EDWARDS LIFESCIENCES CORP (EW) Stock Fundamental Analysis
USA - NYSE:EW - US28176E1082 - Common Stock
82.69 USD
+0.5 (+0.61%)
83.38 USD
+0.69 (+0.83%)
Taking everything into account, EW scores 7 out of 10 in our fundamental rating. EW was compared to 189 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 would make EW suitable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year EW was profitable.
EW had a positive operating cash flow in the past year.
In the past 5 years EW has always been profitable.
Each year in the past 5 years EW had a positive operating cash flow.
1.2 Ratios
The Return On Assets of EW (30.75%) is better than 99.47% of its industry peers.
The Return On Equity of EW (39.33%) is better than 98.94% of its industry peers.
The Return On Invested Capital of EW (11.77%) is better than 92.06% 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 9.01%.
The 3 year average ROIC (15.82%) for EW is well above the current ROIC(11.77%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 30.75% | ||
| ROE | 39.33% | ||
| ROIC | 11.77% |
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
Looking at the Profit Margin, with a value of 72.96%, EW belongs to the top of the industry, outperforming 98.41% of the companies in the same industry.
In the last couple of years the Profit Margin of EW has grown nicely.
The Operating Margin of EW (27.94%) is better than 94.71% of its industry peers.
EW's Operating Margin has been stable in the last couple of years.
The Gross Margin of EW (78.87%) is better than 91.53% 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 | 27.94% | ||
| PM (TTM) | 72.96% | ||
| GM | 78.87% |
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
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
Compared to 1 year ago, EW has an improved debt to assets ratio.
2.2 Solvency
EW has an Altman-Z score of 12.60. This indicates that EW is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 12.60, EW belongs to the best of the industry, outperforming 92.06% of the companies in the same industry.
EW has a debt to FCF ratio of 1.03. This is a very positive value and a sign of high solvency as it would only need 1.03 years to pay back of all of its debts.
EW's Debt to FCF ratio of 1.03 is amongst the best of the industry. EW outperforms 91.53% 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.
Looking at the Debt to Equity ratio, with a value of 0.06, EW is in the better half of the industry, outperforming 68.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 1.03 | ||
| Altman-Z | 12.6 |
ROIC/WACC1.37
WACC8.56%
2.3 Liquidity
A Current Ratio of 4.68 indicates that EW has no problem at all paying its short term obligations.
With a decent Current ratio value of 4.68, EW is doing good in the industry, outperforming 75.13% of the companies in the same industry.
A Quick Ratio of 3.87 indicates that EW has no problem at all paying its short term obligations.
EW's Quick ratio of 3.87 is fine compared to the rest of the industry. EW outperforms 73.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.68 | ||
| Quick Ratio | 3.87 |
3. Growth
3.1 Past
EW shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -0.77%.
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 decrease in Revenue. The Revenue has decreased by -1.09% in the last year.
Measured over the past years, EW shows a small growth in Revenue. The Revenue has been growing by 4.58% on average per year.
EPS 1Y (TTM)-0.77%
EPS 3Y5.52%
EPS 5Y7.13%
EPS Q2Q%-4.29%
Revenue 1Y (TTM)-1.09%
Revenue growth 3Y1.3%
Revenue growth 5Y4.58%
Sales Q2Q%-6.13%
3.2 Future
The Earnings Per Share is expected to grow by 9.38% 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 8.39% yearly.
EPS Next Y-1.56%
EPS Next 2Y4.77%
EPS Next 3Y7.22%
EPS Next 5Y9.38%
Revenue Next Year3.69%
Revenue Next 2Y6.66%
Revenue Next 3Y7.8%
Revenue Next 5Y8.39%
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
The Price/Earnings ratio is 32.18, which means the current valuation is very expensive for EW.
Based on the Price/Earnings ratio, EW is valued a bit cheaper than 72.49% of the companies in the same industry.
EW's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 26.76.
Based on the Price/Forward Earnings ratio of 28.75, the valuation of EW can be described as expensive.
73.02% of the companies in the same industry are more expensive than EW, based on the Price/Forward Earnings ratio.
EW's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 22.63.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.18 | ||
| Fwd PE | 28.75 |
4.2 Price Multiples
73.02% of the companies in the same industry are more expensive than EW, based on the Enterprise Value to EBITDA ratio.
70.90% 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 | 84.01 | ||
| EV/EBITDA | 25.45 |
4.3 Compensation for Growth
The excellent profitability rating of EW may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)4.51
EPS Next 2Y4.77%
EPS Next 3Y7.22%
5. Dividend
5.1 Amount
No dividends for EW!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
82.69
+0.5 (+0.61%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners88.08%
Inst Owner Change0.06%
Ins Owners0.16%
Ins Owner Change4.89%
Market Cap48.55B
Revenue(TTM)5.69B
Net Income(TTM)4.15B
Analysts76.28
Price Target89.82 (8.62%)
Short Float %1.34%
Short Ratio1.83
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)4.25%
Min EPS beat(2)4.11%
Max EPS beat(2)4.4%
EPS beat(4)4
Avg EPS beat(4)3.37%
Min EPS beat(4)1.57%
Max EPS beat(4)4.4%
EPS beat(8)4
Avg EPS beat(8)0.66%
EPS beat(12)5
Avg EPS beat(12)0.01%
EPS beat(16)6
Avg EPS beat(16)-0.9%
Revenue beat(2)0
Avg Revenue beat(2)-1.11%
Min Revenue beat(2)-2.1%
Max Revenue beat(2)-0.12%
Revenue beat(4)0
Avg Revenue beat(4)-4.22%
Min Revenue beat(4)-13.79%
Max Revenue beat(4)-0.12%
Revenue beat(8)0
Avg Revenue beat(8)-3.15%
Revenue beat(12)1
Avg Revenue beat(12)-2.51%
Revenue beat(16)1
Avg Revenue beat(16)-2.76%
PT rev (1m)-0.39%
PT rev (3m)7.33%
EPS NQ rev (1m)0.6%
EPS NQ rev (3m)-1.04%
EPS NY rev (1m)0.19%
EPS NY rev (3m)0.89%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)0.98%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)1.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.18 | ||
| Fwd PE | 28.75 | ||
| P/S | 8.54 | ||
| P/FCF | 84.01 | ||
| P/OCF | 61.07 | ||
| P/B | 4.6 | ||
| P/tB | 6.39 | ||
| EV/EBITDA | 25.45 |
EPS(TTM)2.57
EY3.11%
EPS(NY)2.88
Fwd EY3.48%
FCF(TTM)0.98
FCFY1.19%
OCF(TTM)1.35
OCFY1.64%
SpS9.68
BVpS17.96
TBVpS12.94
PEG (NY)N/A
PEG (5Y)4.51
Graham Number32.23
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 30.75% | ||
| ROE | 39.33% | ||
| ROCE | 13.14% | ||
| ROIC | 11.77% | ||
| ROICexc | 17.73% | ||
| ROICexgc | 28.04% | ||
| OM | 27.94% | ||
| PM (TTM) | 72.96% | ||
| GM | 78.87% | ||
| FCFM | 10.17% |
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-Score7
Asset Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 1.03 | ||
| Debt/EBITDA | 0.34 | ||
| Cap/Depr | 142.95% | ||
| Cap/Sales | 3.82% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 45.68% | ||
| Profit Quality | 13.93% | ||
| Current Ratio | 4.68 | ||
| Quick Ratio | 3.87 | ||
| Altman-Z | 12.6 |
F-Score7
WACC8.56%
ROIC/WACC1.37
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)-0.77%
EPS 3Y5.52%
EPS 5Y7.13%
EPS Q2Q%-4.29%
EPS Next Y-1.56%
EPS Next 2Y4.77%
EPS Next 3Y7.22%
EPS Next 5Y9.38%
Revenue 1Y (TTM)-1.09%
Revenue growth 3Y1.3%
Revenue growth 5Y4.58%
Sales Q2Q%-6.13%
Revenue Next Year3.69%
Revenue Next 2Y6.66%
Revenue Next 3Y7.8%
Revenue Next 5Y8.39%
EBIT growth 1Y0.21%
EBIT growth 3Y-4.72%
EBIT growth 5Y3.49%
EBIT Next Year10.47%
EBIT Next 3Y11.73%
EBIT Next 5Y12.05%
FCF growth 1Y-15.26%
FCF growth 3Y-42.99%
FCF growth 5Y-22.01%
OCF growth 1Y-15.47%
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 32.18 and the Price/Book (PB) ratio is 4.6.
Can you provide the financial health for EW stock?
The financial health rating of EDWARDS LIFESCIENCES CORP (EW) is 9 / 10.