Surgery Partners, Inc. (NASDAQ: SGRY) stands out as a dynamic entity within the healthcare sector, offering investors a unique proposition in the medical care facilities industry. Headquartered in Brentwood, Tennessee, this company operates a comprehensive network of surgical facilities and ancillary services across the United States. With a market capitalization of $2.88 billion, Surgery Partners provides an extensive array of services, including ambulatory surgery centers and surgical hospitals, focusing on specialties such as orthopedics, ophthalmology, and gastroenterology.
Currently trading at $22.49, the company’s stock is situated within a 52-week range of $19.30 to $33.69. Despite a slight dip of 0.31% recently, the stock’s potential upside is what captivates investors. Analysts have set a target price range of $24.00 to $36.00, with an average target of $31.00, indicating a robust potential upside of 37.84%.
From a valuation perspective, Surgery Partners presents a forward P/E of 21.71. However, traditional metrics such as the trailing P/E, PEG, and Price/Book ratios remain unavailable, reflecting the complexity and nuances of valuing a company in the rapidly evolving healthcare sector. Notably, the company’s EPS is reported at -1.43, indicating areas for improvement in profitability.
Performance metrics reveal an encouraging revenue growth of 8.40%, underscoring the company’s expansion and operational prowess. While net income data remains undisclosed, the reported free cash flow of over $162 million demonstrates substantial liquidity and operational efficiency. Surgery Partners’ return on equity stands at a modest 0.12%, suggesting room for enhanced profitability and shareholder returns.
In terms of dividends, the company does not currently offer a yield, with a payout ratio of 0.00%. This could imply that Surgery Partners is channeling its earnings back into the business to fuel further growth and expansion.
Analyst sentiment is overwhelmingly positive, with 10 buy ratings against 3 hold ratings and no sell ratings. Such a consensus underscores confidence in the company’s strategic direction and growth potential. Technical indicators paint a promising picture, as the 50-day moving average of $22.20 and the 200-day moving average of $23.06 suggest the stock is trading close to its short-term trends. The RSI of 56.63 and MACD of 0.19 further indicate a stable momentum.
Surgery Partners’ strategic focus on non-emergency surgical procedures positions it well in a healthcare landscape that increasingly emphasizes cost-efficient, outpatient care. This specialization, combined with its ancillary services, allows the company to capture a broad spectrum of the healthcare market, catering to diverse patient needs.
Investors considering Surgery Partners should weigh the company’s growth trajectory, robust service offerings, and positive analyst outlook against the backdrop of its current earnings profile. With a potential upside of nearly 38%, SGRY presents a compelling opportunity for those looking to invest in a company poised for growth within the healthcare sector.
