EDWARDS LIFESCIENCES CORP (EW) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EW - US28176E1082 - Common Stock
86.75 USD
-0.07 (-0.08%)
86.75 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 has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. EW is not valued too expensively and it also shows a decent growth rate. These ratings would make EW suitable 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.
EW had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 10.31%, EW belongs to the best of the industry, outperforming 93.62% of the companies in the same industry.
With an excellent Return On Equity value of 13.40%, EW belongs to the best of the industry, outperforming 88.83% of the companies in the same industry.
EW has a better Return On Invested Capital (12.50%) than 93.09% of its industry peers.
EW had an Average Return On Invested Capital over the past 3 years of 15.82%. This is significantly above the industry average of 8.71%.
| 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.
In the last couple of years the Profit Margin of EW has grown nicely.
With an excellent Operating Margin value of 27.73%, EW belongs to the best of the industry, outperforming 96.28% of the companies in the same industry.
EW's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 78.19%, EW belongs to the top of the industry, outperforming 90.43% 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 | 27.73% | ||
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so EW is creating value.
Compared to 1 year ago, EW has less shares outstanding
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 12.62 indicates that EW is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 12.62, EW belongs to the best of the industry, outperforming 89.89% 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.
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 68.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.75 | ||
| Altman-Z | 12.62 |
ROIC/WACC1.46
WACC8.58%
2.3 Liquidity
A Current Ratio of 4.00 indicates that EW has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 4.00, EW is in the better half of the industry, outperforming 70.21% of the companies in the same industry.
EW has a Quick Ratio of 3.29. This indicates that EW is financially healthy and has no problem in meeting its short term obligations.
EW's Quick ratio of 3.29 is fine compared to the rest of the industry. EW outperforms 70.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4 | ||
| Quick Ratio | 3.29 |
3. Growth
3.1 Past
The earnings per share for EW have decreased by -3.75% in the last year.
EW shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.13% yearly.
EW shows a small growth in Revenue. In the last year, the Revenue has grown by 4.67%.
The Revenue has been growing slightly by 4.58% on average over the past years.
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
Based on estimates for the next years, EW will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.50% on average per year.
EW is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.55% yearly.
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
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
With a Price/Earnings ratio of 33.75, EW can be considered very expensive at the moment.
71.81% of the companies in the same industry are more expensive than EW, based on the Price/Earnings ratio.
EW's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 26.15.
The Price/Forward Earnings ratio is 29.65, which means the current valuation is very expensive for EW.
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.
EW's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 36.12.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.75 | ||
| Fwd PE | 29.65 |
4.2 Price Multiples
72.34% of the companies in the same industry are more expensive than EW, based on the Enterprise Value to EBITDA ratio.
EW's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. EW is cheaper than 72.34% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 62.96 | ||
| EV/EBITDA | 25.69 |
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)79.64
PEG (5Y)4.73
EPS Next 2Y5.67%
EPS Next 3Y7.57%
5. Dividend
5.1 Amount
EW does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
86.75
-0.07 (-0.08%)
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-1.32%
Ins Owners0.16%
Ins Owner Change0.19%
Market Cap50.34B
Revenue(TTM)5.88B
Net Income(TTM)1.37B
Analysts77.67
Price Target94.94 (9.44%)
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)5.71%
PT rev (3m)5.81%
EPS NQ rev (1m)1.09%
EPS NQ rev (3m)1.78%
EPS NY rev (1m)2.02%
EPS NY rev (3m)2.92%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0.62%
Revenue NY rev (3m)0.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.75 | ||
| Fwd PE | 29.65 | ||
| P/S | 8.56 | ||
| P/FCF | 62.96 | ||
| P/OCF | 49.51 | ||
| P/B | 4.93 | ||
| P/tB | 6.89 | ||
| EV/EBITDA | 25.69 |
EPS(TTM)2.57
EY2.96%
EPS(NY)2.93
Fwd EY3.37%
FCF(TTM)1.38
FCFY1.59%
OCF(TTM)1.75
OCFY2.02%
SpS10.14
BVpS17.59
TBVpS12.59
PEG (NY)79.64
PEG (5Y)4.73
Graham Number31.89
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 | 12.62 |
F-Score6
WACC8.58%
ROIC/WACC1.46
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 33.75 and the Price/Book (PB) ratio is 4.93.
Can you provide the financial health for EW stock?
The financial health rating of EDWARDS LIFESCIENCES CORP (EW) is 9 / 10.