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.

8

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.
EW Yearly Net Income VS EBIT VS OCF VS FCFEW Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B

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 RankSector 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%
EW Yearly ROA, ROE, ROICEW Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40

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 RankSector 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%
EW Yearly Profit, Operating, Gross MarginsEW Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60 80

9

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.
EW Yearly Shares OutstandingEW Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M
EW Yearly Total Debt VS Total AssetsEW Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B

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 RankSector Rank
Debt/Equity 0.06
Debt/FCF 0.45
Altman-Z 11.28
ROIC/WACC1.17
WACC10.25%
EW Yearly LT Debt VS Equity VS FCFEW Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B

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 RankSector Rank
Current Ratio 3.72
Quick Ratio 3.09
EW Yearly Current Assets VS Current LiabilitesEW Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

5

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.
EW Yearly Revenue VS EstimatesEW Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2B 4B 6B 8B
EW Yearly EPS VS EstimatesEW Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 1 2 3 4

4

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 RankSector Rank
PE 32.23
Fwd PE 27.38
EW Price Earnings VS Forward Price EarningsEW Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

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 RankSector Rank
P/FCF 35.89
EV/EBITDA 23.82
EW Per share dataEW EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15

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%

0

5. EW Dividend Analysis

5.1 Amount

  • No dividends for EW!.
Industry RankSector Rank
Dividend Yield 0%

EW Fundamentals: All Metrics, Ratios and Statistics

EDWARDS LIFESCIENCES CORP

NYSE:EW (3/20/2026, 8:04:00 PM)

After market: 83.22 +0.72 (+0.87%)

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
Earnings (Next)04-21
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 RankSector 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 RankSector 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 RankSector 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 RankSector 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.