when we compare the Price/Earnings ratio to 28.30, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 19.82, SGRY is valued on the expensive side.
Based on the Price/Forward Earnings ratio, SGRY is valued a bit cheaper than the industry average as 61.16% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 25.57. SGRY is valued slightly cheaper when compared to this.

		Industry Rank	Sector Rank
PE	19.05
Fwd PE	19.82

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SGRY indicates a somewhat cheap valuation: SGRY is cheaper than 77.67% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, SGRY is valued cheaply inside the industry as 86.41% of the companies are valued more expensively.