Surgery Partners (SGRY) AI Stock Analysis

• Market Cap: $2.73B
• Dividend Yield: N/A
• Average Volume (3M): 1.23M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.30
• Revenue Growth: 12.05%
• EPS Growth: -432.59%
• Country: US
• Employees: 15,000
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Care Facilities
• EPS (TTM): 0.17
• Shares Outstanding: 128,209,410
• 10 Day Avg. Volume: 1,110,622
• 30 Day Avg. Volume: 1,234,652
• 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: 3.04
• Enterprise Value/Revenue: 2.56
• Enterprise Value/Gross Profit: 10.78
• Enterprise Value/Ebitda: 15.86
• 1Y Price Target: $30.88
• Price Target Upside: 35.44% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 59 Neutral
• Price Target: $22.00 ▼(-3.51% Downside)

Surgery Partners' overall score is driven by strong earnings call highlights, including revenue and EBITDA growth and strategic expansion. However, financial performance concerns, particularly profitability and high leverage, weigh heavily. Technical indicators suggest bearish momentum, and valuation metrics indicate potential overvaluation.

Positive Factors

Revenue Growth

Consistent revenue and EBITDA growth indicate strong market demand and effective operational strategies, supporting long-term business expansion.

De Novo Facility Expansion

The expansion of new facilities enhances market presence and revenue potential, providing a strong foundation for sustained growth.

Surge in Orthopedic Procedures

The significant increase in orthopedic procedures highlights growing demand in this segment, strengthening the company's competitive position.

Negative Factors

High Leverage

High leverage can strain financial flexibility and increase risk, potentially impacting long-term stability and investment capacity.

Decline in Free Cash Flow

Declining free cash flow limits the company's ability to reinvest in growth opportunities and manage debt, posing long-term financial challenges.

Interest Rate Impact on Cash Flows

Increased interest expenses reduce cash flow available for operations and growth initiatives, potentially affecting future profitability.

Surgery Partners Business Overview & Revenue Model

Company Description

Surgery Partners, Inc. is a leading healthcare services company that specializes in the development and operation of surgical facilities, including ambulatory surgery centers (ASCs) and surgical hospitals. The company focuses on various surgical specialties, such as orthopedics, neurosurgery, gastroenterology, and pain management, providing high-quality, cost-effective surgical care. Surgery Partners partners with physicians and healthcare providers to deliver efficient surgical services and improve patient outcomes.

How the Company Makes Money

Surgery Partners generates revenue primarily through the operation of its surgical facilities, which includes performing surgeries and related services. Key revenue streams include facility fees charged for the use of the surgery centers, professional fees from physicians performing surgeries, and ancillary services such as anesthesia and laboratory services. The company also benefits from partnerships with healthcare providers and payers, which help secure patient referrals and ensure a steady flow of surgical cases. Additionally, Surgery Partners may receive reimbursements from government programs and private insurance companies, further contributing to its overall earnings.

Surgery Partners Financial Statement Overview

Summary

Surgery Partners is experiencing robust revenue growth, but profitability remains a challenge due to ongoing net losses and high leverage. The balance sheet reflects significant debt, which could pose risks if not managed carefully. Cash flow generation is strong, providing some stability amidst financial challenges. The company needs to focus on improving profitability and reducing leverage to enhance its financial health.

Income Statement

Surgery Partners has shown consistent revenue growth, with a TTM (Trailing-Twelve-Months) revenue of $3.17 billion, up from $2.54 billion in 2022. However, the company has been struggling with profitability, as evidenced by negative net income margins over the years. The gross profit margin is healthy at approximately 22.6% for TTM, but the net profit margin remains negative due to high operating expenses and interest costs.

Balance Sheet

The company's balance sheet shows a high debt-to-equity ratio of 2.22, indicating significant leverage. While the equity ratio is fairly stable at 21.9%, the high level of debt poses a potential risk. Return on equity is negative due to the company's net losses, which impacts the overall financial stability.

Cash Flow

Surgery Partners has demonstrated strong operating cash flow, with a TTM figure of $265.4 million. The free cash flow to net income ratio is positive, indicating effective cash management despite net losses. However, free cash flow growth has been inconsistent, reflecting fluctuating capital expenditures and financing activities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.24B	3.11B	2.74B	2.54B	2.23B	1.86B
Gross Profit	768.60M	745.60M	647.50M	574.90M	491.40M	379.80M
EBITDA	522.30M	501.40M	446.10M	460.00M	401.00M	277.80M
Net Income	-180.40M	-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	250.10M	269.50M	195.90M	282.90M	389.90M	317.90M
Total Debt	3.88B	3.70B	3.06B	2.93B	3.29B	3.20B
Total Liabilities	4.38B	4.25B	3.51B	6.68B	3.82B	3.79B
Stockholders Equity	1.75B	1.79B	1.99B	2.00B	1.09B	550.10M
Cash Flow
Free Cash Flow	94.00M	209.70M	205.00M	78.20M	29.50M	204.00M
Operating Cash Flow	263.90M	300.10M	293.80M	158.80M	87.10M	246.90M
Investing Cash Flow	-235.60M	-488.50M	-225.60M	-307.90M	-331.70M	-88.40M
Financing Cash Flow	8.30M	262.00M	-155.20M	42.10M	316.30M	66.70M

Surgery Partners Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 22.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 22.8 is above the 20-day moving average (MA) of 21.00, above the 50-day MA of 21.80, and above the 200-day MA of 22.59, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 65.62 is Neutral, neither overbought nor oversold. The STOCH value of 89.93 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SGRY.

Surgery Partners Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UHS	77 Outperform	$13.27B	10.99	18.66%	0.38%	9.61%	39.65%
HCA	74 Outperform	$103.24B	18.49	―	0.63%	6.82%	―
THC	74 Outperform	$18.12B	13.25	41.09%	―	-1.09%	-43.10%
EHC	73 Outperform	$12.73B	24.72	25.35%	0.55%	11.80%	30.02%
NHC	73 Outperform	$1.89B	18.20	10.65%	2.05%	25.19%	13.44%
SGRY	59 Neutral	$2.73B	―	-9.75%	―	12.05%	-432.59%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Surgery Partners Corporate Events

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.

Surgery Partners Appoints New Chairman After Resignation

On August 4, 2025, Wayne S. DeVeydt resigned as a director and the Executive Chairman of the Board of Directors of Surgery Partners, Inc., with no disagreements cited regarding company operations, policies, or practices. Following his resignation, Blair E. Hendrix was appointed as Chairman, and the Board’s size was reduced from 11 to 10 directors.

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 Reports Revenue Growth Amid Net Loss

Surgery Partners, Inc., headquartered in Brentwood, Tennessee, is a leading healthcare services company specializing in outpatient surgical facilities, providing high-quality and cost-effective surgical care across more than 200 locations in 30 states.

Surgery Partners Inc. Earnings Call: Growth Amid Challenges

Surgery Partners Inc. recently held its earnings call, which painted a balanced picture of the company’s current financial health and future prospects. The call highlighted strong revenue and EBITDA growth, driven by robust organic growth in surgical cases and strategic expansion through new facilities and physician recruitment. However, challenges such as increased interest expenses, slower M&A activity, and potential regulatory impacts were also noted, creating a sentiment that reflects both optimism and caution.