EDWARDS LIFESCIENCES CORP (EW) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EW - US28176E1082 - Common Stock
86.19 USD
+0.41 (+0.48%)
86 USD
-0.19 (-0.22%)
We assign a fundamental rating of 7 out of 10 to EW. EW was compared to 187 industry peers in the Health Care Equipment & Supplies industry. EW has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. EW is not valued too expensively and it also shows a decent growth rate. These ratings would make EW suitable for quality investing!
1. Profitability
1.1 Basic Checks
EW had positive earnings in the past year.
EW had a positive operating cash flow in the past year.
In the past 5 years EW has always been profitable.
Each year in the past 5 years EW had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 10.31%, EW belongs to the top of the industry, outperforming 94.65% of the companies in the same industry.
EW has a Return On Equity of 13.40%. This is amongst the best in the industry. EW outperforms 89.30% of its industry peers.
The Return On Invested Capital of EW (12.50%) is better than 93.05% of its industry peers.
EW had an Average Return On Invested Capital over the past 3 years of 15.82%. This is significantly above the industry average of 8.81%.
| 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%, EW belongs to the top of the industry, outperforming 94.65% of the companies in the same industry.
In the last couple of years the Profit Margin of EW has grown nicely.
EW's Operating Margin of 27.73% is amongst the best of the industry. EW outperforms 96.26% of its industry peers.
EW's Operating Margin has been stable in the last couple of years.
With an excellent Gross Margin value of 78.19%, EW belongs to the best of the industry, outperforming 90.37% of the companies in the same industry.
In the last couple of years the Gross Margin of EW has remained more or less at the same level.
| 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
EW has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for EW has been reduced compared to 1 year ago.
The number of shares outstanding for EW has been reduced compared to 5 years ago.
EW has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 12.56 indicates that EW is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 12.56, EW belongs to the top of the industry, outperforming 91.44% of the companies in the same industry.
EW has a debt to FCF ratio of 0.75. This is a very positive value and a sign of high solvency as it would only need 0.75 years to pay back of all of its debts.
EW has a better Debt to FCF ratio (0.75) than 91.44% of its industry peers.
EW has a Debt/Equity ratio of 0.06. This is a healthy value indicating a solid balance between debt and equity.
EW has a Debt to Equity ratio of 0.06. This is in the better half of the industry: EW outperforms 67.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.75 | ||
| Altman-Z | 12.56 |
ROIC/WACC1.44
WACC8.71%
2.3 Liquidity
A Current Ratio of 4.00 indicates that EW has no problem at all paying its short term obligations.
EW has a Current ratio of 4.00. This is in the better half of the industry: EW outperforms 68.45% of its industry peers.
EW has a Quick Ratio of 3.29. This indicates that EW is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 3.29, EW is in the better half of the industry, outperforming 67.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4 | ||
| Quick Ratio | 3.29 |
3. Growth
3.1 Past
EW shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.75%.
The Earnings Per Share has been growing slightly by 7.13% on average over the past years.
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
EW is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.50% yearly.
The Revenue is expected to grow by 8.55% on average over the next years. This is quite good.
EPS Next Y1.44%
EPS Next 2Y5.94%
EPS Next 3Y7.76%
EPS Next 5Y9.5%
Revenue Next Year4.59%
Revenue Next 2Y7.15%
Revenue Next 3Y8.07%
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
With a Price/Earnings ratio of 33.54, EW can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of EW indicates a somewhat cheap valuation: EW is cheaper than 72.19% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.49. EW is valued slightly more expensive when compared to this.
Based on the Price/Forward Earnings ratio of 29.31, the valuation of EW can be described as expensive.
72.73% of the companies in the same industry are more expensive than EW, based on the Price/Forward Earnings ratio.
EW is valuated rather expensively when we compare the Price/Forward Earnings ratio to 23.69, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.54 | ||
| Fwd PE | 29.31 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EW indicates a somewhat cheap valuation: EW is cheaper than 72.19% of the companies listed in the same industry.
72.19% of the companies in the same industry are more expensive than EW, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 62.55 | ||
| EV/EBITDA | 25.51 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of EW may justify a higher PE ratio.
PEG (NY)23.31
PEG (5Y)4.7
EPS Next 2Y5.94%
EPS Next 3Y7.76%
5. Dividend
5.1 Amount
No dividends for EW!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
86.19
+0.41 (+0.48%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners89.97%
Inst Owner Change-1.3%
Ins Owners0.11%
Ins Owner Change0.38%
Market Cap50.02B
Revenue(TTM)5.88B
Net Income(TTM)1.37B
Analysts79.05
Price Target95.83 (11.18%)
Short Float %1.7%
Short Ratio2.16
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.01%
Min EPS beat(2)4.4%
Max EPS beat(2)9.63%
EPS beat(4)4
Avg EPS beat(4)5.38%
Min EPS beat(4)3.4%
Max EPS beat(4)9.63%
EPS beat(8)5
Avg EPS beat(8)2.27%
EPS beat(12)6
Avg EPS beat(12)1.21%
EPS beat(16)7
Avg EPS beat(16)-0.18%
Revenue beat(2)1
Avg Revenue beat(2)0.37%
Min Revenue beat(2)-0.12%
Max Revenue beat(2)0.85%
Revenue beat(4)1
Avg Revenue beat(4)-0.56%
Min Revenue beat(4)-2.1%
Max Revenue beat(4)0.85%
Revenue beat(8)1
Avg Revenue beat(8)-2.7%
Revenue beat(12)2
Avg Revenue beat(12)-2.12%
Revenue beat(16)2
Avg Revenue beat(16)-2.48%
PT rev (1m)6.74%
PT rev (3m)6.5%
EPS NQ rev (1m)0.25%
EPS NQ rev (3m)1.27%
EPS NY rev (1m)1.01%
EPS NY rev (3m)3.38%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0.26%
Revenue NY rev (3m)0.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.54 | ||
| Fwd PE | 29.31 | ||
| P/S | 8.5 | ||
| P/FCF | 62.55 | ||
| P/OCF | 49.19 | ||
| P/B | 4.9 | ||
| P/tB | 6.85 | ||
| EV/EBITDA | 25.51 |
EPS(TTM)2.57
EY2.98%
EPS(NY)2.94
Fwd EY3.41%
FCF(TTM)1.38
FCFY1.6%
OCF(TTM)1.75
OCFY2.03%
SpS10.14
BVpS17.59
TBVpS12.59
PEG (NY)23.31
PEG (5Y)4.7
Graham Number31.89
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.31% | ||
| ROE | 13.4% | ||
| ROCE | 13.97% | ||
| ROIC | 12.5% | ||
| ROICexc | 18.63% | ||
| ROICexgc | 29.56% | ||
| OM | 27.73% | ||
| PM (TTM) | 23.25% | ||
| GM | 78.19% | ||
| FCFM | 13.59% |
ROA(3y)21.77%
ROA(5y)18.87%
ROE(3y)29.68%
ROE(5y)26.56%
ROIC(3y)15.82%
ROIC(5y)17.27%
ROICexc(3y)20.51%
ROICexc(5y)22.13%
ROICexgc(3y)29.09%
ROICexgc(5y)31.03%
ROCE(3y)17.66%
ROCE(5y)19.29%
ROICexgc growth 3Y-5.47%
ROICexgc growth 5Y-8.01%
ROICexc growth 3Y-11.82%
ROICexc growth 5Y-8.6%
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%
F-Score6
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.75 | ||
| Debt/EBITDA | 0.33 | ||
| Cap/Depr | 138.79% | ||
| Cap/Sales | 3.69% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 56.86% | ||
| Profit Quality | 58.45% | ||
| Current Ratio | 4 | ||
| Quick Ratio | 3.29 | ||
| Altman-Z | 12.56 |
F-Score6
WACC8.71%
ROIC/WACC1.44
Cap/Depr(3y)185.14%
Cap/Depr(5y)236.01%
Cap/Sales(3y)5.48%
Cap/Sales(5y)6.41%
Profit Quality(3y)37.92%
Profit Quality(5y)57.13%
High Growth Momentum
Growth
EPS 1Y (TTM)-3.75%
EPS 3Y5.52%
EPS 5Y7.13%
EPS Q2Q%0%
EPS Next Y1.44%
EPS Next 2Y5.94%
EPS Next 3Y7.76%
EPS Next 5Y9.5%
Revenue 1Y (TTM)4.67%
Revenue growth 3Y1.3%
Revenue growth 5Y4.58%
Sales Q2Q%14.67%
Revenue Next Year4.59%
Revenue Next 2Y7.15%
Revenue Next 3Y8.07%
Revenue Next 5Y8.55%
EBIT growth 1Y4.68%
EBIT growth 3Y-4.72%
EBIT growth 5Y3.49%
EBIT Next Year13%
EBIT Next 3Y12.18%
EBIT Next 5Y12.76%
FCF growth 1Y1.45%
FCF growth 3Y-42.99%
FCF growth 5Y-22.01%
OCF growth 1Y-2.42%
OCF growth 3Y-32.1%
OCF growth 5Y-14.39%
EDWARDS LIFESCIENCES CORP / EW FAQ
What is the fundamental rating for EW stock?
ChartMill assigns a fundamental rating of 7 / 10 to EW.
What is the valuation status of EDWARDS LIFESCIENCES CORP (EW) stock?
ChartMill assigns a valuation rating of 4 / 10 to EDWARDS LIFESCIENCES CORP (EW). This can be considered as Fairly Valued.
How profitable is EDWARDS LIFESCIENCES CORP (EW) stock?
EDWARDS LIFESCIENCES CORP (EW) has a profitability rating of 9 / 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 (EW) is 33.54 and the Price/Book (PB) ratio is 4.9.
Can you provide the financial health for EW stock?
The financial health rating of EDWARDS LIFESCIENCES CORP (EW) is 9 / 10.