Surgery Partners Inc (SGRY)
NASDAQ:SGRY
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Surgery Partners
(NASDAQ:SGRY)
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Rating:56Neutral
Price Target:
$13.00
▲(0.70% Upside)
Action:ReiteratedDate:03/04/26
The score is most constrained by weak profitability and mixed cash-flow quality (including the latest free-cash-flow decline) despite strong revenue growth and improving leverage. Technicals also weigh on the rating with the stock below key moving averages. Partially offsetting these are constructive (but cautious) 2026 guidance and strategic actions (portfolio optimization and a new buyback) that could improve earnings efficiency if execution stabilizes.
Positive Factors
Revenue growth & same-facility expansion
Consistent top-line growth and positive same-facility revenue show durable demand and scale in outpatient surgery. This supports margin leverage over time, enlarges bargaining power with payers and suppliers, and underpins organic growth even if M&A slows.
Negative Factors
Persistent net losses and weak profitability
Ongoing net losses and episodic negative EBITDA limit return generation and constrain retained earnings. Even with revenue scale, persistent unprofitability undermines ROE, reduces retained capital for growth, and increases dependence on external financing to fund strategy.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue growth & same-facility expansion
Consistent top-line growth and positive same-facility revenue show durable demand and scale in outpatient surgery. This supports margin leverage over time, enlarges bargaining power with payers and suppliers, and underpins organic growth even if M&A slows.
Read all positive factors
Surgery Partners (SGRY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.67B
Dividend YieldN/A
Average Volume (3M)1.67M
Price to Earnings (P/E)―
Beta (1Y)1.25
Revenue Growth10.14%
EPS Growth-182.12%
CountryUS
Employees15,000
SectorHealthcare
Sector Strength45
IndustryMedical - Care Facilities
Share Statistics
EPS (TTM)0.12
Shares Outstanding129,419,830
10 Day Avg. Volume1,117,024
30 Day Avg. Volume1,674,017
Financial Highlights & Ratios
PEG Ratio0.47
Price to Book (P/B)1.15
Price to Sales (P/S)0.59
P/FCF Ratio10.05
Enterprise Value/Market Cap3.28
Enterprise Value/Revenue1.66
Enterprise Value/Gross Profit7.16
Enterprise Value/Ebitda5.76
Forecast
1Y Price Target
$19.68Price Target Upside52.44% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering10
EPS Forecast (FY)0.39
Revenue Forecast (FY)$3.41B
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 sur...
How the Company Makes Money
Surgery Partners generates revenue primarily by providing surgical and related healthcare services through its owned and operated facilities. The core revenue stream is patient service revenue: the company bills commercial insurers, Medicare, Medi...
Surgery Partners Earnings Call Summary
Earnings Call Date:Mar 02, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 05, 2026
Earnings Call Sentiment Neutral
The call conveyed a mixed view: solid top-line growth (net revenue +6.2%, same-facility revenue +4.9%) and progress on strategic initiatives (orthopedic growth, robotics, physician recruitment, portfolio optimization), but material near-term operational challenges concentrated in three surgical hospital markets led to an earnings shortfall, margin compression (-40 bps), payer mix headwinds, and costs that outpaced revenue in those locales. Management emphasized these issues are identifiable and addressable and provided conservative 2026 guidance that incorporates the headwinds.Positive Updates
Revenue Growth
Full year net revenue of $3.3 billion, up 6.2% year-over-year; full-year same-facility revenue growth of 4.9%.
Negative Updates
Earnings Shortfall and Concentrated Weakness
Fourth quarter performance fell short of revised expectations with the full-year adjusted EBITDA described as 'significantly below our expectations'; management attributes the shortfall to issues concentrated in three surgical hospital markets rather than across the enterprise.
Read all updates
Q4-2025 Updates
Positive
Negative
Revenue Growth
Full year net revenue of $3.3 billion, up 6.2% year-over-year; full-year same-facility revenue growth of 4.9%.
Read all positive updates
Company Guidance
Management’s preliminary 2026 guidance calls for net revenue of $3.3 billion to $3.45 billion (single‑digit year‑over‑year growth) and at least $530 million of adjusted EBITDA (implying ≥0.7% growth), with the company saying this outlook already incorporates quantified near‑term headwinds from the supplemental slide; for context, full‑year 2025 revenue was $3.3 billion (up 6.2% YoY) with adjusted EBITDA of $526 million (up 3.5%) and a 15.9% adjusted EBITDA margin (40 bps compression), while 2025 operational metrics included ~670,000 surgical cases (vs. 656,000 in 2024), 1.3% same‑facility case growth and 4.9% same‑facility revenue growth, >42,000 Q4 orthopedic cases with total joints +15% Q4/+19% YTD, 74 surgical robots (6 added in 2025), ~700 physician recruits, $182 million of capital deployed (vs. a $200M+ target), eight de novo openings in 2025, and an anticipated portfolio‑optimization resolution in H1 2026 expected to reduce leverage and improve cash conversion as a percentage of adjusted EBITDA.Surgery Partners Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
64
Positive
Cash Flow
55
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 3.31B | 3.11B | 2.74B | 2.54B | 2.23B |
| Gross Profit | 765.00M | 745.60M | 647.50M | 574.90M | 491.40M |
| EBITDA | 565.50M | 501.40M | 446.10M | 460.00M | 401.00M |
| Net Income | -77.90M | -168.10M | -11.90M | -54.60M | -70.90M |
Balance Sheet | |||||
| Total Assets | 8.24B | 7.89B | 6.88B | 6.68B | 6.12B |
| Cash, Cash Equivalents and Short-Term Investments | 239.90M | 269.50M | 195.90M | 282.90M | 389.90M |
| Total Debt | 4.02B | 3.70B | 3.06B | 2.93B | 3.29B |
| Total Liabilities | 4.72B | 4.25B | 3.51B | 3.40B | 3.82B |
| Stockholders Equity | 1.71B | 1.79B | 1.99B | 2.00B | 1.09B |
Cash Flow | |||||
| Free Cash Flow | 195.60M | 209.70M | 205.00M | 78.20M | 29.50M |
| Operating Cash Flow | 274.30M | 300.10M | 293.80M | 158.80M | 87.10M |
| Investing Cash Flow | -246.60M | -488.50M | -225.60M | -307.90M | -331.70M |
| Financing Cash Flow | -57.30M | 262.00M | -155.20M | 42.10M | 316.30M |
Surgery Partners Technical Analysis
Neutral
12.91
Price Trends
13.61
Negative
14.79
Negative
18.27
Negative
Market Momentum
-0.28
Negative
51.96
Neutral
79.96
Neutral
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 12.91 is above the 20-day moving average (MA) of 12.22, below the 50-day MA of 13.61, and below the 200-day MA of 18.27, indicating a neutral trend. The MACD of -0.28 indicates Negative momentum. The RSI at 51.96 is Neutral, neither overbought nor oversold. The STOCH value of 79.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SGRY.
Surgery Partners Risk Analysis
Surgery Partners disclosed 41 risk factors in its most recent earnings report. Surgery Partners reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Surgery Partners Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $2.66B | 17.67 | 11.57% | 1.80% | 23.74% | -18.99% | |
75 Outperform | $110.77B | 15.88 | -140.78% | 0.61% | 6.82% | 15.82% | |
70 Outperform | $11.04B | 9.31 | 21.03% | 0.35% | 10.21% | 39.58% | |
70 Outperform | $10.66B | 18.84 | 24.48% | 0.65% | 11.13% | 27.53% | |
62 Neutral | $16.98B | 12.83 | 34.82% | ― | -0.56% | -53.50% | |
56 Neutral | $1.67B | -25.23 | -4.50% | ― | 10.14% | -182.12% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
SGRY
Surgery Partners
12.91
-8.41
-39.45%
HCA
HCA Healthcare
495.47
157.13
46.44%
EHC
Encompass Health
107.25
4.67
4.56%
NHC
National Healthcare
170.85
80.33
88.74%
THC
Tenet Healthcare
195.24
70.33
56.30%
UHS
Universal Health
180.78
2.66
1.50%
Surgery Partners Corporate Events
Business Operations and StrategyStock BuybackFinancial Disclosures
Surgery Partners Announces Share Buyback and 2026 Outlook
Positive
Mar 2, 2026
Surgery Partners reported fourth-quarter 2025 revenue of $885.0 million, up 2.4% year over year, with same-facility revenue rising 3.5% but overall surgical cases declining 2.1% as Adjusted EBITDA slipped 4.2% to $156.9 million. For full-year 2025...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.