Surgery Partners (SGRY) AI Stock Analysis

• Market Cap: $1.98B
• Dividend Yield: N/A
• Average Volume (3M): 1.91M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.26
• Revenue Growth: 10.14%
• EPS Growth: -182.12%
• Country: US
• Employees: 15,000
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Care Facilities
• EPS (TTM): 0.13
• Shares Outstanding: 129,341,780
• 10 Day Avg. Volume: 3,475,095
• 30 Day Avg. Volume: 1,914,734
• PEG Ratio: -0.01
• Price to Book (P/B): 1.49
• Price to Sales (P/S): 0.86
• P/FCF Ratio: 12.73
• Enterprise Value/Market Cap: 4.17
• Enterprise Value/Revenue: 2.51
• Enterprise Value/Gross Profit: 10.48
• Enterprise Value/Ebitda: 10.10
• 1Y Price Target: $28.33
• Price Target Upside: 86.63% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): 0.66
• Revenue Forecast (FY): $3.31B

• Rating: 52 Neutral
• Price Target: $16.00 ▲(5.40% Upside)

Surgery Partners' overall stock score is primarily impacted by its financial performance, which shows strong revenue growth but is hampered by profitability challenges. Technical analysis indicates a bearish trend with oversold conditions, while valuation metrics are unattractive due to negative earnings. The earnings call highlighted growth but also significant challenges, leading to a cautious outlook.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term financial stability.

Operational Efficiency

Improving margins reflect better cost management and operational efficiencies, enhancing profitability potential over time.

Cash Flow Generation

Strong cash flow generation enhances financial flexibility, enabling strategic investments and debt management.

Negative Factors

Profitability Challenges

Ongoing net losses limit reinvestment capabilities and shareholder returns, posing risks to long-term growth and stability.

Payer Mix Challenges

A declining share of higher-margin commercial payers can pressure revenue and profitability, affecting financial performance.

Regulatory Delays

Regulatory delays can hinder expansion plans and delay revenue generation from new facilities, affecting growth prospects.

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 through its network of ambulatory surgery centers and surgical hospitals, which perform a wide range of surgical procedures. The company earns money through facility fees billed to patients' insurance providers, including Medicare and private payers, for the use of its facilities and services. Additionally, Surgery Partners benefits from partnerships with physicians, who may refer patients to its centers, thereby driving patient volume. The company also capitalizes on ancillary services such as anesthesia and post-operative care, which further contribute to its revenue streams. Furthermore, Surgery Partners may engage in strategic acquisitions of ASCs to expand its footprint and enhance its service offerings, thereby increasing its market share and financial performance.

Surgery Partners Financial Statement Overview

Summary

Surgery Partners shows strong revenue growth and improving operational efficiencies, but profitability remains a challenge with consistent net losses. The balance sheet shows improved leverage, but negative returns on equity are concerning. Cash flow generation is a bright spot, with positive growth and better cash flow ratios, indicating potential for future financial stability if profitability issues are addressed.

Income Statement

Surgery Partners has shown consistent revenue growth, with a TTM revenue increase of 1.58% and a strong historical growth trajectory. However, the company is struggling with profitability, as indicated by negative net profit margins across the periods. The gross profit margin is stable around 23.9%, but the net loss impacts overall performance. EBIT and EBITDA margins are improving, suggesting operational efficiencies, but the net income remains negative.

Balance Sheet

The company's debt-to-equity ratio has improved significantly in the TTM period, dropping to 0.21 from much higher levels in previous years, indicating better leverage management. However, the return on equity is negative, reflecting ongoing net losses. The equity ratio is stable, but the negative ROE is a concern for long-term equity growth.

Cash Flow

Surgery Partners has shown positive free cash flow growth of 10.72% in the TTM period, indicating improved cash generation capabilities. The operating cash flow to net income ratio is positive, suggesting that cash flows are more robust than net income figures. However, the free cash flow to net income ratio is low, reflecting the impact of net losses on cash flow metrics.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.29B	3.11B	2.74B	2.54B	2.23B	1.86B
Gross Profit	786.40M	745.60M	647.50M	574.90M	491.40M	379.80M
EBITDA	816.60M	501.40M	446.10M	460.00M	401.00M	277.80M
Net Income	-171.40M	-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	203.40M	269.50M	195.90M	282.90M	389.90M	317.90M
Total Debt	3.87B	3.70B	3.06B	2.93B	3.29B	3.20B
Total Liabilities	4.39B	4.25B	3.51B	3.40B	3.82B	3.79B
Stockholders Equity	1.73B	1.79B	1.99B	2.00B	1.09B	550.10M
Cash Flow
Free Cash Flow	194.10M	209.70M	205.00M	78.20M	29.50M	204.00M
Operating Cash Flow	282.30M	300.10M	293.80M	158.80M	87.10M	246.90M
Investing Cash Flow	-232.20M	-488.50M	-225.60M	-307.90M	-331.70M	-88.40M
Financing Cash Flow	-68.50M	262.00M	-155.20M	42.10M	316.30M	66.70M

Surgery Partners Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 15.18
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SGRY, the sentiment is Negative. The current price of 15.18 is below the 20-day moving average (MA) of 19.80, below the 50-day MA of 20.66, and below the 200-day MA of 22.37, indicating a bearish trend. The MACD of -1.71 indicates Positive momentum. The RSI at 19.22 is Positive, neither overbought nor oversold. The STOCH value of 2.28 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SGRY.

Surgery Partners Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UHS	78 Outperform	$14.32B	10.69	19.97%	0.35%	10.21%	39.58%
HCA	77 Outperform	$108.87B	18.44	―	0.63%	6.82%	15.82%
THC	73 Outperform	$16.91B	13.23	34.51%	―	-0.56%	-53.50%
NHC	72 Outperform	$1.95B	19.42	9.94%	1.97%	23.74%	-18.99%
EHC	62 Neutral	$11.27B	21.17	24.94%	0.55%	11.13%	27.53%
SGRY	52 Neutral	$1.98B	―	-9.45%	―	10.14%	-182.12%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Surgery Partners Corporate Events

Surgery Partners Reports Q3 2025 Financial Results

Surgery Partners, Inc., headquartered in Brentwood, Tennessee, is a prominent healthcare services company specializing in outpatient surgical facilities, offering high-quality and cost-effective surgical and ancillary care solutions across over 200 locations in the United States.

Surgery Partners Inc. Earnings Call: Mixed Results and Revised Guidance

The recent earnings call of Surgery Partners Inc. painted a mixed picture, reflecting both achievements and challenges. On the positive side, the company reported solid revenue and EBITDA growth, alongside strong performance in surgical cases and significant capital deployment in growth areas. However, the call also highlighted challenges such as softer than expected volume growth, unfavorable payer mix changes, delayed capital deployment, and regulatory delays impacting new facilities. These issues have led to a revision in the full-year guidance.

Surgery Partners President Resigns Effective October 2025

On September 11, 2025, Harrison R. Bane, the National Group President of Surgery Partners, announced his resignation effective October 3, 2025. His departure was not due to any disagreements with the company’s operations or policies, suggesting a smooth transition without immediate impact on the company’s strategic direction.

The most recent analyst rating on (SGRY) stock is a Hold with a $23.00 price target. To see the full list of analyst forecasts on Surgery Partners stock, see the SGRY Stock Forecast page.

Surgery Partners Announces Credit Agreement Amendment

On August 13, 2025, Surgery Partners, Inc. announced a second amendment to its credit agreement, involving a significant refinancing effort. The amendment introduces a new tranche of term loans totaling $1,383 million, replacing existing loans and revolving credit commitments. This strategic financial restructuring aims to enhance the company’s financial flexibility and operational stability, with the new loans maturing in 2028 and 2030, respectively.

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.