EDWARDS LIFESCIENCES CORP (EW) Fundamental Analysis & Valuation

NYSE:EW • US28176E1082

Current stock price

83.98 USD
+0.48 (+0.57%)
At close:
83.98 USD
0 (0%)
After Hours:

This EW fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

1. EW Profitability Analysis

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.
  • Each year in the past 5 years EW had a positive operating cash flow.
EW Yearly Net Income VS EBIT VS OCF VS FCFEW Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B

1.2 Ratios

  • EW has a better Return On Assets (7.84%) than 88.24% of its industry peers.
  • The Return On Equity of EW (10.38%) is better than 83.96% of its industry peers.
  • EW has a better Return On Invested Capital (12.01%) than 91.98% of its industry peers.
  • EW had an Average Return On Invested Capital over the past 3 years of 13.04%. This is above the industry average of 9.14%.
Industry RankSector Rank
ROA 7.84%
ROE 10.38%
ROIC 12.01%
ROA(3y)18.26%
ROA(5y)18.16%
ROE(3y)24.41%
ROE(5y)25.04%
ROIC(3y)13.04%
ROIC(5y)15.54%
EW Yearly ROA, ROE, ROICEW Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40

1.3 Margins

  • EW's Profit Margin of 17.69% is amongst the best of the industry. EW outperforms 92.51% of its industry peers.
  • In the last couple of years the Profit Margin of EW has remained more or less at the same level.
  • EW's Operating Margin of 27.17% is amongst the best of the industry. EW outperforms 95.72% of its industry peers.
  • In the last couple of years the Operating Margin of EW has declined.
  • EW has a Gross Margin of 78.01%. This is amongst the best in the industry. EW outperforms 89.30% 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 RankSector Rank
OM 27.17%
PM (TTM) 17.69%
GM 78.01%
OM growth 3Y-8.34%
OM growth 5Y-1.77%
PM growth 3Y-19.64%
PM growth 5Y-1.18%
GM growth 3Y-2.35%
GM growth 5Y0.69%
EW Yearly Profit, Operating, Gross MarginsEW Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60 80

9

2. EW Health Analysis

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.
  • 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.
  • The debt/assets ratio for EW has been reduced compared to a year ago.
EW Yearly Shares OutstandingEW Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M
EW Yearly Total Debt VS Total AssetsEW Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B

2.2 Solvency

  • EW has an Altman-Z score of 11.37. 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 11.37, EW belongs to the top of the industry, outperforming 89.30% of the companies in the same industry.
  • The Debt to FCF ratio of EW is 0.45, which is an excellent value as it means it would take EW, only 0.45 years of fcf income to pay off all of its debts.
  • EW has a Debt to FCF ratio of 0.45. This is amongst the best in the industry. EW outperforms 90.91% of its industry peers.
  • 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 68.45% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.06
Debt/FCF 0.45
Altman-Z 11.37
ROIC/WACC1.34
WACC8.96%
EW Yearly LT Debt VS Equity VS FCFEW Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B

2.3 Liquidity

  • EW has a Current Ratio of 3.72. 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 3.72, EW is in line with its industry, outperforming 59.89% of the companies in the same industry.
  • A Quick Ratio of 3.09 indicates that EW has no problem at all paying its short term obligations.
  • Looking at the Quick ratio, with a value of 3.09, EW is in the better half of the industry, outperforming 65.24% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 3.72
Quick Ratio 3.09
EW Yearly Current Assets VS Current LiabilitesEW Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

6

3. EW Growth Analysis

3.1 Past

  • EW shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.85%.
  • Measured over the past 5 years, EW shows a small growth in Earnings Per Share. The EPS has been growing by 6.67% on average per year.
  • EW shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.81%.
  • Measured over the past years, EW shows a small growth in Revenue. The Revenue has been growing by 6.70% on average per year.
EPS 1Y (TTM)3.85%
EPS 3Y1.06%
EPS 5Y6.67%
EPS Q2Q%21.88%
Revenue 1Y (TTM)13.81%
Revenue growth 3Y10.77%
Revenue growth 5Y6.7%
Sales Q2Q%16.7%

3.2 Future

  • The Earnings Per Share is expected to grow by 12.89% on average over the next years. This is quite good.
  • Based on estimates for the next years, EW will show a quite strong growth in Revenue. The Revenue will grow by 9.72% on average per year.
EPS Next Y17.69%
EPS Next 2Y14.79%
EPS Next 3Y14.05%
EPS Next 5Y12.89%
Revenue Next Year10.66%
Revenue Next 2Y10.24%
Revenue Next 3Y10.15%
Revenue Next 5Y9.72%

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.
EW Yearly Revenue VS EstimatesEW Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2B 4B 6B 8B 10B
EW Yearly EPS VS EstimatesEW Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 1 2 3 4 5

5

4. EW Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 31.10, which means the current valuation is very expensive for EW.
  • EW's Price/Earnings ratio is a bit cheaper when compared to the industry. EW is cheaper than 70.59% of the companies in the same industry.
  • EW is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.51, which is the current average of the S&P500 Index.
  • Based on the Price/Forward Earnings ratio of 24.90, the valuation of EW can be described as rather expensive.
  • Based on the Price/Forward Earnings ratio, EW is valued a bit cheaper than 74.87% of the companies in the same industry.
  • EW is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.41, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 31.1
Fwd PE 24.9
EW Price Earnings VS Forward Price EarningsEW Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

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 72.19% of the companies listed in the same industry.
  • 74.87% of the companies in the same industry are more expensive than EW, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 36.27
EV/EBITDA 24.1
EW Per share dataEW EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15

4.3 Compensation for Growth

  • EW's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • EW has an outstanding profitability rating, which may justify a higher PE ratio.
  • A more expensive valuation may be justified as EW's earnings are expected to grow with 14.05% in the coming years.
PEG (NY)1.76
PEG (5Y)4.66
EPS Next 2Y14.79%
EPS Next 3Y14.05%

0

5. EW Dividend Analysis

5.1 Amount

  • No dividends for EW!.
Industry RankSector Rank
Dividend Yield 0%

EW Fundamentals: All Metrics, Ratios and Statistics

EDWARDS LIFESCIENCES CORP

NYSE:EW (5/1/2026, 8:24:21 PM)

After market: 83.98 0 (0%)

83.98

+0.48 (+0.57%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Industry Strength11.18
Industry Growth59.01
Earnings (Last)04-23
Earnings (Next)07-22
Inst Owners92.06%
Inst Owner Change0.59%
Ins Owners0.09%
Ins Owner Change-2.52%
Market Cap48.42B
Revenue(TTM)6.30B
Net Income(TTM)1.07B
Analysts79.53
Price Target97.95 (16.63%)
Short Float %1.63%
Short Ratio1.87
Dividend
Industry RankSector Rank
Dividend Yield 0%
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)1
Avg EPS beat(2)0.39%
Min EPS beat(2)-8.84%
Max EPS beat(2)9.63%
EPS beat(4)3
Avg EPS beat(4)2.32%
Min EPS beat(4)-8.84%
Max EPS beat(4)9.63%
EPS beat(8)5
Avg EPS beat(8)1.48%
EPS beat(12)5
Avg EPS beat(12)0.35%
EPS beat(16)7
Avg EPS beat(16)-0.13%
Revenue beat(2)1
Avg Revenue beat(2)-0.31%
Min Revenue beat(2)-1.47%
Max Revenue beat(2)0.85%
Revenue beat(4)1
Avg Revenue beat(4)-0.71%
Min Revenue beat(4)-2.1%
Max Revenue beat(4)0.85%
Revenue beat(8)1
Avg Revenue beat(8)-2.84%
Revenue beat(12)2
Avg Revenue beat(12)-2.11%
Revenue beat(16)2
Avg Revenue beat(16)-2.28%
PT rev (1m)-0.28%
PT rev (3m)-0.05%
EPS NQ rev (1m)-0.06%
EPS NQ rev (3m)5.96%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)1.78%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)1.73%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.85%
Valuation
Industry RankSector Rank
PE 31.1
Fwd PE 24.9
P/S 7.98
P/FCF 36.27
P/OCF 30.35
P/B 4.68
P/tB 6.51
EV/EBITDA 24.1
EPS(TTM)2.7
EY3.22%
EPS(NY)3.37
Fwd EY4.02%
FCF(TTM)2.32
FCFY2.76%
OCF(TTM)2.77
OCFY3.29%
SpS10.52
BVpS17.93
TBVpS12.91
PEG (NY)1.76
PEG (5Y)4.66
Graham Number33.0041 (-60.7%)
Profitability
Industry RankSector Rank
ROA 7.84%
ROE 10.38%
ROCE 13.87%
ROIC 12.01%
ROICexc 18.64%
ROICexgc 29.98%
OM 27.17%
PM (TTM) 17.69%
GM 78.01%
FCFM 22%
ROA(3y)18.26%
ROA(5y)18.16%
ROE(3y)24.41%
ROE(5y)25.04%
ROIC(3y)13.04%
ROIC(5y)15.54%
ROICexc(3y)18.54%
ROICexc(5y)20.56%
ROICexgc(3y)28.25%
ROICexgc(5y)29.44%
ROCE(3y)15.07%
ROCE(5y)17.95%
ROICexgc growth 3Y0.42%
ROICexgc growth 5Y-1.8%
ROICexc growth 3Y-6.11%
ROICexc growth 5Y-3.98%
OM growth 3Y-8.34%
OM growth 5Y-1.77%
PM growth 3Y-19.64%
PM growth 5Y-1.18%
GM growth 3Y-2.35%
GM growth 5Y0.69%
F-Score6
Asset Turnover0.44
Health
Industry RankSector Rank
Debt/Equity 0.06
Debt/FCF 0.45
Debt/EBITDA 0.33
Cap/Depr 166.16%
Cap/Sales 4.29%
Interest Coverage 81.62
Cash Conversion 88.36%
Profit Quality 124.36%
Current Ratio 3.72
Quick Ratio 3.09
Altman-Z 11.37
F-Score6
WACC8.96%
ROIC/WACC1.34
Cap/Depr(3y)177.3%
Cap/Depr(5y)193.25%
Cap/Sales(3y)4.93%
Cap/Sales(5y)5.41%
Profit Quality(3y)58.49%
Profit Quality(5y)66.28%
High Growth Momentum
Growth
EPS 1Y (TTM)3.85%
EPS 3Y1.06%
EPS 5Y6.67%
EPS Q2Q%21.88%
EPS Next Y17.69%
EPS Next 2Y14.79%
EPS Next 3Y14.05%
EPS Next 5Y12.89%
Revenue 1Y (TTM)13.81%
Revenue growth 3Y10.77%
Revenue growth 5Y6.7%
Sales Q2Q%16.7%
Revenue Next Year10.66%
Revenue Next 2Y10.24%
Revenue Next 3Y10.15%
Revenue Next 5Y9.72%
EBIT growth 1Y11.04%
EBIT growth 3Y1.54%
EBIT growth 5Y4.82%
EBIT Next Year25.82%
EBIT Next 3Y16.1%
EBIT Next 5Y14.45%
FCF growth 1Y413.66%
FCF growth 3Y11.88%
FCF growth 5Y15.59%
OCF growth 1Y194.16%
OCF growth 3Y9.4%
OCF growth 5Y8.64%

EDWARDS LIFESCIENCES CORP / EW Fundamental Analysis FAQ

What is the fundamental rating for EW stock?

ChartMill assigns a fundamental rating of 7 / 10 to EW.


Can you provide the valuation status for EDWARDS LIFESCIENCES CORP?

ChartMill assigns a valuation rating of 5 / 10 to EDWARDS LIFESCIENCES CORP (EW). This can be considered as Fairly Valued.


Can you provide the profitability details for EDWARDS LIFESCIENCES CORP?

EDWARDS LIFESCIENCES CORP (EW) has a profitability rating of 8 / 10.


How financially healthy is EDWARDS LIFESCIENCES CORP?

The financial health rating of EDWARDS LIFESCIENCES CORP (EW) is 9 / 10.