EDWARDS LIFESCIENCES CORP (EW) Fundamental Analysis & Valuation
NYSE:EW • US28176E1082
Current stock price
81.16 USD
+0.11 (+0.14%)
Last:
This EW fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. EW Profitability Analysis
1.1 Basic Checks
- In the past year EW was profitable.
- EW had a positive operating cash flow in the past year.
- EW had positive earnings in each of the past 5 years.
- EW had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 7.84%, EW belongs to the top of the industry, outperforming 88.83% of the companies in the same industry.
- EW has a Return On Equity of 10.38%. This is amongst the best in the industry. EW outperforms 84.57% of its industry peers.
- The Return On Invested Capital of EW (12.01%) is better than 92.02% of its industry peers.
- EW had an Average Return On Invested Capital over the past 3 years of 13.04%. This is above the industry average of 9.39%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.84% | ||
| ROE | 10.38% | ||
| ROIC | 12.01% |
ROA(3y)18.26%
ROA(5y)18.16%
ROE(3y)24.41%
ROE(5y)25.04%
ROIC(3y)13.04%
ROIC(5y)15.54%
1.3 Margins
- The Profit Margin of EW (17.69%) is better than 93.09% of its industry peers.
- In the last couple of years the Profit Margin of EW has remained more or less at the same level.
- With an excellent Operating Margin value of 27.17%, EW belongs to the best of the industry, outperforming 95.74% of the companies in the same industry.
- EW's Operating Margin has declined in the last couple of years.
- EW's Gross Margin of 78.01% is amongst the best of the industry. EW outperforms 90.43% of its industry peers.
- EW's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.17% | ||
| PM (TTM) | 17.69% | ||
| GM | 78.01% |
OM growth 3Y-8.34%
OM growth 5Y-1.77%
PM growth 3Y-19.64%
PM growth 5Y-1.18%
GM growth 3Y-2.35%
GM growth 5Y0.69%
2. EW Health Analysis
2.1 Basic Checks
- EW has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- The number of shares outstanding for EW has been reduced compared to 1 year ago.
- Compared to 5 years ago, EW has less shares outstanding
- The debt/assets ratio for EW has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 11.13 indicates that EW is not in any danger for bankruptcy at the moment.
- With an excellent Altman-Z score value of 11.13, EW belongs to the best of the industry, outperforming 90.43% of the companies in the same industry.
- The Debt to FCF ratio of EW is 0.45, which is an excellent value as it means it would take EW, only 0.45 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 0.45, EW belongs to the top of the industry, outperforming 90.96% of the companies in the same industry.
- EW has a Debt/Equity ratio of 0.06. This is a healthy value indicating a solid balance between debt and equity.
- EW's Debt to Equity ratio of 0.06 is fine compared to the rest of the industry. EW outperforms 68.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.45 | ||
| Altman-Z | 11.13 |
ROIC/WACC1.35
WACC8.91%
2.3 Liquidity
- EW has a Current Ratio of 3.72. This indicates that EW is financially healthy and has no problem in meeting its short term obligations.
- Looking at the Current ratio, with a value of 3.72, EW is in the better half of the industry, outperforming 60.11% of the companies in the same industry.
- A Quick Ratio of 3.09 indicates that EW has no problem at all paying its short term obligations.
- EW has a better Quick ratio (3.09) than 65.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.72 | ||
| Quick Ratio | 3.09 |
3. EW Growth Analysis
3.1 Past
- The earnings per share for EW have decreased by -2.29% in the last year.
- Measured over the past 5 years, EW shows a small growth in Earnings Per Share. The EPS has been growing by 6.67% on average per year.
- EW shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.86%.
- The Revenue has been growing slightly by 6.70% on average over the past years.
EPS 1Y (TTM)-2.29%
EPS 3Y1.06%
EPS 5Y6.67%
EPS Q2Q%-1.69%
Revenue 1Y (TTM)10.86%
Revenue growth 3Y10.77%
Revenue growth 5Y6.7%
Sales Q2Q%13.26%
3.2 Future
- Based on estimates for the next years, EW will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.89% on average per year.
- EW is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.72% yearly.
EPS Next Y17.7%
EPS Next 2Y14.8%
EPS Next 3Y14.07%
EPS Next 5Y12.89%
Revenue Next Year10.66%
Revenue Next 2Y10.22%
Revenue Next 3Y10.13%
Revenue Next 5Y9.72%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better 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 accelerating.
4. EW Valuation Analysis
4.1 Price/Earnings Ratio
- EW is valuated quite expensively with a Price/Earnings ratio of 31.70.
- Compared to the rest of the industry, the Price/Earnings ratio of EW indicates a somewhat cheap valuation: EW is cheaper than 72.34% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of EW to the average of the S&P500 Index (26.17), we can say EW is valued slightly more expensively.
- Based on the Price/Forward Earnings ratio of 26.93, the valuation of EW can be described as expensive.
- Based on the Price/Forward Earnings ratio, EW is valued a bit cheaper than 73.94% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 23.05. EW is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.7 | ||
| Fwd PE | 26.93 |
4.2 Price Multiples
- 72.34% of the companies in the same industry are more expensive than EW, based on the Enterprise Value to EBITDA ratio.
- 75.53% 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 | 35.31 | ||
| EV/EBITDA | 23.35 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- EW has an outstanding profitability rating, which may justify a higher PE ratio.
- EW's earnings are expected to grow with 14.07% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.79
PEG (5Y)4.75
EPS Next 2Y14.8%
EPS Next 3Y14.07%
5. EW Dividend Analysis
5.1 Amount
- EW does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
EW Fundamentals: All Metrics, Ratios and Statistics
NYSE:EW (4/6/2026, 1:34:53 PM)
81.16
+0.11 (+0.14%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)02-10 2026-02-10/amc
Earnings (Next)04-29 2026-04-29/amc
Inst Owners91.12%
Inst Owner Change0%
Ins Owners0.11%
Ins Owner Change-2.52%
Market Cap47.14B
Revenue(TTM)6.07B
Net Income(TTM)1.07B
Analysts79.53
Price Target98.22 (21.02%)
Short Float %1.9%
Short Ratio2.3
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)1
Avg EPS beat(2)0.39%
Min EPS beat(2)-8.84%
Max EPS beat(2)9.63%
EPS beat(4)3
Avg EPS beat(4)2.32%
Min EPS beat(4)-8.84%
Max EPS beat(4)9.63%
EPS beat(8)5
Avg EPS beat(8)1.48%
EPS beat(12)5
Avg EPS beat(12)0.35%
EPS beat(16)7
Avg EPS beat(16)-0.13%
Revenue beat(2)1
Avg Revenue beat(2)-0.31%
Min Revenue beat(2)-1.47%
Max Revenue beat(2)0.85%
Revenue beat(4)1
Avg Revenue beat(4)-0.71%
Min Revenue beat(4)-2.1%
Max Revenue beat(4)0.85%
Revenue beat(8)1
Avg Revenue beat(8)-2.84%
Revenue beat(12)2
Avg Revenue beat(12)-2.11%
Revenue beat(16)2
Avg Revenue beat(16)-2.28%
PT rev (1m)0.79%
PT rev (3m)1.13%
EPS NQ rev (1m)0.29%
EPS NQ rev (3m)6.86%
EPS NY rev (1m)1.35%
EPS NY rev (3m)2.04%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.73%
Revenue NY rev (1m)0.17%
Revenue NY rev (3m)0.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.7 | ||
| Fwd PE | 26.93 | ||
| P/S | 7.77 | ||
| P/FCF | 35.31 | ||
| P/OCF | 29.55 | ||
| P/B | 4.56 | ||
| P/tB | 6.34 | ||
| EV/EBITDA | 23.35 |
EPS(TTM)2.56
EY3.15%
EPS(NY)3.01
Fwd EY3.71%
FCF(TTM)2.3
FCFY2.83%
OCF(TTM)2.75
OCFY3.38%
SpS10.45
BVpS17.8
TBVpS12.81
PEG (NY)1.79
PEG (5Y)4.75
Graham Number32.02
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.84% | ||
| ROE | 10.38% | ||
| ROCE | 13.87% | ||
| ROIC | 12.01% | ||
| ROICexc | 18.64% | ||
| ROICexgc | 29.98% | ||
| OM | 27.17% | ||
| PM (TTM) | 17.69% | ||
| GM | 78.01% | ||
| FCFM | 22% |
ROA(3y)18.26%
ROA(5y)18.16%
ROE(3y)24.41%
ROE(5y)25.04%
ROIC(3y)13.04%
ROIC(5y)15.54%
ROICexc(3y)18.54%
ROICexc(5y)20.56%
ROICexgc(3y)28.25%
ROICexgc(5y)29.44%
ROCE(3y)15.07%
ROCE(5y)17.95%
ROICexgc growth 3Y0.42%
ROICexgc growth 5Y-1.8%
ROICexc growth 3Y-6.11%
ROICexc growth 5Y-3.98%
OM growth 3Y-8.34%
OM growth 5Y-1.77%
PM growth 3Y-19.64%
PM growth 5Y-1.18%
GM growth 3Y-2.35%
GM growth 5Y0.69%
F-Score6
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.45 | ||
| Debt/EBITDA | 0.33 | ||
| Cap/Depr | 166.16% | ||
| Cap/Sales | 4.29% | ||
| Interest Coverage | 81.62 | ||
| Cash Conversion | 88.36% | ||
| Profit Quality | 124.36% | ||
| Current Ratio | 3.72 | ||
| Quick Ratio | 3.09 | ||
| Altman-Z | 11.13 |
F-Score6
WACC8.91%
ROIC/WACC1.35
Cap/Depr(3y)177.3%
Cap/Depr(5y)193.25%
Cap/Sales(3y)4.93%
Cap/Sales(5y)5.41%
Profit Quality(3y)58.49%
Profit Quality(5y)66.28%
High Growth Momentum
Growth
EPS 1Y (TTM)-2.29%
EPS 3Y1.06%
EPS 5Y6.67%
EPS Q2Q%-1.69%
EPS Next Y17.7%
EPS Next 2Y14.8%
EPS Next 3Y14.07%
EPS Next 5Y12.89%
Revenue 1Y (TTM)10.86%
Revenue growth 3Y10.77%
Revenue growth 5Y6.7%
Sales Q2Q%13.26%
Revenue Next Year10.66%
Revenue Next 2Y10.22%
Revenue Next 3Y10.13%
Revenue Next 5Y9.72%
EBIT growth 1Y11.04%
EBIT growth 3Y1.54%
EBIT growth 5Y4.82%
EBIT Next Year25.88%
EBIT Next 3Y16.1%
EBIT Next 5Y14.45%
FCF growth 1Y413.66%
FCF growth 3Y11.88%
FCF growth 5Y15.59%
OCF growth 1Y194.16%
OCF growth 3Y9.4%
OCF growth 5Y8.64%
EDWARDS LIFESCIENCES CORP / EW Fundamental Analysis FAQ
What is the fundamental rating for EW stock?
ChartMill assigns a fundamental rating of 7 / 10 to EW.
Can you provide the valuation status for EDWARDS LIFESCIENCES CORP?
ChartMill assigns a valuation rating of 4 / 10 to EDWARDS LIFESCIENCES CORP (EW). This can be considered as Fairly Valued.
Can you provide the profitability details for EDWARDS LIFESCIENCES CORP?
EDWARDS LIFESCIENCES CORP (EW) has a profitability rating of 8 / 10.
How financially healthy is EDWARDS LIFESCIENCES CORP?
The financial health rating of EDWARDS LIFESCIENCES CORP (EW) is 9 / 10.