We assign a fundamental rating of 7 out of 10 to EW. EW was compared to 184 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 is not valued too expensively and it also shows a decent growth rate. This makes EW very considerable for quality investing!

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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.
In the past 5 years EW has always been profitable.
Each year in the past 5 years EW had a positive operating cash flow.

1.2 Ratios

Looking at the Return On Assets, with a value of 10.31%, EW belongs to the top of the industry, outperforming 94.57% of the companies in the same industry.
EW's Return On Equity of 13.40% is amongst the best of the industry. EW outperforms 89.13% of its industry peers.
EW's Return On Invested Capital of 12.50% is amongst the best of the industry. EW outperforms 92.93% 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

Looking at the Profit Margin, with a value of 23.25%, EW belongs to the top of the industry, outperforming 95.11% of the companies in the same industry.
In the last couple of years the Profit Margin of EW has grown nicely.
EW has a better Operating Margin (27.73%) than 96.20% 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 (78.19%) than 90.76% 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)	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
EW has less shares outstanding than it did 5 years ago.
The debt/assets ratio for EW has been reduced compared to a year ago.

2.2 Solvency

EW has an Altman-Z score of 12.27. This indicates that EW is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of EW (12.27) is better than 90.76% of its industry peers.
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's Debt to FCF ratio of 0.75 is amongst the best of the industry. EW outperforms 90.76% 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.
EW has a better Debt to Equity ratio (0.06) than 67.39% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.06
Debt/FCF	0.75
Altman-Z	12.27

ROIC/WACC1.25

WACC10%

2.3 Liquidity

A Current Ratio of 4.00 indicates that EW has no problem at all paying its short term obligations.
EW has a Current ratio of 4.00. This is in the better half of the industry: EW outperforms 69.02% of its industry peers.
A Quick Ratio of 3.29 indicates that EW has no problem at all paying its short term obligations.
EW has a better Quick ratio (3.29) than 69.02% of its industry peers.

		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%.
EW shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.13% yearly.
Looking at the last year, EW shows a small growth in Revenue. The Revenue has grown by 4.67% in the last 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)-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

EW is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.40% yearly.
The Revenue is expected to grow by 8.47% on average over the next years. This is quite good.

EPS Next Y1.27%

EPS Next 2Y6.3%

EPS Next 3Y7.79%

EPS Next 5Y9.4%

Revenue Next Year4.63%

Revenue Next 2Y7.15%

Revenue Next 3Y8.06%

Revenue Next 5Y8.47%

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.
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

Based on the Price/Earnings ratio of 32.55, the valuation of EW can be described as expensive.
Based on the Price/Earnings ratio, EW is valued a bit cheaper than 73.37% of the companies in the same industry.
When comparing the Price/Earnings ratio of EW to the average of the S&P500 Index (27.21), we can say EW is valued inline with the index average.
The Price/Forward Earnings ratio is 28.26, 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 73.37% 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 25.98.

		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 72.83% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, EW is valued a bit cheaper than the industry average as 71.20% of the companies are valued more expensively.

		Industry Rank	Sector Rank
P/FCF	60.72
EV/EBITDA	24.69

4.3 Compensation for Growth

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