Intuitive Surgical Inc (ISRG)'s Winning Formula: Financial Metrics and Competitive Strengths

Exploring the Robust Financial Health and Growth Trajectory of Intuitive Surgical Inc

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 $315.42, Intuitive Surgical Inc has witnessed a daily loss of 0.81%, marked against a three-month change of 11.33%. A thorough analysis, underlined by the GF Score, suggests that Intuitive Surgical Inc is well-positioned for substantial growth in the near future.

1729154701578006528.png

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.

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, growth, and momentum, and a slightly lower but still favorable GF Value rank, 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 $111.05 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.

1729154719349272576.png

Financial Strength Breakdown

According to the Financial Strength rating, Intuitive Surgical Inc's robust balance sheet exhibits resilience against financial volatility, reflecting prudent management of capital structure. With an Interest Coverage ratio significantly high due to no long-term debt, the company aligns with Benjamin Graham's preference for an interest coverage ratio of at least 5. Furthermore, with an Altman Z-Score of 33.8, Intuitive Surgical Inc exhibits a strong defense against financial distress, highlighting its robust financial stability. The company's strategic handling of debt, with a Debt-to-Revenue ratio of 0, solidifies its financial health.

Profitability Rank Breakdown

The Profitability Rank reflects Intuitive Surgical Inc's impressive standing among its peers in generating profit. The company's solid financial situation is further confirmed by the Piotroski F-Score, which is based on Joseph Piotroski's nine-point scale measuring profitability, funding, and operating efficiency. Additionally, Intuitive Surgical Inc's strong Predictability Rank of 4.0 stars out of five underscores its consistent operational performance, providing investors with increased confidence.

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 61.29% of companies in the Medical Devices & Instruments industry. Moreover, the company has seen a robust increase in its EBITDA over the past few years, with a three-year growth rate of 6.8 and a five-year rate of 10.7, highlighting its capability to drive growth.

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 seeking to capitalize on such robust financial health and growth prospects may find Intuitive Surgical Inc an attractive addition to their portfolios. For those looking to discover more companies with strong GF Scores, GuruFocus Premium members can use the following screener link: GF Score Screen.

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.

Disclosures

I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours. Click for the complete disclosure