June 7, 2010 - Intuitive Surgical, Inc. (ISRG-NASDAQ) together with its subsidiaries, engages in the design, manufacture, and marketing of da Vinci surgical systems for use in urologic, gynecologic, cardiothoracic, general, and head and neck surgeries. Its surgical systems consist of a surgeon's console, a patient-side cart, and a vision system.

The company also manufactures various EndoWrist instruments, including forceps, scissors, electrocautery, scalpels, and other surgical tools. In addition, it sells various accessory products comprising sterile drapes used to protect the sterile field during surgery; and vision products, such as replacement 3-D stereo endoscopes, camera heads, and light guides.

Intuitive Surgical, Inc. sells through sales representatives and distributors in the United States and internationally. The company was founded in 1995 and is headquartered in Sunnyvale, California.

Here are couple of eye openers: There's $743 million in cash. There is no debt. Within the last 15 months, the stock has gone from a low of $84.90 to a recent high of $393.90 before pulling back to its current level. Over the past 5 years, earnings averaged an increase of 39.05% annually. Over the next 5 years, analysts predict the annual improvement will be 24.49%. This is not your ordinary stock.

First quarter started the year with a bang. Comparisons to last year's results showed almost 3 times the earnings with $2.12 reported vs 71 cents. Last year, many hospitals cut their spending on capital equipment to a minimum as the recession seemed to be unending. Now things are different. Orders for the company's da Vinci system are up to 104, better than 50% ahead of last year's first quarter orders. It seems robotic surgery works and is increasing in popularity. If the economy continues to show improvement, expect hospitals to put in more orders as most want to show patients they have the latest in technology to treat any problems.

The latest good news for the company is its approval to sell the da Vinci system in Japan. In the first quarter, 7 units were sold, indicating strong demand for the system as insurance reimbursement for robotic surgery won't be approved until later this year. When that approval is given, look for good growth in this important market for at least the next 5 years.

More numbers: Market Cap is $12.91 billion. Forward P/E is 33. Price to book is 7.47. Book value is $45.15. Operating margin for the last 12 months was 38.76% while Profit margin was 24.31%. Return on equity was 19.68% and Return on assets was 16.98%. Revenues for 2009 were $1.052 billion, up from $875 million in 2008. This year, analysts predict $1.38 billion. Total cash is $743 million for $18.98 a share. Current ratio is 5.87. Beta is a relatively high 1.85. Over the last 52 weeks, the stock is up 117%. There are 39.17 million shares outstanding with a Float of 38.64 million. Insiders own 1.42% while Institutions have 87.20%. There is no dividend.

Many investors will find this stock intriguing. Its high price doesn't necessarily mean it's overpriced. Still, valuations are a little steep. Take the time to understand this company better, and you may find it's on your wish list. Only maybe at a lower level.

- Company Web site: www.intuitivesurgical.com