EDWARDS LIFESCIENCES CORP (EW) Fundamental Analysis & Valuation
NYSE:EW • US28176E1082
Current stock price
82.5 USD
+0.04 (+0.05%)
At close:
83.22 USD
+0.72 (+0.87%)
After Hours:
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
- EW has a Return On Assets of 7.84%. This is amongst the best in the industry. EW outperforms 88.83% of its industry peers.
- 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.
- Looking at the Return On Invested Capital, with a value of 12.01%, EW belongs to the top of the industry, outperforming 92.55% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for EW is above the industry average of 9.28%.
| 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
- EW's Profit Margin of 17.69% is amongst the best of the industry. EW outperforms 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.
- EW has a better Operating Margin (27.17%) than 95.74% of its industry peers.
- EW's Operating Margin has declined in the last couple of years.
- With an excellent Gross Margin value of 78.01%, EW belongs to the best of the industry, outperforming 90.43% of the companies in the same industry.
- 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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so EW is still creating some 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.
- The debt/assets ratio for EW has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 11.28 indicates that EW is not in any danger for bankruptcy at the moment.
- EW has a better Altman-Z score (11.28) than 92.55% of its industry peers.
- EW has a debt to FCF ratio of 0.45. This is a very positive value and a sign of high solvency as it would only need 0.45 years to pay back of all of its debts.
- With an excellent Debt to FCF ratio value of 0.45, EW belongs to the best of the industry, outperforming 90.96% 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 68.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.45 | ||
| Altman-Z | 11.28 |
ROIC/WACC1.17
WACC10.25%
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.
- With a decent Current ratio value of 3.72, EW is doing good in the industry, outperforming 61.70% 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 65.96% 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.
- EW shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.67% yearly.
- EW shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.86%.
- EW shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.70% yearly.
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
- The Earnings Per Share is expected to grow by 12.89% 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 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
- 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. EW Valuation Analysis
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 32.23, EW can be considered very expensive at the moment.
- Based on the Price/Earnings ratio, EW is valued a bit cheaper than the industry average as 71.81% of the companies are valued more expensively.
- EW is valuated rather expensively when we compare the Price/Earnings ratio to 25.23, which is the current average of the S&P500 Index.
- EW is valuated quite expensively with a Price/Forward Earnings ratio of 27.38.
- EW's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. EW is cheaper than 72.34% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 22.42. EW is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.23 | ||
| Fwd PE | 27.38 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, EW is valued a bit cheaper than 72.87% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of EW indicates a somewhat cheap valuation: EW is cheaper than 76.60% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.89 | ||
| EV/EBITDA | 23.82 |
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.
- EW's earnings are expected to grow with 14.07% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.82
PEG (5Y)4.83
EPS Next 2Y14.8%
EPS Next 3Y14.07%
5. EW Dividend Analysis
5.1 Amount
- No dividends for EW!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
EW Fundamentals: All Metrics, Ratios and Statistics
82.5
+0.04 (+0.05%)
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)04-21 2026-04-21/amc
Inst Owners91.12%
Inst Owner Change1.02%
Ins Owners0.11%
Ins Owner Change-2.52%
Market Cap47.92B
Revenue(TTM)6.07B
Net Income(TTM)1.07B
Analysts79.53
Price Target97.45 (18.12%)
Short Float %2.15%
Short Ratio2.7
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)-0.57%
PT rev (3m)0.34%
EPS NQ rev (1m)5.87%
EPS NQ rev (3m)6.7%
EPS NY rev (1m)1.35%
EPS NY rev (3m)2.04%
Revenue NQ rev (1m)1.79%
Revenue NQ rev (3m)1.73%
Revenue NY rev (1m)0.85%
Revenue NY rev (3m)0.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.23 | ||
| Fwd PE | 27.38 | ||
| P/S | 7.9 | ||
| P/FCF | 35.89 | ||
| P/OCF | 30.04 | ||
| P/B | 4.64 | ||
| P/tB | 6.44 | ||
| EV/EBITDA | 23.82 |
EPS(TTM)2.56
EY3.1%
EPS(NY)3.01
Fwd EY3.65%
FCF(TTM)2.3
FCFY2.79%
OCF(TTM)2.75
OCFY3.33%
SpS10.45
BVpS17.8
TBVpS12.81
PEG (NY)1.82
PEG (5Y)4.83
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 | 11.28 |
F-Score6
WACC10.25%
ROIC/WACC1.17
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.
What is the valuation status for 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 8 / 10.
What is the earnings growth outlook for EDWARDS LIFESCIENCES CORP?
The Earnings per Share (EPS) of EDWARDS LIFESCIENCES CORP (EW) is expected to grow by 17.7% in the next year.