Surgery Partners Inc. (SGRY)
NASDAQ:SGRY
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Surgery Partners
(NASDAQ:SGRY)
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Rating:51Neutral
Price Target:
$13.50
▼(-3.57% Downside)
Action:Reiterated
Date:06/06/26
Overall score reflects solid cash generation and reiterated guidance, offset by high leverage and ongoing net losses. Technical signals are neutral-to-soft, and valuation is constrained by negative earnings and no dividend yield.
Positive Factors
Consistent cash generation
Surgery Partners produces persistent operating and free cash flow (OCF ~280M TTM; FCF ~196M in 2025). This durable cash generation supports reinvestment, capital deployment and interest service over the medium term, improving resilience versus peers with weaker cash profiles.
Negative Factors
Elevated leverage
Leverage is meaningfully elevated (total debt ≈ $4B; debt/equity >2x; net leverage ~4.3x), constraining financial flexibility. High debt amplifies interest expense, limits ability to pursue opportunistic M&A, and increases vulnerability to volume or reimbursement shocks across the next several quarters.
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Positive Factors
Negative Factors
Consistent cash generation
Surgery Partners produces persistent operating and free cash flow (OCF ~280M TTM; FCF ~196M in 2025). This durable cash generation supports reinvestment, capital deployment and interest service over the medium term, improving resilience versus peers with weaker cash profiles.
Read all positive factors
Surgery Partners (SGRY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.79B
Dividend YieldN/A
Average Volume (3M)1.62M
Price to Earnings (P/E)―
Beta (1Y)1.19
Revenue Growth5.38%
EPS Growth61.15%
CountryUS
Employees15,000
SectorHealthcare
Sector Strength45
IndustryMedical - Care Facilities
Share Statistics
EPS (TTM)-0.59
Shares Outstanding130,788,160
10 Day Avg. Volume1,318,660
30 Day Avg. Volume1,616,831
Financial Highlights & Ratios
PEG Ratio0.47
Price to Book (P/B)1.15
Price to Sales (P/S)0.59
P/FCF Ratio10.05
Enterprise Value/Market Cap3.12
Enterprise Value/Revenue1.67
Enterprise Value/Gross Profit7.72
Enterprise Value/Ebitda5.75
Forecast
1Y Price Target
$17.21Price Target Upside22.96% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering8
EPS Forecast (FY)0.41
Revenue Forecast (FY)$3.41B
Surgery Partners Business Overview & Revenue Model
Company Description
Surgery Partners, Inc. operates a nationwide network of surgical facilities and associated medical services across the United States. Its business is categorized into two segments: Surgical Facility Services and Ancillary Services. These surgical ...
How the Company Makes Money
Surgery Partners generates revenue primarily by providing surgical and related healthcare services through its owned and operated facilities. The core revenue stream is patient service revenue: the company bills commercial insurers, Medicare, Medi...
Surgery Partners Earnings Call Summary
Earnings Call Date:May 05, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 04, 2026
Earnings Call Sentiment Neutral
Neutral — The call conveyed cautious optimism: the company reported solid revenue and EBITDA in line with expectations, strong MSK/robotics momentum, physician recruiting progress and reiterated full‑year guidance, but those positives are counterbalanced by below‑trend case growth, payer mix/provider tax headwinds, rising interest expense and elevated leverage that temper near‑term upside.Positive Updates
Quarterly Financial Performance in Line with Expectations
Net revenue of approximately $811 million; adjusted EBITDA of approximately $102 million (12.6% adjusted EBITDA margin); same‑facility net revenue growth of 4.4%; operating cash flow of ~$12 million (vs ~$6 million prior year).
Negative Updates
Below‑Trend Same‑Facility Case Growth
Same‑facility case growth was only 0.6% in Q1 (well below the company’s long‑term algorithm and vs ~6.5% in Q1 2025); management attributed part of the shortfall (~40 basis points) to weather‑related deferrals in higher‑volume, lower‑acuity markets (e.g., GI, ophthalmology).
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Q1-2026 Updates
Positive
Negative
Quarterly Financial Performance in Line with Expectations
Net revenue of approximately $811 million; adjusted EBITDA of approximately $102 million (12.6% adjusted EBITDA margin); same‑facility net revenue growth of 4.4%; operating cash flow of ~$12 million (vs ~$6 million prior year).
Read all positive updates
Company Guidance
Surgery Partners reiterated full-year 2026 guidance of $3.35 billion to $3.45 billion of revenue and adjusted EBITDA of at least $530 million (not including any potential M&A), and said Q2 should represent roughly 24%–24.5% of annual revenue and 23%–23.5% of annual adjusted EBITDA; they continue to target ~$200 million of annual capital deployment for M&A but deployed only ~$4 million in Q1 (estimated to add ~$7 million of 2026 revenue). For context, Q1 results included about $811 million of net revenue, ~$102 million of adjusted EBITDA (12.6% margin), same‑facility revenue growth of 4.4% and case growth of 0.6%, supply expense of ~27.2% of revenue, SWB ~30.5%, other operating expenses ~7.3%, DSO ~66 days, operating cash flow ~$12 million (vs. $6M prior year), maintenance capex ~$9 million, physician distributions $58 million, net leverage ~4.3x (credit agreement) and GAAP net debt/adjusted EBITDA ~5.1x; other metrics discussed include ~140 physicians recruited in Q1, 73 surgical robots in the portfolio, total‑joint ASC growth of 14.6% YoY, and an estimated full‑year headwind from provider taxes/Medicaid cuts of roughly $8 million.Surgery Partners Financial Statement Overview
Summary
Income Statement
52
Neutral
Balance Sheet
38
Negative
Cash Flow
63
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.34B | 3.31B | 3.11B | 2.74B | 2.54B | 2.23B |
| Gross Profit | 724.80M | 765.00M | 745.60M | 647.50M | 574.90M | 491.40M |
| EBITDA | 973.40M | 565.50M | 501.40M | 446.10M | 460.00M | 401.00M |
| Net Income | -76.10M | -77.90M | -168.10M | -11.90M | -54.60M | -70.90M |
Balance Sheet | ||||||
| Total Assets | 8.04B | 8.24B | 7.89B | 6.88B | 6.68B | 6.12B |
| Cash, Cash Equivalents and Short-Term Investments | 182.30M | 239.90M | 269.50M | 195.90M | 282.90M | 389.90M |
| Total Debt | 4.03B | 4.02B | 3.70B | 3.06B | 2.93B | 3.29B |
| Total Liabilities | 4.56B | 4.72B | 4.25B | 3.51B | 3.40B | 3.82B |
| Stockholders Equity | 1.69B | 1.71B | 1.79B | 1.99B | 2.00B | 1.09B |
Cash Flow | ||||||
| Free Cash Flow | 208.00M | 195.60M | 209.70M | 205.00M | 78.20M | 29.50M |
| Operating Cash Flow | 280.00M | 274.30M | 300.10M | 293.80M | 158.80M | 87.10M |
| Investing Cash Flow | -183.60M | -246.60M | -488.50M | -225.60M | -307.90M | -331.70M |
| Financing Cash Flow | -143.40M | -57.30M | 262.00M | -155.20M | 42.10M | 316.30M |
Surgery Partners Technical Analysis
Positive
14.00
Price Trends
13.54
Positive
13.96
Negative
16.63
Negative
Market Momentum
-0.07
Positive
50.27
Neutral
63.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SGRY, the sentiment is Positive. The current price of 14 is above the 20-day moving average (MA) of 13.73, above the 50-day MA of 13.54, and below the 200-day MA of 16.63, indicating a neutral trend. The MACD of -0.07 indicates Positive momentum. The RSI at 50.27 is Neutral, neither overbought nor oversold. The STOCH value of 63.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SGRY.
Surgery Partners Risk Analysis
Surgery Partners disclosed 41 risk factors in its most recent earnings report. Surgery Partners reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Surgery Partners Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $3.00B | 24.15 | 11.68% | 1.80% | 11.40% | 13.96% | |
72 Outperform | $10.32B | 16.94 | 25.35% | 0.65% | 10.05% | 23.59% | |
72 Outperform | $8.79B | 5.83 | 20.93% | 0.35% | 10.42% | 33.92% | |
68 Neutral | $13.96B | 8.26 | 40.55% | ― | 4.56% | 27.14% | |
58 Neutral | $82.55B | 12.41 | -123.20% | 0.61% | 6.71% | 29.32% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
51 Neutral | $1.79B | -23.13 | -4.43% | ― | 5.38% | 61.15% |
* Healthcare Sector Average
SGRY
Surgery Partners
13.71
-9.65
-41.31%
HCA
HCA Healthcare
372.13
1.61
0.44%
EHC
Encompass Health
104.01
-15.49
-12.96%
NHC
National Healthcare
192.13
89.71
87.60%
THC
Tenet Healthcare
162.06
-4.13
-2.49%
UHS
Universal Health
145.17
-32.09
-18.10%
Surgery Partners Corporate Events
Executive/Board ChangesShareholder Meetings
Surgery Partners Shareholders Reaffirm Board, Pay and Auditor
Positive
Jun 5, 2026
On June 5, 2026, Surgery Partners held its Annual Meeting of stockholders, with 130,798,102 shares of common stock entitled to vote as of the April 8 record date. Shareholders re-elected Class II directors Devin O’Reilly, Brent Turner and La...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.