EDWARDS LIFESCIENCES CORP (EW) Stock Fundamental Analysis
USA - NYSE:EW - US28176E1082 - Common Stock
75.2 USD
+0.11 (+0.15%)
75.2 USD
0 (0%)
Overall EW gets a fundamental rating of 7 out of 10. We evaluated EW against 191 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
In the past year EW was profitable.
In the past year EW had a positive cash flow from operations.
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 has a better Return On Assets (30.75%) than 99.48% of its industry peers.
EW has a better Return On Equity (39.33%) than 98.95% of its industry peers.
With an excellent Return On Invested Capital value of 11.77%, EW belongs to the best of the industry, outperforming 92.67% of the companies in the same industry.
EW had an Average Return On Invested Capital over the past 3 years of 15.82%. This is significantly above the industry average of 8.46%.
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
EW's Profit Margin of 72.96% is amongst the best of the industry. EW outperforms 98.43% of its industry peers.
EW's Profit Margin has improved in the last couple of years.
The Operating Margin of EW (27.94%) is better than 94.76% of its industry peers.
In the last couple of years the Operating Margin of EW has remained more or less at the same level.
EW has a better Gross Margin (78.87%) than 91.62% 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
EW has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 11.70 indicates that EW is not in any danger for bankruptcy at the moment.
EW has a better Altman-Z score (11.70) than 91.62% of its industry peers.
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 has a Debt to FCF ratio of 1.03. This is amongst the best in the industry. EW outperforms 91.62% 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 65.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 1.03 | ||
| Altman-Z | 11.7 |
ROIC/WACC1.37
WACC8.6%
2.3 Liquidity
A Current Ratio of 4.68 indicates that EW has no problem at all paying its short term obligations.
The Current ratio of EW (4.68) is better than 73.30% of its industry peers.
EW has a Quick Ratio of 3.87. This indicates that EW is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 3.87, EW is in the better half of the industry, outperforming 72.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.68 | ||
| Quick Ratio | 3.87 |
3. Growth
3.1 Past
The earnings per share for EW have decreased by -0.77% in the last year.
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.
The Revenue has decreased by -1.09% in the past 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)-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
Based on estimates for the next years, EW will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.37% on average per year.
The Revenue is expected to grow by 8.44% on average over the next years. This is quite good.
EPS Next Y-1.88%
EPS Next 2Y4.69%
EPS Next 3Y7.22%
EPS Next 5Y9.37%
Revenue Next Year3.65%
Revenue Next 2Y6.66%
Revenue Next 3Y7.84%
Revenue Next 5Y8.44%
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
With a Price/Earnings ratio of 29.26, EW can be considered very expensive at the moment.
Based on the Price/Earnings ratio, EW is valued a bit cheaper than 73.82% of the companies in the same industry.
When comparing the Price/Earnings ratio of EW to the average of the S&P500 Index (27.20), we can say EW is valued inline with the index average.
EW is valuated quite expensively with a Price/Forward Earnings ratio of 26.19.
Compared to the rest of the industry, the Price/Forward Earnings ratio of EW indicates a somewhat cheap valuation: EW is cheaper than 73.30% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of EW to the average of the S&P500 Index (22.70), we can say EW is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.26 | ||
| Fwd PE | 26.19 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EW is valued a bit cheaper than the industry average as 73.30% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of EW indicates a somewhat cheap valuation: EW is cheaper than 71.73% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 76.4 | ||
| EV/EBITDA | 22.89 |
4.3 Compensation for Growth
EW has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)4.1
EPS Next 2Y4.69%
EPS Next 3Y7.22%
5. Dividend
5.1 Amount
EW does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
75.2
+0.11 (+0.15%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners88.93%
Inst Owner Change-1.06%
Ins Owners0.16%
Ins Owner Change4.29%
Market Cap44.15B
Analysts76.28
Price Target90.17 (19.91%)
Short Float %1.78%
Short Ratio2.43
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)0.49%
PT rev (3m)8.96%
EPS NQ rev (1m)0.23%
EPS NQ rev (3m)-3.42%
EPS NY rev (1m)0.56%
EPS NY rev (3m)0.69%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.08%
Revenue NY rev (1m)0.23%
Revenue NY rev (3m)1.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.26 | ||
| Fwd PE | 26.19 | ||
| P/S | 7.77 | ||
| P/FCF | 76.4 | ||
| P/OCF | 55.54 | ||
| P/B | 4.19 | ||
| P/tB | 5.81 | ||
| EV/EBITDA | 22.89 |
EPS(TTM)2.57
EY3.42%
EPS(NY)2.87
Fwd EY3.82%
FCF(TTM)0.98
FCFY1.31%
OCF(TTM)1.35
OCFY1.8%
SpS9.68
BVpS17.96
TBVpS12.94
PEG (NY)N/A
PEG (5Y)4.1
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%
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 Turnover0.42
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 | 11.7 |
F-Score7
WACC8.6%
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-1.88%
EPS Next 2Y4.69%
EPS Next 3Y7.22%
EPS Next 5Y9.37%
Revenue 1Y (TTM)-1.09%
Revenue growth 3Y1.3%
Revenue growth 5Y4.58%
Sales Q2Q%-6.13%
Revenue Next Year3.65%
Revenue Next 2Y6.66%
Revenue Next 3Y7.84%
Revenue Next 5Y8.44%
EBIT growth 1Y0.21%
EBIT growth 3Y-4.72%
EBIT growth 5Y3.49%
EBIT Next Year10.05%
EBIT Next 3Y11.53%
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%