Education
About Us
Working with TipRanks
Follow Us
Intuitive Surgical (ISRG)
NASDAQ:ISRG
Top Page
Intuitive Surgical
(NASDAQ:ISRG)78Outperform
Positive Factors
Earnings
ISRG posted a stellar 4Q print, with worldwide sales increasing 8% versus consensus and FY25 procedure growth guidance allowing room for upside.
Product Innovation
Intuitive Surgical has not one but five transformational product cycles that are all about to inflect in the coming quarters/years.
Negative Factors
Financial Performance
Shares were trading off -2% due to the lower gross margin and higher operating expenses outlooks.
Intuitive Surgical (ISRG) vs. S&P 500 (SPY)
Market Cap
$202.22B
Dividend YieldN/A
Average Volume (3M)1.74M
Price to Earnings (P/E)87.0
Beta (1Y)1.24
Revenue Growth17.24%
EPS Growth27.76%
CountryUS
Employees15,638
SectorHealthcare
Sector Strength74
IndustryMedical Equipment & Supplies
Share Statistics
EPS (TTM)6.41
Shares Outstanding356,656,950
10 Day Avg. Volume1,715,155
30 Day Avg. Volume1,743,614
Financial Highlights & Ratios
PEG Ratio3.13
Price to Book (P/B)N/A
Price to Sales (P/S)24.21
Price to Cash Flow (P/CF)61.50
P/FCF Ratio61.50
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$653.74Price Target Upside17.17% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering20
Intuitive Surgical Business Overview & Revenue Model
Company DescriptionIntuitive Surgical, Inc. manufactures and develops robotic-assisted products, most notably with the da Vinci surgical system and related instruments and accessories, to improve clinical outcomes of patients through minimally invasive surgery. Its products include Da Vinci and Ion. The company was founded in 1995 and is headquartered in Sunnyvale, California.
How the Company Makes MoneyIntuitive 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 demonstrates strong financial health with consistent revenue and profit growth, a debt-free balance sheet, and robust cash flow metrics.Income Statement
Intuitive Surgical has demonstrated a strong growth trajectory with Total Revenue increasing from $4.36B in 2020 to $8.35B in 2024. Gross Profit Margin remains robust, averaging around 67% over the years, indicating efficient cost management. Net Profit Margin has improved significantly from 24.3% in 2020 to 27.8% in 2024, showcasing enhanced profitability. Both EBIT and EBITDA margins are solid, reflecting strong operational performance.88
Very Positive
Balance Sheet
The company exhibits financial stability with zero debt in 2024, improving from minimal debt over previous years. The Debt-to-Equity Ratio has effectively reached an optimal level of zero. Stockholders' Equity has consistently grown, indicating strong shareholder value. The Equity Ratio is high, averaging around 87%, highlighting a strong capital structure with low leverage risk.92
Very Positive
Cash Flow
Free Cash Flow has grown significantly, from $1.14B in 2020 to $1.3B in 2024, underpinning strong cash-generating capabilities. The Operating Cash Flow to Net Income Ratio is consistently over 1, suggesting efficient conversion of income into cash. Free Cash Flow to Net Income Ratio remains robust, indicating efficient cash management practices.85
Very Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 8.35B | 7.12B | 6.22B | 5.71B | 4.36B | Gross Profit |
| 5.63B | 4.73B | 4.20B | 3.96B | 2.86B | EBIT |
| 2.35B | 1.77B | 1.21B | 1.82B | 773.60M | EBITDA |
| 2.67B | 2.17B | 1.58B | 1.82B | 1.05B | Net Income Common Stockholders |
| 2.32B | 1.80B | 1.32B | 1.70B | 1.06B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 4.01B | 5.22B | 6.74B | 8.62B | 6.87B | Total Assets |
| 18.74B | 15.44B | 12.97B | 13.55B | 11.17B | Total Debt |
| 0.00 | 89.80M | 93.80M | 87.00M | 79.90M | Net Debt |
| -2.03B | -2.66B | -1.49B | -1.20B | -1.54B | Total Liabilities |
| 2.21B | 2.04B | 1.86B | 1.60B | 1.41B | Stockholders Equity |
| 16.43B | 13.31B | 11.11B | 11.95B | 9.76B |
| Cash Flow | Free Cash Flow | |||
| 1.30B | 749.60M | 958.40M | 1.74B | 1.14B | Operating Cash Flow |
| 2.42B | 1.81B | 1.49B | 2.09B | 1.48B | Investing Cash Flow |
| -3.27B | -360.10M | 1.37B | -2.46B | -940.60M | Financing Cash Flow |
| 150.90M | -287.60M | -2.57B | 43.00M | -85.70M |
Intuitive Surgical Technical Analysis
Negative
557.96
Price Trends
568.03
Negative
545.70
Positive
498.44
Positive
Market Momentum
-1.52
Positive
39.88
Neutral
24.09
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 557.96 is below the 20-day moving average (MA) of 586.06, below the 50-day MA of 568.03, and above the 200-day MA of 498.44, indicating a neutral trend. The MACD of -1.52 indicates Positive momentum. The RSI at 39.88 is Neutral, neither overbought nor oversold. The STOCH value of 24.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ISRG.
Intuitive Surgical Risk Analysis
Intuitive Surgical disclosed 47 risk factors in its most recent earnings report. Intuitive Surgical reported the most risks in the “Legal & Regulatory” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Intuitive Surgical Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $148.79B | 50.24 | 14.51% | 0.82% | 10.23% | -5.74% | |
78 Outperform | $152.91B | 83.05 | 8.51% | ― | 17.60% | 16.84% | |
78 Outperform | $202.22B | 87.00 | 14.13% | ― | 17.24% | 27.76% | |
77 Outperform | $119.32B | 28.28 | 8.63% | 2.96% | 2.72% | 4.48% | |
71 Outperform | $20.70B | 23.46 | 7.25% | 0.91% | 3.84% | -9.29% | |
67 Neutral | $41.96B | 10.23 | 41.75% | ― | -4.67% | 202.32% | |
49 Neutral | $7.05B | 0.34 | -55.09% | 2.46% | 25.27% | -3.43% |
* Healthcare Sector Average
Performance Comparison
ISRG
Intuitive Surgical
557.96
170.64
44.06%
BSX
Boston Scientific
103.61
36.59
54.60%
EW
Edwards Lifesciences
71.38
-14.72
-17.10%
MDT
Medtronic
93.03
11.22
13.71%
SYK
Stryker
389.92
40.75
11.67%
ZBH
Zimmer Biomet Holdings
103.99
-19.73
-15.95%
Intuitive Surgical Earnings Call Summary
Earnings Call Date: Jan 23, 2025 | % Change Since: -8.33% | Next Earnings Date: Apr 17, 2025
Earnings Call Sentiment Positive
The earnings call presented a generally positive outlook for Intuitive with strong financial performance, successful product launches, and significant procedure growth. However, challenges such as competitive pressures in China, declining bariatric procedures, and expected margin pressures were noted, indicating areas of concern.Highlights
Strong Financial Performance in 2024
Intuitive achieved revenue of $8.4 billion for the year, representing 17% growth over 2023. Net income grew by 29% in 2024 over 2023.
Procedure Growth
Global procedure growth for the full year was 17%, with notable strength in general surgery, thoracic surgery, and flexible robotics Ion procedures showing 78% growth.
Successful da Vinci 5 Launch
Placed 362 da Vinci 5 systems in 2024, with over 2,500 surgeons performing more than 32,000 procedures. Da Vinci 5 contributed to higher system ASP due to its advanced features.
Increased System Placements
Placed 1,432 multiport systems in 2024, compared to 1,313 in 2023. Ion placements increased from 213 to 271, and SP placements grew from 57 to 96.
Lowlights
Challenges in China
Procedure growth in China was slightly below the corporate average due to competitive and environmental dynamics.
Bariatric Procedure Decline
Bariatric procedures fell modestly for the full year 2024, impacted by the rise in GLP-1 medications.
Expected Margin Pressure
Pro forma gross profit margin expected to be within a range of 67% and 68% in 2025, down from 69% in 2024, due to increased depreciation, product mix, and FX impact.
Regulatory and Competitive Pressures
Potential impact from increased competition and regulatory approvals affecting selling cycles and market dynamics.
Company Guidance
During the Q4 2024 earnings call, Intuitive Surgical provided guidance for 2025, highlighting several key metrics. The company anticipates full-year procedure growth to be within a range of 13% to 16%, reflecting factors such as the impact of market dynamics in China and CapEx constraints in Europe. Pro forma gross profit margin is expected to be between 67% and 68% of net revenue, influenced by increased depreciation, product mix, and currency effects. Operating expenses are projected to grow by 10% to 15%, driven by investments in innovation and legal expenses. Other income is expected to range between $370 million and $400 million, with capital expenditures projected at $650 million to $800 million. The company also estimates a pro forma income tax rate of 22% to 23%.Intuitive Surgical Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Intuitive Surgical Strengthens Leadership with Key Promotions
Positive
Jan 6, 2025
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.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.