Surgery Partners (SGRY) AI Stock Analysis

• Market Cap: $2.97B
• Dividend Yield: N/A
• Average Volume (3M): 1.03M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.32
• Revenue Growth: 13.54%
• EPS Growth: -30732.00%
• Country: US
• Employees: 15,000
• Sector: Healthcare
• Sector Strength: 58
• Industry: Medical - Care Facilities
• EPS (TTM): 0.04
• Shares Outstanding: 128,160,080
• 10 Day Avg. Volume: 1,161,478
• 30 Day Avg. Volume: 1,033,905
• 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: 1.75
• Enterprise Value/Revenue: 0.43
• Enterprise Value/Gross Profit: 7.25
• Enterprise Value/Ebitda: 2.69
• 1Y Price Target: $31.22
• Price Target Upside: 37.29% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 64 Neutral
• Price Target: $24.50 ▲(7.74%Upside)

Surgery Partners exhibits a balanced profile with strong cash flow generation and positive earnings call highlights driving the score. However, financial performance is hindered by leverage risk and slow revenue growth, while the valuation reflects ongoing profitability challenges.

Positive Factors

Market Position

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

Mergers and Acquisitions

Strong volumes, solid cost controls, and a plentiful amount of M&A are key themes for SGRY, showing consistent performance against external targets.

Revenue Growth

The company has shown strong same-store revenue growth, with a notable increase in case growth and strong performance across all service lines, particularly in gastroenterology and musculoskeletal services.

Negative Factors

Cash Flow

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

Integration Costs

Elevated integration costs from last year's above-normal M&A could impact margins in the first half of the year.

Interest Expense

The increased rate on the term loan poses a significant headwind to consider.

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 (ASCs) and surgical hospitals. The company earns income by providing surgical services to patients, for which it receives payments from a mix of private insurance companies, government healthcare programs such as Medicare and Medicaid, and direct patient payments. Surgery Partners benefits from strategic partnerships with physicians and healthcare providers, which help drive patient referrals to its facilities. Additionally, the company may receive revenue from ancillary services, including diagnostic imaging, anesthesia, and laboratory services offered in conjunction with surgeries. These diverse revenue streams and partnerships with healthcare professionals contribute significantly to its earnings.

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
	EBIT
334.70M	348.80M	328.00M	345.20M	302.20M	183.00M
	EBITDA
489.90M	501.40M	446.10M	460.00M	401.00M	277.80M
	Net Income Common Stockholders
-193.40M	-168.10M	-11.90M	-54.60M	-70.90M	-116.10M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
229.30M	269.50M	195.90M	282.90M	389.90M	317.90M
	Total Assets
7.95B	7.89B	6.88B	6.68B	6.12B	5.41B
	Total Debt
3.86B	3.70B	3.06B	2.93B	3.29B	3.20B
	Net Debt
3.63B	3.43B	2.87B	2.65B	2.90B	2.88B
	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: Negative
• Last Price: 22.74
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 22.74 is below the 20-day moving average (MA) of 23.15, above the 50-day MA of 22.39, and below the 200-day MA of 25.12, indicating a neutral trend. The MACD of 0.10 indicates Positive momentum. The RSI at 46.21 is Neutral, neither overbought nor oversold. The STOCH value of 30.87 is Neutral, 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
ADUS	77 Outperform	$2.07B	25.76	9.18%	―	11.38%	10.29%
AMED	71 Outperform	$3.19B	35.96	7.85%	―	5.34%	―
ASTH	70 Outperform	$1.32B	36.33	5.00%	―	54.81%	-45.07%
SGRY	64 Neutral	$2.97B	―	-10.43%	―	13.54%	-30732.00%
SEM	64 Neutral	$1.94B	11.26	10.38%	1.65%	-8.86%	-36.22%
ACHC	60 Neutral	$2.10B	10.86	6.35%	―	5.48%	―
Sector *	54 Neutral	$5.41B	3.27	-45.10%	3.29%	16.81%	0.02%

Surgery Partners Corporate Events

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.