EDWARDS LIFESCIENCES CORP (EW) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EW - US28176E1082 - Common Stock
84.05 USD
+0.13 (+0.15%)
We assign a fundamental rating of 7 out of 10 to EW. EW was compared to 187 industry peers in the Health Care Equipment & Supplies industry. EW scores excellent points on both the profitability and health parts. This is a solid base for a good stock. EW has a decent growth rate and is not valued too expensively. These ratings could make EW a good candidate 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.
In the past 5 years EW always reported a positive cash flow from operatings.
1.2 Ratios
EW has a Return On Assets of 10.31%. This is amongst the best in the industry. EW outperforms 94.65% of its industry peers.
EW has a Return On Equity of 13.40%. This is amongst the best in the industry. EW outperforms 89.30% of its industry peers.
Looking at the Return On Invested Capital, with a value of 12.50%, EW belongs to the top of the industry, outperforming 93.05% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for EW is significantly above the industry average of 8.81%.
| 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 has a Profit Margin of 23.25%. This is amongst the best in the industry. EW outperforms 94.65% of its industry peers.
EW's Profit Margin has improved in the last couple of years.
The Operating Margin of EW (27.73%) is better than 96.26% of its industry peers.
EW's Operating Margin has been stable in the last couple of years.
EW has a Gross Margin of 78.19%. This is amongst the best in the industry. EW outperforms 90.37% 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), EW is creating value.
EW has less shares outstanding than it did 1 year ago.
The number of shares outstanding for EW has been reduced compared to 5 years ago.
Compared to 1 year ago, EW has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 12.30 indicates that EW is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 12.30, EW belongs to the top of the industry, outperforming 91.44% of the companies in the same industry.
The Debt to FCF ratio of EW is 0.75, which is an excellent value as it means it would take EW, only 0.75 years of fcf income to pay off all of its debts.
EW has a better Debt to FCF ratio (0.75) than 91.44% 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 67.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.75 | ||
| Altman-Z | 12.3 |
ROIC/WACC1.43
WACC8.75%
2.3 Liquidity
EW has a Current Ratio of 4.00. This indicates that EW is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 4.00, EW is doing good in the industry, outperforming 68.45% of the companies in the same industry.
A Quick Ratio of 3.29 indicates that EW has no problem at all paying its short term obligations.
With a decent Quick ratio value of 3.29, EW is doing good in the industry, outperforming 67.38% of the companies in the same industry.
| 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.
The Revenue has been growing slightly by 4.58% on average over the past years.
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.
The Revenue is expected to grow by 8.55% on average over the next years. This is quite good.
EPS Next Y1.44%
EPS Next 2Y5.94%
EPS Next 3Y7.76%
EPS Next 5Y9.5%
Revenue Next Year4.59%
Revenue Next 2Y7.15%
Revenue Next 3Y8.07%
Revenue Next 5Y8.55%
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 32.70, the valuation of EW can be described as expensive.
EW's Price/Earnings ratio is a bit cheaper when compared to the industry. EW is cheaper than 72.19% of the companies in the same industry.
EW is valuated rather expensively when we compare the Price/Earnings ratio to 26.59, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 28.58, the valuation of EW can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of EW indicates a somewhat cheap valuation: EW is cheaper than 73.26% of the companies listed in the same industry.
EW's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 23.80.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.7 | ||
| Fwd PE | 28.58 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EW is valued a bit cheaper than the industry average as 73.26% of the companies are valued more expensively.
72.19% 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 | 61 | ||
| EV/EBITDA | 24.77 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates EW does not grow enough to justify the current Price/Earnings ratio.
EW has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)22.73
PEG (5Y)4.59
EPS Next 2Y5.94%
EPS Next 3Y7.76%
5. Dividend
5.1 Amount
No dividends for EW!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:EW (12/11/2025, 3:37:06 PM)
84.05
+0.13 (+0.15%)
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-1.3%
Ins Owners0.11%
Ins Owner Change0.38%
Market Cap48.77B
Revenue(TTM)5.88B
Net Income(TTM)1.37B
Analysts79.05
Price Target95.83 (14.02%)
Short Float %1.7%
Short Ratio2.16
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)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)6.74%
PT rev (3m)6.5%
EPS NQ rev (1m)0.25%
EPS NQ rev (3m)1.27%
EPS NY rev (1m)1.01%
EPS NY rev (3m)3.38%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0.26%
Revenue NY rev (3m)0.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.7 | ||
| Fwd PE | 28.58 | ||
| P/S | 8.29 | ||
| P/FCF | 61 | ||
| P/OCF | 47.97 | ||
| P/B | 4.78 | ||
| P/tB | 6.68 | ||
| EV/EBITDA | 24.77 |
EPS(TTM)2.57
EY3.06%
EPS(NY)2.94
Fwd EY3.5%
FCF(TTM)1.38
FCFY1.64%
OCF(TTM)1.75
OCFY2.08%
SpS10.14
BVpS17.59
TBVpS12.59
PEG (NY)22.73
PEG (5Y)4.59
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 | 12.3 |
F-Score6
WACC8.75%
ROIC/WACC1.43
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 Y1.44%
EPS Next 2Y5.94%
EPS Next 3Y7.76%
EPS Next 5Y9.5%
Revenue 1Y (TTM)4.67%
Revenue growth 3Y1.3%
Revenue growth 5Y4.58%
Sales Q2Q%14.67%
Revenue Next Year4.59%
Revenue Next 2Y7.15%
Revenue Next 3Y8.07%
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 32.7 and the Price/Book (PB) ratio is 4.78.
Can you provide the financial health for EW stock?
The financial health rating of EDWARDS LIFESCIENCES CORP (EW) is 9 / 10.