This score-card analysis attributes an Overall Score to a company by analyzing several aspects that I consider to be among the most important.
In summary, a company to have an overall score close to 100% must have the following characteristics:
- Report high growth rates in the last 3 years (and in the last quarter) in terms of Revenue, Gross Profit, Operating Income and Net Income. Furthermore, it must operate with high and improving margins in recent years.
- Analysts expect Earnings Per Share (EPS) and revenues to grow in the short term (in the next quarter) and in the medium to long term (in the next 5 years). Moreover, they expect the company to be undervalued at current prices and in the last quarter their EPS expectations must have been beaten with a consequent rise in share prices.
- The stock price of the company must have outperformed the S&P 500 index and in the last 3 months the Hedge Funds and Insiders bought shares in the company.
The overall score ranges from 0% (if the characteristics listed above are all very negative) to +100% and it is unlikely that there will be a company with a +100% score because the requirements for achieving this score are very high, however a score higher than +70% can be considered good.
This analysis alone is not enough to decide whether or not to invest in a company because it does not provide indications on the timing of entry, but it is a good starting point.
Intuitive Surgical Inc (ISRG)
Summary
- Overall Score: +79.6%
- Analysts are very positive about the future of the company.
- They expect an annual growth of EPS +12% for the next 5 years and consider the company undervalued by 11.65% at current prices.
- In the last quarter ISRG reported excellent growth (Revenue + 22.5%, Net Income + 30.1%, Net Margin + 6.2%).
- Excellent growth also in the last 3 years, with net profit doubled and net margin improving by 22.7%.
Full description
Intuitive Surgical Inc. is an American corporation that develops, manufactures and markets robotic products designed to improve clinical outcomes of patients through minimally invasive surgery, most notably with the da Vinci Surgical System.
The overall score of ISRG is 79,6% .
In the last 6 months, ISRG has overperformed the S&P500 index by 1,3% and analysts believe the company is undervalued by 11,6% .
In the last quarter, the company reported revenue of 1128,2 million, up by 22,5% compared to the same quarter 12 months earlier. Revenue TTM (Trailing-12-Months) are equal to 4247,3 million, up by 78,1% in the last 3 years.
ISRG reported an operating income of 365,7 million in the last quarter, an improvement of 16,7% compared to the same quarter 12 months earlier, also reporting a reduction by -4,7% in the operating margin. Considering the sum of the last four quarters (TTM), ISRG reports an operating income of 1308,9 Million , a growth of 76,9% compared to three years ago and a reduction of -0,7% in the operating margin.
ISRG reported a net income of 396,8 million in the last quarter, an improvement of 30,1% compared to the same quarter 12 months earlier, also reporting an improvement of 6,2% in the net margin. The TTM net income is 1286,5 million , a growth of 118,5% compared to three years ago and the net margin has improved by 22,7% .
In the next quarter, analysts expect growth in EPS (Earnings Per Share) of 13,2% and a growth in revenue of 16,0% . Furthermore, they expect an annual growth of ISRG EPS by 12,0% for the next 5 years.
In the last quarter, ISRG reported better EPS than analysts’ expectations and the stock price reacted by increasing by 7,0% .
Finally, in the last 3 months the Hedge Funds have increased their positions by 497.6k shares. The Insiders have sold shares worth $153.87k .
This analysis gives you a general idea of whether a company is good or not, but you may also be interested in finding potential entry points, so I am waiting for you here to know about the best chart patterns of today.
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Sources & additional info
*The comparison with the S&P 500 index is visible inside the graph.
*Data updated to the last quarterly report available
*Data in Millions of Dollars
*Data from zacks.com, tipranks.com, reuters.com, finance.yahoo.com
*Company information from wikipedia.com
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DISCLAIMER: The information in this blog post represents my own analysis/opinions and does not contain a recommendation for any particular security or investment.
