Surgery Partners (SGRY) AI Stock Analysis

• Market Cap: $2.84B
• Dividend Yield: N/A
• Average Volume (3M): 1.79M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.35
• Revenue Growth: 13.54%
• EPS Growth: -30732.00%
• Country: US
• Employees: 15,000
• Sector: Healthcare
• Sector Strength: 39
• Industry: Medical - Care Facilities
• EPS (TTM): 0.04
• Shares Outstanding: 128,160,080
• 10 Day Avg. Volume: 2,663,251
• 30 Day Avg. Volume: 1,790,891
• PEG Ratio: -9.62
• Price to Book (P/B): 1.28
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 32.76
• Enterprise Value/Market Cap: 1.83
• Enterprise Value/Revenue: 0.43
• Enterprise Value/Gross Profit: 7.25
• Enterprise Value/Ebitda: 2.69
• 1Y Price Target: $31.22
• Price Target Upside: 40.95% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 60 Neutral
• Price Target: $23.00 ▲(3.84%Upside)

Surgery Partners shows strong revenue growth and strategic initiatives, but profitability challenges and high leverage are significant risks. Technical indicators suggest a bearish trend, and valuation metrics are weak due to net losses. Positive earnings call sentiment and strategic decisions to remain independent offer some optimism.

Positive Factors

Earnings

SGRY reported 1Q revenue of $776m, which was in-line with consensus but 2% above the estimate.

Financial Performance

Revenue increased, with 8.2% growth year over year.

Market Positioning

SGRY is well positioned relative to various macro issues with no material exposure to tariff-related price increases or supply chain risk.

Negative Factors

Interest Expense

Interest expense will increase on the $1.4B term loan following expiration of a swap with capped expense of 2.2% for a 5% cap.

Operating Cash Flow

Operating cash flow in the first quarter was just $6M compared to $41M a year ago, reflecting shifts in working capital.

Surgery Partners Business Overview & Revenue Model

Company Description

Surgery Partners, Inc., through its subsidiaries, owns and operates a network of surgical facilities and ancillary services in the United States. The company operates through two segments, Surgical Facility Services and Ancillary Services. Its surgical facilities comprise ambulatory surgery centers and surgical hospitals that offer non-emergency surgical procedures in various specialties, including gastroenterology, general surgery, ophthalmology, orthopedics, and pain management. The company's surgical hospitals also provide ancillary services, such as diagnostic imaging, pharmacy, laboratory, obstetrics, oncology, physical therapy, and wound care; and ancillary services, which consist of multi-specialty physician practices, urgent care facilities, and anesthesia services. As of December 31, 2021, it owned or operated a portfolio of 126 surgical facilities, including 108 ambulatory surgical centers and 18 surgical hospitals in 31 states. Surgery Partners, Inc. was founded in 2004 and is headquartered in Brentwood, Tennessee.

How the Company Makes Money

Surgery Partners generates revenue primarily by providing surgical services through its network of ambulatory surgery centers and hospitals. The company earns money by billing patients, insurance companies, and government programs like Medicare and Medicaid for the surgical procedures and related services it provides. Key revenue streams include facility fees for use of its surgical centers, professional fees for services rendered by affiliated physicians, and ancillary services such as diagnostic imaging and laboratory testing. Additionally, Surgery Partners may engage in strategic partnerships and joint ventures with physicians and healthcare organizations to expand its service offerings and increase its market presence.

Surgery Partners Financial Statement Overview

Summary

Surgery Partners exhibits strong cash flow generation capabilities and a solid revenue base, though growth has been slow. The company's high leverage poses a risk, yet operations are managed efficiently. Focus on improving profitability and managing debt levels would benefit long-term stability and growth.

Income Statement

The company exhibits a mixed income statement performance. Revenue growth from the previous year was modest at 1.88%, which indicates slow growth. The gross profit margin stands at 22.64% for TTM, showing consistent profitability at the gross level despite a decline from earlier years. However, the net profit margin remains negative at -6.09% due to consistent net losses, which is concerning for long-term profitability. EBIT and EBITDA margins are reasonable at 10.55% and 15.44% respectively, reflecting adequate operational efficiency.

Balance Sheet

The balance sheet indicates moderate financial health. The debt-to-equity ratio is high at approximately 2.22, suggesting significant leverage which can pose financial risks. Return on Equity (ROE) is negative due to net losses, which is a concern for shareholders. The equity ratio is 21.89%, pointing to a stable, but heavily leveraged capital structure. Overall, the company maintains a solid asset base but faces risks associated with high debt levels.

Cash Flow

Cash flow analysis shows a robust performance with a free cash flow to net income ratio of -0.90, indicating strong cash generation relative to net losses. The operating cash flow to net income ratio is -1.37, reflecting effective conversion of earnings into cash flows. Free cash flow growth rate has been volatile but remains positive, indicating cash flow strength despite net income challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.17B	3.11B	2.74B	2.54B	2.23B	1.86B
Gross Profit	718.30M	745.60M	647.50M	574.90M	491.40M	379.80M
EBITDA	489.90M	501.40M	446.10M	460.00M	401.00M	277.80M
Net Income	-193.40M	-168.10M	-11.90M	-54.60M	-70.90M	-116.10M
Balance Sheet
Total Assets	7.95B	7.89B	6.88B	6.68B	6.12B	5.41B
Cash, Cash Equivalents and Short-Term Investments	229.30M	269.50M	195.90M	282.90M	389.90M	317.90M
Total Debt	3.86B	3.70B	3.06B	2.93B	3.29B	3.20B
Total Liabilities	4.36B	4.37B	3.51B	6.68B	3.82B	3.79B
Stockholders Equity	1.74B	1.79B	1.99B	2.00B	1.09B	550.10M
Cash Flow
Free Cash Flow	173.30M	209.70M	205.00M	78.20M	29.50M	204.00M
Operating Cash Flow	265.40M	300.10M	293.80M	158.80M	87.10M	246.90M
Investing Cash Flow	-481.80M	-488.50M	-225.60M	-307.90M	-331.70M	-88.40M
Financing Cash Flow	260.50M	262.00M	-155.20M	42.10M	316.30M	66.70M

Surgery Partners Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 22.15
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SGRY, the sentiment is Neutral. The current price of 22.15 is above the 20-day moving average (MA) of 22.02, below the 50-day MA of 22.48, and below the 200-day MA of 24.50, indicating a neutral trend. The MACD of -0.19 indicates Negative momentum. The RSI at 50.35 is Neutral, neither overbought nor oversold. The STOCH value of 84.55 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SGRY.

Surgery Partners Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ADUS	78 Outperform	$2.06B	25.27	9.18%	―	11.38%	10.29%
ASTH	73 Outperform	$1.23B	33.99	5.00%	―	54.81%	-45.07%
AMED	71 Outperform	$3.15B	35.56	7.85%	―	5.34%	―
SEM	64 Neutral	$1.95B	11.27	10.38%	1.65%	-8.86%	-36.22%
ACHC	60 Neutral	$2.15B	11.47	6.35%	―	5.48%	―
SGRY	60 Neutral	$2.84B	―	-10.43%	―	13.54%	-30732.00%
Sector *	52 Neutral	$7.50B	0.31	-61.87%	2.27%	17.10%	1.59%

Surgery Partners Corporate Events

Surgery Partners Decides to Remain Independent

On June 17, 2025, Surgery Partners, Inc. announced that its Special Committee of independent directors, after discussions with Bain Capital regarding a proposal to acquire all outstanding shares not owned by Bain, decided to continue as an independent publicly traded company. The decision reflects the Committee’s confidence in Surgery Partners’ long-term growth prospects and ability to enhance shareholder value through its established growth algorithm and business execution. The company reaffirmed its financial guidance for 2025 and plans to host an Investor Day in the second half of the year to discuss future growth plans and industry trends.

The most recent analyst rating on (SGRY) stock is a Buy with a $28.00 price target. To see the full list of analyst forecasts on Surgery Partners stock, see the SGRY Stock Forecast page.

Surgery Partners Holds Annual Meeting, Re-elects Directors

On June 6, 2025, Surgery Partners held its Annual Meeting, where stockholders voted on several key proposals. The election of Class I directors resulted in the re-election of current directors John A. Deane, Teresa DeLuca, M.D., and Wayne S. DeVeydt, who will serve until the 2028 annual meeting. Additionally, stockholders approved the executive compensation on an advisory basis, the 2025 Omnibus Incentive Plan, and ratified Ernst & Young LLP as the independent registered public accounting firm for the fiscal year 2025.

The most recent analyst rating on (SGRY) stock is a Buy with a $28.00 price target. To see the full list of analyst forecasts on Surgery Partners stock, see the SGRY Stock Forecast page.