ISRG - Embedded Expectations Analysis - 2020 11 18
Intuitive Surgical, Inc. (ISRG:USA) currently trades at a historical high relative to UAFRS-based (Uniform) earnings, with a 55.8x Uniform P/E. At these levels, the market has bullish expectations for the firm, but management may have concerns about their recently deployed tools, their ability to improve the number of new system installations, and their ability to sustain revenueSpecifically, management may have concerns about the delay in diagnostic procedures, the potential of IRIS, and the potential of Ion and SP. Furthermore, they may be exaggerating the importance of da Vinci in the coronavirus environment, and they may have concerns about the uncertainty related to the expansion of their total addressable market. Additionally, they may lack confidence in their ability to improve visibility as they move into 2021. Finally, management may have concerns about their ability to improve the number of new systems installations, sustain revenue in the midst of launching their extended use instruments, and prove the efficacy of robotic-assisted procedures
Intuitive Surgical develops, manufactures, and markets the da Vinci? Surgical System and the Ion? endoluminal system. The systems consist of a surgeon console or consoles, a patient-side cart, a vision system, and proprietary instruments and accessories. The company's technology is designed to provide surgeons with a range of motion analogous to the motions of a human wrist, while filtering out the tremors inherent in a surgeon's hands. The company's primary platform for robotic-assisted surgery is its family of da Vinci Surgical Systems. The da Vinci Surgical System allows surgeons to operate while seated at an ergonomic console viewing a three-dimensional image of the surgical field.
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