Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, surgical-robot specialist Intuitive Surgical
With that in mind, let's take a closer look at Intuitive's business and see what CAPS investors are saying about the stock right now.
|Headquarters (Founded)||Sunnyvale, Calif. (1995)|
|Market Cap||$11.33 billion|
|Industry||Health care equipment|
|Trailing-12-Month Revenue||$1.35 billion|
CEO Dr. Gary Guthart (since 2010)
CFO Marshall Mohr (since 2006)
|Return on Equity (Average, Past 3 Years)||18.8%|
|Cash/Debt||$980.9 million / $0|
St. Jude Medical
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
Late last year, beppaun noted that Intuitive "has a clean balance sheet with no debt outstanding, has increasing free cash flow and is currently at the low end of EV/FCF valuation in the last 5 years." Our CAPS member concludes: "With the opportunity to grow international revenues and a buyback program in place there should be a nice margin of safety."
Fools remain attracted to Intuitive's dominant position in robotics-assisted surgery, rock-solid financials, and new procedure opportunities for its revolutionary da Vinci system. Over the next five years, Intuitive Surgical is even expected to grow its bottom line (24.7% per annum) at a substantially faster pace than medical-device specialists Boston Scientific (8.1%), Medtronic (8.8%), and St. Jude (12.3%), as well as a diversified health-care giants like Johnson & Johnson
CAPS member dumberthanafool elaborates on the bull case:
Part A -- Macro: I believe the combination of demographic trends, bad habits, and bad incentives strongly favor growth in medical spending, regardless of our efforts to control it. This is true throughout the developing world. If I'm right, [Intuitive] will benefit from this. Part B: Micro -- [Intuitive] has an amazing product, is a first mover in the industry, has patent protection, and has a switching cost/sunk cost moat. Part C: Larger Picture -- I am coming to the conclusion that dividend stocks are, as crazy as this sounds, overvalued in comparison to growth stocks.
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