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SGRY, Surgery Partners Inc.

Health Care Providers & Services diversified UnprofitableSerial acquirer

Surgery Partners, Inc., a Delaware corporation, acting through its subsidiaries, owns and operates a national network of surgical facilities and ancillary services.

We are a leading healthcare services company with an integrated outpatient delivery model focused on providing high-quality, cost-effective solutions for surgical and related ancillary care in support of both patients and physicians.

We are one of the largest and fastest growing surgical services businesses in the United States ("U.S."), with more than 200 locations in 30 states, including ambulatory surgery centers ("ASCs"), short-stay surgical hospitals ("surgical hospitals"), and multi-specialty physician practices, among others.

Latest annual: FY2025 10-K

SGRY · Surgery Partners Inc.

The business

What it sells, where the money comes from, the kind of company it is.

Revenue · FY2025

$3.3B

+6.2% YoY · 12% 5-yr CAGR

Vital signs · TTM, with 5-yr average

Revenue $3.4B 5-yr avg $2.8B

Operating margin 11.4% 5-yr avg 12.4%

ROIC 6% 5-yr avg 6%

Owner-earnings margin 6% 5-yr avg 5%

Free cash flow margin 6% 5-yr avg 5%

Next report By 11/8 · the 10-Q for the quarter ended late September · due within 40 days of period end · has filed ~41 days after · the wire records it on arrival

The business in brief

read the 10-K →

What this business is and what moves its needle, from its own SEC filings.

What it is: Revenue is led by Private insurance (51%) and Government (42%), with 3 more lines behind.
Situation: Unprofitable. No sustained operating profit across the record; an earnings multiple has nothing to rest on. What the record does show is revenue, the gross-margin trajectory, and the burn against the cash on hand. Serial acquirer. Goodwill and acquired intangibles are 64% of assets, with meaningful acquisition spending in 9 of the record's 10 years; much of what this business is was bought, at prices the record carries.
What moves the needle: Gross margin has run about 26% and operating margin about 12% through the cycle, a solid spread between what it charges and what the product costs to make. The operating margin has swung widely — from 4.4% to 17% — on a steadier 26% gross margin, so what moves it sits below the gross line, in operating spend and one-off charges more than in the cost of the product itself. Read this kind of business on volume, payer mix and reimbursement. On its own account, the filing leans hardest on pricing power & competition, set against the numbers in what the filing emphasizes, below.
Is it a good business?: Return on capital has rarely cleared the cost of capital (median 6%, above 15% in 0 of 10 years). By owner earnings: roughly 6% of revenue reaches owners as cash, consistently. This is price-taker territory, where the balance sheet and the cycle matter more than any multiple; the rest is in the 10-K.

Every line is arithmetic on the company's filings, shown in full in the sections below.

Where the money comes from

read the 10-K →

Revenue spreads across 5 lines, the largest Private insurance at 51%.

Revenue by product line, FY2025

Private insurance51%$1.7B
Government42%$1.4B
Self-pay3%$88M
Other Services2%$82M
Other2%$71M

From the segment footnote of the company's own 10-K. Shares are of total revenue; the profit bar shows each segment's share of segment operating profit, before unallocated corporate costs.

The record

Ten years of arithmetic, read across the cycle.

The record, 2015–2025

realized figures from each filing · older years to the left

2015’15	2016’16	2018’18	2019’19	2020’20	2021’21	2022’22	2023’23	2024’24	2025’25	TTMTTMJun 2026
											Income statement
$960M	$1.1B	$1.8B	$1.8B	$1.9B	$2.2B	$2.5B	$2.7B	$3.1B	$3.3B	$3.4B	RevenueRevenue
$291M	$324M	$410M	$424M	—	—	—	—	—	—	$2.0B	Gross profitGross prof.
30%	28%	23%	23%	—	—	—	—	—	—	58%	Gross marginGross mgn
6%	5%	5%	5%	5%	5%	4%	4%	4%	4%	4%	SG&A / revenueSG&A/rev
$145M	$196M	$78M	$236M	$183M	$302M	$345M	$328M	$349M	$390M	$384M	Operating incomeOp. inc.
15.1%	17.2%	4.4%	12.9%	9.8%	13.6%	13.6%	12.0%	11.2%	11.8%	11.4%	Operating marginOp. mgn
$1M	$9M	($206M)	($75M)	($116M)	($71M)	($55M)	($12M)	($168M)	($78M)	($89M)	Net incomeNet inc.
											Cash flow & returns
$84M	$125M	$145M	$130M	$247M	$87M	$159M	$294M	$300M	$274M	$258M	Operating cash flowOp. cash
$35M	$40M	$67M	$77M	$95M	$99M	$115M	$118M	$153M	$176M	$177M	Depreciation & amortizationD&A
$41M	$74M	$274M	$118M	$255M	$42M	$80M	$170M	$282M	$161M	$159M	Working capital & otherWC & other
$33M	$39M	$40M	$74M	$43M	$58M	$81M	$89M	$90M	$79M	$70M	CapexCapex
3.5%	3.4%	2.2%	4.0%	2.3%	2.6%	3.2%	3.2%	2.9%	2.4%	2.1%	Capex / revenueCapex/rev
$51M	$86M	$105M	$56M	$204M	$30M	$78M	$205M	$210M	$196M	$188M	Owner earningsOwner earn.
5.3%	7.5%	5.9%	3.1%	11.0%	1.3%	3.1%	7.5%	6.7%	5.9%	5.6%	Owner earnings marginOE mgn
$51M	$86M	$105M	$56M	$204M	$30M	$78M	$205M	$210M	$196M	$188M	Free cash flowFCF
5.3%	7.5%	5.9%	3.1%	11.0%	1.3%	3.1%	7.5%	6.7%	5.9%	5.6%	Free cash flow marginFCF mgn
$113M	$146M	$107M	$14M	$105M	$286M	$146M	$80M	$379M	$162M	$118M	AcquisitionsAcquis.
$0	$0	$2M	$0	$0	—	—	—	—	—	—	BuybacksBuybacks
($135M)	($185M)	($129M)	($85M)	($88M)	($332M)	($308M)	($226M)	($489M)	($247M)	—	Investing cash flowInv. cash
$33M	$71M	($6M)	($136M)	$67M	$316M	$42M	($155M)	$262M	($57M)	—	Financing cash flowFin. cash
($17M)	$12M	$9M	($92M)	$225M	$72M	($107M)	($87M)	$74M	($30M)	—	Change in cashΔ cash
9%	8%	2%	7%	5%	7%	6%	6%	6%	6%	6%	ROICROIC
—	98%	-51%	-25%	-100%	-7%	-3%	-1%	-9%	-5%	-5%	Return on equityROE
—	98%	−51%	−25%	−100%	−7%	−3%	−1%	−9%	−5%	−5%	Retained to equityRetained/eq
											Balance sheet
$58M	$70M	$184M	$93M	$318M	$390M	$283M	$196M	$270M	$240M	$217M	Cash & investmentsCash+inv
$178M	$221M	$308M	$327M	$382M	$430M	$456M	$496M	$579M	$602M	$617M	ReceivablesReceiv.
$26M	$29M	$43M	$46M	$56M	$61M	$71M	$75M	$88M	$97M	$99M	InventoryInvent.
$45M	$50M	$83M	$97M	$100M	$125M	$152M	$172M	$209M	$209M	$175M	Accounts payablePayables
$158M	$200M	$268M	$277M	$338M	$366M	$376M	$400M	$459M	$490M	$540M	Operating working capitalOper. WC
$311M	$362M	$588M	$526M	$802M	$946M	$921M	$895M	$1.1B	$1.2B	$1.1B	Current assetsCur. assets
$181M	$187M	$349M	$398M	$557M	$537M	$493M	$523M	$624M	$616M	$579M	Current liabilitiesCur. liab.
1.7×	1.9×	1.7×	1.3×	1.4×	1.8×	1.9×	1.7×	1.8×	1.9×	1.9×	Current ratioCurr. ratio
—	—	$426M	$523M	$545M	$630M	$877M	$969M	$1.1B	$1.2B	—	Net PP&ENet PP&E
$1.4B	$1.6B	$3.4B	$3.4B	$3.5B	$3.9B	$4.1B	$4.3B	$5.1B	$5.2B	$5.2B	GoodwillGoodwill
$2.1B	$2.3B	$4.7B	$5.0B	$5.4B	$6.1B	$6.7B	$6.9B	$7.9B	$8.1B	$8.0B	Total assetsAssets
$1.3B	$1.5B	$2.3B	$2.6B	$2.9B	$3.0B	$2.6B	$2.8B	$3.4B	$3.7B	$3.8B	Total debtDebt
$1.2B	$1.4B	$2.1B	$2.5B	$2.6B	$2.6B	$2.4B	$2.6B	$3.1B	$3.5B	$3.5B	Net debt / (cash)Net debt
—	—	$359M	$395M	$435M	$0	—	—	—	—	—	Redeemable interestsRedeemable
$302M	$315M	$694M	$687M	$767M	$881M	$943M	$1.0B	$1.4B	$1.4B	—	Noncontrolling interestsNCI
($4M)	$10M	$405M	$297M	$116M	$1.1B	$2.0B	$2.0B	$1.8B	$1.7B	$1.7B	Shareholders’ equityEquity
0.8%	0.2%	0.5%	0.6%	0.7%	0.8%	0.7%	0.6%	1.1%	0.4%	0.3%	Stock comp / revenueSBC/rev
—	—	$61M	$5M	$5M	—	—	—	—	—	—	Goodwill written downGW imp.
											Per share
56.2M	72.3M	72.0M	72.4M	73.2M	72.4M	92.0M	126M	126M	127M	129M	Shares out (diluted)Shares
$17.08	$15.85	$24.59	$25.29	$25.42	$30.72	$27.62	$21.84	$24.69	$26.01	$26.18	Revenue / shareRev/sh
$0.03	$0.13	$-2.86	$-1.03	$-1.59	$-0.98	$-0.59	$-0.09	$-1.33	$-0.61	$-0.69	EPS (diluted)EPS
$0.91	$1.19	$1.45	$0.77	$2.79	$0.41	$0.85	$1.63	$1.66	$1.54	$1.46	Owner earnings / shareOE/sh
$0.91	$1.19	$1.45	$0.77	$2.79	$0.41	$0.85	$1.63	$1.66	$1.54	$1.46	Free cash flow / shareFCF/sh
$0.60	$0.54	$0.55	$1.02	$0.59	$0.80	$0.88	$0.71	$0.72	$0.62	$0.55	Cap. spending / shareCapex/sh
$-0.07	$0.13	$5.62	$4.10	$1.58	$15.04	$21.73	$15.82	$14.19	$13.47	$12.99	Book value / shareBVPS

Share counts before 2021 are restated ×1.5 for a stock split, so per-share figures sit on one basis.

Per-share growththe realized rate an owner's share compounded

	10-yr	5-yr
Revenue / share	+4.3%/yr	+0.5%/yr
Owner earnings / share	+5.4%/yr	−11.2%/yr
Capital spending / share	+0.4%/yr	+1.1%/yr
Book value / share	—	+53.5%/yr

The year, in the company's words

the filing →

Verbatim from the 10-K's management discussion. Each sentence is shown only because its subject, direction, and stated figures check out against the filed numbers on this page. The words are the company's; the arithmetic is the record's.

Revenue+6.2%
“Total revenues for 2025 increased 6.2% to $3.3 billion from $3.1 billion in 2024. The increase in revenues was attributable to same-facility revenue growth and the net impact from acquisitions and divestitures completed in 2025.”
✓ figure matches the filed record

Where the cash went

ReinvestBuybacksDividendsAcquisitionsRetainedBeyond op. cash

Each year's outlays against its operating cash: the mix, and how it drifts. The hatched cap is spending beyond that year's operating cash — financed from the balance sheet or borrowing, not operations.

FY2015FY2025

Owner-earnings bridge

FY2021–FY2025cash-flow statement, SEC EDGAR →

Net income is the accountant's number; owner earnings is the cash an owner could take out. The walk between them, off the cash-flow statement, and whether the gap is widening or holding.

In fiscal 2025 the business turned a $78M loss into $196M of owner earnings: more cash than the profit line showed, after the non-cash charges and the capital it put back in.

	FY2025	FY2024	FY2023	FY2022	FY2021
Reported net income	($78M)	($168M)	($12M)	($55M)	($71M)
Depreciation & amortizationnon-cash charge added back	+$176M	+$153M	+$118M	+$115M	+$99M
Stock-based compensationreal costnon-cash, but a real cost	+$15M	+$33M	+$18M	+$18M	+$17M
Working capital & othertiming of cash in and out, other non-cash items	+$161M	+$282M	+$170M	+$80M	+$42M
Cash from operations	$274M	$300M	$294M	$159M	$87M
Capital expenditurecash put back in to keep running and to grow	−$79M	−$90M	−$89M	−$81M	−$58M
Owner earnings	$196M	$210M	$205M	$78M	$30M
Owner-earnings marginowner earnings ÷ revenue	6%	7%	7%	3%	1%

Owner earnings is the cash an owner could pull out without starving the business: operating cash less the capital it must spend to hold its position . The cash-flow statement also adds stock comp back as non-cash, but it is a real cost paid in shares; counted as the expense it is (less $15M), owner earnings is nearer $181M.

Maintenance capex is estimated as depreciation where a growing business invests above it; free cash flow is the figure the scorecard's free-cash margin reads.

III

Quality & stewardship

Returns, the balance sheet, capital allocation, and pay.

Owner’s Scorecard

FY2025 10-K · source on SEC EDGAR →

Will it survive?

Can it pay its interest? —

Interest expense not tagged in the data

What this means
No usable interest-expense line was tagged in the filing data, but the balance sheet carries real net debt — so the interest burden here is unknown, not absent. Read the debt on the net-debt check below.
How heavy is the debt, net of cash? $3.5B · 9.0× operating profit

Heavy net debt

Cash $240M − debt $3.7B

What this means
Netting $240M of cash and short-term investments against $3.7B of debt leaves $3.5B owed, about 9.0× a year's operating profit (9.6× on the gross debt, before the cash). Net debt is the leverage figure that matters: the cash is already set against the debt. Strategic or illiquid investments aren't counted here.
How long is cash tied up? —

Not enough data

What this means
The filing data didn't include the inputs for this check.

Is it a good business?

Return on invested capital 6%

Below average through the cycle

10-yr median, range 2%–9%; 6% latest = NOPAT $308M ÷ invested capital $5.2B

Industry peers: median 7%

What this means
The rate the business earns on the money tied up in it, Buffett's north star, because over time a stock tracks the ROIC beneath it. Above ~15% sustained hints at a moat; a return below the cost of capital (~8%) erodes value as a business grows rather than building it — the test Buffett weighs most. The headline is the median of the last 10 years (it ran 6% most recently), so one peak or trough year doesn't set the verdict. Asset-light businesses (R&D expensed, little capital) read artificially high, pair this with Owner Earnings.
Owner-earnings margin 6%

Solid through the cycle

10-yr median margin, range 1%–11%; latest $196M = operating cash $274M − maintenance capex $79M

Industry peers: median 6%

What this means
What an owner could take out without starving the business: operating cash less the maintenance capital it must spend to hold its position — Buffett's owner earnings. That's 6% of revenue this year, a 6% median across 10 years. Treating stock comp as the real expense it is (less $15M of SBC) leaves $181M.
Are earnings backed by cash? $274M

Loss, but cash-generative

Net income ($78M) · cash from operations $274M

What this means
The company reported a net loss, so a conversion ratio isn't meaningful. What matters then is whether operations still threw off cash, here, they did.

How is the cash used?

Where do the earnings go? —

Not enough data

What this means
The filing data didn't include the inputs for this check.
Investing or harvesting? 0.45×

Harvesting

Capex $79M ÷ depreciation & amortization as filed $176M

What this means
Descriptive, not a grade. Above ~1× means investing faster than assets wear out (growth, or, sustained for years, today's earnings carrying less depreciation than tomorrow's will). Below means spending less than it's wearing out (efficiency, or a melting asset base). The ratio won't tell you which; the filings will.

The promise and the pay packet

Is the buyback buying ownership, or mopping up? 0.4%

The count is rising

Stock compensation $15M (fiscal 2025), 0.4% of revenue · no repurchases · diluted shares +38.3% since 2022

What this means
Stock handed to employees is a real cost paid in the owner's own currency: it is charged against profit, but the shares it creates are permanent. Many companies repurchase stock at the same time, which looks like a return of capital and often is not — if the count barely moves, the cash merely cancelled the pay packet and bought the owner nothing. The three states worth telling apart are a count genuinely shrinking, a count standing still despite large repurchases, and a count rising because the issuance was never offset at all.

Graham’s defensive tests · 1 of 4 met

Graham’s numerical criteria for the defensive investor (The Intelligent Investor, ch. 14), run on the filings. A floor of safety, not a buy signal; many fine modern businesses fail his strictest liquidity rules by design.

Adequate size Pass

Revenue ≥ $2B · $3.3B

What this means
Big enough to weather a storm. Graham's 1972 floor was ~$100M of sales (≈ $700M today); we use a $2B revenue line as a conservative modern stand-in.
Strong liquidity Near

Current ratio ≥ 2× · 1.87×

What this means
Current assets at least twice current liabilities, near-term bills covered without touching the business. Strict by design: many cash-rich modern firms run leaner and miss it, holding their cushion in longer-dated securities.
Conservative debt Miss

Debt ≤ working capital · $3.7B vs $535M WC

What this means
Graham's rule that borrowings not exceed net current assets. Capital-heavy and buyback-heavy firms routinely fail it, read it next to interest coverage, not alone.
Earnings stability Miss

A profit every year (10-yr record) · 8 loss years

What this means
Graham wanted earnings in each of the past ten years, the stability a defensive owner leans on.
Dividend record —

Uninterrupted dividends · no dividend line tagged in the data

What this means
An unbroken dividend was Graham's mark of durability. This record carries no dividends-paid line in any year — common for partnerships, whose distributions file under tags the chain doesn't read — so the criterion is withheld rather than judged on silence.
Earnings growth —

Earnings +33% over the record · —

What this means
Earnings were negative early in the record, a growth rate isn't meaningful.
Moderate price —

P/E ≤ 15 and P/E × P/B ≤ 22.5 · decided by the price

What this means
Graham's valuation gate, the wall he kept between a sound business and a sound investment. Three-year average earnings are $-0.66/share (latest year $-0.60), the averaged base the calculator's gate runs on, and book value is $13.08/share. Enter a price in “What the price implies” just below for the P/E, P/B, and whether it clears. But this is the rule Buffett outgrew: there's no hard P/E law, and a wonderful business can deserve a far richer multiple if the thesis holds, treat it as the bargain-hunter's floor, not a verdict on the price.

Durability & moat, 2015–2025

Whether the record’s returns held, and what the capital reinvested earned.

Profitable years 2 of 10

What this means
Lost money in 8 year(s), look at what happened there before trusting the average.
Return on capital ≥ 15% 0 of 10 yrs

What this means
A moat shows up as a high return on invested capital that holds year after year, not one good vintage.
Operating margin 12% → 12% (3-yr avg ends)

What this means
Through the cycle the operating margin held roughly steady — about 12% early, 12% lately, median 12%.
Reinvestment, incremental ROIC 6%

What this means
Reinvested capital came back at only a modest incremental return — near the cost of capital, where extra growth adds little per dollar. The record shows whether it is a soft stretch or a thinning moat.
Owner earnings growth +11%/yr

What this means
Owner earnings grew about 11% a year over the record.
Worst year 2018 · 4.4% op. margin

What this means
Stayed profitable even in its hardest year, the resilience that survives recessions.

All figures as filed; the source filing is linked above.

Current Position

as of the latest quarter, Jun 30, 2026

Can the business pay what it owes this year, off the freshest balance sheet: the quality of the assets, the debt actually coming due, and what a low ratio means here.

Current assets$1.1B

Cash & short-term investments$217M
Receivables$617M
Inventory$99M
Other current assets$194M

Current liabilities$579M

Accounts payable$175M
Other current liabilities$403M

Current ratio1.95×all current assets ÷ what's due · Graham looked for 2×

Quick ratio1.78×stricter: inventory excluded

Cash ratio0.37×strictest: cash alone against what's due

Working capital$548Mthe cushion left after near-term bills

Revenue, latest quarter vs. a year ago+2.7%the freshest read on whether the business is still growing

Current ratio, recent quarters1.8× → 1.9×

Deeper floors

Tangible book value($3.6B)equity stripped of goodwill & intangibles

Debt incl. operating leases$4.0B$307M of it operating leases; with finance leases, “total fixed claims” below reaches $5.0B (annual-report basis)

From the company's latest filing.

Debt maturity

the debt note, SEC EDGAR →

Not how much it owes, but when it falls due, and against what. The ladder the company files, beside cash on hand and a year's owner earnings.

'26$99M

'27$91M

'28$83M

'29$72M

'30$1.4B

later$2.0B

Bars scaled to the largest single year; “later” is everything due after 2030, shown apart since it dwarfs the years.

Due in the next 12 months$99Mthe first rung: what must be repaid or rolled over within the year

Within two years$190Mthe near wall, the part most exposed to today’s credit conditions

Biggest single year$1.4Bin 2030the lumpiest maturity, where a refinancing, if needed, is largest

Total scheduled principal$3.7Bevery year plus what lies beyond, as the footnote totals it

Against what the business has and earns

Cash & short-term investments, Jun 30, 2026$217M

One year of owner earnings (FY2025)$196M

Together, against $99M due next year4.2×

Cash on hand as of Jun 30, 2026 plus a year’s owner earnings comes to $412M against the $99M due in the twelve months after the Dec 31, 2025 schedule: 4.2 times it.

Maturity schedule extracted from the company’s Dec 31, 2025 annual report and reconciled to the total the table states.

Lease obligations

the lease note, SEC EDGAR →

Debt by another name. What the business owes on the property, aircraft, stores and equipment it rents rather than owns is a fixed claim due on a schedule; added back to the debt, it is the true leverage. That ladder, operating and finance leases together, and what it adds to the debt on the page above.

Operating leasesFinance leases

'26$167M

'27$156M

'28$141M

'29$132M

'30$123M

later$1.7B

Lease payments by year, scaled to the largest; “later” is everything beyond year five, shown apart. These are the contractual cash payments, before the interest the filing imputes back out to the balance-sheet liability.

Due in the next 12 months$167Ma fixed cash payment, owed whether or not the business has a good year

Total lease payments$2.4Bevery year plus the tail, undiscounted: the full cash the leases will take

On the balance sheet$1.3Bthe present value of those payments, the recognised lease liability

True leverage: debt plus leases

On-balance-sheet debt$3.7B

Lease obligations (present value)$1.3B

Total fixed claims on the business$5.0B

Counting the leases the way Buffett does, the fixed claims on this business come to $5.0B, of which the leases are 25%. The lease wall above and the debt schedule together are the calendar of what must be paid, and when.

Lease ladder read from the ASC 842 tags in the company’s Dec 31, 2025 annual report and reconciled: the yearly buckets sum to the undiscounted total, which less the imputed interest equals the balance-sheet liability; a ladder that doesn’t tie out is withheld.

How the cash was used, 2015–2025

Over the record, the business generated $1.8B of operating cash; how management split it reads as a balanced allocator, splitting cash between the business, owners, and the balance sheet.

Reinvested$625M · 34%
Buybacks$2M · 0%
Retained (debt / cash)$1.2B · 66%

Returned to owners$2M
0% of the owner earnings the business produced over the span, $0 as dividends and $2M as buybacks.
Source of fundingOperating cash
Operating cash covered reinvestment and returns; over the span debt rose $2.5B and cash and short-term investments rose $159M.
Average price paid for buybacks$8.50
Across the years where the filing reports a share count, 0M shares were bought for $2M, about $8.50 each.
Net change in share count128.8%
The diluted count rose from 56M to 129M: issuance (stock pay, deals) outran any buybacks, so owners were diluted on net.
Dividend record—
No dividend line was reported in the filing data over the span; the record here neither confirms nor rules out a payout.

Buybacks are gross of stock issued to staff; the share-count line above is the net of that, the figure that decides whether owners gained. The average price paid blends a year of purchases (and any accelerated repurchase), so it is close, not exact. The record of where the cash went and on what terms.

Acquisitions & goodwill

from the balance sheet & the 10-year cash-flow record

Goodwill grows only when a company acquires and falls only when it concedes it overpaid. The size of that bet, the cash put into buying rather than building, and how much has already been written off.

Goodwill & intangibles$5.2B64% of all assets; the premium carried on the balance sheet for businesses acquired

Against book equityexceeds itgoodwill alone is larger than the company’s entire book equity; stripped of the acquisition premium, there is no net book worth

Cash spent acquiring$1.8Bover 12 years since fiscal 2013 buying other businesses, against $625M of capital spent building over the 10-year record

$72M written down across 3 years (2018, 2019, 2020): goodwill the company has already conceded it overpaid for, charged against earnings. A write-down costs no cash (the cash went out when the deal was signed), but it is management marking its own past judgment to market.

Beside that spending sits $79M of cumulative amortization of acquired intangibles charged against earnings since fiscal 2013 (tagged in 12 of those years; 1 year untagged) — the purchase price of past deals, expensed over time. The cash figure above counts only cash consideration: goodwill of $5.2B against it says much of the buying was paid for in stock, which never passes through the cash-flow statement.

Goodwill, acquired intangibles and equity from the latest balance sheet; acquisition spend and amortization summed across the company's full tagged history, write-downs across the 10-year record, from the company's own filings.

Management, ownership & pay

read the proxy →

From the proxy: how much of the business the people running it own, and how they are paid, beside what the business earned for its owners in the same years.

Fiscal year	Pay, as filed	“Actually paid”	Owner earnings
2021	$4.3M	$14.2M	$30M
2022	$6.1M	−$3.3M	$78M
2023	$6.5M	$7.3M	$205M
2024	$6.5M	$3.3M	$210M
2025	$6.1M	$1.2M	$196M

Both pay figures are the company’s own, from the pay-versus-performance table its proxy statement files. “As filed” is the Summary Compensation Table total: salary, bonus, and equity awards at their value on the day of grant. “Actually paid” is the SEC’s prescribed recalculation, which re-marks those equity awards to what they became as they vested; it can swing far above or below the filed figure in either direction, and negative years occur. Owner earnings are the whole business's, from the record above, for the same fiscal years.

Insider ownership2%
The stake all directors and executive officers hold together, per the 2026 proxy: skin in the game, the first thing Munger reads.
CEO pay ratio112:1
What the chief earns for every dollar the median employee makes, per the 2026 proxy. A high ratio alone settles nothing; some businesses are genuinely top-heavy in scarce skill. A runaway figure is where Buffett starts asking whether the board is doing its job.
Stock-based compensation$15M
The slice of the business handed to employees in shares in fiscal 2025, 0.4% of revenue, equal to 3.8% of operating profit. Buffett's oldest accounting fight: this is compensation, compensation is an expense, real whether or not the headline earnings admit it. One trap: the cash-flow statement adds SBC back, so the operating cash, and the owner earnings drawn from it, are flattered by exactly this amount; counted as the cost it is, what an owner keeps is lower.

Peers, Health Care Providers & Services

The same industry, side by side on owner economics. Each column names the period it is read over, and a median resting on fewer than three years carries that count beside it; the group median at the foot is the line to read each figure against.

Company	Revenuelatest FY, USD	Gross marginmedian over the record	Op. marginmedian over the record	ROICmedian over the record	Owner earn. marginmedian over the record
CYHCommunity Health Systems Inc.	$12.5B	84%	5.8%	4%	0%
ARDTArdent Health Inc.	$6.3B	—	5.3%	14%	—
EHCEncompass Health	$5.9B	—	15.0%	10%	13%
SEMSelect Medical Holdings	$5.5B	—	7.6%	7%	5%
SGRYSurgery Partners Inc.	$3.3B	26%4y	12.4%	6%	6%
AHCOAdaptHealth Corp.	$3.2B	18%	6.6%	4%	7%
BKDBrookdale Senior Living Inc.	$3.2B	24%	-1.3%	-1%	-1%
MDPediatrix Medical Group Inc.	$1.9B	—	10.1%	8%	11%
Group median	—	25%	7.1%	7%	6%

The price

What a price has to assume.

What the price implies

reverse-DCF

Type today's close and see the owner-earnings growth you'd have to believe to justify it, beside what Surgery Partners Inc. has delivered.

Today’s price $

Through the cycle, Surgery Partners Inc. earns about $196M on its 5.9% median owner-earnings margin. This year’s 5.9% margin runs in line with that. Normalize, below, values the price on that through-cycle figure rather than the latest year.

Base Normalize · through-cycle ($196M) Net of stock comp (−$10M TTM)

—

The assumptions Required return 9% Years of high growth 10 Terminal growth 2.5%

9.0% = the 4.71% 10-year Treasury (Aug 18, 2026) + 4.29 points of equity premium. The rate you require is yours to set.

Enter a price above to run it.

Implied by the price—

Owner-earnings growth · ’21→’25+39%/yr

Owner-earnings growth · ’15→’25+11%/yr

Owner-earnings yield—

P/E (3-yr earnings ’23–’25)—

P/B—

Graham’s price gate—

Graham capped the multiple at 15×; Buffett and Munger let that rule go: a wonderful business can deserve 50× if the thesis holds. The gate marks the bargain-hunter's floor.

Against a high-grade bond: Graham’s yardstick bond yield%

Prefilled with the 10-year Treasury (4.71%, as of Aug 18, 2026). Edit it for today’s exact figure, or a AAA corporate yield.

Graham measured a stock against the bond you could own instead, the heart of his margin of safety. Enter a price above to weigh the owner-earnings yield against this bond.

Owner earnings $188M on 131M shares outstanding, per the 10-Q cover, as of 2026-08-03; net debt $3.5B. The base is the latest year by default; Normalize values it on the through-cycle median owner-earnings margin (to avoid paying on a peak year). Net of stock comp treats option pay as the expense it is. The dials set the multiple a growth belief justifies; the price, and every dollar on this page, is yours.

Weigh SGRY against another business →

Cite: Owner Scorecard, "Surgery Partners Inc. (SGRY), the owner's record," https://ownerscorecard.com/c/SGRY, data as of 2026-08-17.

Manual order: ← SGI its page in the Manual SGU →

Industry order: ← SEM the Health Care Providers & Services chapter SHC →