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 $385.91, Intuitive Surgical Inc has witnessed a daily gain of 0.29%, marked against a three-month change of 6.58%. 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, but a moderate GF Value rank, 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 $136.79 billion and sales of $7.12 billion, is a pioneer in the field of robotic-assisted, minimally invasive surgery. The company's flagship product, the da Vinci surgical system, is a testament to its innovative capabilities, with over 8,600 systems placed in hospitals worldwide. Intuitive Surgical Inc's operating margin stands at a healthy 24.8%, reflecting its operational efficiency and profitability. The company's focus on developing, producing, and marketing its robotic systems, along with providing necessary instrumentation, disposable accessories, and warranty services, has positioned it as a leader in the medical devices and instruments industry.
Financial Strength Breakdown
Intuitive Surgical Inc's Financial Strength rating is impeccable, with a perfect score of 10/10. This reflects the company's solid balance sheet and its ability to withstand financial headwinds. The absence of long-term debt is a significant advantage, as evidenced by its high Interest Coverage ratio, aligning with Benjamin Graham's preference for companies with a ratio of at least 5. Furthermore, an Altman Z-Score of 41.82 indicates a very low probability of financial distress, and a Debt-to-Revenue ratio of 0 showcases the company's strategic debt management.
Profitability Rank Breakdown
The Profitability Rank of Intuitive Surgical Inc is another area where the company shines, with a score of 10/10. This rank is a testament to the company's ability to generate profits more effectively than most of its competitors. The Piotroski F-Score further confirms the company's strong financial position, while its Predictability Rank of 5 stars out of five indicates a consistent and reliable operational performance, which is highly valued by investors.
Growth Rank Breakdown
Intuitive Surgical Inc's Growth Rank is equally impressive, with a score of 10/10, highlighting the company's commitment to expanding its operations and market reach. The company's 3-Year Revenue Growth Rate of 18.2% outperforms 72.97% of its peers in the Medical Devices & Instruments industry. Additionally, the company's EBITDA has seen significant growth, with a three-year growth rate of 18.6 and a five-year rate of 10.7, underscoring its ability to enhance profitability over time.
Conclusion: Intuitive Surgical Inc's Position for Outperformance
Considering Intuitive Surgical Inc's exceptional financial strength, profitability, and growth metrics, the GF Score highlights the firm's unparalleled position for potential outperformance. The company's strategic focus on innovation and market expansion, combined with its solid financial foundation, makes it a compelling choice for investors seeking long-term growth. As the healthcare industry continues to evolve, Intuitive Surgical Inc's pioneering technology and business acumen position it at the forefront of this dynamic sector.
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.
