EDWARDS LIFESCIENCES CORP (EW) Stock Fundamental Analysis
USA - NYSE:EW - US28176E1082 - Common Stock
84.09 USD
-1.93 (-2.24%)
84.09 USD
0 (0%)
EW gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 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 decent growth rate and is not valued too expensively. 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.
Each year in the past 5 years EW has been profitable.
EW had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
EW has a better Return On Assets (10.31%) than 93.09% of its industry peers.
With an excellent Return On Equity value of 13.40%, EW belongs to the best of the industry, outperforming 89.36% of the companies in the same industry.
The Return On Invested Capital of EW (12.50%) is better than 92.55% 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 8.98%.
| 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
The Profit Margin of EW (23.25%) is better than 94.15% of its industry peers.
EW's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 27.73%, EW belongs to the top of the industry, outperforming 95.74% 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 (78.19%) is better than 90.96% of its industry peers.
EW's Gross Margin has been stable in the last couple of years.
| 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.
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
EW has an Altman-Z score of 12.65. This indicates that EW is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 12.65, EW belongs to the best of the industry, outperforming 92.55% of the companies in the same industry.
EW has a debt to FCF ratio of 0.75. This is a very positive value and a sign of high solvency as it would only need 0.75 years to pay back of all of its debts.
The Debt to FCF ratio of EW (0.75) is better than 91.49% 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 68.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.75 | ||
| Altman-Z | 12.65 |
ROIC/WACC1.44
WACC8.69%
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.
EW has a better Current ratio (4.00) than 69.15% of its industry peers.
A Quick Ratio of 3.29 indicates that EW has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 3.29, EW is in the better half of the industry, outperforming 69.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4 | ||
| Quick Ratio | 3.29 |
3. Growth
3.1 Past
EW shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.75%.
Measured over the past 5 years, EW shows a small growth in Earnings Per Share. The EPS has been growing by 7.13% on average per year.
Looking at the last year, EW shows a small growth in Revenue. The Revenue has grown by 4.67% 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)-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 Y0.42%
EPS Next 2Y5.67%
EPS Next 3Y7.57%
EPS Next 5Y9.5%
Revenue Next Year4.33%
Revenue Next 2Y7.03%
Revenue Next 3Y7.98%
Revenue Next 5Y8.55%
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 32.72, which means the current valuation is very expensive for EW.
Based on the Price/Earnings ratio, EW is valued a bit cheaper than the industry average as 71.28% of the companies are valued more expensively.
EW's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 25.47.
EW is valuated quite expensively with a Price/Forward Earnings ratio of 28.74.
EW's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. EW is cheaper than 71.81% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.42, EW is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.72 | ||
| Fwd PE | 28.74 |
4.2 Price Multiples
EW's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. EW is cheaper than 72.34% of the companies in the same industry.
71.81% 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 | 61.74 | ||
| EV/EBITDA | 25.78 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
EW has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)77.2
PEG (5Y)4.59
EPS Next 2Y5.67%
EPS Next 3Y7.57%
5. Dividend
5.1 Amount
No dividends for EW!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
84.09
-1.93 (-2.24%)
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 Change-1.29%
Ins Owners0.16%
Ins Owner Change0.11%
Market Cap49.37B
Revenue(TTM)5.88B
Net Income(TTM)1.37B
Analysts77.67
Price Target89.77 (6.75%)
Short Float %1.57%
Short Ratio1.9
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)-0.05%
PT rev (3m)0.05%
EPS NQ rev (1m)1.1%
EPS NQ rev (3m)2.4%
EPS NY rev (1m)2.21%
EPS NY rev (3m)2.92%
Revenue NQ rev (1m)-0.13%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0.65%
Revenue NY rev (3m)0.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.72 | ||
| Fwd PE | 28.74 | ||
| P/S | 8.39 | ||
| P/FCF | 61.74 | ||
| P/OCF | 48.55 | ||
| P/B | 4.84 | ||
| P/tB | 6.76 | ||
| EV/EBITDA | 25.78 |
EPS(TTM)2.57
EY3.06%
EPS(NY)2.93
Fwd EY3.48%
FCF(TTM)1.36
FCFY1.62%
OCF(TTM)1.73
OCFY2.06%
SpS10.02
BVpS17.38
TBVpS12.44
PEG (NY)77.2
PEG (5Y)4.59
Graham Number31.7
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 | 12.65 |
F-Score6
WACC8.69%
ROIC/WACC1.44
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 Y0.42%
EPS Next 2Y5.67%
EPS Next 3Y7.57%
EPS Next 5Y9.5%
Revenue 1Y (TTM)4.67%
Revenue growth 3Y1.3%
Revenue growth 5Y4.58%
Sales Q2Q%14.67%
Revenue Next Year4.33%
Revenue Next 2Y7.03%
Revenue Next 3Y7.98%
Revenue Next 5Y8.55%
EBIT growth 1Y4.68%
EBIT growth 3Y-4.72%
EBIT growth 5Y3.49%
EBIT Next Year10.47%
EBIT Next 3Y11.73%
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 32.72 and the Price/Book (PB) ratio is 4.84.
Can you provide the financial health for EW stock?
The financial health rating of EDWARDS LIFESCIENCES CORP (EW) is 9 / 10.