Why Intuitive Surgical Inc (NASDAQ:ISRG) Is An Attractive Investment To Consider
Intuitive Surgical Inc (NASDAQ:ISRG) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of ISRG, it is a company with robust financial health as well as a excellent future outlook. Below is a brief commentary on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, read the full report on Intuitive Surgical here.
Flawless balance sheet with reasonable growth potential
Investors seeking high cash growth potential should consider ISRG, with forecasted operating cash flow growth of 59%. This is expected to flow down into an impressive return on equity of 21% over the next couple of years. ISRG’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This indicates that ISRG has sufficient cash flows and proper cash management in place, which is a crucial insight into the health of the company. Looking at ISRG’s capital structure, the company has no debt on its balance sheet. This means it is running its business only on equity capital funding, which is rather impressive for a US$57b market cap company. Investors’ risk associated with debt is virtually non-existent and the company has plenty of headroom to grow debt in the future, should the need arise.
Next Steps:
For Intuitive Surgical, there are three important aspects you should further examine:
Historical Performance: What has ISRG’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
Valuation: What is ISRG worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether ISRG is currently mispriced by the market.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of ISRG? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.