Intuitive Surgical: Great Company, But Looking Overpriced

Harry Lynch
29 Followers

Summary

  • Intuitive Surgical is a global technology leader in minimally invasive care and the pioneer of robotic-assisted surgery.
  • I saw a 21% increase in sales for their flagship da Vinci procedures robot, which the company expects to continue.
  • Revenue increased 17% to $1.9bn vs 2022 Q4, with a solid and stable gross margin of 66%.
  • But it has a very high P/E and EV/EBITDA, and there are a few factors that make it look overpriced.

Surgical Robot

Intuitive Surgical's flagship da Vinci system

3alexd/E+ via Getty Images

Intuitive Surgical, Inc. (NASDAQ:ISRG) has been on a tear over the last 12 months, up 61% since March last year. Revenues rebounded in 2023 to $7.1bn with 14% YoY

This article was written by

29 Followers
I’m a junior investment analyst at a leading investment platform in the UK. I studied Chemistry at university and am currently doing the IMC and CFA qualifications. I believe in a core/satellite approach to investing, with most of my portfolio in passive index funds and around 25% allocated to individual higher risk growth and thematic picks to increase returns. I like companies with huge growth potential in technology, healthcare and renewable energy, as well as uncovering undervalued stocks. I enjoy research and writing and am interested in sharing these views to see what other people have to say about them.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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