DB:1SP

Stock Analysis Report

Executive Summary

Surgery Partners, Inc., through its subsidiaries, owns and operates a network of surgical facilities and related services in the United States.


Snowflake Analysis

Adequate balance sheet with concerning outlook.


Similar Companies

Share Price & News

How has Surgery Partners's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1SP's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-8.2%

1SP

-4.4%

DE Healthcare

-6.8%

DE Market


1 Year Return

44.0%

1SP

-0.8%

DE Healthcare

6.5%

DE Market

Return vs Industry: 1SP exceeded the German Healthcare industry which returned -0.3% over the past year.

Return vs Market: 1SP exceeded the German Market which returned 6.1% over the past year.


Shareholder returns

1SPIndustryMarket
7 Day-8.2%-4.4%-6.8%
30 Day-3.1%-1.2%-3.7%
90 Day27.6%-0.8%-3.6%
1 Year44.0%44.0%1.0%-0.8%9.8%6.5%
3 Year-23.0%-23.0%-25.5%-28.2%6.8%-2.6%
5 Yearn/a-2.1%-7.5%12.5%-2.9%

Price Volatility Vs. Market

How volatile is Surgery Partners's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Surgery Partners undervalued compared to its fair value and its price relative to the market?

2.48x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: 1SP (€16.5) is trading above our estimate of fair value (€1.07)

Significantly Below Fair Value: 1SP is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 1SP is unprofitable, so we can't compare its PE Ratio to the Healthcare industry average.

PE vs Market: 1SP is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1SP's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1SP is overvalued based on its PB Ratio (2.6x) compared to the DE Healthcare industry average (1.5x).


Next Steps

Future Growth

How is Surgery Partners forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

58.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1SP is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: 1SP is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: 1SP is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: 1SP's revenue (6.9% per year) is forecast to grow faster than the German market (5.1% per year).

High Growth Revenue: 1SP's revenue (6.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1SP is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has Surgery Partners performed over the past 5 years?

-51.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1SP is currently unprofitable.

Growing Profit Margin: 1SP is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 1SP is unprofitable, and losses have increased over the past 5 years at a rate of -51% per year.

Accelerating Growth: Unable to compare 1SP's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 1SP is unprofitable, making it difficult to compare its past year earnings growth to the Healthcare industry (6.2%).


Return on Equity

High ROE: 1SP has a negative Return on Equity (-4.96%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Surgery Partners's financial position?


Financial Position Analysis

Short Term Liabilities: 1SP's short term assets ($517.9M) exceed its short term liabilities ($381.5M).

Long Term Liabilities: 1SP's short term assets ($517.9M) do not cover its long term liabilities ($2.8B).


Debt to Equity History and Analysis

Debt Level: 1SP's debt to equity ratio (134.8%) is considered high.

Reducing Debt: 1SP's debt to equity ratio has reduced from 691.6% to 134.8% over the past 5 years.


Balance Sheet

Inventory Level: 1SP has a low level of unsold assets or inventory.

Debt Coverage by Assets: 1SP's debt is not covered by short term assets (assets are 0.2x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable 1SP has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: 1SP is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 20.7% per year.


Next Steps

Dividend

What is Surgery Partners's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage1.9%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 1SP's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 1SP's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 1SP's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1SP's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 1SP's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.5yrs

Average management tenure


CEO

J. Evans (40yo)

0.08yrs

Tenure

0

Mr. J. Eric Evans has been the Chief Executive Officer and Director at Surgery Partners, Inc. since January 13, 2020 and served as its Executive Vice President and Chief Operating Officer since April 1, 20 ...


Leadership Team

NamePositionTenureCompensationOwnership
Wayne DeVeydt
Executive Chairman0.08yrsUS$11.43m0.25% $2.1m
Thomas Cowhey
Executive VP1.8yrsUS$2.33m0.14% $1.2m
Jennifer Baldock
Executive VP1.1yrsUS$1.13m0.23% $1.9m
George Goodwin
President of ASC Group5.3yrsUS$874.91k0.12% $1.0m
Dennis Dean
Executive Officer1.5yrsUS$963.19k0.24% $2.0m
Clifford Adlerz
Consultant & Director2.3yrsUS$823.92k0.046% $381.2k
J. Evans
CEO & Director0.08yrsno datano data
Matt Petty
Senior VP & Chief Information Officer6.1yrsno datano data
Roxanne Womack
Senior VP & Chief Compliance Officer1.3yrsno datano data
Laura Brocklehurst
Senior VP & Chief Human Resources Officer0.6yrsno datano data

1.5yrs

Average Tenure

48yo

Average Age

Experienced Management: 1SP's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Wayne DeVeydt
Executive Chairman0.08yrsUS$11.43m0.25% $2.1m
Clifford Adlerz
Consultant & Director2.3yrsUS$823.92k0.046% $381.2k
J. Evans
CEO & Director0.08yrsno datano data
William Turner
Independent Director4.2yrsUS$230.00k0.061% $504.5k
Teresa DeLuca
Independent Director3.4yrsUS$215.00k0.055% $451.6k
John Deane
Independent Director0.8yrsno data0.031% $251.9k
T. O'Reilly
Chairman of the Board2.5yrsno datano data
Andrew Kaplan
Director1.5yrsno datano data

1.9yrs

Average Tenure

53yo

Average Age

Experienced Board: 1SP's board of directors are not considered experienced ( 1.9 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Surgery Partners, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Surgery Partners, Inc.
  • Ticker: 1SP
  • Exchange: DB
  • Founded: 2004
  • Industry: Health Care Facilities
  • Sector: Healthcare
  • Market Cap: US$894.483m
  • Listing Market Cap: US$822.298m
  • Shares outstanding: 50.00m
  • Website: https://www.surgerypartners.com

Number of Employees


Location

  • Surgery Partners, Inc.
  • 310 Seven Springs Way
  • Suite 500
  • Brentwood
  • Tennessee
  • 37027
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SGRYNasdaqGS (Nasdaq Global Select)YesNew Common StockUSUSDOct 2015
1SPDB (Deutsche Boerse AG)YesNew Common StockDEEUROct 2015

Biography

Surgery Partners, Inc., through its subsidiaries, owns and operates a network of surgical facilities and related services in the United States. The company operates through three segments: Surgical Facility Services, Ancillary Services, and Optical 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 a suite of ancillary services, which consist of a diagnostic laboratory, multi-specialty physician practices, urgent care facilities, anesthesia services, and optical services. It also operates optical laboratory that manufactures eyewear. As of December 31, 2018, the company owned or operated a portfolio of 123 surgical facilities, including 108 ambulatory surgical centers and 15 surgical hospitals in 31 states. Surgery Partners, Inc. was founded in 2004 and is headquartered in Brentwood, Tennessee. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/26 23:22
End of Day Share Price2020/02/26 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.