EDWARDS LIFESCIENCES CORP (EW)
US28176E1082 - Common Stock
We assign a fundamental rating of 7 out of 10 to EW. EW was compared to 188 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 has a correct valuation and a medium growth rate. These ratings could make EW a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
In the past year EW was profitable.
In the past year EW had a positive cash flow from operations.
EW had positive earnings in each of the past 5 years.
Each year in the past 5 years EW had a positive operating cash flow.
1.2 Ratios
EW has a better Return On Assets (14.59%) than 96.79% of its industry peers.
EW has a Return On Equity of 19.81%. This is amongst the best in the industry. EW outperforms 94.12% of its industry peers.
The Return On Invested Capital of EW (15.50%) is better than 96.26% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for EW is significantly above the industry average of 8.32%.
The last Return On Invested Capital (15.50%) for EW is well below the 3 year average (20.11%), which needs to be investigated, but indicates that EW had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.59% | ||
| ROE | 19.81% | ||
| ROIC | 15.5% |
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 25.63%. This is amongst the best in the industry. EW outperforms 96.26% 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 27.58%, EW belongs to the top of the industry, outperforming 96.26% of the companies in the same industry.
EW's Operating Margin has been stable in the last couple of years.
EW has a better Gross Margin (77.58%) than 91.44% 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 | 27.58% | ||
| PM (TTM) | 25.63% | ||
| GM | 77.58% |
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
EW has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
EW has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, EW has less shares outstanding
EW has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 11.69 indicates that EW is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 11.69, EW belongs to the best of the industry, outperforming 88.24% of the companies in the same industry.
The Debt to FCF ratio of EW is 1.11, which is an excellent value as it means it would take EW, only 1.11 years of fcf income to pay off all of its debts.
EW has a Debt to FCF ratio of 1.11. This is amongst the best in the industry. EW outperforms 89.30% of its industry peers.
A Debt/Equity ratio of 0.08 indicates that EW is not too dependend on debt financing.
The Debt to Equity ratio of EW (0.08) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | 1.11 | ||
| Altman-Z | 11.69 |
ROIC/WACC1.75
WACC8.85%
2.3 Liquidity
EW has a Current Ratio of 3.71. This indicates that EW is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 3.71, EW is in the better half of the industry, outperforming 63.64% of the companies in the same industry.
A Quick Ratio of 2.87 indicates that EW has no problem at all paying its short term obligations.
With a decent Quick ratio value of 2.87, EW is doing good in the industry, outperforming 62.03% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.71 | ||
| Quick Ratio | 2.87 |
3. Growth
3.1 Past
EW shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.37%.
Measured over the past years, EW shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.89% on average per year.
The Revenue has decreased by -3.40% in the past year.
Measured over the past years, EW shows a quite strong growth in Revenue. The Revenue has been growing by 10.03% on average per year.
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
The Earnings Per Share is expected to grow by 11.77% 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 9.40% yearly.
EPS Next Y3.85%
EPS Next 2Y0.26%
EPS Next 3Y4.61%
EPS Next 5Y11.77%
Revenue Next Year-1.97%
Revenue Next 2Y-0.18%
Revenue Next 3Y3.02%
Revenue Next 5Y9.4%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 24.65, EW is valued on the expensive side.
Based on the Price/Earnings ratio, EW is valued cheaper than 83.42% of the companies in the same industry.
When comparing the Price/Earnings ratio of EW to the average of the S&P500 Index (29.12), we can say EW is valued inline with the index average.
EW is valuated quite expensively with a Price/Forward Earnings ratio of 26.08.
Based on the Price/Forward Earnings ratio, EW is valued a bit cheaper than 78.61% of the companies in the same industry.
EW's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.79.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.65 | ||
| Fwd PE | 26.08 |
4.2 Price Multiples
EW's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. EW is cheaper than 79.14% 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 72.19% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 72.08 | ||
| EV/EBITDA | 21.65 |
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.
The excellent profitability rating of EW may justify a higher PE ratio.
PEG (NY)6.4
PEG (5Y)2.49
EPS Next 2Y0.26%
EPS Next 3Y4.61%
5. Dividend
5.1 Amount
EW does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
EDWARDS LIFESCIENCES CORP
NYSE:EW (11/12/2024, 7:00:00 PM)
After market: 65.81 0 (0%)65.81
-0.89 (-1.33%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap38.81B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.65 | ||
| Fwd PE | 26.08 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)6.4
PEG (5Y)2.49
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.59% | ||
| ROE | 19.81% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 27.58% | ||
| PM (TTM) | 25.63% | ||
| GM | 77.58% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.57
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.71 | ||
| Quick Ratio | 2.87 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)6.37%
EPS 3Y10.64%
EPS 5Y
EPS Q2Q%
EPS Next Y3.85%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-3.4%
Revenue growth 3Y11.04%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y