Surgery Partners, Inc. (SGRY) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

Surgery Partners, Inc. (SGRY) Healthcare & Pipeline Overview

Surgery Partners, Inc. (SGRY) is a healthcare company operating a network of surgical facilities and ancillary services across 31 states. With a focus on ambulatory surgery centers and surgical hospitals, SGRY provides non-emergency surgical procedures in specialties like orthopedics, ophthalmology, and gastroenterology, positioning itself in the growing outpatient surgical market.

What Is the Investment Thesis for SGRY?

Surgery Partners presents a compelling investment case based on its established network of surgical facilities and the growing demand for outpatient surgical procedures. The company's focus on high-growth specialties such as orthopedics and gastroenterology positions it to benefit from favorable demographic trends and technological advancements. With a market capitalization of $1.78B, Surgery Partners operates in a fragmented market, offering opportunities for consolidation and expansion. Key catalysts include strategic acquisitions and partnerships to expand its geographic footprint and service offerings. However, investors should be aware of the company's negative profit margin of -2.3% and high beta of 1.99, indicating higher volatility compared to the market. Successful execution of its growth strategy and effective cost management will be crucial for driving long-term shareholder value.

Based on FMP financials and quantitative analysis

SGRY Key Highlights

Operates a network of 126 surgical facilities across 31 states, providing a broad geographic reach.

• Focuses on high-growth surgical specialties such as orthopedics, ophthalmology, and gastroenterology.
• Generates revenue through two segments: Surgical Facility Services and Ancillary Services.
• Maintains a gross margin of 22.8%, reflecting its ability to manage costs and pricing.
• Trades with a beta of 1.99, indicating higher volatility compared to the broader market.

Who Are SGRY's Competitors?

SGRY is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are SGRY's Key Strengths?

Extensive network of surgical facilities.

• Focus on high-growth specialties.
• Established relationships with physicians and payers.
• Cost-effective outpatient surgical care model.

What Are SGRY's Weaknesses?

Negative profit margin.

• High beta indicating higher volatility.
• Dependence on reimbursement rates from payers.
• Exposure to regulatory changes in the healthcare industry.

What Could Drive SGRY Stock Higher?

Potential acquisitions of smaller surgical centers to expand market share.

• Increasing demand for outpatient surgical procedures due to cost savings and convenience.
• Strategic partnerships with physician groups and hospitals to drive patient referrals.

What Are the Key Risks for SGRY?

Financial-distress signal — its Altman Z-Score of 0.89 sits in the distress zone (elevated bankruptcy risk).

• Negative return on equity (-5.2%) — the business is not currently generating profit on shareholder capital.
• Changes in healthcare regulations and reimbursement policies.
• Increased competition from other surgical facility operators.
• Rising operating costs, including labor and supplies.
• Medical malpractice claims and litigation.

What Are the Growth Opportunities for SGRY?

• Expansion through Acquisitions: Surgery Partners can pursue strategic acquisitions of surgical facilities and physician practices to expand its geographic footprint and service offerings. The fragmented nature of the industry provides ample opportunities for consolidation. By acquiring complementary businesses, Surgery Partners can enhance its market position and achieve economies of scale. The company should target acquisitions in high-growth markets and specialties to maximize returns. Timeline: Ongoing.
• Service Line Expansion: Surgery Partners can expand its service lines to include additional surgical specialties and ancillary services. By offering a broader range of services, the company can attract more patients and increase revenue per patient. Potential areas for expansion include cardiology, oncology, and women's health. Investing in advanced technologies and equipment will be crucial for supporting service line expansion. Timeline: Ongoing.
• Strategic Partnerships: Surgery Partners can form strategic partnerships with hospitals, physician groups, and payers to enhance its market access and improve patient outcomes. Collaborating with hospitals can provide access to a broader patient base and referral network. Partnering with physician groups can strengthen its clinical expertise and improve quality of care. Working with payers can help negotiate favorable reimbursement rates and improve patient access to its services. Timeline: Ongoing.
• Focus on Value-Based Care: Surgery Partners can focus on value-based care initiatives to improve patient outcomes and reduce costs. By implementing evidence-based practices and care pathways, the company can enhance the quality of care and reduce readmission rates. Participating in bundled payment programs and accountable care organizations can help align incentives and drive value. Investing in data analytics and technology will be crucial for supporting value-based care initiatives. Timeline: Ongoing.
• Digital Health Integration: Surgery Partners can integrate digital health technologies into its operations to improve patient engagement and streamline workflows. Implementing telehealth platforms can enable remote consultations and monitoring, improving access to care and reducing costs. Utilizing mobile apps and patient portals can enhance patient engagement and adherence to treatment plans. Investing in data analytics and artificial intelligence can help personalize care and improve outcomes. Timeline: Ongoing.

What Are SGRY's Competitive Advantages?

• Established network of surgical facilities in multiple states.
• Focus on high-growth surgical specialties.
• Relationships with physicians and payers.
• Ability to provide cost-effective surgical care in outpatient settings.

What Does SGRY Do?

Founded in 2004 and headquartered in Brentwood, Tennessee, Surgery Partners, Inc. has grown into a significant player in the healthcare industry, specifically within the surgical facility services sector. The company owns and operates a network of surgical facilities and ancillary services throughout the United States. Surgery Partners operates through two segments: Surgical Facility Services and Ancillary Services. The Surgical Facility Services segment includes ambulatory surgery centers and surgical hospitals that provide a range of non-emergency surgical procedures, including orthopedics, ophthalmology, gastroenterology, general surgery, and pain management. The Surgical Facility Services segment accounts for the majority of the company's revenue. The Ancillary Services segment consists of multi-specialty physician practices, urgent care facilities, and anesthesia services. As of December 31, 2021, Surgery Partners operated 126 surgical facilities, comprising 108 ambulatory surgical centers and 18 surgical hospitals, located across 31 states. This extensive network allows the company to serve a broad patient base and offer a comprehensive suite of surgical and related services. Surgery Partners aims to deliver high-quality, cost-effective surgical care in convenient outpatient settings.

What Products and Services Does SGRY Offer?

• Owns and operates a network of surgical facilities in the United States.
• Provides non-emergency surgical procedures in various specialties.
• Operates ambulatory surgery centers and surgical hospitals.
• Offers ancillary services such as diagnostic imaging and physical therapy.
• Manages multi-specialty physician practices and urgent care facilities.
• Provides anesthesia services.

How Does SGRY Make Money?

• Generates revenue from surgical procedures performed at its facilities.
• Earns fees for ancillary services such as diagnostic imaging and physical therapy.
• Receives payments from patients, insurance companies, and government payers.
• Focuses on providing cost-effective surgical care in outpatient settings.

What Industry Does SGRY Operate In?

Surgery Partners operates within the medical care facilities industry, which is experiencing growth driven by an aging population, technological advancements, and a shift towards outpatient surgical procedures. The industry is characterized by a fragmented competitive landscape, with numerous regional and national players. Surgery Partners competes with other surgical facility operators, hospitals, and physician practices. The trend towards value-based care and the increasing adoption of minimally invasive surgical techniques are shaping the industry. Surgery Partners' focus on ambulatory surgery centers aligns with the growing demand for cost-effective and convenient surgical services.

Who Are SGRY's Key Customers?

• Patients seeking non-emergency surgical procedures.
• Physicians who utilize the company's facilities for their patients.
• Insurance companies and government payers who reimburse the company for its services.

Return on equity for Surgery Partners, Inc. stands at -5.2%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is -1.1%, showing how much profit it generates from its asset base. Its free cash flow yield is 9.4%, a gauge of the cash the business throws off relative to its market value. A current ratio of 1.95 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is -4.5%, the inverse of the P/E and a quick read on earnings relative to price.

Surgery Partners, Inc. (SGRY) Valuation Context

Valued at $1.78B, SGRY is classified as a small-cap stock. Relative to its peer group, SGRY's quantitative score of 30/100 is below the peer average of 51/100.

Company Profile

Surgery Partners, Inc. operates in the Medical - Care Facilities industry within the Healthcare sector. It is headquartered in Brentwood, US. The company is led by CEO J. Eric Evans. SGRY has traded publicly since 2015.

Surgery Partners, Inc.'s Piotroski F-Score is 4/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 0.89 places it in the distress zone, a signal of elevated financial risk.

Wall Street analysts project Surgery Partners, Inc. revenue of about $3.41B for fiscal 2026, with EPS near $0.43. The estimate reflects 8 contributing analysts.

Over the past six months, Surgery Partners, Inc. insiders filed 30 SEC Form 4 transactions — 9 sales and 21 purchases. On net that is roughly 631K shares acquired (about $9.0M) — insiders putting money in tends to read as conviction.

SGRY Financials

SGRY Latest News

SGRY Analyst Consensus

SGRY MoonshotScore

Surgery Partners, Inc. Healthcare Stock: Key Questions Answered

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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