Surgery Partners (SGRY) AI Stock Analysis

• Market Cap: $2.01B
• Dividend Yield: N/A
• Average Volume (3M): 2.06M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.17
• Revenue Growth: 10.14%
• EPS Growth: -182.12%
• Country: US
• Employees: 15,000
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Care Facilities
• EPS (TTM): 0.13
• Shares Outstanding: 129,341,780
• 10 Day Avg. Volume: 2,247,647
• 30 Day Avg. Volume: 2,056,932
• 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: 4.10
• Enterprise Value/Revenue: 2.51
• Enterprise Value/Gross Profit: 10.48
• Enterprise Value/Ebitda: 10.10
• 1Y Price Target: $26.30
• Price Target Upside: 69.35% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): 0.66
• Revenue Forecast (FY): $3.30B

• Rating: 53 Neutral
• Price Target: $16.00 ▲(3.03% Upside)

Surgery Partners' overall score is driven by strong revenue growth and improving cash flow, but profitability challenges and bearish technical indicators weigh heavily. Revised guidance and valuation concerns further impact the score, despite positive corporate developments.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and effective business model, supporting long-term financial stability.

Cash Flow Improvement

Improved cash generation enhances financial flexibility, allowing for strategic investments and debt management.

Strategic Capital Deployment

Strategic acquisitions and a strong M&A pipeline can drive growth and expand market reach, bolstering competitive advantage.

Negative Factors

Profitability Challenges

Ongoing net losses and negative net profit margins hinder long-term profitability and may limit reinvestment opportunities.

Payer Mix Challenges

A shift in payer mix towards governmental sources may pressure margins and affect revenue predictability.

Regulatory Delays

Delays in regulatory approvals can disrupt expansion plans and delay revenue realization from new facilities.

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 and surgical hospitals, which perform a wide range of surgical procedures. The company earns money through facility fees billed to patients' insurance providers, including Medicare and private payers, for the use of its facilities and services. Additionally, Surgery Partners benefits from partnerships with physicians, who may refer patients to its centers, thereby driving patient volume. The company also capitalizes on ancillary services such as anesthesia and post-operative care, which further contribute to its revenue streams. Furthermore, Surgery Partners may engage in strategic acquisitions of ASCs to expand its footprint and enhance its service offerings, thereby increasing its market share and financial performance.

Surgery Partners Financial Statement Overview

Summary

Surgery Partners shows strong revenue growth and improving operational efficiencies, but profitability remains a challenge with consistent net losses. The balance sheet shows improved leverage, but negative returns on equity are concerning. Cash flow generation is a bright spot, with positive growth and better cash flow ratios, indicating potential for future financial stability if profitability issues are addressed.

Income Statement

Surgery Partners has shown consistent revenue growth, with a TTM revenue increase of 1.58% and a strong historical growth trajectory. However, the company is struggling with profitability, as indicated by negative net profit margins across the periods. The gross profit margin is stable around 23.9%, but the net loss impacts overall performance. EBIT and EBITDA margins are improving, suggesting operational efficiencies, but the net income remains negative.

Balance Sheet

The company's debt-to-equity ratio has improved significantly in the TTM period, dropping to 0.21 from much higher levels in previous years, indicating better leverage management. However, the return on equity is negative, reflecting ongoing net losses. The equity ratio is stable, but the negative ROE is a concern for long-term equity growth.

Cash Flow

Surgery Partners has shown positive free cash flow growth of 10.72% in the TTM period, indicating improved cash generation capabilities. The operating cash flow to net income ratio is positive, suggesting that cash flows are more robust than net income figures. However, the free cash flow to net income ratio is low, reflecting the impact of net losses on cash flow metrics.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.29B	3.11B	2.74B	2.54B	2.23B	1.86B
Gross Profit	786.40M	745.60M	647.50M	574.90M	491.40M	379.80M
EBITDA	816.60M	501.40M	446.10M	460.00M	401.00M	277.80M
Net Income	-171.40M	-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	203.40M	269.50M	195.90M	282.90M	389.90M	317.90M
Total Debt	3.87B	3.70B	3.06B	2.93B	3.29B	3.20B
Total Liabilities	4.39B	4.25B	3.51B	3.40B	3.82B	3.79B
Stockholders Equity	1.73B	1.79B	1.99B	2.00B	1.09B	550.10M
Cash Flow
Free Cash Flow	194.10M	209.70M	205.00M	78.20M	29.50M	204.00M
Operating Cash Flow	282.30M	300.10M	293.80M	158.80M	87.10M	246.90M
Investing Cash Flow	-232.20M	-488.50M	-225.60M	-307.90M	-331.70M	-88.40M
Financing Cash Flow	-68.50M	262.00M	-155.20M	42.10M	316.30M	66.70M

Surgery Partners Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 15.53
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 15.53 is below the 20-day moving average (MA) of 16.42, below the 50-day MA of 18.26, and below the 200-day MA of 21.32, indicating a bearish trend. The MACD of -0.65 indicates Negative momentum. The RSI at 36.16 is Neutral, neither overbought nor oversold. The STOCH value of 21.88 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
NHC	74 Outperform	$2.16B	21.48	9.94%	1.80%	23.74%	-18.99%
UHS	74 Outperform	$14.20B	10.80	19.97%	0.35%	10.21%	39.58%
THC	74 Outperform	$17.47B	13.63	34.51%	―	-0.56%	-53.50%
HCA	70 Neutral	$108.17B	18.32	―	0.61%	6.82%	15.82%
EHC	64 Neutral	$10.79B	20.27	24.94%	0.65%	11.13%	27.53%
SGRY	53 Neutral	$2.01B	-11.46	-9.45%	―	10.14%	-182.12%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Surgery Partners Corporate Events

Surgery Partners Issues $425M Senior Notes for Flexibility

On December 16, 2025, Surgery Center Holdings, Inc., a subsidiary of Surgery Partners, Inc., issued an additional $425 million in 7.250% Senior Notes due 2032. This issuance is part of a single series with $800 million of existing notes issued in April 2024, and is expected to enhance the company’s financial flexibility and market positioning.

Surgery Partners Prices $425M Senior Notes Offering

On December 11, 2025, Surgery Partners, Inc. announced the pricing of $425 million in senior unsecured notes due 2032 by its subsidiary, Surgery Center Holdings, Inc. The offering, which is expected to close on December 16, 2025, will be used for general corporate purposes, including repaying outstanding borrowings. This move is part of Surgery Partners’ strategy to strengthen its financial position and support its growth in the healthcare services industry.

Surgery Partners Announces $425M Senior Notes Offering

On December 11, 2025, Surgery Partners, Inc. announced that its subsidiary, Surgery Center Holdings, Inc., plans to offer $425 million in additional 7.250% Senior Notes due 2032. The proceeds from this offering are intended for general corporate purposes, including repaying outstanding borrowings under its revolving credit facility. This move is part of the company’s strategy to manage its financial obligations and enhance its liquidity position, potentially impacting its market positioning and stakeholder interests.

Surgery Partners Appoints New COO and President

On November 12, 2025, Surgery Partners, Inc. announced the appointment of Justin Oppenheimer as Chief Operating Officer and National Group President, effective January 1, 2026. Oppenheimer brings a wealth of experience from his previous roles at the Hospital for Special Surgery, which may enhance Surgery Partners’ operational capabilities and strategic positioning in the healthcare sector.