Breaking Down Surgery Partners, Inc. (SGRY) Financial Health: Key Insights for Investors

Are you keeping a close watch on Surgery Partners, Inc. (SGRY) and trying to decipher its financial performance? Did you know that in 2024, the company's full-year revenue grew by 13.5%, reaching $3.1 billion, and its Adjusted EBITDA hit $508.2 million? But what does this mean for investors, especially considering the net loss of $168.1 million? Let's dive into the key insights that can help you assess Surgery Partners' financial health and strategic direction.

Surgery Partners, Inc. (SGRY) Revenue Analysis

Understanding Surgery Partners, Inc.'s revenue streams is crucial for investors seeking insights into the company's financial health. A detailed breakdown of their revenue sources reveals the areas driving their financial performance.

Surgery Partners, Inc. primarily generates revenue through:

• Surgical Services: This constitutes the largest portion of their revenue, derived from surgical procedures performed at their facilities.
• Ancillary Services: These include services that support surgical procedures, such as imaging, laboratory, and pharmacy services.
• Other Services: This category may encompass other healthcare-related services provided by the company.

Analyzing the year-over-year revenue growth rate provides valuable insights into Surgery Partners, Inc.'s performance trends. While specific percentage increases or decreases fluctuate annually, examining historical data reveals whether the company is experiencing consistent growth, stagnation, or decline. Reviewing these trends helps investors assess the company's ability to expand its market presence and maintain financial stability.

To illustrate, let's consider a hypothetical scenario based on available information. The below table showcases a sample breakdown of revenue contribution by segment. Please note that this is an illustrative example and may not reflect the company's actual financial data for 2024. For precise figures, refer to Surgery Partners, Inc.'s official financial statements.

Significant changes in revenue streams can signal strategic shifts or market impacts. Investors should monitor any notable fluctuations in the contribution of different business segments to overall revenue. For example, a substantial increase in ancillary services revenue could indicate successful diversification efforts, while a decline in surgical services revenue might raise concerns about market competition or operational challenges.

To gain more insights into the company’s values, see Mission Statement, Vision, & Core Values of Surgery Partners, Inc. (SGRY).

Surgery Partners, Inc. (SGRY) Profitability Metrics

Assessing the financial health and profitability of Surgery Partners, Inc. (SGRY) is crucial for investors. Profitability metrics provide insights into the company's efficiency in generating earnings compared to its revenue, assets, and equity. By examining gross profit, operating profit, and net profit margins, alongside trends in profitability and operational efficiency, investors can gain a comprehensive understanding of SGRY's financial performance.

Here's an overview of Surgery Partners, Inc.'s profitability, focusing on key financial figures:

Gross Profit:

• For the year 2024, Surgery Partners, Inc. reported a gross profit of $843.9 million.

Operating Profit:

• The operating profit for 2024 stood at $132.5 million.

Net Loss:

• Despite gross and operating profits, the company experienced a net loss of $14.9 million in 2024.

A closer look at profitability trends and operational efficiency can be gleaned from the following data:

Gross Margin:

• In 2024, Surgery Partners, Inc. had a gross margin of 25.46%.

Operating Margin:

• The operating margin for the same period was 4.01%.

Net Profit Margin:

• The net profit margin was -0.45% in 2024, reflecting the net loss.

To provide a clearer picture, the following table summarizes key profitability metrics for Surgery Partners, Inc. in 2024:

These metrics are vital for investors to understand SGRY's ability to manage costs and generate profits. While the gross and operating profits are positive, the net loss indicates challenges in converting these profits to the bottom line, potentially due to interest expenses, taxes, or other factors. Analyzing these figures in comparison to industry averages and historical trends will provide a more nuanced perspective on Surgery Partners, Inc.'s financial health. For further insights, refer to: Breaking Down Surgery Partners, Inc. (SGRY) Financial Health: Key Insights for Investors.

Surgery Partners, Inc. (SGRY) Debt vs. Equity Structure

Surgery Partners, Inc. (SGRY) relies on a combination of debt and equity to fuel its growth and operations. Understanding the company's debt levels, ratios, and financing activities is crucial for investors. Let's examine how Surgery Partners, Inc. (SGRY) manages its debt and equity.

As of fiscal year 2024, Surgery Partners, Inc. (SGRY) holds a significant amount of debt. A detailed look at their financial statements reveals the following:

• Long-term debt: The company has substantial long-term debt, which is typical for companies in capital-intensive industries like healthcare.
• Short-term debt: In addition to long-term obligations, Surgery Partners, Inc. (SGRY) also manages short-term debt to cover immediate operational needs.

The debt-to-equity ratio is a key metric for evaluating a company's financial leverage. It indicates the proportion of debt and equity used to finance the company's assets. Here's how Surgery Partners, Inc. (SGRY) fares:

• Debt-to-equity ratio: As of 2024, Surgery Partners, Inc. (SGRY)'s debt-to-equity ratio is 4.11.

Recent financial activities provide insights into Surgery Partners, Inc. (SGRY)'s financing strategies:

• Recent debt issuances: Surgery Partners, Inc. (SGRY) has been actively managing its debt through issuances to refinance existing debt and fund acquisitions.
• Credit ratings: Credit ratings from agencies like Standard & Poor's and Moody's reflect the company's creditworthiness and ability to meet its debt obligations.
• Refinancing activity: Surgery Partners, Inc. (SGRY) engages in refinancing activities to take advantage of favorable interest rates and extend debt maturities.

Balancing debt and equity is crucial for sustainable growth. Surgery Partners, Inc. (SGRY) strategically uses both to optimize its capital structure:

• Debt financing: Debt is used to fund significant acquisitions and expansions, providing the necessary capital for growth initiatives.
• Equity funding: Equity financing helps reduce the company's leverage and provides a cushion for financial stability.

Here is a table summarizing key debt and equity metrics for Surgery Partners, Inc. (SGRY):

For more detailed insights into Surgery Partners, Inc. (SGRY)'s financial health, you can read the full analysis here: Breaking Down Surgery Partners, Inc. (SGRY) Financial Health: Key Insights for Investors

Surgery Partners, Inc. (SGRY) strategically manages its debt and equity to support growth and maintain financial stability. Monitoring these financial aspects is essential for making informed investment decisions.

Surgery Partners, Inc. (SGRY) Liquidity and Solvency

Assessing the liquidity of Surgery Partners, Inc. (SGRY) involves examining several key financial metrics and statements. These include the current and quick ratios, working capital trends, and cash flow statements. These indicators provide insights into the company's ability to meet its short-term obligations and overall financial health. For a deeper dive into who is investing in SGRY and their motivations, check out: Exploring Surgery Partners, Inc. (SGRY) Investor Profile: Who’s Buying and Why?

The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations with its current assets. As of December 31, 2023, Surgery Partners, Inc.'s current ratio stood at 1.4x. This indicates that the company has $1.40 in current assets for every $1.00 of current liabilities.

The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets. Surgery Partners, Inc.'s quick ratio as of December 31, 2023, was 1.3x. This suggests the company has $1.30 in liquid assets available to cover each $1.00 of current liabilities.

Working capital is a measure of a company's short-term financial health, calculated as the difference between current assets and current liabilities. Surgery Partners, Inc.'s working capital as of December 31, 2023, was $274.6 million. This positive working capital indicates that the company has sufficient liquid assets to cover its short-term liabilities.

Analysis of Surgery Partners, Inc.'s cash flow statements reveals the following trends:

• Net cash provided by operating activities: For the year 2023, Surgery Partners, Inc. reported $263.4 million in net cash from operating activities, compared to $175.9 million in 2022.
• Net cash used in investing activities: In 2023, the company used $139.9 million in investing activities, versus $250.8 million in 2022.
• Net cash used in financing activities: For 2023, Surgery Partners, Inc. used $11.9 million in financing activities, a significant decrease from the $38.8 million used in 2022.

Here is a summary of Surgery Partners, Inc.'s cash flow activities for the years 2023 and 2022:

Based on these metrics, Surgery Partners, Inc. demonstrates a healthy liquidity position with positive working capital and strong cash flow from operating activities. There are no immediate liquidity concerns evident from the provided data.

Surgery Partners, Inc. (SGRY) Valuation Analysis

Determining whether Surgery Partners, Inc. (SGRY) is overvalued or undervalued requires a multifaceted approach, incorporating various financial ratios, stock performance analysis, and analyst opinions. Let's delve into these key areas to provide a clearer picture for investors.

To assess Surgery Partners, Inc.'s (SGRY) valuation, several key financial ratios are considered, offering insights into its relative worth:

• Price-to-Earnings (P/E) Ratio: This ratio compares the company's stock price to its earnings per share, indicating how much investors are willing to pay for each dollar of earnings. As of the fiscal year 2024, a high P/E ratio might suggest overvaluation, while a low one could indicate undervaluation, relative to industry peers.
• Price-to-Book (P/B) Ratio: The P/B ratio measures the market value of a company relative to its book value of equity. A lower P/B ratio may suggest that the stock is undervalued, as it implies that the market is not fully recognizing the company's assets' worth.
• Enterprise Value-to-EBITDA (EV/EBITDA) Ratio: This ratio compares a company's enterprise value (total market value plus debt, minus cash) to its earnings before interest, taxes, depreciation, and amortization (EBITDA). It's used to assess the overall value of the company relative to its operational profitability.

Analyzing Surgery Partners, Inc.'s (SGRY) stock price trends over the past year or longer can reveal investor sentiment and market perception. For instance, a consistent upward trend might reflect positive market sentiment, driven by strong financial performance or favorable industry conditions. Conversely, a downward trend could indicate concerns about the company's prospects or broader economic challenges.

Currently, Surgery Partners, Inc. does not offer a dividend yield, as the company does not distribute dividends. Therefore, dividend payout ratios are not applicable.

To gauge market sentiment and professional financial opinion, it's crucial to consider analyst consensus on Surgery Partners, Inc.'s (SGRY) stock valuation. These ratings typically fall into categories such as 'buy,' 'hold,' or 'sell,' reflecting analysts' recommendations based on their assessment of the stock's potential. Analyst ratings and price targets can offer valuable insights into how the broader financial community views Surgery Partners, Inc.'s (SGRY) valuation and future performance.

Understanding a company's mission, vision, and core values can provide additional context for evaluating its long-term potential and strategic direction. For more insights, explore: Mission Statement, Vision, & Core Values of Surgery Partners, Inc. (SGRY).

Surgery Partners, Inc. (SGRY) Risk Factors

Investing in Surgery Partners, Inc. (SGRY) involves navigating a complex landscape of risks, both internal and external, that could significantly impact its financial health. These risks span industry competition, regulatory changes, market conditions, and the company's operational and strategic execution. Understanding these factors is crucial for investors aiming to make informed decisions. For further insights into the company's investor base, consider reading: Exploring Surgery Partners, Inc. (SGRY) Investor Profile: Who’s Buying and Why?

Industry Competition: The healthcare industry is intensely competitive. Surgery Partners, Inc. faces competition from other surgical facilities, hospitals, and physician groups. This competition can impact pricing, patient volume, and overall profitability. Changes in competitor strategies or the emergence of new market entrants could intensify these pressures.

Regulatory Changes: The healthcare sector is heavily regulated, and changes in laws and regulations can have a profound impact on Surgery Partners, Inc.'s operations and financial performance. Key regulatory risks include:

• Reimbursement Rates: Changes in reimbursement rates from government and private payers can significantly affect revenue.
• Healthcare Reform: Ongoing healthcare reform efforts could introduce new requirements or restrictions that increase costs or limit revenue potential.
• Compliance Requirements: Failure to comply with healthcare laws and regulations, such as those related to Medicare and Medicaid, can result in substantial penalties.

Market Conditions: Economic downturns, shifts in patient demographics, and changes in healthcare utilization patterns can all influence Surgery Partners, Inc.'s financial results. For example, a decrease in elective surgeries due to economic pressures or changing consumer preferences could reduce revenue.

Operational Risks: These include risks related to the management of surgical facilities, the quality of patient care, and the ability to attract and retain qualified medical professionals. Specific operational risks are:

• Physician Relationships: Maintaining strong relationships with physicians is critical for driving patient referrals.
• Quality of Care: Any decline in the quality of care could lead to patient dissatisfaction, reputational damage, and potential legal liabilities.
• Integration of Acquisitions: Surgery Partners, Inc. has grown through acquisitions, and integrating these acquisitions successfully is essential for realizing synergies and avoiding disruptions.

Financial Risks: Financial risks include managing debt levels, maintaining access to capital, and effectively managing cash flow. Key considerations include:

• Debt Obligations: Surgery Partners, Inc. carries a significant amount of debt, which could strain its financial resources and limit its ability to invest in growth opportunities.
• Interest Rate Risk: Fluctuations in interest rates could increase the cost of servicing the company's debt.
• Access to Capital: The company's ability to access capital markets on favorable terms is crucial for funding acquisitions and other strategic initiatives.

Strategic Risks: These risks relate to the company's overall business strategy and its ability to adapt to changing market conditions. Examples include:

• Competitive Strategy: The effectiveness of Surgery Partners, Inc.'s competitive strategy in a rapidly evolving healthcare landscape.
• Innovation: The company’s ability to innovate and adopt new technologies to improve efficiency and patient outcomes.

While specific mitigation strategies are not detailed here, Surgery Partners, Inc. likely addresses these risks through comprehensive compliance programs, risk management frameworks, and strategic planning processes. Investors should review the company's latest earnings reports and filings for detailed discussions of these and other risks.

Surgery Partners, Inc. (SGRY) Growth Opportunities

For investors eyeing Surgery Partners, Inc. (SGRY), understanding the company's future growth prospects is crucial. Several factors appear poised to drive SGRY's expansion in the coming years.

Key growth drivers for Surgery Partners, Inc. (SGRY) include:

• Market Expansion: Surgery Partners, Inc. (SGRY) can grow by extending its reach into new geographic areas or by increasing its presence in existing markets.
• Acquisitions: Strategic acquisitions of other healthcare facilities or related businesses can quickly add to Surgery Partners, Inc. (SGRY)'s portfolio and market share.
• Service Line Expansion: Expanding the range of medical services offered at its facilities can attract more patients and increase revenue streams for Surgery Partners, Inc. (SGRY).

Predicting future revenue growth and earnings requires a close look at analyst estimates and company guidance. While specific projections vary, the overall outlook for outpatient surgical centers remains positive, driven by factors such as an aging population and advancements in medical technology that allow for more procedures to be performed outside of traditional hospitals.

Strategic initiatives and partnerships could significantly influence Surgery Partners, Inc. (SGRY)'s growth trajectory. These may include:

• Partnerships with physician groups: Collaborations with physician groups can enhance patient referrals and ensure a steady stream of cases for Surgery Partners, Inc. (SGRY)'s facilities.
• Technology adoption: Investing in advanced surgical technologies and digital health solutions can improve efficiency, attract skilled surgeons, and enhance patient outcomes at Surgery Partners, Inc. (SGRY).
• Value-based care initiatives: Participating in value-based care models, where providers are rewarded for quality and cost-effectiveness, can create new revenue opportunities and strengthen Surgery Partners, Inc. (SGRY)'s market position.

Surgery Partners, Inc. (SGRY) has several competitive advantages that could support its growth ambitions:

• Established network: A well-established network of surgical facilities provides a strong foundation for expansion and economies of scale for Surgery Partners, Inc. (SGRY).
• Reputation for quality: A reputation for high-quality care can attract both patients and surgeons, contributing to Surgery Partners, Inc. (SGRY)'s growth and profitability.
• Strategic locations: Facilities located in attractive markets with favorable demographics and healthcare trends can give Surgery Partners, Inc. (SGRY) a competitive edge.

Here is a look at some potential financial data points regarding Surgery Partners, Inc.'s growth:

For further insights into Surgery Partners, Inc. (SGRY)'s financial health, you can also read: Breaking Down Surgery Partners, Inc. (SGRY) Financial Health: Key Insights for Investors.