EDWARDS LIFESCIENCES CORP (EW) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EW - US28176E1082 - Common Stock
86.85 USD
+0.56 (+0.65%)
86.44 USD
-0.41 (-0.47%)
EW gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 186 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 correct valuation and a medium growth rate. This makes EW very considerable 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
EW has a Return On Assets of 10.31%. This is amongst the best in the industry. EW outperforms 94.59% of its industry peers.
EW has a Return On Equity of 13.40%. This is amongst the best in the industry. EW outperforms 89.19% of its industry peers.
EW has a Return On Invested Capital of 12.50%. This is amongst the best in the industry. EW outperforms 92.97% 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's Profit Margin of 23.25% is amongst the best of the industry. EW outperforms 94.59% 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 96.22% of its industry peers.
EW's Operating Margin has been stable in the last couple of years.
EW's Gross Margin of 78.19% is amongst the best of the industry. EW outperforms 90.27% 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
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.
EW has less shares outstanding than it did 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 12.57. This indicates that EW is financially healthy and has little risk of bankruptcy at the moment.
EW has a Altman-Z score of 12.57. This is amongst the best in the industry. EW outperforms 91.89% of its industry peers.
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's Debt to FCF ratio of 0.75 is amongst the best of the industry. EW outperforms 91.35% 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 better Debt to Equity ratio (0.06) than 68.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.75 | ||
| Altman-Z | 12.57 |
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 68.11% 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.
EW has a Quick ratio of 3.29. This is in the better half of the industry: EW outperforms 67.57% 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.
The Earnings Per Share has been growing slightly by 7.13% on average over the past years.
Looking at the last year, EW shows a small growth in Revenue. The Revenue has grown by 4.67% in the last 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 Y1.51%
EPS Next 2Y6.17%
EPS Next 3Y7.9%
EPS Next 5Y9.5%
Revenue Next Year4.63%
Revenue Next 2Y7.13%
Revenue Next 3Y8.01%
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.
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
A Price/Earnings ratio of 33.79 indicates a quite expensive valuation of EW.
EW's Price/Earnings ratio is a bit cheaper when compared to the industry. EW is cheaper than 72.43% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.57. EW is valued slightly more expensive when compared to this.
A Price/Forward Earnings ratio of 29.41 indicates a quite expensive valuation of EW.
Based on the Price/Forward Earnings ratio, EW is valued a bit cheaper than the industry average as 71.89% of the companies are valued more expensively.
EW is valuated rather expensively when we compare the Price/Forward Earnings ratio to 24.04, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.79 | ||
| Fwd PE | 29.41 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EW is valued a bit cheaper than 72.43% of the companies in the same industry.
71.89% 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 | 63.03 | ||
| EV/EBITDA | 25.54 |
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)22.34
PEG (5Y)4.74
EPS Next 2Y6.17%
EPS Next 3Y7.9%
5. Dividend
5.1 Amount
EW does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
86.85
+0.56 (+0.65%)
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-1.36%
Ins Owners0.11%
Ins Owner Change-1.33%
Market Cap50.40B
Revenue(TTM)5.88B
Net Income(TTM)1.37B
Analysts79.05
Price Target97.12 (11.82%)
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)8.18%
PT rev (3m)7.71%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.27%
EPS NY rev (1m)1.08%
EPS NY rev (3m)3.32%
Revenue NQ rev (1m)0.13%
Revenue NQ rev (3m)0.19%
Revenue NY rev (1m)0.29%
Revenue NY rev (3m)0.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.79 | ||
| Fwd PE | 29.41 | ||
| P/S | 8.57 | ||
| P/FCF | 63.03 | ||
| P/OCF | 49.57 | ||
| P/B | 4.94 | ||
| P/tB | 6.9 | ||
| EV/EBITDA | 25.54 |
EPS(TTM)2.57
EY2.96%
EPS(NY)2.95
Fwd EY3.4%
FCF(TTM)1.38
FCFY1.59%
OCF(TTM)1.75
OCFY2.02%
SpS10.14
BVpS17.59
TBVpS12.59
PEG (NY)22.34
PEG (5Y)4.74
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 | 12.57 |
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 Y1.51%
EPS Next 2Y6.17%
EPS Next 3Y7.9%
EPS Next 5Y9.5%
Revenue 1Y (TTM)4.67%
Revenue growth 3Y1.3%
Revenue growth 5Y4.58%
Sales Q2Q%14.67%
Revenue Next Year4.63%
Revenue Next 2Y7.13%
Revenue Next 3Y8.01%
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 33.79 and the Price/Book (PB) ratio is 4.94.
Can you provide the financial health for EW stock?
The financial health rating of EDWARDS LIFESCIENCES CORP (EW) is 9 / 10.