Intuitive Surgical, Inc.
Intuitive Surgical, Inc. Fundamental Analysis
Intuitive Surgical, Inc. (ISRG) shows moderate financial fundamentals with a PE ratio of 62.55, profit margin of 28.38%, and ROE of 16.39%. The company generates $10.1B in annual revenue with strong year-over-year growth of 17.24%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 89.0/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze ISRG's fundamental strength across five key dimensions:
Efficiency Score
ExcellentISRG demonstrates superior asset utilization.
Valuation Score
WeakISRG trades at a premium to fair value.
Growth Score
ExcellentISRG delivers strong and consistent growth momentum.
Financial Health Score
ExcellentISRG maintains a strong and stable balance sheet.
Profitability Score
ExcellentISRG achieves industry-leading margins.
Key Financial Metrics
Is ISRG Expensive or Cheap?
P/E Ratio
ISRG trades at 62.55 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, ISRG's PEG of 15.03 indicates potential overvaluation.
Price to Book
The market values Intuitive Surgical, Inc. at 10.02 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 50.19 times EBITDA. This signals the market has high growth expectations.
How Well Does ISRG Make Money?
Net Profit Margin
For every $100 in sales, Intuitive Surgical, Inc. keeps $28.38 as profit after all expenses.
Operating Margin
Core operations generate 29.27 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $16.39 in profit for every $100 of shareholder equity.
ROA
Intuitive Surgical, Inc. generates $13.84 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Intuitive Surgical, Inc. generates strong operating cash flow of $3.03B, reflecting robust business health.
Free Cash Flow
Intuitive Surgical, Inc. generates strong free cash flow of $2.49B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $7.02 in free cash annually.
FCF Yield
ISRG converts 1.39% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
62.55
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
15.03
vs 25 benchmark
P/B Ratio
Price to book value ratio
10.02
vs 25 benchmark
P/S Ratio
Price to sales ratio
17.76
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.02
vs 25 benchmark
Current Ratio
Current assets to current liabilities
4.87
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.16
vs 25 benchmark
ROA
Return on assets percentage
0.14
vs 25 benchmark
ROCE
Return on capital employed
0.16
vs 25 benchmark
How ISRG Stacks Against Its Sector Peers
| Metric | ISRG Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 62.55 | 29.43 | Worse (Expensive) |
| ROE | 16.39% | 800.00% | Weak |
| Net Margin | 28.38% | -20145.00% (disorted) | Strong |
| Debt/Equity | 0.02 | 0.30 | Strong (Low Leverage) |
| Current Ratio | 4.87 | 4.64 | Strong Liquidity |
| ROA | 13.84% | -17936.00% (disorted) | Strong |
ISRG outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Intuitive Surgical, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
81.77%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
64.12%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
47.28%
Industry Style: Defensive, Growth, Innovation
High Growth