NasdaqGS:SGRY

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

Fundamentals

Adequate balance sheet and overvalued.

Risks

  • Surgery Partners has significant price volatility in the past 3 months.

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


Market Performance


7 Day Return

-5.1%

SGRY

0.008%

US Healthcare

-0.2%

US Market


1 Year Return

-50.1%

SGRY

-9.0%

US Healthcare

1.1%

US Market

SGRY underperformed the Healthcare industry which returned -9.4% over the past year.

SGRY underperformed the Market in United States of America which returned 1.6% over the past year.


Share holder returns

SGRYIndustryMarket
7 Day-5.1%0.008%-0.2%
30 Day26.1%-0.8%2.5%
90 Day-8.2%-1.5%1.6%
1 Year-50.1%-50.1%-7.6%-9.0%3.4%1.1%
3 Year-60.8%-60.8%29.6%24.4%45.2%35.8%
5 Yearn/a66.2%56.2%62.6%44.8%

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

9 months ago | Simply Wall St

What Should You Know About Surgery Partners Inc's (NASDAQ:SGRY) Capital Returns?

Valuation

Is Surgery Partners undervalued based on future cash flows and its price relative to the stock market?

1.04x

Price to Book (PB) ratio


Intrinsic Value Based on Future Cash Flows

Surgery Partners's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Surgery Partners's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Surgery Partners is loss making, we can't compare its value to the US Healthcare industry average.

Surgery Partners is loss making, we can't compare the value of its earnings to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Surgery Partners, we can't assess if its growth is good value.


Price Based on Value of Assets

Surgery Partners is good value based on assets compared to the US Healthcare industry average.


Next Steps

Future Growth

How is Surgery Partners expected to perform in the next 1 to 3 years based on estimates from 6 analysts?

68.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Surgery Partners's revenue is expected to grow by 6.6% yearly, however this is not considered high growth (20% yearly).

Surgery Partners is not considered high growth as it is expected to be loss making for the next 1-3 years.

Surgery Partners's revenue growth is positive but not above the United States of America market average.

Unable to compare Surgery Partners's earnings growth to the United States of America market average as it is expected to be loss making during the next 1-3 years.

Unable to compare Surgery Partners's earnings growth to the low risk savings rate as it is expected to be loss making during the next 1-3 years.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Surgery Partners will efficiently use shareholders’ funds in the future (Return on Equity greater than 20%) as it is not expected to be profitable.


Next Steps

Past Performance

How has Surgery Partners performed over the past 5 years?

-51.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Surgery Partners does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare Surgery Partners's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Surgery Partners's 1-year growth to the US Healthcare industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Surgery Partners has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if Surgery Partners has efficiently used its assets last year compared to the US Healthcare industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if Surgery Partners improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Surgery Partners's financial position?


Financial Position Analysis

Surgery Partners is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Surgery Partners's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Surgery Partners's level of debt (132.7%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (862.5% vs 132.7% today).


Balance Sheet

Low level of unsold assets.

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.

Whilst loss making Surgery Partners has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.

Whilst loss making Surgery Partners has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -4.7% per year.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate Surgery Partners's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Surgery Partners's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Surgery Partners has not reported any payouts.

Unable to verify if Surgery Partners's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Surgery Partners has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of Surgery Partners's dividends in 3 years as they are not expected to pay a notable one for United States of America.


Next Steps

Management

What is the CEO of Surgery Partners's salary, the management and board of directors tenure and is there insider trading?

1.5yrs

Average management tenure


CEO

Wayne DeVeydt (49yo)

1.7yrs

Tenure

US$11,425,442

Compensation

Mr. Wayne Scott DeVeydt has been the Chief Executive Officer and Director of Surgery Partners, Inc. since January 4, 2018. Mr. DeVedyt served as a Senior Advisor to the Global Healthcare division of Bain C ...


CEO Compensation Analysis

Wayne's remuneration is higher than average for companies of similar size in United States of America.

Insufficient data for Wayne to compare compensation growth.


Management Age and Tenure

1.5yrs

Average Tenure

48yo

Average Age

The average tenure for the Surgery Partners management team is less than 2 years, this suggests a new team.


Board Age and Tenure

1.9yrs

Average Tenure

53yo

Average Age

The average tenure for the Surgery Partners board of directors is less than 3 years, this suggests a new board.


Insider Trading

More shares have been bought than sold by Surgery Partners individual insiders in the past 3 months.


Recent Insider Transactions

BuyUS$6,65010 Sep 19
Teresa DeLuca
EntityIndividual
Role
Member of the Board of Directors
Director
Shares1,000
Max PriceUS$6.65
BuyUS$150,00021 Aug 19
Thomas Cowhey
EntityIndividual
Role
Chief Financial Officer
Executive VP
Shares25,000
Max PriceUS$6.00
BuyUS$148,75021 Aug 19
Jason Evans
EntityIndividual
Shares25,000
Max PriceUS$5.95
SellUS$78,25720 May 19
Adam Feinstein
EntityIndividual
Shares7,865
Max PriceUS$9.95

Ownership Breakdown


Management Team

  • Clifford Adlerz (65yo)

    Consultant & Director

    • Tenure: 1.9yrs
    • Compensation: US$2.04m
  • Wayne DeVeydt (49yo)

    CEO & Director

    • Tenure: 1.7yrs
    • Compensation: US$11.43m
  • Tom Cowhey (47yo)

    Executive VP

    • Tenure: 1.4yrs
    • Compensation: US$2.33m
  • George Goodwin (58yo)

    President of American Group

    • Tenure: 4.8yrs
    • Compensation: US$874.91k
  • J. Evans (41yo)

    Executive VP & COO

    • Tenure: 0.4yrs
  • Jennifer Baldock (48yo)

    Executive VP & Chief Legal Officer

    • Tenure: 4.4yrs
    • Compensation: US$1.13m
  • Dennis Dean (47yo)

    Executive Officer

    • Tenure: 1.1yrs
    • Compensation: US$963.19k
  • Laura Brocklehurst

    Senior VP & Chief Human Resources Officer

    • Tenure: 0.2yrs
  • Matt Petty

    Senior VP & Chief Information Officer

    • Tenure: 5.7yrs
  • Roxanne Womack

    Senior VP & Chief Compliance Officer

    • Tenure: 0.8yrs

Board Members

  • Clifford Adlerz (65yo)

    Consultant & Director

    • Tenure: 1.9yrs
    • Compensation: US$2.04m
  • William Turner (53yo)

    Director

    • Tenure: 3.8yrs
    • Compensation: US$230.00k
  • Wayne DeVeydt (49yo)

    CEO & Director

    • Tenure: 1.7yrs
    • Compensation: US$11.43m
  • Teresa DeLuca (53yo)

    Director

    • Tenure: 3yrs
    • Compensation: US$215.00k
  • John Deane (57yo)

    Director

    • Tenure: 0.3yrs
  • T. O'Reilly (44yo)

    Chairman of the Board

    • Tenure: 2.1yrs
  • Andrew Kaplan

    Director

    • Tenure: 1.1yrs

Company Information

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


Key Information

  • Name: Surgery Partners, Inc.
  • Ticker: SGRY
  • Exchange: NasdaqGS
  • Founded: 2004
  • Industry: Health Care Facilities
  • Sector: Healthcare
  • Market Cap: US$380.477m
  • Shares outstanding: 49.48m
  • 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 Facilit ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/20 01:21
End of Day Share Price2019/09/19 00:00
Earnings2019/06/30
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.