EDWARDS LIFESCIENCES CORP (EW) Stock Fundamental Analysis
NYSE:EW - New York Stock Exchange, Inc. - US28176E1082 - Common Stock - Currency: USD
EW gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 190 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 is not valued too expensively and it also shows a decent growth rate. With these ratings, EW could be worth investigating further 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.
Each year in the past 5 years EW has been profitable.
EW had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
EW's Return On Assets of 32.06% is amongst the best of the industry. EW outperforms 99.47% of its industry peers.
EW has a better Return On Equity (43.57%) than 99.47% of its industry peers.
Looking at the Return On Invested Capital, with a value of 12.66%, EW belongs to the top of the industry, outperforming 93.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 32.06% | ||
| ROE | 43.57% | ||
| ROIC | 12.66% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
EW has a better Profit Margin (73.98%) than 98.94% of its industry peers.
In the last couple of years the Profit Margin of EW has grown nicely.
EW has a better Operating Margin (27.73%) than 95.21% of its industry peers.
EW's Operating Margin has been stable in the last couple of years.
EW's Gross Margin of 78.63% is amongst the best of the industry. EW outperforms 91.49% 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) | 73.98% | ||
| GM | 78.63% |
OM growth 3Y-5.31%
OM growth 5Y-0.65%
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 just above the Cost of Capital (WACC), which means it is creating some value.
EW has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
EW has an Altman-Z score of 10.37. This indicates that EW is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 10.37, EW belongs to the top of the industry, outperforming 88.83% of the companies in the same industry.
EW has a debt to FCF ratio of 1.25. This is a very positive value and a sign of high solvency as it would only need 1.25 years to pay back of all of its debts.
EW's Debt to FCF ratio of 1.25 is amongst the best of the industry. EW outperforms 90.43% 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.
With a decent Debt to Equity ratio value of 0.06, EW is doing good in the industry, outperforming 61.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 1.25 | ||
| Altman-Z | 10.37 |
ROIC/WACC1.4
WACC9.06%
2.3 Liquidity
A Current Ratio of 3.46 indicates that EW has no problem at all paying its short term obligations.
EW's Current ratio of 3.46 is fine compared to the rest of the industry. EW outperforms 61.70% of its industry peers.
A Quick Ratio of 2.89 indicates that EW has no problem at all paying its short term obligations.
EW has a Quick ratio of 2.89. This is in the better half of the industry: EW outperforms 63.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.46 | ||
| Quick Ratio | 2.89 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 4.38% over the past year.
Measured over the past 5 years, EW shows a small growth in Earnings Per Share. The EPS has been growing by 7.13% on average per year.
The Revenue has decreased by -8.86% in the past 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)4.38%
EPS 3Y5.52%
EPS 5Y7.13%
EPS Q2Q%-7.81%
Revenue 1Y (TTM)-8.86%
Revenue growth 3Y1.3%
Revenue growth 5Y4.58%
Sales Q2Q%-9.67%
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 9.78% yearly.
EW is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.04% yearly.
EPS Next Y-3.61%
EPS Next 2Y3.91%
EPS Next 3Y6.64%
EPS Next 5Y9.78%
Revenue Next Year0.94%
Revenue Next 2Y5.24%
Revenue Next 3Y6.87%
Revenue Next 5Y8.04%
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.
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
Based on the Price/Earnings ratio of 27.98, the valuation of EW can be described as expensive.
77.13% of the companies in the same industry are more expensive than EW, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of EW to the average of the S&P500 Index (29.63), we can say EW is valued inline with the index average.
EW is valuated quite expensively with a Price/Forward Earnings ratio of 29.03.
Based on the Price/Forward Earnings ratio, EW is valued a bit cheaper than 73.94% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of EW to the average of the S&P500 Index (22.68), we can say EW is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.98 | ||
| Fwd PE | 29.03 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EW is valued a bit cheaper than the industry average as 76.06% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, EW is valued a bit cheaper than the industry average as 69.68% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 90.67 | ||
| EV/EBITDA | 23.09 |
4.3 Compensation for Growth
EW has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)3.92
EPS Next 2Y3.91%
EPS Next 3Y6.64%
5. Dividend
5.1 Amount
No dividends for EW!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
73.3
-1.41 (-1.89%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners86.67%
Inst Owner Change3.47%
Ins Owners0.22%
Ins Owner Change-1.55%
Market Cap43.23B
Analysts73.33
Price Target81.38 (11.02%)
Short Float %1.72%
Short Ratio2.06
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)-0.26%
Min EPS beat(2)-2.08%
Max EPS beat(2)1.57%
EPS beat(4)1
Avg EPS beat(4)-0.84%
Min EPS beat(4)-2.52%
Max EPS beat(4)1.57%
EPS beat(8)2
Avg EPS beat(8)-0.87%
EPS beat(12)3
Avg EPS beat(12)-2.04%
EPS beat(16)5
Avg EPS beat(16)-0.79%
Revenue beat(2)0
Avg Revenue beat(2)-8.94%
Min Revenue beat(2)-13.79%
Max Revenue beat(2)-4.1%
Revenue beat(4)0
Avg Revenue beat(4)-4.84%
Min Revenue beat(4)-13.79%
Max Revenue beat(4)-0.38%
Revenue beat(8)1
Avg Revenue beat(8)-2.89%
Revenue beat(12)1
Avg Revenue beat(12)-3.12%
Revenue beat(16)3
Avg Revenue beat(16)-2.37%
PT rev (1m)-0.38%
PT rev (3m)4.04%
EPS NQ rev (1m)0.01%
EPS NQ rev (3m)0.01%
EPS NY rev (1m)-0.14%
EPS NY rev (3m)-0.51%
Revenue NQ rev (1m)-0.5%
Revenue NQ rev (3m)-0.5%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-1.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.98 | ||
| Fwd PE | 29.03 | ||
| P/S | 7.69 | ||
| P/FCF | 90.67 | ||
| P/OCF | 53.61 | ||
| P/B | 4.53 | ||
| P/tB | 6.19 | ||
| EV/EBITDA | 23.09 |
EPS(TTM)2.62
EY3.57%
EPS(NY)2.53
Fwd EY3.45%
FCF(TTM)0.81
FCFY1.1%
OCF(TTM)1.37
OCFY1.87%
SpS9.53
BVpS16.18
TBVpS11.84
PEG (NY)N/A
PEG (5Y)3.92
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 32.06% | ||
| ROE | 43.57% | ||
| ROCE | 14.14% | ||
| ROIC | 12.66% | ||
| ROICexc | 21.21% | ||
| ROICexgc | 34.72% | ||
| OM | 27.73% | ||
| PM (TTM) | 73.98% | ||
| GM | 78.63% | ||
| FCFM | 8.48% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y-5.31%
OM growth 5Y-0.65%
PM growth 3Y38.76%
PM growth 5Y26.09%
GM growth 3Y1.43%
GM growth 5Y1.33%
F-Score7
Asset Turnover0.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 1.25 | ||
| Debt/EBITDA | 0.35 | ||
| Cap/Depr | 220.76% | ||
| Cap/Sales | 5.86% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 47.21% | ||
| Profit Quality | 11.46% | ||
| Current Ratio | 3.46 | ||
| Quick Ratio | 2.89 | ||
| Altman-Z | 10.37 |
F-Score7
WACC9.06%
ROIC/WACC1.4
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)4.38%
EPS 3Y5.52%
EPS 5Y7.13%
EPS Q2Q%-7.81%
EPS Next Y-3.61%
EPS Next 2Y3.91%
EPS Next 3Y6.64%
EPS Next 5Y9.78%
Revenue 1Y (TTM)-8.86%
Revenue growth 3Y1.3%
Revenue growth 5Y4.58%
Sales Q2Q%-9.67%
Revenue Next Year0.94%
Revenue Next 2Y5.24%
Revenue Next 3Y6.87%
Revenue Next 5Y8.04%
EBIT growth 1Y-12.15%
EBIT growth 3Y-4.08%
EBIT growth 5Y3.91%
EBIT Next Year10.11%
EBIT Next 3Y13.2%
EBIT Next 5Y10.73%
FCF growth 1Y-39.51%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-22.61%
OCF growth 3YN/A
OCF growth 5YN/A