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 $394.14, Intuitive Surgical Inc has witnessed a daily loss of 0.54%, marked against a three-month change of 20.58%. A thorough analysis, underlined by the GF Score, suggests that Intuitive Surgical Inc is well-positioned for substantial growth in the near future.
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.
- Financial strength rank: 10/10
- Profitability rank: 10/10
- Growth rank: 10/10
- GF Value rank: 5/10
- Momentum rank: 9/10
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 a slightly lower 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 $139.70 billion and sales of $7.12 billion, is a pioneer in the field of robotic-assisted minimally invasive surgery. Its flagship product, the da Vinci surgical system, is complemented by a suite of instruments, disposable accessories, and warranty services. The company boasts more than 8,600 da Vinci systems installed globally, with over 5,000 in the US and an expanding presence in emerging markets. The operating margin stands at a healthy 24.8%, reflecting the company's operational efficiency.
Financial Strength Breakdown
Intuitive Surgical Inc's Financial Strength rating is impeccable, with a perfect score of 10/10. This reflects a balance sheet that is resilient against financial volatility, showcasing prudent management of the company's capital structure. The Interest Coverage ratio is significantly high, indicating the company's strong earnings relative to interest expenses, a factor highly regarded by the legendary investor Benjamin Graham.
With an Altman Z-Score of 43.02, Intuitive Surgical Inc is well-defended against financial distress, highlighting its robust financial stability. Additionally, the company's strategic handling of debt is evident with a Debt-to-Revenue ratio of 0, further solidifying its financial health.
Profitability Rank Breakdown
The Profitability Rank of Intuitive Surgical Inc stands at a perfect 10/10, indicating its superior ability to generate profits compared to its industry peers. The company's financial health is further reinforced by a high Piotroski F-Score, which assesses profitability, funding, and operating efficiency. Moreover, the company's Predictability Rank of 5 stars out of five underscores its consistent operational performance, providing investors with increased confidence in its financial outlook.
Growth Rank Breakdown
Intuitive Surgical Inc's high Growth Rank reflects its commitment to business expansion. The company's 3-Year Revenue Growth Rate of 18.2% outperforms 73.23% of companies in the Medical Devices & Instruments industry. The robust increase in EBITDA over the past few years, with a three-year growth rate of 18.6 and a five-year rate of 10.7, highlights Intuitive Surgical Inc's capability to drive growth and enhance shareholder value.
Conclusion: A Leader Poised for Outperformance
Intuitive Surgical Inc's exceptional financial strength, profitability, and growth metrics, as reflected in its GF Score, underscore the company's unparalleled position for potential outperformance. The combination of a debt-free balance sheet, high profitability, and consistent growth trajectory makes Intuitive Surgical Inc a compelling investment opportunity for those seeking market leaders with a proven track record. As the company continues to innovate and expand its reach in the medical devices sector, investors may find Intuitive Surgical Inc to be a strategic addition to their portfolios.
GuruFocus Premium members can find more companies with strong GF Scores using 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.
