Intuitive Surgical Inc (ISRG, Financial) has recently been in the spotlight, drawing interest from investors and financial analysts due to its robust financial stance. With shares currently priced at $308.92, Intuitive Surgical Inc has witnessed a daily gain of 1.19%, marked against a three-month change of 5.24%. A thorough analysis, underlined by the GF Score, suggests that Intuitive Surgical Inc is well-positioned for substantial growth in the near future.
What Is the GF Score?
The GF Score is a stock performance ranking system developed by GuruFocus using five aspects of valuation, which has been found to be closely correlated to the long-term performances of stocks by backtesting from 2006 to 2021. The stocks with a higher GF Score generally generate higher returns than those with a lower GF Score. Therefore, when picking stocks, investors should invest in companies with high GF Scores. The GF Score ranges from 0 to 100, with 100 as the highest rank.
- Financial strength rank: 10/10
- Profitability rank: 10/10
- Growth rank: 10/10
- GF Value rank: 6/10
- Momentum rank: 8/10
Each one of these components is ranked and the ranks also have positive correlation with the long term performances of stocks. The GF score is calculated using the five key aspects of analysis. Through backtesting, we know that each of these key aspects has a different impact on the stock price performance. Thus, they are weighted differently when calculating the total score. With high ranks in financial strength, profitability, and growth, and slightly lower yet strong ranks in GF Value and momentum, GuruFocus assigned Intuitive Surgical Inc the GF Score of 98 out of 100, which signals the highest outperformance potential.
Understanding Intuitive Surgical Inc's Business
Intuitive Surgical Inc, with a market cap of $108.76 billion and sales of $6.85 billion, is a leader in the development, production, and marketing of robotic systems for minimally invasive surgery. The company's flagship product, the da Vinci surgical system, is complemented by a suite of instruments, disposable accessories, and warranty services. Intuitive Surgical Inc has successfully placed over 8,000 da Vinci systems in hospitals worldwide, with nearly 5,000 installations in the U.S. and a growing presence in emerging markets. The company's operating margin stands at a healthy 24.66%, reflecting its operational efficiency and profitability.
Financial Strength Breakdown
Intuitive Surgical Inc's Financial Strength rating is impeccable, with a perfect score of 10/10. This reflects the company's resilience against financial volatility and its prudent management of the capital structure. With no long-term debt, Intuitive Surgical Inc's Interest Coverage ratio is significantly high, aligning with Benjamin Graham's preference for companies with an interest coverage ratio of at least 5. The Altman Z-Score of 32.74 further underscores the company's strong defense against financial distress, while a Debt-to-Revenue ratio of 0 highlights its strategic handling of debt and solidifies its financial health.
Profitability Rank Breakdown
The Profitability Rank of Intuitive Surgical Inc is another area where the company shines, with a top score of 10/10. This rank reflects the company's superior ability to generate profits compared to its peers. The Piotroski F-Score further confirms Intuitive Surgical Inc's solid financial situation, while its Predictability Rank of 4.0 stars out of five underscores its consistent operational performance, providing investors with increased confidence in the company's profitability.
Growth Rank Breakdown
Intuitive Surgical Inc's high Growth rank demonstrates the company's commitment to expanding its business. The 3-Year Revenue Growth Rate of 11.2% outperforms 61.35% of companies in the Medical Devices & Instruments industry. Additionally, the company's EBITDA has seen a robust increase, with a three-year growth rate of 6.8 and a five-year rate of 10.7, highlighting its capability to drive growth and expand its market presence.
Next Steps
Considering Intuitive Surgical Inc's financial strength, profitability, and growth metrics, the GF Score highlights the firm's unparalleled position for potential outperformance. Investors looking for similar opportunities can explore more companies with strong GF Scores using the GF Score Screen. With its innovative technology, strategic market positioning, and solid financials, Intuitive Surgical Inc stands as a compelling investment case for those seeking growth and stability in the dynamic healthcare sector.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
