EDWARDS LIFESCIENCES CORP (EW) Stock Fundamental Analysis
NYSE:EW - New York Stock Exchange, Inc. - US28176E1082 - Common Stock
Overall EW gets a fundamental rating of 7 out of 10. We evaluated EW against 191 industry peers in the Health Care Equipment & Supplies industry. EW has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. EW has a decent growth rate and is not valued too expensively.
1. Profitability
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
With an excellent Return On Assets value of 32.06%, EW belongs to the best of the industry, outperforming 99.47% of the companies in the same industry.
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 12.27%, EW belongs to the top of the industry, outperforming 94.21% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for EW is significantly above the industry average of 8.08%.
The 3 year average ROIC (20.11%) for EW is well above the current ROIC(12.27%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 32.06% | ||
| ROE | 43.57% | ||
| ROIC | 12.27% |
ROA(3y)17%
ROA(5y)15.7%
ROE(3y)24.35%
ROE(5y)23.26%
ROIC(3y)20.11%
ROIC(5y)19.51%
1.3 Margins
EW has a Profit Margin of 73.98%. This is amongst the best in the industry. EW outperforms 98.95% of its industry peers.
In the last couple of years the Profit Margin of EW has grown nicely.
Looking at the Operating Margin, with a value of 27.73%, EW belongs to the top of the industry, outperforming 95.79% of the companies in the same industry.
EW's Operating Margin has been stable in the last couple of years.
The Gross Margin of EW (78.63%) is better than 91.05% 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-0.54%
OM growth 5Y0.18%
PM growth 3Y7.55%
PM growth 5Y3.78%
GM growth 3Y0.73%
GM growth 5Y0.6%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so EW is creating value.
The number of shares outstanding for EW has been reduced compared to 1 year ago.
Compared to 5 years ago, EW has less shares outstanding
Compared to 1 year ago, EW has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 9.86 indicates that EW is not in any danger for bankruptcy at the moment.
The Altman-Z score of EW (9.86) is better than 88.42% of its industry peers.
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 has a better Debt to FCF ratio (1.25) than 90.00% 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 61.58% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 1.25 | ||
| Altman-Z | 9.86 |
ROIC/WACC1.34
WACC9.16%
2.3 Liquidity
A Current Ratio of 3.46 indicates that EW has no problem at all paying its short term obligations.
The Current ratio of EW (3.46) is better than 63.16% of its industry peers.
EW has a Quick Ratio of 2.89. This indicates that EW is financially healthy and has no problem in meeting its short term obligations.
EW has a Quick ratio of 2.89. This is in the better half of the industry: EW outperforms 63.16% 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 6.37% over the past year.
The Earnings Per Share has been growing by 9.89% on average over the past years. This is quite good.
The Revenue has decreased by -3.40% in the past year.
EW shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.03% yearly.
EPS 1Y (TTM)6.37%
EPS 3Y10.64%
EPS 5Y9.89%
EPS Q2Q%13.56%
Revenue 1Y (TTM)-3.4%
Revenue growth 3Y11.04%
Revenue growth 5Y10.03%
Sales Q2Q%-8.54%
3.2 Future
Based on estimates for the next years, EW will show a small growth in Earnings Per Share. The EPS will grow by 7.98% on average per year.
EW is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.69% yearly.
EPS Next Y3.46%
EPS Next 2Y0.07%
EPS Next 3Y4.38%
EPS Next 5Y7.98%
Revenue Next Year-3.3%
Revenue Next 2Y-1.15%
Revenue Next 3Y2.62%
Revenue Next 5Y5.69%
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 stable.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 26.21 indicates a quite expensive valuation of EW.
80.00% of the companies in the same industry are more expensive than EW, based on the Price/Earnings ratio.
EW is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 27.84 indicates a quite expensive valuation of EW.
EW's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. EW is cheaper than 75.26% of the companies in the same industry.
EW is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.21 | ||
| Fwd PE | 27.84 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EW indicates a somewhat cheap valuation: EW is cheaper than 77.37% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, EW is valued a bit cheaper than the industry average as 70.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 86.55 | ||
| EV/EBITDA | 21.39 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of EW may justify a higher PE ratio.
PEG (NY)7.56
PEG (5Y)2.65
EPS Next 2Y0.07%
EPS Next 3Y4.38%
5. Dividend
5.1 Amount
EW does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
EDWARDS LIFESCIENCES CORP
NYSE:EW (1/21/2025, 8:04:00 PM)
After market: 69.97 0 (0%)69.97
+0.19 (+0.27%)
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 Change1.14%
Ins Owners0.22%
Ins Owner Change-1.55%
Market Cap41.27B
Analysts73.33
Price Target80.17 (14.58%)
Short Float %1.94%
Short Ratio2.3
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)4.33%
PT rev (3m)2.02%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-23.85%
EPS NY rev (1m)0%
EPS NY rev (3m)-6.33%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-19.07%
Revenue NY rev (1m)-0.17%
Revenue NY rev (3m)-6.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.21 | ||
| Fwd PE | 27.84 | ||
| P/S | 7.34 | ||
| P/FCF | 86.55 | ||
| P/OCF | 51.18 | ||
| P/B | 4.32 | ||
| P/tB | 5.91 | ||
| EV/EBITDA | 21.39 |
EPS(TTM)2.67
EY3.82%
EPS(NY)2.51
Fwd EY3.59%
FCF(TTM)0.81
FCFY1.16%
OCF(TTM)1.37
OCFY1.95%
SpS9.53
BVpS16.18
TBVpS11.84
PEG (NY)7.56
PEG (5Y)2.65
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 32.06% | ||
| ROE | 43.57% | ||
| ROCE | 14.14% | ||
| ROIC | 12.27% | ||
| ROICexc | 20.57% | ||
| ROICexgc | 33.67% | ||
| OM | 27.73% | ||
| PM (TTM) | 73.98% | ||
| GM | 78.63% | ||
| FCFM | 8.48% |
ROA(3y)17%
ROA(5y)15.7%
ROE(3y)24.35%
ROE(5y)23.26%
ROIC(3y)20.11%
ROIC(5y)19.51%
ROICexc(3y)24.76%
ROICexc(5y)24.76%
ROICexgc(3y)32.94%
ROICexgc(5y)34.79%
ROCE(3y)23.16%
ROCE(5y)22.47%
ROICexcg growth 3Y-1.5%
ROICexcg growth 5Y-7.31%
ROICexc growth 3Y0.66%
ROICexc growth 5Y-2.73%
OM growth 3Y-0.54%
OM growth 5Y0.18%
PM growth 3Y7.55%
PM growth 5Y3.78%
GM growth 3Y0.73%
GM growth 5Y0.6%
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 | 9.86 |
F-Score7
WACC9.16%
ROIC/WACC1.34
Cap/Depr(3y)206.04%
Cap/Depr(5y)261.97%
Cap/Sales(3y)5.22%
Cap/Sales(5y)6.27%
Profit Quality(3y)66.94%
Profit Quality(5y)73.09%
High Growth Momentum
Growth
EPS 1Y (TTM)6.37%
EPS 3Y10.64%
EPS 5Y9.89%
EPS Q2Q%13.56%
EPS Next Y3.46%
EPS Next 2Y0.07%
EPS Next 3Y4.38%
EPS Next 5Y7.98%
Revenue 1Y (TTM)-3.4%
Revenue growth 3Y11.04%
Revenue growth 5Y10.03%
Sales Q2Q%-8.54%
Revenue Next Year-3.3%
Revenue Next 2Y-1.15%
Revenue Next 3Y2.62%
Revenue Next 5Y5.69%
EBIT growth 1Y-12.15%
EBIT growth 3Y10.43%
EBIT growth 5Y10.23%
EBIT Next Year1.9%
EBIT Next 3Y5.07%
EBIT Next 5Y6.64%
FCF growth 1Y-54.13%
FCF growth 3Y-0.91%
FCF growth 5Y-1.68%
OCF growth 1Y-38.4%
OCF growth 3Y-5.29%
OCF growth 5Y-0.68%