Intuitive Surgical (ISRG)
Key Statistics
EV/EBIT = 75x
ROE = 14.77%
Debt/Equity = 1%
FCF Yield = .55%
Dividend Yield = 0%
Market Capitalization = $135.57 billion
The Company
Intuitive Surgical (ISRG) manufactures robotic devices for surgical procedures.
The precision of robotic surgery is the key driver behind the rise of minimally invasive surgery (MIS). MIS enables surgeons to operate through small incisions with robotic assistance, reducing trauma to patients compared to traditional open surgery.
They offer a range of products and services, including robotic systems, instruments, learning resources, and support services. These are all connected digitally to provide insights and guidance during surgery, improving outcomes and efficiency.
Intuitive primarily focuses on five surgical specialties: general surgery, urologic surgery, gynecologic surgery, cardiothoracic surgery, and head and neck surgery.
They develop their products and techniques in collaboration with leading surgeons to ensure they bring the highest value to patients, physicians, and hospitals. Their focus is on procedures that offer the most benefit regarding patient outcomes, surgeon ease of use, and hospital efficiency.
Their signature product is the da Vinci Surgical System. This robot is used by doctors to perform surgeries with smaller incisions. It is commonly used for operations like removing the prostate, fixing heart valves, and other procedures in the kidneys and female reproductive system.
The da Vinci system consists of a surgeon console and a patient-side cart equipped with robotic arms, providing surgeons with exceptional control and visibility during procedures. This advanced system enhances surgical outcomes and minimizes fatigue.
Empowering surgeons to perform intricate surgeries with minimal invasiveness, the da Vinci Surgical System revolutionizes procedures that once demanded extensive recovery periods. With various models boasting cutting-edge features like 3D visualization and precise instrument manipulation, the da Vinci system sets a benchmark in surgical technology.
Surgeons mainly use da Vinci surgical systems for soft tissue surgeries in various areas of the body. They cover a wide range of procedures, from complex cancer surgeries to simpler operations for benign conditions. Intuitive Surgical offers different systems tailored to various applications.
Intuitive Surgical has commercialized several da Vinci systems over the years, with plans for further expansion. Currently, they have various da Vinci surgical systems: the fully-featured da Vinci Xi for complex procedures, the da Vinci X for price-sensitive markets, and the da Vinci SP for accessing narrow workspaces.
As of December 31, 2023, they installed over 8,600 da Vinci surgical systems worldwide, with surgeons completing millions of procedures using their technology.
These systems are a significant investment for hospitals, costing between $700,000 and $2.5 million each. They also generate recurring revenue from selling instruments, accessories, and services and revenue from operating leases.
The sale & leasing of new da Vinci devices is the company’s most important source of revenue.
Research on the system began in the late 1980s. SRI International led to the development of the da Vinci Surgical System. Initially funded by the National Institutes of Health, this robotic system caught the attention of DARPA for its potential use in battlefield surgeries.
Dr. Frederic Moll, John Freund, and Robert Younge formed Intuitive Surgical Devices, Inc. to develop the technology further.