Intuitive Surgical (ISRG) AI Stock Analysis

• Market Cap: $199.67B
• Dividend Yield: N/A
• Average Volume (3M): 1.45M
• Price to Earnings (P/E): 77.2
• Beta (1Y): 1.29
• Revenue Growth: 19.08%
• EPS Growth: 23.13%
• Country: US
• Employees: 15,638
• Sector: Healthcare
• Sector Strength: 41
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 1.81
• Shares Outstanding: 358,418,240
• 10 Day Avg. Volume: 1,656,320
• 30 Day Avg. Volume: 1,449,684
• PEG Ratio: 12.10
• Price to Book (P/B): 11.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 108.05
• Enterprise Value/Market Cap: 0.93
• Enterprise Value/Revenue: 5.72
• Enterprise Value/Gross Profit: 31.82
• Enterprise Value/Ebitda: 17.46
• 1Y Price Target: $596.35
• Price Target Upside: 12.60% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 21

• Rating: 78 Outperform
• Price Target: ―

Intuitive Surgical's overall stock score reflects its robust financial performance, characterized by strong profitability, growth, and liquidity. Positive earnings call guidance further enhances its outlook, despite high valuation concerns and moderate technical indicators. Challenges such as tariff impacts and international market stresses are notable but are balanced by the company's strategic strengths and innovation initiatives.

Positive Factors

Cardiac Surgery Expansion

The appointment of Darla Hutton as Global Vice President of Cardiac Surgery indicates a serious focus on expanding in the cardiac field.

Leadership and Strategy

Management is confident in the recent CEO transition, with a strategic approach and no significant adjustments expected to ISRG's strategy.

Product Launch

ISRG is targeting a broad DV5 launch, with positive feedback on integration and efficiency, providing opportunities for surgeons to improve their learning curve.

Negative Factors

Budget Uncertainty

Uncertainty around Medicaid and capex budgets may impact procedure volumes and hospital budgets.

Capital Spending Concerns

Potential concerns surrounding WW capital spending may pose some risk to FY25 placements.

Tariff Impact

Tariff headwinds are expected to pose a significant challenge, potentially worsening each quarter they remain in place.

Intuitive Surgical Business Overview & Revenue Model

Company Description

Intuitive Surgical, Inc. (ISRG) is a global technology leader in minimally invasive care and the pioneer of robotic-assisted surgery. The company's flagship product, the da Vinci Surgical System, enables surgeons to perform complex procedures with enhanced precision and control. Intuitive Surgical's innovative solutions are primarily used in urology, gynecology, general surgery, and cardiothoracic procedures, among others. Headquartered in Sunnyvale, California, the company focuses on advancing medical technology to improve patient outcomes and reduce healthcare costs.

How the Company Makes Money

Intuitive Surgical generates revenue through the sale and leasing of its da Vinci Surgical Systems, as well as through recurring revenue streams such as instruments and accessories, and service agreements. The sale of the robotic systems represents a significant portion of its revenue, while the recurring revenue from instruments and accessories, which are necessary for each surgical procedure, provides a steady income source. Additionally, service contracts for the maintenance and support of the systems contribute to their revenue. The company's earnings are also supported by its partnerships with hospitals and healthcare providers, which help expand the adoption of robotic-assisted surgical procedures globally.

Intuitive Surgical Financial Statement Overview

Summary

Intuitive Surgical is in a strong financial position, characterized by stable profitability, robust growth, and excellent liquidity. The company effectively manages costs and generates substantial cash flow, with a strong balance sheet free of debt. High margins and efficient asset utilization contribute to its exemplary financial health.

Income Statement

Intuitive Surgical showcases strong financial performance with a consistent upward trajectory in revenue growth, marked at 4.34% from the previous annual report to TTM. The gross profit margin is robust at 67.09%, while the net profit margin stands at an impressive 28.42%. The company also maintains healthy EBIT and EBITDA margins of 28.20% and 34.42%, respectively, indicating effective cost management and operational efficiency.

Balance Sheet

The balance sheet is exceptionally strong with a debt-free status enhancing financial stability, evidenced by a zero debt-to-equity ratio. The equity ratio is high at 89.55%, reflecting strong capitalization. Return on Equity is a solid 14.39% in the TTM period, indicating effective utilization of shareholder funds to generate profits.

Cash Flow

Cash flow metrics are robust, with a significant free cash flow growth of 33.84% from the previous year. The operating cash flow to net income ratio is 1.10, and the free cash flow to net income ratio is 0.70, indicating strong cash generation relative to net earnings. These metrics suggest excellent liquidity and cash management.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
8.71B	8.35B	7.12B	6.22B	5.71B	4.36B
	Gross Profit
5.85B	5.63B	4.73B	4.20B	3.96B	2.86B
	EBIT
2.46B	2.35B	1.77B	1.21B	1.82B	773.60M
	EBITDA
2.95B	2.81B	2.17B	1.94B	2.13B	1.33B
	Net Income Common Stockholders
2.48B	2.32B	1.80B	1.32B	1.70B	1.06B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
6.87B	4.01B	5.22B	6.74B	8.62B	6.87B
	Total Assets
11.17B	18.74B	15.44B	12.97B	13.55B	11.17B
	Total Debt
58.00M	0.00	89.80M	93.80M	87.00M	79.90M
	Net Debt
-1.56B	-2.03B	-2.66B	-1.49B	-1.20B	-1.54B
	Total Liabilities
1.41B	2.21B	2.04B	1.86B	1.60B	1.41B
	Stockholders Equity
9.76B	16.43B	13.31B	11.11B	11.95B	9.76B
Cash Flow		Free Cash Flow
1.75B	1.30B	749.60M	958.40M	1.74B	1.14B
	Operating Cash Flow
2.73B	2.42B	1.81B	1.49B	2.09B	1.48B
	Investing Cash Flow
-2.93B	-3.27B	-360.10M	1.37B	-2.46B	-940.60M
	Financing Cash Flow
-38.20M	150.90M	-287.60M	-2.57B	43.00M	-85.70M

Intuitive Surgical Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 529.60
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ISRG, the sentiment is Negative. The current price of 529.6 is below the 20-day moving average (MA) of 552.33, above the 50-day MA of 522.89, and above the 200-day MA of 526.33, indicating a neutral trend. The MACD of 3.46 indicates Positive momentum. The RSI at 42.40 is Neutral, neither overbought nor oversold. The STOCH value of 52.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ISRG.

Intuitive Surgical Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RMD	85 Outperform	$36.98B	28.32	25.81%	0.84%	9.54%	37.23%
ISRG	78 Outperform	$199.67B	77.18	15.94%	―	19.08%	23.13%
HOLX	70 Outperform	$14.34B	27.26	11.77%	―	1.66%	21.95%
COO	69 Neutral	$14.43B	34.91	5.15%	―	6.88%	21.11%
BDX	68 Neutral	$49.71B	33.10	5.97%	2.31%	5.84%	15.12%
BAX	60 Neutral	$16.28B	136.07	-8.96%	2.59%	-20.17%	-138.32%
Sector *	54 Neutral	$5.37B	3.35	-45.10%	2.79%	16.77%	-0.01%

Intuitive Surgical Corporate Events

Intuitive Surgical Strengthens Leadership with Key Promotions

Intuitive Surgical, Inc. announced the promotion of Jamie E. Samath to Executive Vice President, Chief Financial Officer and Head of Business Technology, and Henry L. Charlton to Executive Vice President, Chief Commercial and Marketing Officer, effective January 1, 2025. Both executives received significant salary increases and enhanced bonus opportunities, reflecting the company’s strategy to strengthen its leadership team and potentially enhance its market position.