NasdaqGS:ISRG

Stock Analysis Report

Executive Summary

Intuitive Surgical, Inc., together with its subsidiaries, designs, manufactures, and markets da Vinci surgical systems, and related instruments and accessories.

Rewards

Earnings are forecast to grow 9.99% per year

Earnings grew by 22.3% over the past year

Risk Analysis

No risks detected for ISRG from our risk checks.


Snowflake Analysis

Flawless balance sheet with solid track record.


Similar Companies

Share Price & News

How has Intuitive Surgical's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ISRG has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

4.1%

ISRG

2.2%

US Medical Equipment

1.5%

US Market


1 Year Return

10.0%

ISRG

22.1%

US Medical Equipment

20.1%

US Market

Return vs Industry: ISRG underperformed the US Medical Equipment industry which returned 22.1% over the past year.

Return vs Market: ISRG underperformed the US Market which returned 20.1% over the past year.


Shareholder returns

ISRGIndustryMarket
7 Day4.1%2.2%1.5%
30 Day0.6%1.0%1.4%
90 Day6.0%8.7%8.7%
1 Year10.0%10.0%23.0%22.1%22.7%20.1%
3 Year149.8%149.8%84.6%79.4%50.1%40.5%
5 Year252.6%252.6%117.1%94.4%73.1%54.1%

Price Volatility Vs. Market

How volatile is Intuitive Surgical's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Intuitive Surgical undervalued compared to its fair value and its price relative to the market?

50.48x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ISRG ($603.36) is trading above our estimate of fair value ($484.62)

Significantly Below Fair Value: ISRG is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ISRG is poor value based on its PE Ratio (50.5x) compared to the Medical Equipment industry average (47.1x).

PE vs Market: ISRG is poor value based on its PE Ratio (50.5x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: ISRG is poor value based on its PEG Ratio (5.1x)


Price to Book Ratio

PB vs Industry: ISRG is overvalued based on its PB Ratio (8.5x) compared to the US Medical Equipment industry average (4x).


Next Steps

Future Growth

How is Intuitive Surgical forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

10.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ISRG's forecast earnings growth (10% per year) is above the savings rate (1.7%).

Earnings vs Market: ISRG's earnings (10% per year) are forecast to grow slower than the US market (14.5% per year).

High Growth Earnings: ISRG's earnings are forecast to grow, but not significantly.

Revenue vs Market: ISRG's revenue (11.7% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: ISRG's revenue (11.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ISRG's Return on Equity is forecast to be low in 3 years time (17.1%).


Next Steps

Past Performance

How has Intuitive Surgical performed over the past 5 years?

20.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ISRG has high quality earnings.

Growing Profit Margin: ISRG's current net profit margins (30.8%) are higher than last year (30.3%).


Past Earnings Growth Analysis

Earnings Trend: ISRG's earnings have grown significantly by 20.4% per year over the past 5 years.

Accelerating Growth: ISRG's earnings growth over the past year (22.3%) exceeds its 5-year average (20.4% per year).

Earnings vs Industry: ISRG earnings growth over the past year (22.3%) exceeded the Medical Equipment industry 7.1%.


Return on Equity

High ROE: ISRG's Return on Equity (16.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Intuitive Surgical's financial position?


Financial Position Analysis

Short Term Liabilities: ISRG's short term assets ($4.7B) exceed its short term liabilities ($1.0B).

Long Term Liabilities: ISRG's short term assets ($4.7B) exceed its long term liabilities ($418.3M).


Debt to Equity History and Analysis

Debt Level: ISRG is debt free.

Reducing Debt: ISRG has not had any debt for past 5 years.

Debt Coverage: ISRG has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: ISRG has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: ISRG has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if ISRG's debt is covered by short term assets.


Next Steps

Dividend

What is Intuitive Surgical's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.1%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate ISRG's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate ISRG's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if ISRG's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ISRG's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ISRG's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.0yrs

Average management tenure


CEO

Gary Guthart (53yo)

10.1yrs

Tenure

US$6,423,078

Compensation

Dr. Gary S. Guthart, Ph.D., has been Chief Executive Officer of Intuitive Surgical, Inc. since January 01, 2010 and also had been its President since July 12, 2007 until 2019. Dr. Guthart served as the Chi ...


CEO Compensation Analysis

Compensation vs Market: Gary's total compensation ($USD6.42M) is below average for companies of similar size in the US market ($USD10.81M).

Compensation vs Earnings: Gary's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Gary Guthart
CEO & Director10.1yrsUS$6.42m0.33% $230.1m
Marshall Mohr
Executive VP & CFO0yrsUS$3.33m0.011% $7.9m
Salvatore Brogna
Consultant & Advisor0.08yrsUS$4.58m0.0036% $2.5m
David Rosa
Executive VP & Chief Business Officer7.1yrsUS$4.54m0.0087% $6.1m
Myriam J. McAdams
Executive VP & Chief Medical Officer14.2yrsUS$4.15m0.0026% $1.8m
Jamie Samath
VP, Corporate Controller & Principal Accounting Officer6.3yrsno data0.00018% $126.0k
Calvin Darling
Senior Director of IR0yrsno datano data
Kara Reiter
Senior VP1.6yrsno data0.0024% $1.7m
Julian Nikolchev
Senior Vice President of Corporate Development & Strategy1.1yrsno datano data
Craig Child
Senior Vice President of Human Resources1.1yrsno datano data

4.0yrs

Average Tenure

58.5yo

Average Age

Experienced Management: ISRG's management team is considered experienced (4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Gary Guthart
CEO & Director10.1yrsUS$6.42m0.33% $230.1m
Amal Johnson
Independent Director9.8yrsUS$364.57k0.0079% $5.6m
Lonnie Smith
Independent Chairman16.8yrsUS$445.97k0.52% $366.9m
Don Kania
Director1.6yrsUS$236.36k0.00019% $133.0k
Craig Barratt
Independent lead Director1.8yrsUS$399.27k0.0063% $4.4m
Alan Levy
Independent Director20yrsUS$363.57k0.0065% $4.6m
Jami K. Nachtsheim
Independent Director2.8yrsUS$350.57k0.00073% $510.9k
Keith Leonard
Independent Director4.1yrsUS$354.57k0.00029% $202.9k
Amy Ladd
Director0.5yrsno datano data
Mark Rubash
Independent Director12.3yrsUS$367.57k0.0037% $2.6m

7.0yrs

Average Tenure

61yo

Average Age

Experienced Board: ISRG's board of directors are considered experienced (7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: ISRG insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Intuitive Surgical, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Intuitive Surgical, Inc.
  • Ticker: ISRG
  • Exchange: NasdaqGS
  • Founded: 1995
  • Industry: Health Care Equipment
  • Sector: Healthcare
  • Market Cap: US$69.980b
  • Shares outstanding: 115.98m
  • Website: https://www.intuitive.com

Number of Employees


Location

  • Intuitive Surgical, Inc.
  • 1020 Kifer Road
  • Sunnyvale
  • California
  • 94086
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ISRGNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJun 2000
IUI1DB (Deutsche Boerse AG)YesCommon StockDEEURJun 2000
0R29LSE (London Stock Exchange)YesCommon StockGBUSDJun 2000
ISRGWBAG (Wiener Boerse AG)YesCommon StockATEURJun 2000
ISRG *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJun 2000
IUI1ETLX (Eurotlx)YesCommon StockITEURJun 2000
I1SR34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 10 REPR 1 COMBRBRLJan 2020

Biography

Intuitive Surgical, Inc., together with its subsidiaries, designs, manufactures, and markets da Vinci surgical systems, and related instruments and accessories. The company’s da Vinci Surgical System include surgeon’s consoles, patient-side carts, 3-D vision systems, da Vinci skills simulators, da Vinci Xi integrated table motions, and Firefly fluorescence imaging products that enable surgeons to perform various surgical procedures, including gynecologic, urologic, general, cardiothoracic, and head and neck surgical procedures. It also manufactures EndoWrist instruments, such as forceps, scissors, electrocautery tools, scalpels, and other surgical tools, which incorporate wrist joints for natural dexterity for various surgical procedures. In addition, the company offers EndoWrist Stapler, a wristed stapling instrument for resection, transection, and creation of anastomoses; and EndoWrist One Vessel Sealers that are wristed single-use instruments for bipolar coagulation and mechanical transection of vessels up to 7mm in diameter and tissue bundles that fit in the jaws of the instrument. Additionally, the company sells various accessories comprising sterile drapes for ensuring sterile field during surgery; and vision products that include replacement 3D stereo endoscopes, camera heads, light guides, and other items that facilitate use of the da Vinci Surgical System, as well as Ion endoluminal system for biopsies. It markets its products directly and through distributors in the United States, Europe, Asia, and internationally. The company was founded in 1995 and is headquartered in Sunnyvale, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/16 23:38
End of Day Share Price2020/02/14 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.