Intuitive Surgical (NASDAQ: ISRG) is intuitively a good buy-and-hold stock because its industry-leading, in-demand products and services generate robust cash flow, driving consistent gains in shareholder value. The value is evident in its balance sheet and cash flow metrics, which enable it to buy back shares while investing in growth and maintaining one of the healthiest balance sheets on Wall Street.
At the end of Q3, balance sheet highlights include $8.4 billion in cash, increased inventory, property and assets, only partially offset by increased liabilities. The net result is a 3% increase in equity and persistently low leverage. This business does not use debt but relies on cash flow. Regarding its cash position, Intuitive Surgical is net cash, with cash approximately 3.6x total liabilities and liabilities only 0.13x shareholders’ equity—a very healthy financial position.
