EDWARDS LIFESCIENCES CORP (EW) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EW - US28176E1082 - Common Stock
83.08 USD
-1.16 (-1.38%)
83.08 USD
0 (0%)
Overall EW gets a fundamental rating of 7 out of 10. We evaluated EW against 187 industry peers in the Health Care Equipment & Supplies industry. EW gets an excellent profitability rating and is at the same time showing great financial health properties. 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
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.
Each year in the past 5 years EW had a positive operating cash flow.
1.2 Ratios
EW's Return On Assets of 10.31% is amongst the best of the industry. EW outperforms 94.65% of its industry peers.
The Return On Equity of EW (13.40%) is better than 89.30% of its industry peers.
EW's Return On Invested Capital of 12.50% is amongst the best of the industry. EW outperforms 93.05% 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 8.80%.
| 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 94.65% 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 96.26% of its industry peers.
In the last couple of years the Operating Margin of EW has remained more or less at the same level.
With an excellent Gross Margin value of 78.19%, EW belongs to the best of the industry, outperforming 90.37% 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.
The number of shares outstanding for EW has been reduced compared to 1 year ago.
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
EW has an Altman-Z score of 12.34. This indicates that EW is financially healthy and has little risk of bankruptcy at the moment.
EW's Altman-Z score of 12.34 is amongst the best of the industry. EW outperforms 91.44% of its industry peers.
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.
With an excellent Debt to FCF ratio value of 0.75, EW belongs to the best of the industry, outperforming 91.44% of the companies in the same industry.
EW has a Debt/Equity ratio of 0.06. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of EW (0.06) is better than 67.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.75 | ||
| Altman-Z | 12.34 |
ROIC/WACC1.44
WACC8.71%
2.3 Liquidity
EW has a Current Ratio of 4.00. This indicates that EW is financially healthy and has no problem in meeting its short term obligations.
EW has a Current ratio of 4.00. This is in the better half of the industry: EW outperforms 68.45% of its industry peers.
A Quick Ratio of 3.29 indicates that EW has no problem at all paying its short term obligations.
The Quick ratio of EW (3.29) is better than 67.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4 | ||
| Quick Ratio | 3.29 |
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%.
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 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 9.50% 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 Y1.44%
EPS Next 2Y5.94%
EPS Next 3Y7.76%
EPS Next 5Y9.5%
Revenue Next Year4.59%
Revenue Next 2Y7.15%
Revenue Next 3Y8.07%
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
The Price/Earnings ratio is 32.33, which means the current valuation is very expensive for EW.
Based on the Price/Earnings ratio, EW is valued a bit cheaper than the industry average as 72.19% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.54, EW is valued a bit more expensive.
EW is valuated quite expensively with a Price/Forward Earnings ratio of 28.25.
Based on the Price/Forward Earnings ratio, EW is valued a bit cheaper than the industry average as 73.26% of the companies are valued more expensively.
EW is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.78, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.33 | ||
| Fwd PE | 28.25 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EW is valued a bit cheaper than the industry average as 73.26% of the companies are valued more expensively.
72.19% of the companies in the same industry are more expensive than EW, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 60.29 | ||
| EV/EBITDA | 24.88 |
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.
PEG (NY)22.47
PEG (5Y)4.53
EPS Next 2Y5.94%
EPS Next 3Y7.76%
5. Dividend
5.1 Amount
No dividends for EW!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
83.08
-1.16 (-1.38%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners89.97%
Inst Owner Change-1.3%
Ins Owners0.11%
Ins Owner Change0.38%
Market Cap48.21B
Revenue(TTM)5.88B
Net Income(TTM)1.37B
Analysts79.05
Price Target95.83 (15.35%)
Short Float %1.7%
Short Ratio2.16
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)6.74%
PT rev (3m)6.5%
EPS NQ rev (1m)0.25%
EPS NQ rev (3m)1.27%
EPS NY rev (1m)1.01%
EPS NY rev (3m)3.38%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0.26%
Revenue NY rev (3m)0.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.33 | ||
| Fwd PE | 28.25 | ||
| P/S | 8.19 | ||
| P/FCF | 60.29 | ||
| P/OCF | 47.41 | ||
| P/B | 4.72 | ||
| P/tB | 6.6 | ||
| EV/EBITDA | 24.88 |
EPS(TTM)2.57
EY3.09%
EPS(NY)2.94
Fwd EY3.54%
FCF(TTM)1.38
FCFY1.66%
OCF(TTM)1.75
OCFY2.11%
SpS10.14
BVpS17.59
TBVpS12.59
PEG (NY)22.47
PEG (5Y)4.53
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 | 12.34 |
F-Score6
WACC8.71%
ROIC/WACC1.44
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 Y1.44%
EPS Next 2Y5.94%
EPS Next 3Y7.76%
EPS Next 5Y9.5%
Revenue 1Y (TTM)4.67%
Revenue growth 3Y1.3%
Revenue growth 5Y4.58%
Sales Q2Q%14.67%
Revenue Next Year4.59%
Revenue Next 2Y7.15%
Revenue Next 3Y8.07%
Revenue Next 5Y8.55%
EBIT growth 1Y4.68%
EBIT growth 3Y-4.72%
EBIT growth 5Y3.49%
EBIT Next Year13%
EBIT Next 3Y12.18%
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 32.33 and the Price/Book (PB) ratio is 4.72.
Can you provide the financial health for EW stock?
The financial health rating of EDWARDS LIFESCIENCES CORP (EW) is 9 / 10.