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 $301.44, Intuitive Surgical Inc has witnessed a surge of 1.31% over a period, marked against a three-month change of -1.82%. A thorough analysis, underlined by the GuruFocus Score Rating, suggests that Intuitive Surgical Inc is well-positioned for substantial growth in the near future.
Decoding 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.
Intuitive Surgical Inc has been assigned the following ranks:
- 1. Financial strength rank: 10/10
- 2. Profitability rank: 10/10
- 3. Growth rank: 10/10
- 4. GF Value rank: 7/10
- 5. Momentum rank: 6/10
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 ranks in GF value and momentum, GuruFocus assigned Intuitive Surgical Inc the GF Score of 97 out of 100, which signals the highest outperformance potential.
Understanding Intuitive Surgical Inc's Business
Intuitive Surgical Inc, with a market cap of $105.91 billion and sales of $6.66 billion, develops, produces, and markets a robotic system for assisting minimally invasive surgery. It also provides the instrumentation, disposable accessories, and warranty services for the system. The company has placed more than 8,000 da Vinci systems in hospitals worldwide, with nearly 5,000 installations in the U.S. and a growing number in emerging markets. Its operating margin stands at 24.34%, indicating a healthy profitability.
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. The company's Interest Coverage ratio is significantly high due to no long-term debt. With an Altman Z-Score of 34.1, Intuitive Surgical Inc exhibits a strong defense against financial distress, highlighting its robust financial stability. With a favorable Debt-to-Revenue ratio of 0, Intuitive Surgical Inc's strategic handling of debt solidifies its financial health.
Profitability Rank Breakdown
The Profitability Rank shows Intuitive Surgical Inc's impressive standing among its peers in generating profit. The company's strong Predictability Rank of 4.0 stars out of five underscores its consistent operational performance, providing investors with increased confidence.
Growth Rank Breakdown
Ranked highly in Growth, Intuitive Surgical Inc demonstrates a strong commitment to expanding its business. The company's 3-Year Revenue Growth Rate is 11.2%, which outperforms better than 61% of 723 companies in the Medical Devices & Instruments industry. Moreover, Intuitive Surgical Inc has seen a robust increase in its earnings before interest, taxes, depreciation, and amortization (EBITDA) over the past few years. Specifically, the three-year growth rate stands at 6.8, and the rate over the past five years is 10.7. This trend accentuates the company's continued capability to drive growth.
Conclusion
Given the company's robust financial strength, impressive profitability, and strong growth metrics, the GuruFocus Score Rating highlights Intuitive Surgical Inc's unparalleled position for potential outperformance. This analysis underscores the importance of comprehensive financial evaluation in making informed investment decisions. GuruFocus Premium members can find more companies with strong GF Scores using the following screener link: GF Score Screen
