ISRG ISRG

Name: ISRG Crucible Score
Creator: Kaladin Capital Intelligence

UnknownUnknownN/A📅 Scored March 18, 2026

Price at analysis: $473.78

Crucible Score

53.2

Quality × Value Composite

KQI — Quality

65.4

B-

Fundamental Quality Index

KVI — Value

38.3

D-

Valuation Attractiveness Index

Crucible Verdict — ISRG

Intuitive Surgical shows the classic quality-value disconnect with strong fundamentals (85 financial quality, 79 market position) but poor value metrics dragging ISRG to a middling C rating. The robotic surgery leader trades near fair value despite management effectiveness concerns and recent insider selling. The 97% earnings beat rate suggests execution remains solid, but valuation leaves little margin for error.

— Kal, Kaladin Capital Intelligence

◆ KQI Quality Dimensions

Financial Quality

85.4

Growth Profile

52.0

Moat Durability

70.9

Management Effectiveness

46.0

Diversification & Resilience⚠

54.0

Market Position

79.0

Weakest dimension: Management Effectiveness (46.0)

◆ KVI Value Dimensions

DCF Margin of Safety

53.2

FCF Yield & Cash Returns

23.2

Relative Valuation

5.0

Growth-Adjusted Value

42.0

Historical Valuation

85.9

Macro Context

17.4

◆ DCF Valuation Scenarios

Bear Case

$312.45

Base Case

$498.62

Bull Case

$742.18

Price at Analysis

$473.78

Scenario	Fair Value	Rev CAGR (5yr)	Terminal Margin	WACC
🔴 Bear	$312.45	9.0%	27.0%	13.3%
🟢 Base	$498.62	12.0%	30.0%	12.7%
🟢 Bull	$742.18	15.0%	34.0%	12.1%

Key Assumptions: WACC derived from CAPM using 4.39% risk-free rate, 1.68 beta, and 5.25% ERP (base), yielding ~12.7% base WACC; bear/bull shift WACC by +/- 60bps via ERP adjustments. Revenue growth anchored on 5-year CAGR of ~12% with ISRG's procedure volume growth and international expansion; operating margins reflect historical 25-31% range with modest improvement in base/bull given scale leverage. Tax rate set at 12% reflecting historical effective rate, capex normalized at 7% of revenue after elevated recent investment cycle.

◆ Financial Snapshot

Profitability

Gross Margin66.0%

Operating Margin29.3%

Net Margin28.4%

ROIC13.4%

ROE14.1%

Balance Sheet

Balance SheetCR: 4.87

Cash ConversionFCF/EPS: 0.87x

Capital IntensityCapex/Rev: 5.4%

Altman Z-Score40.13 (Safe)

Piotroski F-Score7/9 (Good)

Growth

Revenue CAGR-35.2% CAGR (suspect)

Earnings CAGR-36.0% CAGR (suspect)

Growth ConsistencyCV: 7.82

Segment Breadth3/3 growing (100%)

Quarterly TrendRev→+19%, Margin↑, Exp↓

Earnings CredibilityConsistent Beater

◆ Analyst Consensus & Leadership

Leadership & Governance

CEOZiavash Shahidzadeh · 3 years

CEO Ownership< 1%

Compensation95% performance-based

Insider ActivitySelling

Capital AllocationROIC 13.4% vs WACC 13.7%

Earnings Beat Rate97% (21/22)

◆ Related Companies in Our Universe

Other Unknown companies scored by the Crucible:

ADBE81.8A-NICE80.7A-DECK79.9A-INTU79.9A-EXEL78.3A-MTCH78.2A-TTD78.0B+

Methodology All Scores Crucible Briefs Performance @KaladinCI

Analysis conducted March 18, 2026 based on most recent SEC filings. Updated quarterly, after new SEC filings.

Point-in-time fundamental analysis. Not investment advice. Scores reflect company quality and valuation at time of analysis and may not reflect current market conditions.