EDWARDS LIFESCIENCES CORP (EW) Stock Fundamental Analysis
NYSE:EW - New York Stock Exchange, Inc. - US28176E1082 - Common Stock - Currency: USD
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. 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.
Each year in the past 5 years EW had a positive operating cash flow.
1.2 Ratios
EW's Return On Assets of 32.10% is amongst the best of the industry. EW outperforms 99.47% of its industry peers.
EW has a Return On Equity of 41.28%. This is amongst the best in the industry. EW outperforms 98.93% of its industry peers.
EW has a better Return On Invested Capital (11.82%) than 94.12% of its industry peers.
The Average Return On Invested Capital over the past 3 years for EW is significantly above the industry average of 7.89%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 32.1% | ||
| ROE | 41.28% | ||
| ROIC | 11.82% |
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
The Profit Margin of EW (75.48%) is better than 98.93% of its industry peers.
EW's Profit Margin has improved in the last couple of years.
EW has a Operating Margin of 27.71%. This is amongst the best in the industry. EW outperforms 96.26% of its industry peers.
EW's Operating Margin has been stable in the last couple of years.
With an excellent Gross Margin value of 79.38%, EW belongs to the best of the industry, outperforming 93.05% of the companies in the same industry.
EW's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.71% | ||
| PM (TTM) | 75.48% | ||
| GM | 79.38% |
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 just above the Cost of Capital (WACC), which means it is creating some 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
The debt/assets ratio for EW has been reduced compared to a year ago.
2.2 Solvency
EW has an Altman-Z score of 12.21. 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 12.21, EW belongs to the top of the industry, outperforming 90.37% of the companies in the same industry.
EW has a debt to FCF ratio of 0.96. This is a very positive value and a sign of high solvency as it would only need 0.96 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.96, EW belongs to the top of the industry, outperforming 91.44% of the companies in the same industry.
A Debt/Equity ratio of 0.06 indicates that EW is not too dependend on debt financing.
EW has a better Debt to Equity ratio (0.06) than 63.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.96 | ||
| Altman-Z | 12.21 |
ROIC/WACC1.31
WACC8.99%
2.3 Liquidity
EW has a Current Ratio of 4.45. 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 4.45, EW is in the better half of the industry, outperforming 69.52% of the companies in the same industry.
A Quick Ratio of 3.66 indicates that EW has no problem at all paying its short term obligations.
The Quick ratio of EW (3.66) is better than 70.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.45 | ||
| Quick Ratio | 3.66 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.96% over the past 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 decrease in Revenue. The Revenue has decreased by -6.00% in the last 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)1.96%
EPS 3Y5.52%
EPS 5Y7.13%
EPS Q2Q%-3.03%
Revenue 1Y (TTM)-6%
Revenue growth 3Y1.3%
Revenue growth 5Y4.58%
Sales Q2Q%-11.61%
3.2 Future
Based on estimates for the next years, EW will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.07% on average per year.
The Revenue is expected to grow by 8.27% on average over the next years. This is quite good.
EPS Next Y-2.43%
EPS Next 2Y4.32%
EPS Next 3Y6.72%
EPS Next 5Y9.07%
Revenue Next Year2.39%
Revenue Next 2Y5.92%
Revenue Next 3Y7.35%
Revenue Next 5Y8.27%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 30.02, which means the current valuation is very expensive for EW.
74.33% 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 27.30, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 27.37, the valuation of EW can be described as expensive.
Based on the Price/Forward Earnings ratio, EW is valued a bit cheaper than 72.73% of the companies in the same industry.
EW is valuated rather expensively when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.02 | ||
| Fwd PE | 27.37 |
4.2 Price Multiples
EW's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. EW is cheaper than 72.19% of the companies in the same industry.
70.59% 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 | 73.48 | ||
| EV/EBITDA | 24.72 |
4.3 Compensation for Growth
EW has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)4.21
EPS Next 2Y4.32%
EPS Next 3Y6.72%
5. Dividend
5.1 Amount
No dividends for EW!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
78.05
-0.75 (-0.95%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners89.36%
Inst Owner Change-0.04%
Ins Owners0.19%
Ins Owner Change4.48%
Market Cap45.78B
Analysts74.15
Price Target82.75 (6.02%)
Short Float %1.05%
Short Ratio1.38
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)3.76%
Min EPS beat(2)3.4%
Max EPS beat(2)4.11%
EPS beat(4)3
Avg EPS beat(4)1.75%
Min EPS beat(4)-2.08%
Max EPS beat(4)4.11%
EPS beat(8)3
Avg EPS beat(8)-0.01%
EPS beat(12)4
Avg EPS beat(12)-0.74%
EPS beat(16)6
Avg EPS beat(16)-0.44%
Revenue beat(2)0
Avg Revenue beat(2)-1.49%
Min Revenue beat(2)-2.1%
Max Revenue beat(2)-0.87%
Revenue beat(4)0
Avg Revenue beat(4)-5.21%
Min Revenue beat(4)-13.79%
Max Revenue beat(4)-0.87%
Revenue beat(8)0
Avg Revenue beat(8)-3.29%
Revenue beat(12)1
Avg Revenue beat(12)-2.9%
Revenue beat(16)2
Avg Revenue beat(16)-2.48%
PT rev (1m)0%
PT rev (3m)1.95%
EPS NQ rev (1m)0.11%
EPS NQ rev (3m)1%
EPS NY rev (1m)0.13%
EPS NY rev (3m)0.81%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)2.2%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)1.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.02 | ||
| Fwd PE | 27.37 | ||
| P/S | 8.27 | ||
| P/FCF | 73.48 | ||
| P/OCF | 52.25 | ||
| P/B | 4.52 | ||
| P/tB | 6.38 | ||
| EV/EBITDA | 24.72 |
EPS(TTM)2.6
EY3.33%
EPS(NY)2.85
Fwd EY3.65%
FCF(TTM)1.06
FCFY1.36%
OCF(TTM)1.49
OCFY1.91%
SpS9.44
BVpS17.27
TBVpS12.23
PEG (NY)N/A
PEG (5Y)4.21
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 32.1% | ||
| ROE | 41.28% | ||
| ROCE | 13.2% | ||
| ROIC | 11.82% | ||
| ROICexc | 17.78% | ||
| ROICexgc | 28.77% | ||
| OM | 27.71% | ||
| PM (TTM) | 75.48% | ||
| GM | 79.38% | ||
| FCFM | 11.25% |
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%
ROICexcg growth 3Y-5.47%
ROICexcg 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 Turnover0.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.96 | ||
| Debt/EBITDA | 0.35 | ||
| Cap/Depr | 165.1% | ||
| Cap/Sales | 4.57% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 51.91% | ||
| Profit Quality | 14.9% | ||
| Current Ratio | 4.45 | ||
| Quick Ratio | 3.66 | ||
| Altman-Z | 12.21 |
F-Score7
WACC8.99%
ROIC/WACC1.31
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)1.96%
EPS 3Y5.52%
EPS 5Y7.13%
EPS Q2Q%-3.03%
EPS Next Y-2.43%
EPS Next 2Y4.32%
EPS Next 3Y6.72%
EPS Next 5Y9.07%
Revenue 1Y (TTM)-6%
Revenue growth 3Y1.3%
Revenue growth 5Y4.58%
Sales Q2Q%-11.61%
Revenue Next Year2.39%
Revenue Next 2Y5.92%
Revenue Next 3Y7.35%
Revenue Next 5Y8.27%
EBIT growth 1Y-8.81%
EBIT growth 3Y-4.72%
EBIT growth 5Y3.49%
EBIT Next Year8.84%
EBIT Next 3Y11%
EBIT Next 5Y11.13%
FCF growth 1Y-36.77%
FCF growth 3Y-42.99%
FCF growth 5Y-22.01%
OCF growth 1Y-29.28%
OCF growth 3Y-32.1%
OCF growth 5Y-14.39%