INTUITIVE SURGICAL INC (ISRG) Stock Fundamental Analysis
NASDAQ:ISRG - Nasdaq - US46120E6023 - Common Stock - Currency: USD
Taking everything into account, ISRG scores 7 out of 10 in our fundamental rating. 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! These ratings could make ISRG a good candidate for growth and quality investing.
1. Profitability
1.1 Basic Checks
ISRG had positive earnings in the past year.
ISRG had a positive operating cash flow in the past year.
In the past 5 years ISRG has always been profitable.
In the past 5 years ISRG always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 12.88%, ISRG belongs to the best of the industry, outperforming 95.19% of the companies in the same industry.
ISRG has a better Return On Equity (14.47%) than 90.91% of its industry peers.
ISRG has a Return On Invested Capital of 12.56%. This is amongst the best in the industry. ISRG outperforms 94.65% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ISRG is above the industry average of 7.89%.
The 3 year average ROIC (12.30%) for ISRG is below the current ROIC(12.56%), indicating increased profibility in the last year.
| 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
ISRG has a better Profit Margin (28.41%) than 96.79% of its industry peers.
In the last couple of years the Profit Margin of ISRG has declined.
With an excellent Operating Margin value of 28.28%, ISRG belongs to the best of the industry, outperforming 97.33% of the companies in the same industry.
In the last couple of years the Operating Margin of ISRG has declined.
With a decent Gross Margin value of 67.09%, ISRG is doing good in the industry, outperforming 72.19% of the companies in the same industry.
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.
The number of shares outstanding for ISRG has been increased compared to 5 years ago.
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.
2.2 Solvency
An Altman-Z score of 57.17 indicates that ISRG is not in any danger for 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.
ISRG has a Quick ratio of 3.97. This is in the better half of the industry: ISRG outperforms 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.
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.
Looking at the last year, ISRG shows a quite strong growth in Revenue. The Revenue has grown by 19.08% in the last year.
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.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 69.99, ISRG can be considered very expensive at the moment.
Based on the Price/Earnings ratio, ISRG is valued a bit cheaper than 65.78% of the companies in the same industry.
ISRG is valuated expensively when we compare the Price/Earnings ratio to 27.29, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 57.88 indicates a quite expensive valuation of 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.
The average S&P500 Price/Forward Earnings ratio is at 21.74. ISRG is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 69.99 | ||
| Fwd PE | 57.88 |
4.2 Price Multiples
63.64% 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 | 109.81 | ||
| EV/EBITDA | 62.9 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of ISRG 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)7.63
PEG (5Y)6.1
EPS Next 2Y12.26%
EPS Next 3Y13.94%
5. Dividend
5.1 Amount
ISRG does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
534.71
-9.76 (-1.79%)
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 Cap191.65B
Analysts78.97
Price Target593.62 (11.02%)
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 | 69.99 | ||
| Fwd PE | 57.88 | ||
| P/S | 21.99 | ||
| P/FCF | 109.81 | ||
| P/OCF | 70.17 | ||
| P/B | 11.2 | ||
| P/tB | 11.45 | ||
| EV/EBITDA | 62.9 |
EPS(TTM)7.64
EY1.43%
EPS(NY)9.24
Fwd EY1.73%
FCF(TTM)4.87
FCFY0.91%
OCF(TTM)7.62
OCFY1.43%
SpS24.31
BVpS47.73
TBVpS46.7
PEG (NY)7.63
PEG (5Y)6.1
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%