EDWARDS LIFESCIENCES CORP (EW)
US28176E1082 - Common Stock
Overall EW gets a fundamental rating of 7 out of 10. We evaluated EW against 187 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.
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.
In the past 5 years EW always reported a positive cash flow from operatings.
1.2 Ratios
EW has a better Return On Assets (32.06%) than 99.47% of its industry peers.
The Return On Equity of EW (43.57%) is better than 99.47% of its industry peers.
With an excellent Return On Invested Capital value of 12.27%, EW belongs to the best of the industry, outperforming 94.12% of the companies in the same industry.
EW had an Average Return On Invested Capital over the past 3 years of 20.11%. This is significantly above the industry average of 8.19%.
The last Return On Invested Capital (12.27%) 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 | 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 better Profit Margin (73.98%) than 98.93% of its industry peers.
In the last couple of years the Profit Margin of EW has grown nicely.
The Operating Margin of EW (27.73%) is better than 95.72% of its industry peers.
EW's Operating Margin has been stable in the last couple of years.
EW has a better Gross Margin (78.63%) than 90.91% 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) | 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.
EW has less shares outstanding than it did 1 year ago.
The number of shares outstanding for EW has been reduced compared to 5 years ago.
EW has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 10.38 indicates that EW is not in any danger for bankruptcy at the moment.
EW has a better Altman-Z score (10.38) than 88.24% 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.
The Debt to FCF ratio of EW (1.25) is better than 90.37% of its industry peers.
A Debt/Equity ratio of 0.06 indicates that EW is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.06, EW is in the better half of the industry, outperforming 60.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 1.25 | ||
| Altman-Z | 10.38 |
ROIC/WACC1.34
WACC9.13%
2.3 Liquidity
EW has a Current Ratio of 3.46. This indicates that EW is financially healthy and has no problem in meeting its short term obligations.
EW has a better Current ratio (3.46) than 62.03% of its industry peers.
A Quick Ratio of 2.89 indicates that EW has no problem at all paying its short term obligations.
With a decent Quick ratio value of 2.89, EW is doing good in the industry, outperforming 62.57% of the companies in the same industry.
| 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.
EW shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.89% yearly.
The Revenue has decreased by -3.40% in the past year.
The Revenue has been growing by 10.03% on average over the past years. This is quite good.
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 7.98% on average over the next years.
Based on estimates for the next years, EW will show a small growth in Revenue. The Revenue will grow by 5.69% on average per year.
EPS Next Y3.46%
EPS Next 2Y0.07%
EPS Next 3Y4.38%
EPS Next 5Y7.98%
Revenue Next Year-3.14%
Revenue Next 2Y-1.14%
Revenue Next 3Y2.64%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 28.02 indicates a quite expensive valuation of EW.
Compared to the rest of the industry, the Price/Earnings ratio of EW indicates a somewhat cheap valuation: EW is cheaper than 78.07% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.73. EW is around the same levels.
Based on the Price/Forward Earnings ratio of 29.76, the valuation of EW can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of EW indicates a somewhat cheap valuation: EW is cheaper than 74.87% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.83. EW is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.02 | ||
| Fwd PE | 29.76 |
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 76.47% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of EW indicates a somewhat cheap valuation: EW is cheaper than 69.52% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 92.54 | ||
| EV/EBITDA | 23.13 |
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)8.09
PEG (5Y)2.83
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 (12/20/2024, 8:07:52 PM)
After market: 74.81 0 (0%)74.81
+0.88 (+1.19%)
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 Change-0.87%
Ins Owners0.22%
Ins Owner Change-1.44%
Market Cap44.12B
Analysts72.68
Price Target76.85 (2.73%)
Short Float %1.47%
Short Ratio1.7
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/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)0.1%
PT rev (3m)-6.65%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-23.85%
EPS NY rev (1m)-0.37%
EPS NY rev (3m)-6.33%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-19.07%
Revenue NY rev (1m)-1.2%
Revenue NY rev (3m)-9.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.02 | ||
| Fwd PE | 29.76 | ||
| P/S | 7.85 | ||
| P/FCF | 92.54 | ||
| P/OCF | 54.72 | ||
| P/B | 4.62 | ||
| P/tB | 6.32 | ||
| EV/EBITDA | 23.13 |
EPS(TTM)2.67
EY3.57%
EPS(NY)2.51
Fwd EY3.36%
FCF(TTM)0.81
FCFY1.08%
OCF(TTM)1.37
OCFY1.83%
SpS9.53
BVpS16.18
TBVpS11.84
PEG (NY)8.09
PEG (5Y)2.83
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 | 10.38 |
F-Score7
WACC9.13%
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-3.14%
Revenue Next 2Y-1.14%
Revenue Next 3Y2.64%
Revenue Next 5Y5.69%
EBIT growth 1Y-12.15%
EBIT growth 3Y10.43%
EBIT growth 5Y10.23%
EBIT Next Year2.29%
EBIT Next 3Y5.22%
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%