EDWARDS LIFESCIENCES CORP (EW) Fundamental Analysis & Valuation
NYSE:EW • US28176E1082
Current stock price
79.76 USD
-1.77 (-2.17%)
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
- EW's Return On Assets of 7.84% is amongst the best of the industry. EW outperforms 88.24% of its industry peers.
- EW's Return On Equity of 10.38% is amongst the best of the industry. EW outperforms 83.96% of its industry peers.
- EW's Return On Invested Capital of 12.01% is amongst the best of the industry. EW outperforms 91.98% 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 9.12%.
| 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
- With an excellent Profit Margin value of 17.69%, EW belongs to the best of the industry, outperforming 92.51% of the companies in the same industry.
- EW's Profit Margin has been stable in the last couple of years.
- With an excellent Operating Margin value of 27.17%, EW belongs to the best of the industry, outperforming 95.72% of the companies in the same industry.
- In the last couple of years the Operating Margin of EW has declined.
- The Gross Margin of EW (78.01%) is better than 90.37% 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), EW is creating some value.
- EW has less shares outstanding than it did 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 11.12 indicates that EW is not in any danger for bankruptcy at the moment.
- EW has a Altman-Z score of 11.12. This is amongst the best in the industry. EW outperforms 89.30% 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.
- EW's Debt to FCF ratio of 0.45 is amongst the best of the industry. EW outperforms 90.91% of its industry peers.
- A Debt/Equity ratio of 0.06 indicates that EW is not too dependend on debt financing.
- EW has a better Debt to Equity ratio (0.06) than 68.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.45 | ||
| Altman-Z | 11.12 |
ROIC/WACC1.36
WACC8.86%
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.
- EW's Current ratio of 3.72 is in line compared to the rest of the industry. EW outperforms 59.89% of its industry peers.
- EW has a Quick Ratio of 3.09. This indicates that EW is financially healthy and has no problem in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 3.09, EW is in the better half of the industry, outperforming 65.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.72 | ||
| Quick Ratio | 3.09 |
3. EW Growth Analysis
3.1 Past
- EW shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.29%.
- EW shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.67% yearly.
- The Revenue has grown by 10.86% in the past year. This is quite good.
- 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
- EW is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.89% yearly.
- The Revenue is expected to grow by 9.72% on average over the next years. This is quite good.
EPS Next Y17.69%
EPS Next 2Y14.79%
EPS Next 3Y14.05%
EPS Next 5Y12.89%
Revenue Next Year10.66%
Revenue Next 2Y10.24%
Revenue Next 3Y10.15%
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 31.16, 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 72.19% of the companies are valued more expensively.
- The average S&P500 Price/Earnings ratio is at 27.50. EW is around the same levels.
- The Price/Forward Earnings ratio is 26.47, which means the current valuation is very expensive for EW.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of EW indicates a somewhat cheap valuation: EW is cheaper than 74.87% of the companies listed in the same industry.
- EW is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.62, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.16 | ||
| Fwd PE | 26.47 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, EW is valued a bit cheaper than 72.73% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, EW is valued a bit cheaper than the industry average as 75.40% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.45 | ||
| EV/EBITDA | 23.31 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The excellent profitability rating of EW may justify a higher PE ratio.
- EW's earnings are expected to grow with 14.05% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.76
PEG (5Y)4.67
EPS Next 2Y14.79%
EPS Next 3Y14.05%
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
NYSE:EW (4/23/2026, 3:48:09 PM)
79.76
-1.77 (-2.17%)
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)04-23 2026-04-23/amc
Inst Owners92.06%
Inst Owner Change-0.05%
Ins Owners0.09%
Ins Owner Change-2.52%
Market Cap45.98B
Revenue(TTM)6.07B
Net Income(TTM)1.07B
Analysts79.53
Price Target98.15 (23.06%)
Short Float %1.74%
Short Ratio2.02
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)0.72%
PT rev (3m)0.16%
EPS NQ rev (1m)0.12%
EPS NQ rev (3m)5.99%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)1.78%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)1.73%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.16 | ||
| Fwd PE | 26.47 | ||
| P/S | 7.58 | ||
| P/FCF | 34.45 | ||
| P/OCF | 28.83 | ||
| P/B | 4.45 | ||
| P/tB | 6.18 | ||
| EV/EBITDA | 23.31 |
EPS(TTM)2.56
EY3.21%
EPS(NY)3.01
Fwd EY3.78%
FCF(TTM)2.32
FCFY2.9%
OCF(TTM)2.77
OCFY3.47%
SpS10.52
BVpS17.93
TBVpS12.91
PEG (NY)1.76
PEG (5Y)4.67
Graham Number32.1371 (-59.71%)
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 | 11.12 |
F-Score6
WACC8.86%
ROIC/WACC1.36
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 Y17.69%
EPS Next 2Y14.79%
EPS Next 3Y14.05%
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 2Y10.24%
Revenue Next 3Y10.15%
Revenue Next 5Y9.72%
EBIT growth 1Y11.04%
EBIT growth 3Y1.54%
EBIT growth 5Y4.82%
EBIT Next Year25.82%
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 5 / 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.