EDWARDS LIFESCIENCES CORP (1EW.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1EW - US28176E1082 - Common Stock
70.76 EUR
+4.28 (+6.44%)
We assign a fundamental rating of 7 out of 10 to 1EW. 1EW was compared to 63 industry peers in the Health Care Equipment & Supplies industry. 1EW has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. 1EW is quite expensive at the moment. It does show a decent growth rate. These ratings would make 1EW suitable for quality investing!
1. Profitability
1.1 Basic Checks
- In the past year 1EW was profitable.
- In the past year 1EW had a positive cash flow from operations.
- Each year in the past 5 years 1EW has been profitable.
- In the past 5 years 1EW always reported a positive cash flow from operatings.
1.2 Ratios
- Looking at the Return On Assets, with a value of 10.31%, 1EW belongs to the top of the industry, outperforming 90.16% of the companies in the same industry.
- 1EW has a better Return On Equity (13.40%) than 78.69% of its industry peers.
- The Return On Invested Capital of 1EW (12.50%) is better than 88.52% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for 1EW is significantly above the industry average of 9.95%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.31% | ||
| ROE | 13.4% | ||
| ROIC | 12.5% |
ROA(3y)21.77%
ROA(5y)18.87%
ROE(3y)29.68%
ROE(5y)26.56%
ROIC(3y)15.82%
ROIC(5y)17.27%
1.3 Margins
- 1EW has a Profit Margin of 23.25%. This is amongst the best in the industry. 1EW outperforms 93.44% of its industry peers.
- In the last couple of years the Profit Margin of 1EW has grown nicely.
- The Operating Margin of 1EW (27.73%) is better than 98.36% of its industry peers.
- 1EW's Operating Margin has been stable in the last couple of years.
- With an excellent Gross Margin value of 78.19%, 1EW belongs to the best of the industry, outperforming 91.80% of the companies in the same industry.
- 1EW's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.73% | ||
| PM (TTM) | 23.25% | ||
| GM | 78.19% |
OM growth 3Y-5.94%
OM growth 5Y-1.04%
PM growth 3Y38.76%
PM growth 5Y26.09%
GM growth 3Y1.43%
GM growth 5Y1.33%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 1EW is creating value.
- The number of shares outstanding for 1EW has been reduced compared to 1 year ago.
- Compared to 5 years ago, 1EW has less shares outstanding
- The debt/assets ratio for 1EW has been reduced compared to a year ago.
2.2 Solvency
- 1EW has an Altman-Z score of 12.38. This indicates that 1EW is financially healthy and has little risk of bankruptcy at the moment.
- 1EW has a better Altman-Z score (12.38) than 95.08% of its industry peers.
- The Debt to FCF ratio of 1EW is 0.75, which is an excellent value as it means it would take 1EW, only 0.75 years of fcf income to pay off all of its debts.
- 1EW has a Debt to FCF ratio of 0.75. This is amongst the best in the industry. 1EW outperforms 93.44% of its industry peers.
- A Debt/Equity ratio of 0.06 indicates that 1EW is not too dependend on debt financing.
- 1EW has a Debt to Equity ratio of 0.06. This is amongst the best in the industry. 1EW outperforms 86.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.75 | ||
| Altman-Z | 12.38 |
ROIC/WACC1.45
WACC8.62%
2.3 Liquidity
- 1EW has a Current Ratio of 4.00. This indicates that 1EW is financially healthy and has no problem in meeting its short term obligations.
- 1EW has a Current ratio of 4.00. This is amongst the best in the industry. 1EW outperforms 91.80% of its industry peers.
- 1EW has a Quick Ratio of 3.29. This indicates that 1EW is financially healthy and has no problem in meeting its short term obligations.
- 1EW has a Quick ratio of 3.29. This is amongst the best in the industry. 1EW outperforms 91.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4 | ||
| Quick Ratio | 3.29 |
3. Growth
3.1 Past
- The earnings per share for 1EW have decreased by -3.75% in the last year.
- Measured over the past 5 years, 1EW shows a small growth in Earnings Per Share. The EPS has been growing by 7.13% on average per year.
- The Revenue has been growing slightly by 4.67% in the past year.
- The Revenue has been growing slightly by 4.58% on average over the past years.
EPS 1Y (TTM)-3.75%
EPS 3Y5.52%
EPS 5Y7.13%
EPS Q2Q%0%
Revenue 1Y (TTM)4.67%
Revenue growth 3Y1.3%
Revenue growth 5Y4.58%
Sales Q2Q%14.67%
3.2 Future
- 1EW is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.50% yearly.
- 1EW is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.55% yearly.
EPS Next Y0.42%
EPS Next 2Y5.67%
EPS Next 3Y7.57%
EPS Next 5Y9.5%
Revenue Next Year4.33%
Revenue Next 2Y7.03%
Revenue Next 3Y7.98%
Revenue Next 5Y8.55%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 31.73 indicates a quite expensive valuation of 1EW.
- Compared to the rest of the industry, the Price/Earnings ratio of 1EW is on the same level as its industry peers.
- The average S&P500 Price/Earnings ratio is at 28.39. 1EW is around the same levels.
- A Price/Forward Earnings ratio of 27.86 indicates a quite expensive valuation of 1EW.
- The rest of the industry has a similar Price/Forward Earnings ratio as 1EW.
- 1EW's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.72.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.73 | ||
| Fwd PE | 27.86 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, 1EW is valued a bit more expensive than the industry average as 60.66% of the companies are valued more cheaply.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1EW is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 59.16 | ||
| EV/EBITDA | 25.01 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- 1EW has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)74.87
PEG (5Y)4.45
EPS Next 2Y5.67%
EPS Next 3Y7.57%
5. Dividend
5.1 Amount
- No dividends for 1EW!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
EDWARDS LIFESCIENCES CORP / 1EW.MI FAQ
Can you provide the ChartMill fundamental rating for EDWARDS LIFESCIENCES CORP?
ChartMill assigns a fundamental rating of 7 / 10 to 1EW.MI.
What is the valuation status of EDWARDS LIFESCIENCES CORP (1EW.MI) stock?
ChartMill assigns a valuation rating of 2 / 10 to EDWARDS LIFESCIENCES CORP (1EW.MI). This can be considered as Overvalued.
How profitable is EDWARDS LIFESCIENCES CORP (1EW.MI) stock?
EDWARDS LIFESCIENCES CORP (1EW.MI) has a profitability rating of 8 / 10.
What is the valuation of EDWARDS LIFESCIENCES CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for EDWARDS LIFESCIENCES CORP (1EW.MI) is 31.73 and the Price/Book (PB) ratio is 4.64.
What is the expected EPS growth for EDWARDS LIFESCIENCES CORP (1EW.MI) stock?
The Earnings per Share (EPS) of EDWARDS LIFESCIENCES CORP (1EW.MI) is expected to grow by 0.42% in the next year.