These 2 Metrics Show Why Intuitive Surgical Will Thrive This Decade
Intuitive Surgical (NASDAQ: ISRG) makes robotic surgical suites that human surgeons control in the operating room during minimally invasive procedures. And as its market-slaying total returns of more than 353% since 2013 show, it pays to invest in businesses that are aggressive innovators in a newly emerging field.
Its razor-and-blade business model involves selling its robotic surgical suites to hospitals, which then buy replacement robotic tool heads and maintenance contracts, thereby generating recurring revenue. By constantly investing in research and development activities, the company consistently launches new accessories and tools that expand the capabilities of its robots.
There's every indication that management is set on continuing this successful strategy through 2030. In my view, that's great news for investors, and there are two financial metrics worth understanding that spell out exactly why and how.
Source Fool.com
