INTUITIVE SURGICAL INC (ISRG) Stock Fundamental Analysis
NASDAQ:ISRG - Nasdaq - US46120E6023 - Common Stock - Currency: USD
We assign a fundamental rating of 7 out of 10 to ISRG. ISRG was compared to 187 industry peers in the Health Care Equipment & Supplies industry. Both the health and profitability get an excellent rating, making ISRG a very profitable company, without any liquidiy or solvency issues. ISRG is not priced too expensively while it is growing strongly. Keep and eye on this one! This makes ISRG very considerable for growth and quality investing!
1. Profitability
1.1 Basic Checks
In the past year ISRG was profitable.
ISRG had a positive operating cash flow in the past year.
ISRG had positive earnings in each of the past 5 years.
Each year in the past 5 years ISRG had a positive operating cash flow.
1.2 Ratios
The Return On Assets of ISRG (12.88%) is better than 95.19% of its industry peers.
The Return On Equity of ISRG (14.47%) is better 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
Looking at the Profit Margin, with a value of 28.41%, ISRG belongs to the top of the industry, outperforming 96.79% of the companies in the same industry.
In the last couple of years the Profit Margin of ISRG has declined.
ISRG has a Operating Margin of 28.28%. This is amongst the best in the industry. ISRG outperforms 97.33% of its industry peers.
ISRG's Operating Margin has declined in the last couple of years.
The Gross Margin of ISRG (67.09%) is better than 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ISRG is still creating some value.
ISRG has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, ISRG has more shares outstanding
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 54.29. This indicates that ISRG is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 54.29, ISRG belongs to the best of the industry, outperforming 99.47% of the companies in the same industry.
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 | 54.29 |
ROIC/WACC1.38
WACC9.08%
2.3 Liquidity
A Current Ratio of 4.98 indicates that ISRG has no problem at all paying its short term obligations.
ISRG's Current ratio of 4.98 is fine compared to the rest of the industry. ISRG outperforms 74.33% of its industry peers.
A Quick Ratio of 3.97 indicates that ISRG has no problem at all paying its short term obligations.
With a decent Quick ratio value of 3.97, ISRG is doing good in the industry, outperforming 72.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.98 | ||
| Quick Ratio | 3.97 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 27.76% over the past year.
Measured over the past years, ISRG shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.48% on average per year.
ISRG shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 19.08%.
ISRG shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.27% yearly.
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
ISRG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.45% yearly.
The Revenue is expected to grow by 14.12% on average over the next years. This is quite good.
EPS Next Y9.11%
EPS Next 2Y12.18%
EPS Next 3Y13.89%
EPS Next 5Y14.45%
Revenue Next Year18.04%
Revenue Next 2Y16.59%
Revenue Next 3Y16.13%
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
ISRG is valuated quite expensively with a Price/Earnings ratio of 67.88.
Compared to the rest of the industry, the Price/Earnings ratio of ISRG indicates a somewhat cheap valuation: ISRG is cheaper than 66.84% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.50, ISRG is valued quite expensively.
ISRG is valuated quite expensively with a Price/Forward Earnings ratio of 56.22.
ISRG's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ISRG is cheaper than 66.84% of the companies in the same industry.
ISRG's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 36.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 67.88 | ||
| Fwd PE | 56.22 |
4.2 Price Multiples
64.17% of the companies in the same industry are more expensive than ISRG, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, ISRG is valued a bit cheaper than the industry average as 70.05% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 106.51 | ||
| EV/EBITDA | 59.51 |
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.
A more expensive valuation may be justified as ISRG's earnings are expected to grow with 13.89% in the coming years.
PEG (NY)7.45
PEG (5Y)5.91
EPS Next 2Y12.18%
EPS Next 3Y13.89%
5. Dividend
5.1 Amount
ISRG does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
518.62
+2.46 (+0.48%)
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 Change0.07%
Ins Owners0.45%
Ins Owner Change6.09%
Market Cap185.88B
Analysts78.97
Price Target599.02 (15.5%)
Short Float %1.14%
Short Ratio2.55
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)0.03%
PT rev (3m)-7.9%
EPS NQ rev (1m)-0.05%
EPS NQ rev (3m)-2.05%
EPS NY rev (1m)0.25%
EPS NY rev (3m)-2.52%
Revenue NQ rev (1m)0.13%
Revenue NQ rev (3m)0.38%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)0.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 67.88 | ||
| Fwd PE | 56.22 | ||
| P/S | 21.33 | ||
| P/FCF | 106.51 | ||
| P/OCF | 68.06 | ||
| P/B | 10.87 | ||
| P/tB | 11.1 | ||
| EV/EBITDA | 59.51 |
EPS(TTM)7.64
EY1.47%
EPS(NY)9.22
Fwd EY1.78%
FCF(TTM)4.87
FCFY0.94%
OCF(TTM)7.62
OCFY1.47%
SpS24.31
BVpS47.73
TBVpS46.7
PEG (NY)7.45
PEG (5Y)5.91
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 | 54.29 |
F-Score6
WACC9.08%
ROIC/WACC1.38
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 Y9.11%
EPS Next 2Y12.18%
EPS Next 3Y13.89%
EPS Next 5Y14.45%
Revenue 1Y (TTM)19.08%
Revenue growth 3Y13.51%
Revenue growth 5Y13.27%
Sales Q2Q%19.19%
Revenue Next Year18.04%
Revenue Next 2Y16.59%
Revenue Next 3Y16.13%
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%