Surgery Partners, Inc. (NASDAQ: SGRY) is making waves in the healthcare sector, particularly in the medical care facilities industry. Headquartered in Brentwood, Tennessee, this U.S.-based company operates a robust network of surgical facilities, including ambulatory surgery centers and hospitals, offering a spectrum of non-emergency procedures across various specialties. With a market capitalization of $2.92 billion, Surgery Partners is a notable player in the healthcare landscape.
Currently trading at $22.74, SGRY’s stock has experienced a slight dip, with a recent price change of -0.90 (-0.04%). Despite this minor fluctuation, the stock is comfortably nestled within its 52-week range of $19.30 to $33.69. Investors are eyeing a promising potential upside of 36.32%, driven by strong analyst ratings and an optimistic target price range of $24.00 to $36.00. The average target price is pegged at $31.00, indicating significant room for growth.
One of the standout features of Surgery Partners is its impressive revenue growth of 8.40%. However, the company is yet to report a positive net income, with an EPS of -1.43. This indicates that while the company is expanding its top line, it faces challenges in translating that growth into profitability. The return on equity is a modest 0.12%, suggesting room for improvement in terms of leveraging shareholder equity effectively.
From a valuation perspective, Surgery Partners presents a mixed picture. The forward P/E ratio stands at 21.65, which could be attractive for growth-oriented investors if the company manages to convert its revenue growth into net income. Other valuation metrics such as P/E Ratio (Trailing), PEG Ratio, Price/Book, and Price/Sales are currently unavailable, making it challenging to fully gauge the company’s market valuation against its peers.
The company’s free cash flow of $162.32 million is a positive indicator, providing it with the liquidity to potentially fund future growth initiatives or manage debt. On the technical front, SGRY’s 50-day moving average is $22.24, closely aligning with its current trading price, while the 200-day moving average is slightly higher at $23.26. The RSI (14) of 60.67 suggests that the stock is approaching overbought territory, signaling investor optimism.
Surgery Partners does not currently offer dividends, with a payout ratio of 0.00%. This focus on reinvestment over shareholder payouts might appeal to investors looking for capital appreciation rather than immediate income.
Analyst sentiment towards Surgery Partners is predominantly positive, with 10 buy ratings and 3 hold ratings. There are no sell ratings, underscoring confidence in the company’s strategic direction and market positioning.
Investors intrigued by the healthcare sector’s growth potential and Surgery Partners’ unique positioning within it should consider the company’s operational strengths and areas for improvement. As the company continues to expand its network and enhance its service offerings, the anticipated upside could present a compelling opportunity for investors willing to navigate the complexities of the healthcare market.
