
Intuitive Surgical has experienced significant growth, with revenue increasing from $1.3 billion in 2017 to $4.5 billion in 2020.
The company's financial performance has been strong, with a net income of $1.1 billion in 2020.
Intuitive Surgical's stock price has also seen significant growth, increasing from $560 in 2017 to over $1,500 in 2020.
The company's financial stability has allowed it to invest in research and development, with a focus on expanding its product offerings and improving its existing technologies.
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Financial Performance
Intuitive Surgical's financial performance is a testament to its success in the medical technology industry. The company's profit margin stands at 28.58%, indicating a strong ability to maintain profitability even during challenging times.
This high profit margin is likely due to the company's focus on developing innovative surgical systems. Intuitive Surgical's revenue has grown significantly, reaching $9.61 billion in the trailing 12 months.
The company's return on assets (ROA) is 9.56%, which is a respectable figure considering the industry's average. A high ROA indicates that the company is using its assets efficiently to generate profits.
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Intuitive Surgical's return on equity (ROE) is an impressive 16.90%. This means that for every dollar invested in the company, it generates $0.169 in profit. This is a clear indication of the company's ability to generate value for its shareholders.
Here are the key financial metrics for Intuitive Surgical:
The company's net income available to common shareholders has grown to $2.75 billion in the trailing 12 months, indicating a strong ability to generate profits. This is reflected in the company's diluted earnings per share (EPS) of $7.54, which is a clear indication of the company's financial health.
Stock Analysis
Intuitive Surgical's valuation seems reasonable when considering its price-to-earnings-to-growth (PEG) ratio of approximately 2.2, which is still above the S&P 500's average of 1.5.
The company has consistently delivered excellent financial results, with revenue increasing by 21% year over year to $2.44 billion in the second quarter, and non-GAAP earnings per share coming in at $2.19, 23% higher than the year-ago period.
Here are some key valuation measures for Intuitive Surgical:
Analysts expect Intuitive Surgical's EPS to rise marginally year over year to $6.54 for the current fiscal year, and the mean price target of $597.12 represents a 27.1% premium from ISRG's current price levels.
Medical Instruments & Supplies
Intuitive Surgical, Inc. is a leading medical instruments and supplies company that develops and markets products for minimally invasive care.
The company's flagship product is the da Vinci Surgical System, which enables surgical procedures using a minimally invasive approach. This system has been approved for a long list of uses, giving Intuitive Surgical a significant first-mover advantage.
Intuitive Surgical's products are sold through direct sales organizations, including capital and clinical sales teams. The company also offers a suite of stapling, energy, and core instrumentation for its multi-port da Vinci surgical systems.
The company was incorporated in 1995 and is headquartered in Sunnyvale, California. It has a large installed base of over 10,000 da Vinci systems.
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Here are some of the key medical devices offered by Intuitive Surgical:
- da Vinci 5 Surgical System
- Ion Endoluminal System
Despite the potential for increased competition, Intuitive Surgical's underlying business looks strong. The company's moat and significant runway for growth in its market make the stock a buy, according to some analysts.
Valuation Measures
Intuitive Surgical's valuation is a topic of interest, with its price-to-earnings-to-growth (PEG) ratio of approximately 2.2. This is slightly above the S&P 500's average of 1.5.
The company's valuation seems more reasonable when considering its strong financial results. In the second quarter, revenue increased by 21% year over year to $2.44 billion.
Here are some key valuation metrics for Intuitive Surgical:
- Market Cap: 158.81B
- Enterprise Value: 153.48B
- Trailing P/E: 61.79
- Forward P/E: 47.85
- PEG Ratio (5yr expected): 2.79
- Price/Sales (ttm): 17.62
- Price/Book (mrq): 8.90
- Enterprise Value/Revenue: 16.78
- Enterprise Value/EBITDA: 48.40
The company's valuation is a concern for some investors, with a forward price-to-earnings (P/E) ratio of 47.85, which is higher than the average for the healthcare sector.
Analyst Recommendations
The analyst consensus on Intuitive Surgical is a "Moderate Buy" based on 18 "Strong Buy" and two "Moderate Buy" ratings, with a Street-high price target of $685 suggesting an upside potential of 45.8%.
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Analysts expect Intuitive Surgical's EPS to rise marginally year over year to $6.54 for the current fiscal year, ending in December.
RBC Capital recently raised its price target on Intuitive Surgical to $615 from $605, maintaining an "Outperform" rating after the company delivered strong quarterly results.
The mean price target of $597.12 represents a 27.1% premium from Intuitive Surgical's current price levels.
With 20 analysts suggesting a "Strong Buy" rating just a month ago, the consensus rating has shifted slightly bearish, but still remains optimistic about the company's prospects.
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Research Reports: ISRG
Intuitive Surgical has placed over 10,000 da Vinci systems in hospitals worldwide, with more than 6,000 installations in the US alone.
The company has a significant presence in emerging markets, with a growing number of installations.
Intuitive Surgical provides a wide range of services, including the instrumentation, disposable accessories, and warranty services for the da Vinci system.
Here are some key facts about Intuitive Surgical's da Vinci system:
- Enables surgeons to perform a wide range of surgical procedures with shorter recovery periods and higher patient comfort.
- Has been installed in over 10,000 hospitals worldwide.
- Has over 6,000 installations in the US alone.
- Is used in a growing number of emerging markets.
Intuitive Surgical was founded in 1995 and is headquartered in Sunnyvale, California.
Market Performance
Intuitive Surgical, Inc. closed at $476.16, marking a +1.34% move from the previous day.
This change lagged the S&P 500's 1.52% gain on the day, and the Dow registered a gain of 1.89%, while the technology-centric Nasdaq increased by 1.88%.
Shares of the company witnessed a loss of 3.83% over the previous month, trailing the performance of the Medical sector with its gain of 4.77%, and the S&P 500's gain of 1.1%.
The company is expected to report EPS of $2, up 8.7% from the prior-year quarter.
Over the past month, the Zacks Consensus EPS estimate has shifted 3.59% upward, indicating a positive revision in estimates.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988.
Investment Decision
Intuitive Surgical's valuation seems more reasonable, with a price-to-earnings-to-growth (PEG) ratio of approximately 2.2, which is still above the S&P 500's average of 1.5.
The company continues to post excellent financial results, with revenue increasing by 21% year over year to $2.44 billion in the second quarter.
Non-GAAP earnings per share came in at $2.19, 23% higher than the year-ago period, and trailing-12-month free cash flow soared by 240% to almost $2 billion.
Despite an expected 1% impact from tariffs on its top line, Intuitive Surgical is likely to post strong earnings for the full calendar year.
The RAS market is severely underpenetrated, leaving room for multiple winners, including Intuitive Surgical.
Frequently Asked Questions
What is the lawsuit against Intuitive Surgical?
Intuitive Surgical is being sued for allegedly tying the sale and service of its da Vinci systems to the purchase of its EndoWrist instruments, a practice that may be violating antitrust laws. The lawsuit claims this practice is an abuse of market power and harms hospitals.
How hard is it to get hired at Intuitive Surgical?
According to Glassdoor, getting hired at Intuitive Surgical is moderately challenging, with a difficulty rating of 3.09 out of 5. If you're interested in learning more about the hiring process, read on for more insights.
Does Intuitive Surgical pay well?
Yes, Intuitive Surgical offers competitive hourly pay, ranging from $22 to $99.50 per hour depending on the role. Explore their salary ranges to learn more about the compensation for various positions.
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