SURGERY PARTNERS INC (SGRY) Stock Fundamental Analysis
NASDAQ:SGRY - Nasdaq - US86881A1007 - Common Stock - Currency: USD
Taking everything into account, SGRY scores 3 out of 10 in our fundamental rating. SGRY was compared to 103 industry peers in the Health Care Providers & Services industry. There are concerns on the financial health of SGRY while its profitability can be described as average. While showing a medium growth rate, SGRY is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
SGRY had positive earnings in the past year.
In the past year SGRY had a positive cash flow from operations.
SGRY had negative earnings in each of the past 5 years.
Each year in the past 5 years SGRY had a positive operating cash flow.
1.2 Ratios
SGRY has a Return On Assets (-2.43%) which is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of -11.11%, SGRY is doing worse than 61.16% of the companies in the same industry.
SGRY has a Return On Invested Capital (5.07%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for SGRY is below the industry average of 9.38%.
The last Return On Invested Capital (5.07%) for SGRY is above the 3 year average (5.03%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.43% | ||
| ROE | -11.11% | ||
| ROIC | 5.07% |
ROA(3y)-1.04%
ROA(5y)-1.46%
ROE(3y)-4.24%
ROE(5y)-9.69%
ROIC(3y)5.03%
ROIC(5y)4.49%
1.3 Margins
With an excellent Operating Margin value of 14.92%, SGRY belongs to the best of the industry, outperforming 86.41% of the companies in the same industry.
In the last couple of years the Operating Margin of SGRY has remained more or less at the same level.
SGRY has a Gross Margin of 26.51%. This is comparable to the rest of the industry: SGRY outperforms 52.43% of its industry peers.
In the last couple of years the Gross Margin of SGRY has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.92% | ||
| PM (TTM) | N/A | ||
| GM | 26.51% |
OM growth 3Y3.68%
OM growth 5Y1.41%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.83%
GM growth 5Y-0.73%
2. Health
2.1 Basic Checks
SGRY has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, SGRY has more shares outstanding
SGRY has more shares outstanding than it did 5 years ago.
The debt/assets ratio for SGRY is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.82, we must say that SGRY is in the distress zone and has some risk of bankruptcy.
SGRY's Altman-Z score of 0.82 is on the low side compared to the rest of the industry. SGRY is outperformed by 74.76% of its industry peers.
The Debt to FCF ratio of SGRY is 20.49, which is on the high side as it means it would take SGRY, 20.49 years of fcf income to pay off all of its debts.
SGRY's Debt to FCF ratio of 20.49 is on the low side compared to the rest of the industry. SGRY is outperformed by 60.19% of its industry peers.
A Debt/Equity ratio of 1.98 is on the high side and indicates that SGRY has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.98, SGRY is doing worse than 74.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.98 | ||
| Debt/FCF | 20.49 | ||
| Altman-Z | 0.82 |
ROIC/WACC0.58
WACC8.81%
2.3 Liquidity
A Current Ratio of 1.89 indicates that SGRY should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.89, SGRY is in the better half of the industry, outperforming 69.90% of the companies in the same industry.
A Quick Ratio of 1.73 indicates that SGRY should not have too much problems paying its short term obligations.
The Quick ratio of SGRY (1.73) is better than 64.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.89 | ||
| Quick Ratio | 1.73 |
3. Growth
3.1 Past
The earnings per share for SGRY have decreased strongly by -10.64% in the last year.
The Revenue has grown by 13.52% in the past year. This is quite good.
SGRY shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.20% yearly.
EPS 1Y (TTM)-10.64%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-19.05%
Revenue 1Y (TTM)13.52%
Revenue growth 3Y11.86%
Revenue growth 5Y11.2%
Sales Q2Q%8.41%
3.2 Future
Based on estimates for the next years, SGRY will show a very strong growth in Earnings Per Share. The EPS will grow by 23.05% on average per year.
SGRY is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.13% yearly.
EPS Next Y-4.47%
EPS Next 2Y9.79%
EPS Next 3Y13.43%
EPS Next 5Y23.05%
Revenue Next Year9.65%
Revenue Next 2Y9.43%
Revenue Next 3Y9.68%
Revenue Next 5Y10.13%
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 27.64 indicates a quite expensive valuation of SGRY.
SGRY's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.54, SGRY is valued at the same level.
Based on the Price/Forward Earnings ratio of 20.49, the valuation of SGRY can be described as rather expensive.
SGRY's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.28, SGRY is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.64 | ||
| Fwd PE | 20.49 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SGRY is valued a bit cheaper than the industry average as 66.02% of the companies are valued more expensively.
SGRY's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. SGRY is cheaper than 65.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.17 | ||
| EV/EBITDA | 10.02 |
4.3 Compensation for Growth
SGRY's earnings are expected to grow with 13.43% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y9.79%
EPS Next 3Y13.43%
5. Dividend
5.1 Amount
No dividends for SGRY!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
23.22
+0.81 (+3.61%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners71.88%
Inst Owner Change-0.63%
Ins Owners1.32%
Ins Owner Change0.34%
Market Cap2.98B
Analysts81.05
Price Target32.08 (38.16%)
Short Float %15.53%
Short Ratio7.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-4.69%
Min EPS beat(2)-24.34%
Max EPS beat(2)14.96%
EPS beat(4)2
Avg EPS beat(4)-8.11%
Min EPS beat(4)-26.04%
Max EPS beat(4)14.96%
EPS beat(8)6
Avg EPS beat(8)33.9%
EPS beat(12)8
Avg EPS beat(12)145.55%
EPS beat(16)11
Avg EPS beat(16)116.96%
Revenue beat(2)1
Avg Revenue beat(2)0.12%
Min Revenue beat(2)-2.1%
Max Revenue beat(2)2.34%
Revenue beat(4)2
Avg Revenue beat(4)-0.02%
Min Revenue beat(4)-2.1%
Max Revenue beat(4)2.34%
Revenue beat(8)3
Avg Revenue beat(8)-0.73%
Revenue beat(12)4
Avg Revenue beat(12)-1.04%
Revenue beat(16)6
Avg Revenue beat(16)-0.9%
PT rev (1m)0%
PT rev (3m)0.21%
EPS NQ rev (1m)1.08%
EPS NQ rev (3m)-29.88%
EPS NY rev (1m)0%
EPS NY rev (3m)-13.03%
Revenue NQ rev (1m)0.14%
Revenue NQ rev (3m)0.11%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.64 | ||
| Fwd PE | 20.49 | ||
| P/S | 0.94 | ||
| P/FCF | 17.17 | ||
| P/OCF | 11.21 | ||
| P/B | 1.71 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.02 |
EPS(TTM)0.84
EY3.62%
EPS(NY)1.13
Fwd EY4.88%
FCF(TTM)1.35
FCFY5.82%
OCF(TTM)2.07
OCFY8.92%
SpS24.76
BVpS13.58
TBVpS-26.77
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.43% | ||
| ROE | -11.11% | ||
| ROCE | 6.42% | ||
| ROIC | 5.07% | ||
| ROICexc | 5.23% | ||
| ROICexgc | 18.9% | ||
| OM | 14.92% | ||
| PM (TTM) | N/A | ||
| GM | 26.51% | ||
| FCFM | 5.46% |
ROA(3y)-1.04%
ROA(5y)-1.46%
ROE(3y)-4.24%
ROE(5y)-9.69%
ROIC(3y)5.03%
ROIC(5y)4.49%
ROICexc(3y)5.23%
ROICexc(5y)4.72%
ROICexgc(3y)18.5%
ROICexgc(5y)17.9%
ROCE(3y)6.37%
ROCE(5y)5.69%
ROICexcg growth 3Y0.78%
ROICexcg growth 5Y0.88%
ROICexc growth 3Y4.99%
ROICexc growth 5Y3.37%
OM growth 3Y3.68%
OM growth 5Y1.41%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.83%
GM growth 5Y-0.73%
F-Score3
Asset Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.98 | ||
| Debt/FCF | 20.49 | ||
| Debt/EBITDA | 5.48 | ||
| Cap/Depr | 59.34% | ||
| Cap/Sales | 2.9% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 42.21% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.89 | ||
| Quick Ratio | 1.73 | ||
| Altman-Z | 0.82 |
F-Score3
WACC8.81%
ROIC/WACC0.58
Cap/Depr(3y)68.21%
Cap/Depr(5y)61.64%
Cap/Sales(3y)3.1%
Cap/Sales(5y)2.84%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-10.64%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-19.05%
EPS Next Y-4.47%
EPS Next 2Y9.79%
EPS Next 3Y13.43%
EPS Next 5Y23.05%
Revenue 1Y (TTM)13.52%
Revenue growth 3Y11.86%
Revenue growth 5Y11.2%
Sales Q2Q%8.41%
Revenue Next Year9.65%
Revenue Next 2Y9.43%
Revenue Next 3Y9.68%
Revenue Next 5Y10.13%
EBIT growth 1Y8.28%
EBIT growth 3Y15.97%
EBIT growth 5Y12.77%
EBIT Next Year47.3%
EBIT Next 3Y22.99%
EBIT Next 5YN/A
FCF growth 1Y159.43%
FCF growth 3Y92.28%
FCF growth 5Y30.27%
OCF growth 1Y72.9%
OCF growth 3Y51.04%
OCF growth 5Y18.3%