EDWARDS LIFESCIENCES CORP (1EW.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1EW - US28176E1082 - Common Stock
70.76 EUR
+4.28 (+6.44%)
Overall 1EW gets a fundamental rating of 7 out of 10. We evaluated 1EW against 63 industry peers in the Health Care Equipment & Supplies industry. Both the health and profitability get an excellent rating, making 1EW a very profitable company, without any liquidiy or solvency issues. 1EW is quite expensive at the moment. It does show a decent growth rate. These ratings could make 1EW a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
- 1EW had positive earnings in the past year.
- 1EW had a positive operating cash flow in the past year.
- In the past 5 years 1EW has always been profitable.
- In the past 5 years 1EW always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of 1EW (10.31%) is better than 90.16% of its industry peers.
- Looking at the Return On Equity, with a value of 13.40%, 1EW is in the better half of the industry, outperforming 78.69% of the companies in the same industry.
- 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
- Looking at the Profit Margin, with a value of 23.25%, 1EW belongs to the top of the industry, outperforming 93.44% of the companies in the same industry.
- 1EW's Profit Margin has improved in the last couple of years.
- 1EW has a Operating Margin of 27.73%. This is amongst the best in the industry. 1EW outperforms 98.36% of its industry peers.
- In the last couple of years the Operating Margin of 1EW has remained more or less at the same level.
- 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.
- Compared to 1 year ago, 1EW has less shares outstanding
- 1EW has less shares outstanding than it did 5 years ago.
- 1EW has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 12.38 indicates that 1EW is not in any danger for bankruptcy at the moment.
- The Altman-Z score of 1EW (12.38) is better 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's Debt to FCF ratio of 0.75 is amongst the best of 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.
- Looking at the Debt to Equity ratio, with a value of 0.06, 1EW belongs to the top of the industry, outperforming 86.89% of the companies in the same industry.
| 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.
- Looking at the Current ratio, with a value of 4.00, 1EW belongs to the top of the industry, outperforming 91.80% of the companies in the same industry.
- A Quick Ratio of 3.29 indicates that 1EW has no problem at all paying its short term obligations.
- Looking at the Quick ratio, with a value of 3.29, 1EW belongs to the top of the industry, outperforming 91.80% of the companies in the same industry.
| 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.
- The Earnings Per Share has been growing slightly by 7.13% on average over the past years.
- Looking at the last year, 1EW shows a small growth in Revenue. The Revenue has grown by 4.67% in the last year.
- 1EW shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.58% yearly.
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
- The Earnings Per Share is expected to grow by 9.50% on average over the next years. This is quite good.
- Based on estimates for the next years, 1EW will show a quite strong growth in Revenue. The Revenue will grow by 8.55% on average per year.
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
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- 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
- The Price/Earnings ratio is 31.73, which means the current valuation is very expensive for 1EW.
- The rest of the industry has a similar Price/Earnings ratio as 1EW.
- 1EW is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.82, which is the current average of the S&P500 Index.
- 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.
- When comparing the Price/Forward Earnings ratio of 1EW to the average of the S&P500 Index (25.95), we can say 1EW is valued inline with the index average.
| 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 60.66% of the companies in the same industry.
- The rest of the industry has a similar Price/Free Cash Flow ratio as 1EW.
| 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 1EW does not grow enough to justify the current Price/Earnings ratio.
- The excellent profitability rating of 1EW 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
- 1EW does not give a dividend.
| 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.