Surgalign Holdings, Inc., a medical technology company, develops, manufactures, distributes, and markets spine implants worldwide.
Surgalign Holdings Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$0.97|
|52 Week High||US$0.88|
|52 Week Low||US$3.27|
|1 Month Change||-27.07%|
|3 Month Change||-9.35%|
|1 Year Change||-50.51%|
|3 Year Change||-78.73%|
|5 Year Change||-63.53%|
|Change since IPO||-93.10%|
Recent News & Updates
Sizing Up Surgalign
Surgalign Holdings, Inc. (SRGA) completed its metamorphosis into a pure-play spine company (and cleaned up its balance sheet) with the sale of its OEM tissue business in July 2020. However, a continued cash bleed owed to the pandemic has necessitated two highly dilutive secondaries in 2021 and another one – with its lowered outlook – is likely before year-end. With its digital surgery platform set to launch (subject to FDA allowance) in late 2021 and significant recent insider buying, this small-cap merited a deep dive. A full investment analysis follows below.
Surgalign Holdings: Insiders Are Buying
Insiders own ~8.1% of the 139.41M shares outstanding. The CEO and 2 Directors purchased shares in the open market from 11-Aug-2021 to 16-Aug-2021. Holo Surgical platform approval expected in Q4 2021 with an 85% likelihood.
|SRGA||US Medical Equipment||US Market|
Return vs Industry: SRGA underperformed the US Medical Equipment industry which returned 23.1% over the past year.
Return vs Market: SRGA underperformed the US Market which returned 30.3% over the past year.
Stable Share Price: SRGA is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 11% a week.
Volatility Over Time: SRGA's weekly volatility (11%) has been stable over the past year, but is still higher than 75% of US stocks.
About the Company
Surgalign Holdings, Inc., a medical technology company, develops, manufactures, distributes, and markets spine implants worldwide. It offers products for thoracolumbar procedures, including Streamline TL Spinal Fixation system, a system for degenerative and complex spine procedures; and Streamline MIS Spinal Fixation system, a range of implants and instruments used via a percutaneous or mini-open approach; and interbody fusion devices, as well as products for cervical procedures, such as CervAlign ACP system, a comprehensive anterior cervical plate system; Fortilink-C IBF system, a cervical interbody fusion device that utilizes TETRAfuse 3D technology; and Streamline OCT system, a range of implants used in the occipito-cervico-thoracic posterior spine. The company also provides motion preservation systems comprising Coflex Interlaminar Stabilization device for the treatment of moderate to severe lumbar spinal stenosis in conjunction with decompression; HPS 2.0 Universal Fixation system, a pedicle screw system used for posterior stabilization of the thoracolumbar spine; SImmetry SI Joint Fusion system, a minimally invasive surgical implant system to decrease opioid use, pain, and disability.
Surgalign Holdings Fundamentals Summary
|SRGA fundamental statistics|
Is SRGA overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|SRGA income statement (TTM)|
|Cost of Revenue||US$35.73m|
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
|Earnings per share (EPS)||-1.26|
|Net Profit Margin||-169.33%|
How did SRGA perform over the long term?See historical performance and comparison
Is Surgalign Holdings undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: SRGA ($0.97) is trading below our estimate of fair value ($6.97)
Significantly Below Fair Value: SRGA is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: SRGA is unprofitable, so we can't compare its PE Ratio to the US Medical Equipment industry average.
PE vs Market: SRGA is unprofitable, so we can't compare its PE Ratio to the US market.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate SRGA's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: SRGA is good value based on its PB Ratio (2.5x) compared to the US Medical Equipment industry average (4.3x).
How is Surgalign Holdings forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: SRGA is forecast to remain unprofitable over the next 3 years.
Earnings vs Market: SRGA is forecast to remain unprofitable over the next 3 years.
High Growth Earnings: SRGA is forecast to remain unprofitable over the next 3 years.
Revenue vs Market: SRGA's revenue (10.3% per year) is forecast to grow faster than the US market (9.9% per year).
High Growth Revenue: SRGA's revenue (10.3% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if SRGA's Return on Equity is forecast to be high in 3 years time
How has Surgalign Holdings performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: SRGA is currently unprofitable.
Growing Profit Margin: SRGA is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: SRGA is unprofitable, and losses have increased over the past 5 years at a rate of 62.9% per year.
Accelerating Growth: Unable to compare SRGA's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: SRGA is unprofitable, making it difficult to compare its past year earnings growth to the Medical Equipment industry (36.1%).
Return on Equity
High ROE: SRGA has a negative Return on Equity (-327.8%), as it is currently unprofitable.
How is Surgalign Holdings's financial position?
Financial Position Analysis
Short Term Liabilities: SRGA's short term assets ($149.6M) exceed its short term liabilities ($52.8M).
Long Term Liabilities: SRGA's short term assets ($149.6M) exceed its long term liabilities ($64.2M).
Debt to Equity History and Analysis
Debt Level: SRGA is debt free.
Reducing Debt: SRGA has no debt compared to 5 years ago when its debt to equity ratio was 32.4%.
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: SRGA has less than a year of cash runway based on its current free cash flow.
Forecast Cash Runway: Insufficient data to determine if SRGA has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.
What is Surgalign Holdings's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate SRGA's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate SRGA's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if SRGA's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if SRGA'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 SRGA's dividend in 3 years as they are not forecast to pay a notable one for the US market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Terry Rich (53 yo)
Mr. Terry M. Rich has been President, Chief Executive Officer and Director of Surgalign Holdings, Inc. since July 2020. He joined Surgalign in November 2019. He was President of Global Spine at Surgalign H...
CEO Compensation Analysis
Compensation vs Market: Terry's total compensation ($USD1.72M) is above average for companies of similar size in the US market ($USD542.68K).
Compensation vs Earnings: Insufficient data to compare Terry's compensation with company performance.
Experienced Management: SRGA's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.
Experienced Board: SRGA's board of directors are not considered experienced ( 1.3 years average tenure), which suggests a new board.
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: SRGA insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 87.1%.
Surgalign Holdings, Inc.'s employee growth, exchange listings and data sources
- Name: Surgalign Holdings, Inc.
- Ticker: SRGA
- Exchange: NasdaqGS
- Founded: 1997
- Industry: Health Care Supplies
- Sector: Healthcare
- Market Cap: US$133.760m
- Shares outstanding: 137.90m
- Website: https://www.surgalign.com
Number of Employees
- Surgalign Holdings, Inc.
- 520 Lake Cook Road
- Suite 315
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/10/23 22:30|
|End of Day Share Price||2021/10/22 00:00|
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.