Company Introduction
Headquarters Location: Sunnyvale, California
Core Business Summary: Intuitive Surgical, Inc. is a medical devices company that designs, manufactures, and markets da Vinci surgical systems for various surgical procedures.
Overview
$440.94
61.53
7.17
$158.07B
Company Overview
Core Products & Services: da Vinci surgical systems, instruments, and accessories
Industry Sector: Healthcare
Industry Trends
Industry Growth: The global robotic surgery market is expected to grow at a CAGR of 10.3% from 2022 to 2027.
Key Demand Drivers: Increasing demand for minimally invasive surgeries, technological advancements, and growing adoption of robotic systems
Major Competitors: Medtronic, Stryker, Smith & Nephew
Financials
| 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $2.38B | $2.70B | $3.13B | $3.72B | $4.48B | $4.36B | $5.71B | $6.22B | $7.12B | $8.35B |
| YoY % | +13.4% | +15.9% | +18.8% | +20.4% | -2.7% | +31.0% | +8.9% | +14.5% | +17.3% | |
| EBITDA | $829.50M | $1.04B | $1.15B | $1.32B | $1.58B | $1.33B | $2.13B | $1.94B | $2.17B | $2.81B |
| YoY % | -99.9% | +10.6% | +14.8% | +19.7% | -15.8% | +60.2% | -8.9% | +11.9% | +29.5% | |
| FCF | $690.90M | $989.00M | $953.20M | $982.20M | $1.17B | $1.14B | $1.74B | $958.40M | $749.60M | $1.30B |
| YoY % | +43.1% | -3.6% | +3.0% | -99.9% | -2.6% | +52.6% | +54,980.5% | -21.8% | -99.8% | |
| EPS | 2.06 | 2.48 | 3.00 | 3.71 | 4.25 | 3.38 | 4.97 | 4.69 | 5.71 | 7.33 |
| YoY % | +20.4% | +21.0% | +23.7% | +14.6% | -20.5% | +47.0% | -5.6% | +21.7% | +28.4% |
Growth Drivers
Historical Growth Drivers: Product innovation, expansion into new markets, and strategic partnerships have driven growth.
Future Growth Drivers: Expected to be driven by increasing adoption of robotic systems, expansion into new geographies, and technological advancements such as AI and data analytics. For example, the company has seen a 12% increase in da Vinci system shipments in 2022 compared to the previous year.
Numbers And Examples: In 2022, the company reported a 15% increase in revenue, with da Vinci system sales accounting for 73% of total revenue.
Market Position
Competitive Position: Leader in the robotic-assisted surgery market
Estimated Market Share: Over 80% market share in the robotic-assisted surgery market
Technological Moat: Strong intellectual property portfolio and high barriers to entry due to complex technology and regulatory requirements
Strengths
- Strong financial performance
- High customer loyalty
- Significant investments in R&D
- Global presence
Weaknesses
- Dependence on da Vinci system sales
- Regulatory risks
- Competition from established players
- Economic uncertainty
Valuations
Valuations for ISRG
| Formula | Bull | Base | Bear | Margin of Safety |
|---|---|---|---|---|
| Ben Graham | $204.35 | $204.35 | $75.29 | -115.8% |
| Peter Lynch | – | $73.30 | – | -501.6% |
Rule of thumb (Lynch):
PEG ≈ 1 → Fairly valued
PEG < 1 → Undervalued (growth cheap relative to earnings)
PEG > 1.5 → Overvalued
Outlook
Balanced Analysis: The company is expected to continue its growth trajectory, driven by increasing adoption of robotic systems and expansion into new geographies. However, regulatory risks, competition, and economic uncertainty pose potential challenges. Over the next 3-5 years, the company is expected to maintain its market leadership position and deliver revenue growth in the range of 10-15% annually.
Opportunities: Increasing demand for minimally invasive surgeries, expansion into new markets, and technological advancements
Risks: Regulatory risks, competition, and economic uncertainty
Stock Price Performance
| 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|---|---|---|---|---|---|
| Price | 67.39 | 84.97 | 133.63 | 191.85 | 152.75 | 249.20 | 305.54 | 253.53 | 394.87 | 496.36 |
| YoY % | +26.1% | +57.3% | +43.6% | -20.4% | +63.1% | +22.6% | -17.0% | +55.7% | +25.7% |
Stock 3 Year Rolling CAGR
| Metric | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | Average |
|---|---|---|---|---|---|---|---|---|---|
| Revenue | 9.48% | 11.26% | 12.70% | 5.38% | 8.44% | 12.60% | 7.65% | 10.31% | 9.73% |
| EBITDA | 11.62% | 8.43% | 10.99% | 0.10% | 10.55% | 13.58% | 0.59% | 13.10% | 8.62% |
| FCF | 11.32% | -0.23% | 7.15% | 5.19% | 13.97% | -5.71% | -24.42% | 10.80% | 2.26% |
| EPS | 13.35% | 14.37% | 12.31% | -3.06% | 5.36% | 11.54% | 4.74% | 16.05% | 9.33% |
| Price | – | 25.63% | 31.19% | 4.56% | 9.11% | 26.00% | 0.58% | 8.93% | 15.14% |
