EDWARDS LIFESCIENCES CORP (EW)
US28176E1082 - Common Stock
We assign a fundamental rating of 7 out of 10 to EW. EW was compared to 188 industry peers in the Health Care Equipment & Supplies industry. EW gets an excellent profitability rating and is at the same time showing great financial health properties. EW has a decent growth rate and is not valued too expensively. This makes EW very considerable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year EW was profitable.
EW had a positive operating cash flow in the past year.
Each year in the past 5 years EW has 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 32.06%, EW belongs to the top of the industry, outperforming 99.47% of the companies in the same industry.
Looking at the Return On Equity, with a value of 43.57%, EW belongs to the top of the industry, outperforming 99.47% of the companies in the same industry.
EW has a better Return On Invested Capital (12.27%) than 94.12% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for EW is significantly above the industry average of 8.23%.
The last Return On Invested Capital (12.27%) for EW is well below the 3 year average (20.11%), which needs to be investigated, but indicates that EW had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 32.06% | ||
| ROE | 43.57% | ||
| ROIC | 12.27% |
ROA(3y)17%
ROA(5y)15.7%
ROE(3y)24.35%
ROE(5y)23.26%
ROIC(3y)20.11%
ROIC(5y)19.51%
1.3 Margins
Looking at the Profit Margin, with a value of 73.98%, EW belongs to the top of the industry, outperforming 98.93% of the companies in the same industry.
In the last couple of years the Profit Margin of EW has grown nicely.
With an excellent Operating Margin value of 27.73%, EW belongs to the best of the industry, outperforming 96.26% of the companies in the same industry.
In the last couple of years the Operating Margin of EW has remained more or less at the same level.
With an excellent Gross Margin value of 78.63%, EW belongs to the best of the industry, outperforming 91.44% 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) | 73.98% | ||
| GM | 78.63% |
OM growth 3Y-0.54%
OM growth 5Y0.18%
PM growth 3Y7.55%
PM growth 5Y3.78%
GM growth 3Y0.73%
GM growth 5Y0.6%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so EW is creating value.
Compared to 1 year ago, EW has less shares outstanding
Compared to 5 years ago, EW has less shares outstanding
EW has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 9.84 indicates that EW is not in any danger for bankruptcy at the moment.
EW's Altman-Z score of 9.84 is amongst the best of the industry. EW outperforms 87.70% of its industry peers.
The Debt to FCF ratio of EW is 1.25, which is an excellent value as it means it would take EW, only 1.25 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 1.25, EW belongs to the best of the industry, outperforming 89.30% of the companies in the same industry.
A Debt/Equity ratio of 0.06 indicates that EW is not too dependend on debt financing.
The Debt to Equity ratio of EW (0.06) is better than 60.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 1.25 | ||
| Altman-Z | 9.84 |
ROIC/WACC1.37
WACC8.96%
2.3 Liquidity
A Current Ratio of 3.46 indicates that EW has no problem at all paying its short term obligations.
With a Current ratio value of 3.46, EW perfoms like the industry average, outperforming 59.36% of the companies in the same industry.
A Quick Ratio of 2.89 indicates that EW has no problem at all paying its short term obligations.
The Quick ratio of EW (2.89) is better than 62.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.46 | ||
| Quick Ratio | 2.89 |
3. Growth
3.1 Past
EW shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.37%.
EW shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.89% yearly.
EW shows a decrease in Revenue. In the last year, the revenue decreased by -3.40%.
Measured over the past years, EW shows a quite strong growth in Revenue. The Revenue has been growing by 10.03% on average per year.
EPS 1Y (TTM)6.37%
EPS 3Y10.64%
EPS 5Y9.89%
EPS Q2Q%13.56%
Revenue 1Y (TTM)-3.4%
Revenue growth 3Y11.04%
Revenue growth 5Y10.03%
Sales Q2Q%-8.54%
3.2 Future
The Earnings Per Share is expected to grow by 11.77% on average over the next years. This is quite good.
Based on estimates for the next years, EW will show a quite strong growth in Revenue. The Revenue will grow by 9.40% on average per year.
EPS Next Y3.85%
EPS Next 2Y0.26%
EPS Next 3Y4.61%
EPS Next 5Y11.77%
Revenue Next Year-1.97%
Revenue Next 2Y-0.18%
Revenue Next 3Y3.02%
Revenue Next 5Y9.4%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 26.36, which means the current valuation is very expensive for EW.
Based on the Price/Earnings ratio, EW is valued cheaper than 81.82% of the companies in the same industry.
EW is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.65, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 27.89 indicates a quite expensive valuation of EW.
Based on the Price/Forward Earnings ratio, EW is valued a bit cheaper than 77.01% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.56, EW is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.36 | ||
| Fwd PE | 27.89 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EW is valued a bit cheaper than the industry average as 78.07% of the companies are valued more expensively.
71.12% 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 | 87.06 | ||
| EV/EBITDA | 21.31 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
EW has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)6.85
PEG (5Y)2.67
EPS Next 2Y0.26%
EPS Next 3Y4.61%
5. Dividend
5.1 Amount
EW does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
EDWARDS LIFESCIENCES CORP
NYSE:EW (11/21/2024, 5:04:33 PM)
After market: 70.38 0 (0%)70.38
+0.84 (+1.21%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap41.51B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.36 | ||
| Fwd PE | 27.89 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)6.85
PEG (5Y)2.67
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 32.06% | ||
| ROE | 43.57% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 27.73% | ||
| PM (TTM) | 73.98% | ||
| GM | 78.63% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.46 | ||
| Quick Ratio | 2.89 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)6.37%
EPS 3Y10.64%
EPS 5Y
EPS Q2Q%
EPS Next Y3.85%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-3.4%
Revenue growth 3Y11.04%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y