Overall EW gets a fundamental rating of 7 out of 10. We evaluated EW against 184 industry peers in the Health Care Equipment & Supplies industry. Both the health and profitability get an excellent rating, making EW a very profitable company, without any liquidiy or solvency issues. EW has a correct valuation and a medium 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.
EW had a positive operating cash flow in the past year.
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

The Return On Assets of EW (10.31%) is better than 94.57% of its industry peers.
The Return On Equity of EW (13.40%) is better than 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.
The Average Return On Invested Capital over the past 3 years for EW is significantly above the industry average of 8.81%.

		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

EW's Profit Margin of 23.25% is amongst the best of the industry. EW outperforms 95.11% of its industry peers.
In the last couple of years the Profit Margin of EW has grown nicely.
The Operating Margin of EW (27.73%) is better 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.
With an excellent Gross Margin value of 78.19%, EW belongs to the best of the industry, outperforming 90.76% 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%

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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.
The number of shares outstanding for EW has been reduced compared to 1 year ago.
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

An Altman-Z score of 12.34 indicates that EW is not in any danger for bankruptcy at the moment.
EW's Altman-Z score of 12.34 is amongst the best of the industry. EW outperforms 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.
Looking at the Debt to FCF ratio, with a value of 0.75, EW belongs to the top of the industry, outperforming 90.76% 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 67.39% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.06
Debt/FCF	0.75
Altman-Z	12.34

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.
Looking at the Current ratio, with a value of 4.00, EW is in the better half of the industry, outperforming 69.02% 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 has a Quick ratio of 3.29. This is in the better half of the industry: EW outperforms 69.02% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	4
Quick Ratio	3.29

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The earnings per share for EW have decreased by -3.75% in the last year.
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.
Based on estimates for the next years, EW will show a quite strong growth in Revenue. The Revenue will grow by 8.47% on average per year.

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

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 32.79, which means the current valuation is very expensive for EW.
Based on the Price/Earnings ratio, EW is valued a bit cheaper than 73.37% of the companies in the same industry.
EW is valuated rather expensively when we compare the Price/Earnings ratio to 27.25, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 28.47, EW can be considered very expensive at the moment.
73.91% of the companies in the same industry are more expensive than EW, based on the Price/Forward Earnings ratio.
EW is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.

		Industry Rank	Sector Rank
PE	32.79
Fwd PE	28.47

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	61.16
EV/EBITDA	24.89

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.
EW has an outstanding profitability rating, which may justify a higher PE ratio.