EDWARDS LIFESCIENCES CORP (EW) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EW - US28176E1082 - Common Stock
85.32 USD
+1.94 (+2.33%)
85.79 USD
+0.47 (+0.55%)
Taking everything into account, EW scores 7 out of 10 in our fundamental rating. EW was compared to 187 industry peers in the Health Care Equipment & Supplies industry. Both the health and profitability get an excellent rating, making EW a very profitable company, without any liquidiy or solvency issues. EW has a correct valuation and a medium growth rate. With these ratings, EW could be worth investigating further 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
With an excellent Return On Assets value of 10.31%, EW belongs to the best of the industry, outperforming 94.65% of the companies in the same industry.
The Return On Equity of EW (13.40%) is better than 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 8.82%.
| 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
EW has a Profit Margin of 23.25%. This is amongst the best in the industry. EW outperforms 94.65% of its industry peers.
In the last couple of years the Profit Margin of EW has grown nicely.
The Operating Margin of EW (27.73%) is better than 96.26% of its industry peers.
EW's Operating Margin has been stable in the last couple of years.
The Gross Margin of EW (78.19%) is better than 90.37% of its industry peers.
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), EW is creating value.
Compared to 1 year ago, EW has less shares outstanding
The number of shares outstanding for EW has been reduced compared to 5 years ago.
Compared to 1 year ago, EW has an improved debt to assets ratio.
2.2 Solvency
EW has an Altman-Z score of 12.24. This indicates that EW is financially healthy and has little risk of bankruptcy at the moment.
EW has a Altman-Z score of 12.24. This is amongst the best in the industry. EW outperforms 90.91% of its industry peers.
The Debt to FCF ratio of EW is 0.75, which is an excellent value as it means it would take EW, only 0.75 years of fcf income to pay off all of its debts.
EW has a Debt to FCF ratio of 0.75. This is amongst the best in the industry. EW outperforms 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.
The Debt to Equity ratio of EW (0.06) is better than 67.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.75 | ||
| Altman-Z | 12.24 |
ROIC/WACC1.43
WACC8.75%
2.3 Liquidity
EW has a Current Ratio of 4.00. This indicates that EW is financially healthy and has no problem in meeting its short term obligations.
EW has a better Current ratio (4.00) than 68.45% of its industry peers.
A Quick Ratio of 3.29 indicates that EW has no problem at all paying its short term obligations.
EW has a Quick ratio of 3.29. This is in the better half of the industry: EW outperforms 67.91% 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 EW have decreased by -3.75% in the last year.
EW shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.13% yearly.
The Revenue has been growing slightly by 4.67% in the past year.
EW 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.
EW is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.55% yearly.
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 33.20, EW can be considered very expensive at the moment.
72.19% of the companies in the same industry are more expensive than EW, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.43, EW is valued a bit more expensive.
Based on the Price/Forward Earnings ratio of 29.02, the valuation of EW can be described as expensive.
Based on the Price/Forward Earnings ratio, EW is valued a bit cheaper than 73.26% of the companies in the same industry.
EW's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 23.66.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.2 | ||
| Fwd PE | 29.02 |
4.2 Price Multiples
73.26% of the companies in the same industry are more expensive than EW, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, EW is valued a bit cheaper than the industry average as 72.19% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 61.92 | ||
| EV/EBITDA | 24.6 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates EW does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of EW may justify a higher PE ratio.
PEG (NY)23.07
PEG (5Y)4.66
EPS Next 2Y5.94%
EPS Next 3Y7.76%
5. Dividend
5.1 Amount
No dividends for EW!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
85.32
+1.94 (+2.33%)
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 Change-1.33%
Market Cap49.51B
Revenue(TTM)5.88B
Net Income(TTM)1.37B
Analysts79.05
Price Target95.83 (12.32%)
Short Float %1.22%
Short Ratio1.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)6.27%
EPS NQ rev (1m)0.25%
EPS NQ rev (3m)1.34%
EPS NY rev (1m)1.01%
EPS NY rev (3m)3.38%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)0.06%
Revenue NY rev (1m)0.26%
Revenue NY rev (3m)0.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.2 | ||
| Fwd PE | 29.02 | ||
| P/S | 8.41 | ||
| P/FCF | 61.92 | ||
| P/OCF | 48.69 | ||
| P/B | 4.85 | ||
| P/tB | 6.78 | ||
| EV/EBITDA | 24.6 |
EPS(TTM)2.57
EY3.01%
EPS(NY)2.94
Fwd EY3.45%
FCF(TTM)1.38
FCFY1.61%
OCF(TTM)1.75
OCFY2.05%
SpS10.14
BVpS17.59
TBVpS12.59
PEG (NY)23.07
PEG (5Y)4.66
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 | 12.24 |
F-Score6
WACC8.75%
ROIC/WACC1.43
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 33.2 and the Price/Book (PB) ratio is 4.85.
Can you provide the financial health for EW stock?
The financial health rating of EDWARDS LIFESCIENCES CORP (EW) is 9 / 10.