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Analyst/Presenter: Drake Moody and Micah deLeon

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Company Name: Amgen, Inc.

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Stock Symbol: AMGN

Shares: 533.98 million Sector: Biomedical

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Inside Ownership: Under 1% Dividend: $0.00 (0.00%)

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P/E Ratio: 13.67 Industry P/E Ratio: 6.118

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Share Price: $244.44 Return on Equity: 11.28%

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Market Cap: $130.525B Recommendation: Buy

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Business Summary

Intuitive Surgical Inc., headquartered in Sunnyvale, CA, is revolutionizing the way we think of medicine being global technology leaders in Robotic assisted, minimally invasive surgeries. Intuitive Surgical manufactures and develops the da Vinci Surgical system. The system is used for prostatectomies, and increasingly for cardiac valve repair, and for renal and gynecologic surgical procedures. The company focuses on making surgeries more effective and easier on surgeons, patients, and their families.

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Business Segment

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Business Model: A leading and pioneering powerhouse company specializing in robotic assisted, minimally invasive surgeries to improve the effectiveness of medical care and the efficiency and success of surgeries. Known for the da Vinci surgical system, a successful robotic system that assists in many surgeries and continues to evolve.

2022 Performance:

* Net Sales: $6.22B (+9.0% from 2021)

* Net Income: $1.32B (-22.0% from 2021)

*Operating Income: $1.577B (-13.39% from 2021)

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Financials

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Competition

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Main competitors:

Competitive factors:

  • Stryker Corp
  • da Vinci Surgical System becoming widely accepted and increasingly distributed across the Globe
  • Medtronic PLC
  • Has commanding lead over competitors in Robotic assisted Surgical Systems with 80.6% of global market share
  • Abbott Laboratories

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Competitive Advantages

  1. 80 percent share of the surgical robotics industry

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  • Most of its revenue is recurring and comes from sale of the accessories the machines use. With high switching costs of Robotic surgical systems, they have a guaranteed recurring revenue from companies which already own their system.

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3. Wide moat business

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4. 10M+ successful procedures performed by da Vinci Robotic System. Credibility and safety of their machinery is immaculate.

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5. Accredited by Royal College of Surgeons for excellence in surgery education and

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Risks/Disadvantages

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  1. Intuitive Surgeries uses the da Vinci Surgical System exclusively for elective surgical procedures and is expensive to maintain and operate
  2. During and after the pandemic when elective procedures were minimized due to risk of infection, hospitals saw a decrease in value of the use of the system when Covid-19 caused optional procedures to be postponed

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Operating Margin

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6 month

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One year

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Five Years

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Summary and Recommendation

We believe that Intuitive Surgical, Inc. is a company that is poised to experience continuous growth and reward investors as it maintains majority control of its sector and expands the range of cutting-edge products it offers

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Analyst Opinion: Buy

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Recommendation: Buy a full position