INTUITIVE SURGICAL INC (ISRG) Stock Fundamental Analysis
NASDAQ:ISRG - Nasdaq - US46120E6023 - Common Stock - Currency: USD
ISRG gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 187 industry peers in the Health Care Equipment & Supplies industry. ISRG has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. ISRG is not overvalued while it is showing excellent growth. This is an interesting combination. This makes ISRG very considerable for growth and quality investing!
1. Profitability
1.1 Basic Checks
In the past year ISRG was profitable.
In the past year ISRG had a positive cash flow from operations.
ISRG had positive earnings in each of the past 5 years.
In the past 5 years ISRG always reported a positive cash flow from operatings.
1.2 Ratios
ISRG's Return On Assets of 12.88% is amongst the best of the industry. ISRG outperforms 95.19% of its industry peers.
ISRG has a better Return On Equity (14.47%) than 90.91% of its industry peers.
With an excellent Return On Invested Capital value of 12.56%, ISRG belongs to the best of the industry, outperforming 94.65% of the companies in the same industry.
ISRG had an Average Return On Invested Capital over the past 3 years of 12.30%. This is above the industry average of 7.89%.
The last Return On Invested Capital (12.56%) for ISRG is above the 3 year average (12.30%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.88% | ||
| ROE | 14.47% | ||
| ROIC | 12.56% |
ROA(3y)11.41%
ROA(5y)11.26%
ROE(3y)13.18%
ROE(5y)12.95%
ROIC(3y)12.3%
ROIC(5y)11.92%
1.3 Margins
The Profit Margin of ISRG (28.41%) is better than 96.79% of its industry peers.
In the last couple of years the Profit Margin of ISRG has declined.
ISRG's Operating Margin of 28.28% is amongst the best of the industry. ISRG outperforms 97.33% of its industry peers.
In the last couple of years the Operating Margin of ISRG has declined.
ISRG has a Gross Margin of 67.09%. This is in the better half of the industry: ISRG outperforms 72.19% of its industry peers.
In the last couple of years the Gross Margin of ISRG has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.28% | ||
| PM (TTM) | 28.41% | ||
| GM | 67.09% |
OM growth 3Y-4.3%
OM growth 5Y-1.74%
PM growth 3Y-2.34%
PM growth 5Y-2.02%
GM growth 3Y-0.91%
GM growth 5Y-0.58%
2. Health
2.1 Basic Checks
ISRG has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for ISRG has been increased compared to 1 year ago.
The number of shares outstanding for ISRG has been increased compared to 5 years ago.
ISRG has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
ISRG has an Altman-Z score of 57.17. This indicates that ISRG is financially healthy and has little risk of bankruptcy at the moment.
ISRG has a better Altman-Z score (57.17) than 100.00% of its industry peers.
There is no outstanding debt for ISRG. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 57.17 |
ROIC/WACC1.4
WACC8.99%
2.3 Liquidity
ISRG has a Current Ratio of 4.98. This indicates that ISRG is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 4.98, ISRG is doing good in the industry, outperforming 74.33% of the companies in the same industry.
A Quick Ratio of 3.97 indicates that ISRG has no problem at all paying its short term obligations.
The Quick ratio of ISRG (3.97) is better than 72.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.98 | ||
| Quick Ratio | 3.97 |
3. Growth
3.1 Past
ISRG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 27.76%, which is quite impressive.
The Earnings Per Share has been growing by 11.48% on average over the past years. This is quite good.
Looking at the last year, ISRG shows a quite strong growth in Revenue. The Revenue has grown by 19.08% in the last year.
The Revenue has been growing by 13.27% on average over the past years. This is quite good.
EPS 1Y (TTM)27.76%
EPS 3Y13.83%
EPS 5Y11.48%
EPS Q2Q%20.67%
Revenue 1Y (TTM)19.08%
Revenue growth 3Y13.51%
Revenue growth 5Y13.27%
Sales Q2Q%19.19%
3.2 Future
Based on estimates for the next years, ISRG will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.45% on average per year.
ISRG is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.12% yearly.
EPS Next Y9.17%
EPS Next 2Y12.26%
EPS Next 3Y13.94%
EPS Next 5Y14.45%
Revenue Next Year18.07%
Revenue Next 2Y16.6%
Revenue Next 3Y16.14%
Revenue Next 5Y14.12%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 71.27, the valuation of ISRG can be described as expensive.
65.78% of the companies in the same industry are more expensive than ISRG, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of ISRG to the average of the S&P500 Index (27.45), we can say ISRG is valued expensively.
The Price/Forward Earnings ratio is 58.94, which means the current valuation is very expensive for ISRG.
ISRG's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ISRG is cheaper than 65.78% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of ISRG to the average of the S&P500 Index (21.90), we can say ISRG is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 71.27 | ||
| Fwd PE | 58.94 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ISRG is valued a bit cheaper than the industry average as 63.64% of the companies are valued more expensively.
70.05% of the companies in the same industry are more expensive than ISRG, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 111.81 | ||
| EV/EBITDA | 62.9 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ISRG does not grow enough to justify the current Price/Earnings ratio.
ISRG has an outstanding profitability rating, which may justify a higher PE ratio.
ISRG's earnings are expected to grow with 13.94% in the coming years. This may justify a more expensive valuation.
PEG (NY)7.77
PEG (5Y)6.21
EPS Next 2Y12.26%
EPS Next 3Y13.94%
5. Dividend
5.1 Amount
No dividends for ISRG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
544.47
+3.87 (+0.72%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners88.74%
Inst Owner Change-51.09%
Ins Owners0.45%
Ins Owner Change6.09%
Market Cap195.15B
Analysts78.97
Price Target593.62 (9.03%)
Short Float %1.12%
Short Ratio2.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)11.91%
Min EPS beat(2)3.05%
Max EPS beat(2)20.76%
EPS beat(4)4
Avg EPS beat(4)11.89%
Min EPS beat(4)3.05%
Max EPS beat(4)20.76%
EPS beat(8)8
Avg EPS beat(8)8.01%
EPS beat(12)10
Avg EPS beat(12)4.94%
EPS beat(16)13
Avg EPS beat(16)5.44%
Revenue beat(2)2
Avg Revenue beat(2)3.11%
Min Revenue beat(2)1.09%
Max Revenue beat(2)5.12%
Revenue beat(4)2
Avg Revenue beat(4)1.5%
Min Revenue beat(4)-0.14%
Max Revenue beat(4)5.12%
Revenue beat(8)3
Avg Revenue beat(8)0.14%
Revenue beat(12)5
Avg Revenue beat(12)-0.1%
Revenue beat(16)7
Avg Revenue beat(16)0.86%
PT rev (1m)-0.02%
PT rev (3m)-7.9%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.25%
EPS NY rev (1m)0.3%
EPS NY rev (3m)-2.47%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)0.34%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 71.27 | ||
| Fwd PE | 58.94 | ||
| P/S | 22.39 | ||
| P/FCF | 111.81 | ||
| P/OCF | 71.45 | ||
| P/B | 11.41 | ||
| P/tB | 11.66 | ||
| EV/EBITDA | 62.9 |
EPS(TTM)7.64
EY1.4%
EPS(NY)9.24
Fwd EY1.7%
FCF(TTM)4.87
FCFY0.89%
OCF(TTM)7.62
OCFY1.4%
SpS24.31
BVpS47.73
TBVpS46.7
PEG (NY)7.77
PEG (5Y)6.21
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.88% | ||
| ROE | 14.47% | ||
| ROCE | 13.94% | ||
| ROIC | 12.56% | ||
| ROICexc | 17.02% | ||
| ROICexgc | 17.52% | ||
| OM | 28.28% | ||
| PM (TTM) | 28.41% | ||
| GM | 67.09% | ||
| FCFM | 20.03% |
ROA(3y)11.41%
ROA(5y)11.26%
ROE(3y)13.18%
ROE(5y)12.95%
ROIC(3y)12.3%
ROIC(5y)11.92%
ROICexc(3y)22.09%
ROICexc(5y)21.23%
ROICexgc(3y)23.21%
ROICexgc(5y)22.47%
ROCE(3y)13.65%
ROCE(5y)13.23%
ROICexcg growth 3Y10.09%
ROICexcg growth 5Y3.3%
ROICexc growth 3Y10.33%
ROICexc growth 5Y3.99%
OM growth 3Y-4.3%
OM growth 5Y-1.74%
PM growth 3Y-2.34%
PM growth 5Y-2.02%
GM growth 3Y-0.91%
GM growth 5Y-0.58%
F-Score6
Asset Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 185.49% | ||
| Cap/Sales | 11.31% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 91.16% | ||
| Profit Quality | 70.49% | ||
| Current Ratio | 4.98 | ||
| Quick Ratio | 3.97 | ||
| Altman-Z | 57.17 |
F-Score6
WACC8.99%
ROIC/WACC1.4
Cap/Depr(3y)197.35%
Cap/Depr(5y)162.98%
Cap/Sales(3y)12.27%
Cap/Sales(5y)10.16%
Profit Quality(3y)56.77%
Profit Quality(5y)75.99%
High Growth Momentum
Growth
EPS 1Y (TTM)27.76%
EPS 3Y13.83%
EPS 5Y11.48%
EPS Q2Q%20.67%
EPS Next Y9.17%
EPS Next 2Y12.26%
EPS Next 3Y13.94%
EPS Next 5Y14.45%
Revenue 1Y (TTM)19.08%
Revenue growth 3Y13.51%
Revenue growth 5Y13.27%
Sales Q2Q%19.19%
Revenue Next Year18.07%
Revenue Next 2Y16.6%
Revenue Next 3Y16.14%
Revenue Next 5Y14.12%
EBIT growth 1Y32.36%
EBIT growth 3Y8.64%
EBIT growth 5Y11.3%
EBIT Next Year33.95%
EBIT Next 3Y22.85%
EBIT Next 5Y19.86%
FCF growth 1Y73.18%
FCF growth 3Y-9.1%
FCF growth 5Y2.14%
OCF growth 1Y66.62%
OCF growth 3Y4.95%
OCF growth 5Y8.61%