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SURGERY PARTNERS INC (SGRY) Stock Fundamental Analysis

NASDAQ:SGRY - Nasdaq - US86881A1007 - Common Stock - Currency: USD

21.48  -0.36 (-1.65%)

After market: 21.48 0 (0%)

Fundamental Rating

3

Taking everything into account, SGRY scores 3 out of 10 in our fundamental rating. SGRY was compared to 105 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.


Dividend Valuation Growth Profitability Health

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4

1. Profitability

1.1 Basic Checks

SGRY had positive earnings in the past year.
In the past year SGRY had a positive cash flow from operations.
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.
SGRY Yearly Net Income VS EBIT VS OCF VS FCFSGRY Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M -200M 400M

1.2 Ratios

SGRY has a Return On Assets of -2.13%. This is comparable to the rest of the industry: SGRY outperforms 43.81% of its industry peers.
SGRY has a Return On Equity (-9.39%) which is in line with its industry peers.
Looking at the Return On Invested Capital, with a value of 5.16%, SGRY is in line with its industry, outperforming 56.19% 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 8.81%.
The 3 year average ROIC (5.03%) for SGRY is below the current ROIC(5.16%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA -2.13%
ROE -9.39%
ROIC 5.16%
ROA(3y)-1.04%
ROA(5y)-1.46%
ROE(3y)-4.24%
ROE(5y)-9.69%
ROIC(3y)5.03%
ROIC(5y)4.49%
SGRY Yearly ROA, ROE, ROICSGRY Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 40 60 80

1.3 Margins

SGRY's Operating Margin of 15.23% is amongst the best of the industry. SGRY outperforms 88.57% of its industry peers.
SGRY's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 26.82%, SGRY is in line with its industry, outperforming 52.38% of the companies in the same industry.
SGRY's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 15.23%
PM (TTM) N/A
GM 26.82%
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%
SGRY Yearly Profit, Operating, Gross MarginsSGRY Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 -10 20 30

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2

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SGRY is destroying value.
The number of shares outstanding for SGRY has been increased compared to 1 year ago.
Compared to 5 years ago, SGRY has more shares outstanding
SGRY has a worse debt/assets ratio than last year.
SGRY Yearly Shares OutstandingSGRY Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M 100M
SGRY Yearly Total Debt VS Total AssetsSGRY Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B

2.2 Solvency

SGRY has an Altman-Z score of 0.81. 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 (0.81) is worse than 73.33% of its industry peers.
The Debt to FCF ratio of SGRY is 16.07, which is on the high side as it means it would take SGRY, 16.07 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 16.07, SGRY perfoms like the industry average, outperforming 48.57% of the companies in the same industry.
SGRY has a Debt/Equity ratio of 1.83. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.83, SGRY is doing worse than 75.24% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 1.83
Debt/FCF 16.07
Altman-Z 0.81
ROIC/WACC0.64
WACC8.05%
SGRY Yearly LT Debt VS Equity VS FCFSGRY Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 1B 2B 3B

2.3 Liquidity

A Current Ratio of 1.79 indicates that SGRY should not have too much problems paying its short term obligations.
SGRY's Current ratio of 1.79 is fine compared to the rest of the industry. SGRY outperforms 66.67% of its industry peers.
SGRY has a Quick Ratio of 1.65. 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 1.65, SGRY is in the better half of the industry, outperforming 62.86% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.79
Quick Ratio 1.65
SGRY Yearly Current Assets VS Current LiabilitesSGRY Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B

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5

3. Growth

3.1 Past

The earnings per share for SGRY have decreased by -5.05% in the last year.
The Revenue has grown by 13.52% in the past year. This is quite good.
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 26.20% on average per year.
SGRY is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.11% yearly.
EPS Next Y9.84%
EPS Next 2Y20.82%
EPS Next 3Y20.87%
EPS Next 5Y26.2%
Revenue Next Year9.97%
Revenue Next 2Y9.59%
Revenue Next 3Y10.15%
Revenue Next 5Y10.11%

3.3 Evolution

The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
SGRY Yearly Revenue VS EstimatesSGRY Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 1B 2B 3B 4B 5B
SGRY Yearly EPS VS EstimatesSGRY Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 0 1 -1 2 -2 3

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4

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 22.85, the valuation of SGRY can be described as rather expensive.
SGRY's Price/Earnings ratio is a bit cheaper when compared to the industry. SGRY is cheaper than 64.76% of the companies in the same industry.
SGRY's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.79.
A Price/Forward Earnings ratio of 20.80 indicates a rather expensive valuation of SGRY.
SGRY's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. SGRY is cheaper than 62.86% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of SGRY to the average of the S&P500 Index (21.38), we can say SGRY is valued inline with the index average.
Industry RankSector Rank
PE 22.85
Fwd PE 20.8
SGRY Price Earnings VS Forward Price EarningsSGRY Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, SGRY is valued a bit cheaper than the industry average as 75.24% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SGRY indicates a somewhat cheap valuation: SGRY is cheaper than 80.00% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 13.07
EV/EBITDA 9.32
SGRY Per share dataSGRY EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 -10 20 -20

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 20.87% in the coming years.
PEG (NY)2.32
PEG (5Y)N/A
EPS Next 2Y20.82%
EPS Next 3Y20.87%

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0

5. Dividend

5.1 Amount

SGRY does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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SURGERY PARTNERS INC

NASDAQ:SGRY (4/25/2025, 8:00:01 PM)

After market: 21.48 0 (0%)

21.48

-0.36 (-1.65%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)03-03 2025-03-03/bmo
Earnings (Next)05-12 2025-05-12/bmo
Inst Owners74.2%
Inst Owner Change-73.53%
Ins Owners1.27%
Ins Owner Change7.9%
Market Cap2.74B
Analysts80
Price Target32.42 (50.93%)
Short Float %13.44%
Short Ratio9.59
Dividend
Industry RankSector 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)-5.54%
Min EPS beat(2)-26.04%
Max EPS beat(2)14.96%
EPS beat(4)3
Avg EPS beat(4)7.23%
Min EPS beat(4)-26.04%
Max EPS beat(4)37.02%
EPS beat(8)7
Avg EPS beat(8)275.83%
EPS beat(12)8
Avg EPS beat(12)143.86%
EPS beat(16)12
Avg EPS beat(16)119.78%
Revenue beat(2)1
Avg Revenue beat(2)0.23%
Min Revenue beat(2)-1.88%
Max Revenue beat(2)2.34%
Revenue beat(4)3
Avg Revenue beat(4)0.69%
Min Revenue beat(4)-1.88%
Max Revenue beat(4)2.34%
Revenue beat(8)3
Avg Revenue beat(8)-0.55%
Revenue beat(12)5
Avg Revenue beat(12)-0.66%
Revenue beat(16)7
Avg Revenue beat(16)-0.72%
PT rev (1m)-2.82%
PT rev (3m)-9.01%
EPS NQ rev (1m)-23.15%
EPS NQ rev (3m)-42.08%
EPS NY rev (1m)-4.33%
EPS NY rev (3m)0.95%
Revenue NQ rev (1m)-0.08%
Revenue NQ rev (3m)-3.33%
Revenue NY rev (1m)0.23%
Revenue NY rev (3m)0.03%
Valuation
Industry RankSector Rank
PE 22.85
Fwd PE 20.8
P/S 0.88
P/FCF 13.07
P/OCF 9.13
P/B 1.53
P/tB N/A
EV/EBITDA 9.32
EPS(TTM)0.94
EY4.38%
EPS(NY)1.03
Fwd EY4.81%
FCF(TTM)1.64
FCFY7.65%
OCF(TTM)2.35
OCFY10.95%
SpS24.4
BVpS14.02
TBVpS-26.05
PEG (NY)2.32
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -2.13%
ROE -9.39%
ROCE 6.53%
ROIC 5.16%
ROICexc 5.36%
ROICexgc 19.91%
OM 15.23%
PM (TTM) N/A
GM 26.82%
FCFM 6.73%
ROA(3y)-1.04%
ROA(5y)-1.46%
ROE(3y)-4.24%
ROE(5y)-9.69%
ROIC(3y)5.03%
ROIC(5y)4.49%
ROICexc(3y)5.23%
ROICexc(5y)4.72%
ROICexgc(3y)18.5%
ROICexgc(5y)17.9%
ROCE(3y)6.37%
ROCE(5y)5.69%
ROICexcg growth 3Y0.78%
ROICexcg growth 5Y0.88%
ROICexc growth 3Y4.99%
ROICexc growth 5Y3.37%
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 Turnover0.39
Health
Industry RankSector Rank
Debt/Equity 1.83
Debt/FCF 16.07
Debt/EBITDA 5.21
Cap/Depr 59.24%
Cap/Sales 2.9%
Interest Coverage 2.38
Cash Conversion 47.87%
Profit Quality N/A
Current Ratio 1.79
Quick Ratio 1.65
Altman-Z 0.81
F-Score4
WACC8.05%
ROIC/WACC0.64
Cap/Depr(3y)68.21%
Cap/Depr(5y)61.64%
Cap/Sales(3y)3.1%
Cap/Sales(5y)2.84%
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 Y9.84%
EPS Next 2Y20.82%
EPS Next 3Y20.87%
EPS Next 5Y26.2%
Revenue 1Y (TTM)13.52%
Revenue growth 3Y11.86%
Revenue growth 5Y11.2%
Sales Q2Q%17.54%
Revenue Next Year9.97%
Revenue Next 2Y9.59%
Revenue Next 3Y10.15%
Revenue Next 5Y10.11%
EBIT growth 1Y14.32%
EBIT growth 3Y15.97%
EBIT growth 5Y12.77%
EBIT Next Year47.34%
EBIT Next 3Y23.13%
EBIT Next 5YN/A
FCF growth 1Y2.29%
FCF growth 3Y92.28%
FCF growth 5Y30.27%
OCF growth 1Y2.14%
OCF growth 3Y51.04%
OCF growth 5Y18.3%