Over the last six months, Intuitive Surgical’s shares have sunk to $442.32, producing a disappointing 19.9% loss - a stark contrast to the S&P 500’s 13.2% gain. This might have investors contemplating their next move.
Following the drawdown, is now the time to buy ISRG? Find out in our full research report, it’s free.
Why Do Investors Watch Intuitive Surgical?
Pioneering minimally invasive surgery since its first da Vinci system was FDA-cleared in 2000, Intuitive Surgical (NASDAQ: ISRG) develops and manufactures robotic-assisted surgical systems that enable minimally invasive procedures across various medical specialties.
Three Things to Like:
1. Skyrocketing Revenue Shows Strong Momentum
A company’s long-term sales performance is one signal of its overall quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Thankfully, Intuitive Surgical’s 18.4% annualized revenue growth over the last five years was impressive. Its growth surpassed the average healthcare company and shows its offerings resonate with customers.
2. Outstanding Long-Term EPS Growth
We track the long-term change in earnings per share (EPS) because it highlights whether a company’s growth is profitable.
Intuitive Surgical’s EPS grew at 21.3% compounded annual growth rate over the last five years, higher than its 18.4% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded.
3. Excellent Free Cash Flow Margin Boosts Reinvestment Potential
If you’ve followed StockStory for a while, you know we emphasize free cash flow. Why, you ask? We believe that in the end, cash is king, and you can’t use accounting profits to pay the bills.
Intuitive Surgical has shown robust cash profitability, giving it an edge over its competitors and the ability to reinvest or return capital to investors. The company’s free cash flow margin averaged 19.6% over the last five years, quite impressive for a healthcare business.
Final Judgment
Intuitive Surgical is an interesting business with potential. With the recent decline, the stock trades at 41.3× forward P/E (or $442.32 per share). Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.
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