Surgery Partners Inc. (SGRY)
NASDAQ:SGRY
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Surgery Partners
(NASDAQ:SGRY)
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Rating:53Neutral
Price Target:
$14.50
▲(3.57% Upside)
Action:Reiterated
Date:05/09/26
The score is held back primarily by financial risk (high leverage and ongoing net losses) despite solid revenue growth and positive free cash flow. Technicals are moderately supportive, while valuation is hindered by a negative P/E and no dividend. The latest earnings call adds a modestly positive tilt from reiterated guidance and operational progress, offset by case-growth softness, policy/payer headwinds, and rising interest expense.
Positive Factors
Consistent cash generation
Surgery Partners generates stable operating and free cash flow (operating CF roughly $274M–$300M and FCF ~ $196M in 2025). That persistent cash generation supports capital reinvestment, debt service and selective M&A over the medium term, improving resilience versus cyclical volume dips.
Negative Factors
High leverage burden
Material leverage constrains financial flexibility and raises refinancing and covenant sensitivity. With net debt several turns of EBITDA, slower volume or reimbursement shocks could force tougher capital allocation choices, limit M&A optionality, and elevate cash interest outlays over the medium term.
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Positive Factors
Negative Factors
Consistent cash generation
Surgery Partners generates stable operating and free cash flow (operating CF roughly $274M–$300M and FCF ~ $196M in 2025). That persistent cash generation supports capital reinvestment, debt service and selective M&A over the medium term, improving resilience versus cyclical volume dips.
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Surgery Partners (SGRY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.80B
Dividend YieldN/A
Average Volume (3M)1.56M
Price to Earnings (P/E)―
Beta (1Y)1.21
Revenue Growth5.38%
EPS Growth61.15%
CountryUS
Employees15,000
SectorHealthcare
Sector Strength45
IndustryMedical - Care Facilities
Share Statistics
EPS (TTM)-0.59
Shares Outstanding130,788,160
10 Day Avg. Volume1,284,995
30 Day Avg. Volume1,557,768
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 Cap3.11
Enterprise Value/Revenue1.67
Enterprise Value/Gross Profit7.72
Enterprise Value/Ebitda5.75
Forecast
1Y Price Target
$17.94Price Target Upside28.17% Upside
Rating ConsensusModerate 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:May 05, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 04, 2026
Earnings Call Sentiment Neutral
Neutral — The call conveyed cautious optimism: the company reported solid revenue and EBITDA in line with expectations, strong MSK/robotics momentum, physician recruiting progress and reiterated full‑year guidance, but those positives are counterbalanced by below‑trend case growth, payer mix/provider tax headwinds, rising interest expense and elevated leverage that temper near‑term upside.Positive Updates
Quarterly Financial Performance in Line with Expectations
Net revenue of approximately $811 million; adjusted EBITDA of approximately $102 million (12.6% adjusted EBITDA margin); same‑facility net revenue growth of 4.4%; operating cash flow of ~$12 million (vs ~$6 million prior year).
Negative Updates
Below‑Trend Same‑Facility Case Growth
Same‑facility case growth was only 0.6% in Q1 (well below the company’s long‑term algorithm and vs ~6.5% in Q1 2025); management attributed part of the shortfall (~40 basis points) to weather‑related deferrals in higher‑volume, lower‑acuity markets (e.g., GI, ophthalmology).
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Q1-2026 Updates
Positive
Negative
Quarterly Financial Performance in Line with Expectations
Net revenue of approximately $811 million; adjusted EBITDA of approximately $102 million (12.6% adjusted EBITDA margin); same‑facility net revenue growth of 4.4%; operating cash flow of ~$12 million (vs ~$6 million prior year).
Read all positive updates
Company Guidance
Surgery Partners reiterated full-year 2026 guidance of $3.35 billion to $3.45 billion of revenue and adjusted EBITDA of at least $530 million (not including any potential M&A), and said Q2 should represent roughly 24%–24.5% of annual revenue and 23%–23.5% of annual adjusted EBITDA; they continue to target ~$200 million of annual capital deployment for M&A but deployed only ~$4 million in Q1 (estimated to add ~$7 million of 2026 revenue). For context, Q1 results included about $811 million of net revenue, ~$102 million of adjusted EBITDA (12.6% margin), same‑facility revenue growth of 4.4% and case growth of 0.6%, supply expense of ~27.2% of revenue, SWB ~30.5%, other operating expenses ~7.3%, DSO ~66 days, operating cash flow ~$12 million (vs. $6M prior year), maintenance capex ~$9 million, physician distributions $58 million, net leverage ~4.3x (credit agreement) and GAAP net debt/adjusted EBITDA ~5.1x; other metrics discussed include ~140 physicians recruited in Q1, 73 surgical robots in the portfolio, total‑joint ASC growth of 14.6% YoY, and an estimated full‑year headwind from provider taxes/Medicaid cuts of roughly $8 million.Surgery Partners Financial Statement Overview
Summary
Income Statement
52
Neutral
Balance Sheet
38
Negative
Cash Flow
63
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.34B | 3.31B | 3.11B | 2.74B | 2.54B | 2.23B |
| Gross Profit | 724.80M | 765.00M | 745.60M | 647.50M | 574.90M | 491.40M |
| EBITDA | 973.40M | 565.50M | 501.40M | 446.10M | 460.00M | 401.00M |
| Net Income | -76.10M | -77.90M | -168.10M | -11.90M | -54.60M | -70.90M |
Balance Sheet | ||||||
| Total Assets | 8.04B | 8.24B | 7.89B | 6.88B | 6.68B | 6.12B |
| Cash, Cash Equivalents and Short-Term Investments | 182.30M | 239.90M | 269.50M | 195.90M | 282.90M | 389.90M |
| Total Debt | 4.03B | 4.02B | 3.70B | 3.06B | 2.93B | 3.29B |
| Total Liabilities | 4.56B | 4.72B | 4.25B | 3.51B | 3.40B | 3.82B |
| Stockholders Equity | 1.69B | 1.71B | 1.79B | 1.99B | 2.00B | 1.09B |
Cash Flow | ||||||
| Free Cash Flow | 208.00M | 195.60M | 209.70M | 205.00M | 78.20M | 29.50M |
| Operating Cash Flow | 280.00M | 274.30M | 300.10M | 293.80M | 158.80M | 87.10M |
| Investing Cash Flow | -183.60M | -246.60M | -488.50M | -225.60M | -307.90M | -331.70M |
| Financing Cash Flow | -143.40M | -57.30M | 262.00M | -155.20M | 42.10M | 316.30M |
Surgery Partners Technical Analysis
Neutral
14.00
Price Trends
13.45
Positive
14.03
Negative
16.77
Negative
Market Momentum
-0.10
Positive
51.02
Neutral
42.22
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 14 is above the 20-day moving average (MA) of 13.84, above the 50-day MA of 13.45, and below the 200-day MA of 16.77, indicating a neutral trend. The MACD of -0.10 indicates Positive momentum. The RSI at 51.02 is Neutral, neither overbought nor oversold. The STOCH value of 42.22 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 | $2.86B | 23.04 | 11.68% | 1.80% | 11.40% | 13.96% | |
72 Outperform | $10.07B | 16.54 | 25.35% | 0.65% | 10.05% | 23.59% | |
72 Outperform | $8.63B | 5.72 | 20.93% | 0.35% | 10.42% | 33.92% | |
68 Neutral | $14.09B | 8.34 | 40.55% | ― | 4.56% | 27.14% | |
58 Neutral | $81.49B | 12.26 | -123.20% | 0.61% | 6.71% | 29.32% | |
53 Neutral | $1.80B | -23.23 | -4.43% | ― | 5.38% | 61.15% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
SGRY
Surgery Partners
13.77
-9.51
-40.85%
HCA
HCA Healthcare
367.35
-13.15
-3.46%
EHC
Encompass Health
101.55
-19.16
-15.87%
NHC
National Healthcare
183.35
80.71
78.63%
THC
Tenet Healthcare
163.60
-8.24
-4.80%
UHS
Universal Health
142.55
-45.71
-24.28%
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.