Should you buy Intuitive Surgical stock? (August 2024)

Published first at Intuitive Surgical stock analysis. Ticker: $ISRG This is one of the best businesses in the world. Intuitive Surgical, the dominant player in robotic surgery, has had huge success with its DaVinci system and the stock has increased almost 19,000% over the last 20 years. At the latest price, the company has a valuation of 162 billion dollars with almost 8 billion of cash on the balance sheet and no debt. Meanwhile the company has reported 7.6 billion of revenue over the last 12 months, 2.1 billion of net income and 420 million of free cash flow. Intuitive’s numbers look closer to a good software company than a medical business. Gross margins are strong at 67% with ebitda margins of 40%. Over 80% of total revenue is recurring and the company continues to put up solid growth. The instruments and accessories segment which is mostly recurring revenue continues to grow in the high teens. Meanwhile, there should be plenty more growth ahead. 2.6 million procedures are likely to be completed this year but management thinks that number can grow to over 20 million over the long term. #investing #stocksanalysis #3mb