Overall EW gets a fundamental rating of 7 out of 10. We evaluated EW against 186 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. With these ratings, EW could be worth investigating further for quality investing!.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

EW had positive earnings in the past year.
In the past year EW had a positive cash flow from operations.
Each year in the past 5 years EW has been profitable.
In the past 5 years EW always reported a positive cash flow from operatings.

1.2 Ratios

With an excellent Return On Assets value of 10.31%, EW belongs to the best of the industry, outperforming 94.62% of the companies in the same industry.
EW has a Return On Equity of 13.40%. This is amongst the best in the industry. EW outperforms 89.25% of its industry peers.
EW has a Return On Invested Capital of 12.50%. This is amongst the best in the industry. EW outperforms 93.01% 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 8.84%.

		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

With an excellent Profit Margin value of 23.25%, EW belongs to the best of the industry, outperforming 94.62% of the companies in the same industry.
EW's Profit Margin has improved in the last couple of years.
EW's Operating Margin of 27.73% is amongst the best of the industry. EW outperforms 96.24% 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's Gross Margin of 78.19% is amongst the best of the industry. EW outperforms 90.32% 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	27.73%
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%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), EW 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.
Compared to 1 year ago, EW has an improved debt to assets ratio.

2.2 Solvency

An Altman-Z score of 12.36 indicates that EW is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 12.36, EW belongs to the top of the industry, outperforming 89.78% of the companies in the same industry.
The Debt to FCF ratio of EW is 0.75, which is an excellent value as it means it would take EW, only 0.75 years of fcf income to pay off all of its debts.
EW has a Debt to FCF ratio of 0.75. This is amongst the best in the industry. EW outperforms 90.86% of its industry peers.
A Debt/Equity ratio of 0.06 indicates that EW is not too dependend on debt financing.
EW's Debt to Equity ratio of 0.06 is fine compared to the rest of the industry. EW outperforms 67.20% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.06
Debt/FCF	0.75
Altman-Z	12.36

ROIC/WACC1.25

WACC9.99%

2.3 Liquidity

A Current Ratio of 4.00 indicates that EW has no problem at all paying its short term obligations.
The Current ratio of EW (4.00) is better than 69.35% of its industry peers.
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.
Looking at the Quick ratio, with a value of 3.29, EW is in the better half of the industry, outperforming 68.82% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	4
Quick Ratio	3.29

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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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%.
The Earnings Per Share has been growing slightly by 7.13% on average over the past years.
The Revenue has been growing slightly by 4.67% in the past year.
Measured over the past years, EW shows a small growth in Revenue. The Revenue has been growing by 4.58% on average per year.

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 9.40% on average per year.
EW is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.47% yearly.

EPS Next Y1.27%

EPS Next 2Y6.3%

EPS Next 3Y7.79%

EPS Next 5Y9.4%

Revenue Next Year4.68%

Revenue Next 2Y7.17%

Revenue Next 3Y8.07%

Revenue Next 5Y8.47%

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.

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4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 32.55 indicates a quite expensive valuation of EW.
Based on the Price/Earnings ratio, EW is valued a bit cheaper than the industry average as 73.66% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.21. EW is around the same levels.
EW is valuated quite expensively with a Price/Forward Earnings ratio of 28.26.
Based on the Price/Forward Earnings ratio, EW is valued a bit cheaper than 74.73% 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 24.26.

		Industry Rank	Sector Rank
PE	32.55
Fwd PE	28.26

4.2 Price Multiples

EW's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. EW is cheaper than 73.12% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, EW is valued a bit cheaper than 72.04% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	60.72
EV/EBITDA	24.94

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of EW may justify a higher PE ratio.