Surgery Partners (SGRY) AI Stock Analysis

• Market Cap: $2.69B
• Dividend Yield: N/A
• Average Volume (3M): 1.96M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.33
• Revenue Growth: 13.54%
• EPS Growth: -30732.00%
• Country: US
• Employees: 15,000
• Sector: Healthcare
• Sector Strength: 37
• Industry: Medical - Care Facilities
• EPS (TTM): 0.04
• Shares Outstanding: 128,160,080
• 10 Day Avg. Volume: 1,443,145
• 30 Day Avg. Volume: 1,957,825
• PEG Ratio: 0.96
• Price to Book (P/B): 1.60
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 16.22
• Enterprise Value/Market Cap: 2.39
• Enterprise Value/Revenue: 0.53
• Enterprise Value/Gross Profit: 8.96
• Enterprise Value/Ebitda: 3.32
• 1Y Price Target: $31.22
• Price Target Upside: 46.85% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 62 Neutral
• Price Target: $23.50 ▲(10.54%Upside)

Surgery Partners demonstrates strong revenue growth and operational expansion, but profitability concerns due to high leverage and negative net margins weigh heavily. Positive earnings call highlights and strategic decisions offer some optimism but are offset by technical weaknesses and valuation concerns.

Positive Factors

Financial Performance

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

Regulatory Changes

The elimination of the inpatient only (IPO) list and expanded site-of-service flexibility stands out as a positive development for ASC operators including SGRY.

Revenue Growth

More than 50% of Surgery Partners' net revenue comes from MSK procedures, which are expected to grow due to the CMS proposal.

Negative Factors

Debt Management

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.

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 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 revenue growth but faces challenges with profitability due to high operating expenses and interest costs. The balance sheet shows significant leverage, which poses risks, although cash flow generation is strong, providing some stability.

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

Surgery Partners Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 21.26
• 50DMA: Negative
• 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 21.26 is below the 20-day moving average (MA) of 22.16, below the 50-day MA of 22.42, and below the 200-day MA of 23.80, indicating a bearish trend. The MACD of -0.08 indicates Positive momentum. The RSI at 39.15 is Neutral, neither overbought nor oversold. The STOCH value of 21.92 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	79 Outperform	$1.99B	24.43	9.18%	―	11.38%	10.29%
ASTH	76 Outperform	$1.12B	31.01	5.00%	―	54.81%	-45.07%
AMED	71 Outperform	$3.21B	36.20	7.85%	―	5.34%	―
SEM	64 Neutral	$1.82B	10.52	10.38%	2.23%	-8.86%	-36.22%
SGRY	62 Neutral	$2.69B	―	-10.43%	―	13.54%	-30732.00%
ACHC	60 Neutral	$2.00B	10.67	6.35%	―	5.48%	―
Sector *	52 Neutral	$7.61B	0.11	-63.03%	2.07%	16.35%	0.29%

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.