ISRG - Embedded Expectations Analysis - 2021 03 02
Intuitive Surgical, Inc. (ISRG:USA) currently trades near historical highs relative to UAFRS-based (Uniform) earnings, with a 55.5x Uniform P/E. At these levels, the market has bullish expectations for the firm, but management may have concerns about hospital capital equipment spending, higher period costs, and the marketability of the da Vinci SSpecifically, management may lack confidence in their ability to sustain clinical installed base growth, offset higher period costs due to lower production, and employ competitive instrument pricing. Moreover, they may have concerns about hospitals putting off capital spending due to delayed elective procedures, as well as the sustainability of da Vinci SI trade-in volume. Furthermore, management may be exaggerating the marketability of da Vinci S and other extended use instruments in Europe, the strength of their innovation process, and the value of their da Vinci ecosystem
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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