NasdaqGS:SRGA

Stock Analysis Report

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Executive Summary

Surgalign Holdings, Inc., a medical technology company, designs, develops, manufactures, and distributes biologic, metal, and synthetic implants worldwide. More Details


Snowflake Analysis

Slightly overvalued with worrying balance sheet.


Similar Companies

Share Price & News

How has Surgalign Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-6.1%

SRGA

-4.9%

US Medical Equipment

-4.1%

US Market


1 Year Return

-13.2%

SRGA

15.8%

US Medical Equipment

12.0%

US Market

Return vs Industry: SRGA underperformed the US Medical Equipment industry which returned 15.8% over the past year.

Return vs Market: SRGA underperformed the US Market which returned 12% over the past year.


Shareholder returns

SRGAIndustryMarket
7 Day-6.1%-4.9%-4.1%
30 Day1.7%-0.7%-0.2%
90 Day-34.5%0.9%2.8%
1 Year-13.2%-13.2%16.8%15.8%14.6%12.0%
3 Year-61.7%-61.7%66.8%62.3%35.8%26.8%
5 Year-54.3%-54.3%125.4%107.6%75.2%55.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Surgalign Holdings undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SRGA ($1.84) is trading below our estimate of fair value ($4.73)

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 has negative assets, so we can't compare its PB Ratio to the US Medical Equipment industry average.


Next Steps

Future Growth

How is Surgalign Holdings forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

95.5%

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 is expected to decline over the next 3 years (-4.4% per year).

High Growth Revenue: SRGA's revenue is forecast to decline over the next 3 years (-4.4% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Surgalign Holdings performed over the past 5 years?

-84.9%

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 84.9% 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 (-0.2%).


Return on Equity

High ROE: SRGA has a negative Return on Equity (-555.38%), as it is currently unprofitable.


Next Steps

Financial Health

How is Surgalign Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: SRGA's short term assets ($181.2M) do not cover its short term liabilities ($282.9M).

Long Term Liabilities: SRGA's short term assets ($181.2M) exceed its long term liabilities ($2.3M).


Debt to Equity History and Analysis

Debt Level: SRGA's debt to equity ratio (405.7%) is considered high.

Reducing Debt: SRGA's debt to equity ratio has increased from 32% to 405.7% over the past 5 years.


Balance Sheet


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: SRGA has less than a year of cash runway if free cash flow continues to reduce at historical rates of 17.1% each year


Next Steps

Dividend

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.


Next Steps

Management

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

0.3yrs

Average management tenure


CEO

Terry Rich (52 yo)

0.25

Tenure

Mr. Terry M. Rich has been President, Chief Executive Officer and Director of Surgalign Holdings, Inc since July 2020. He was President of Global Spine at RTI Surgical Holdings, Inc., since December 3, 201 ...


Leadership Team

NamePositionTenureCompensationOwnership
Jonathon Singer
Chief Operating3.08yrsUS$1.00m0.70%
$ 1.0m
Joshua DeRienzis
VP, General Counsel & Corporate Secretaryno dataUS$820.50k0.18%
$ 266.3k
John Varela
Executive Vice President of Global Operationsno dataUS$555.11k0.096%
$ 142.5k
Olivier Visa
President of Global OEM0.83yrUS$577.43k0.17%
$ 248.5k
Terry Rich
President0.25yrno data0.36%
$ 538.6k
Ryan Bartolucci
VP & Chief Accounting Officerno datano data0.096%
$ 142.9k
Molly Poarch
Director of Corporate Communicationsno datano datano data
Douglas Bireley
Executive Vice President of Marketing0.17yrno datano data
Renu Menezes
Executive Vice President of Human Resources0.33yrno datano data
Enrico Sangiorgio
Executive Vice President of Internationalno datano datano data
William Durall
Chief Commercial Officer0.33yrno data0.16%
$ 234.7k
Bryan Cornwall
Executive Vice President of Research and Clinical Affairs0.33yrno datano data

0.3yrs

Average Tenure

51.5yo

Average Age

Experienced Management: SRGA's management team is not considered experienced ( 0.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Terry Rich
President0.25yrno data0.36%
$ 538.6k
Paul Thomas
Independent Director4.33yrsUS$162.90k0.12%
$ 184.8k
Jeffrey Lightcap
Independent Director1.58yrsUS$133.33kno data
Mark Stolper
Lead Independent Director0.25yrUS$165.00k0.11%
$ 168.3k
Nicholas Valeriani
Independent Director4.33yrsUS$160.00k0.14%
$ 205.0k
Thomas McEachin
Independent Director4.83yrsUS$167.50k0.14%
$ 203.2k
Shirley Weis
Independent Director6yrsUS$168.30k0.15%
$ 223.6k
Stuart Simpson
Independent Chairman0.25yrno data0.35%
$ 516.2k

3.0yrs

Average Tenure

62yo

Average Age

Experienced Board: SRGA's board of directors are not considered experienced ( 3 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 been diluted in the past year, with total shares outstanding growing by 9.4%.


Top Shareholders

Company Information

Surgalign Holdings, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Surgalign Holdings, Inc.
  • Ticker: SRGA
  • Exchange: NasdaqGS
  • Founded: 1997
  • Industry: Health Care Supplies
  • Sector: Healthcare
  • Market Cap: US$148.766m
  • Shares outstanding: 80.85m
  • Website: https://www.surgalign.com

Number of Employees


Location

  • Surgalign Holdings, Inc.
  • 520 Lake Cook Road
  • Suite 315
  • Deerfield
  • Illinois
  • 60015
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SRGANasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDAug 2000
RT2DB (Deutsche Boerse AG)YesCommon StockDEEURAug 2000

Biography

Surgalign Holdings, Inc., a medical technology company, designs, develops, manufactures, and distributes biologic, metal, and synthetic implants worldwide. It offers coflex interlaminar stabilization devic ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/30 03:28
End of Day Share Price2020/10/29 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.