EDWARDS LIFESCIENCES CORP (EW) Fundamental Analysis & Valuation
NYSE:EW • US28176E1082
Current stock price
77.87 USD
-1.28 (-1.62%)
At close:
77.5149 USD
-0.36 (-0.46%)
After Hours:
This EW fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. EW Profitability Analysis
1.1 Basic Checks
- In the past year EW was profitable.
- 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 7.84%, EW belongs to the best of the industry, outperforming 88.83% of the companies in the same industry.
- EW has a better Return On Equity (10.38%) than 84.57% of its industry peers.
- EW's Return On Invested Capital of 12.01% is amongst the best of the industry. EW outperforms 92.02% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for EW is above the industry average of 9.40%.
| Industry Rank | Sector 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%
1.3 Margins
- EW has a Profit Margin of 17.69%. This is amongst the best in the industry. EW outperforms 93.09% of its industry peers.
- In the last couple of years the Profit Margin of EW has remained more or less at the same level.
- Looking at the Operating Margin, with a value of 27.17%, EW belongs to the top of the industry, outperforming 95.74% of the companies in the same industry.
- In the last couple of years the Operating Margin of EW has declined.
- With an excellent Gross Margin value of 78.01%, EW belongs to the best of the industry, outperforming 90.43% 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 | 27.17% | ||
| 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%
2. EW Health Analysis
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), EW is creating some value.
- EW has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, EW has less shares outstanding
- Compared to 1 year ago, EW has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 10.94 indicates that EW is not in any danger for bankruptcy at the moment.
- With an excellent Altman-Z score value of 10.94, EW belongs to the best of the industry, outperforming 90.43% 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 better Debt to FCF ratio (0.45) than 90.96% 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 Debt to Equity ratio of 0.06. This is in the better half of the industry: EW outperforms 68.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.45 | ||
| Altman-Z | 10.94 |
ROIC/WACC1.35
WACC8.87%
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.
- EW has a Current ratio of 3.72. This is in the better half of the industry: EW outperforms 60.11% of its industry peers.
- A Quick Ratio of 3.09 indicates that EW has no problem at all paying its short term obligations.
- With a decent Quick ratio value of 3.09, EW is doing good in the industry, outperforming 65.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.72 | ||
| Quick Ratio | 3.09 |
3. EW Growth Analysis
3.1 Past
- The earnings per share for EW have decreased by -2.29% in the last year.
- 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 10.86%.
- EW shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.70% yearly.
EPS 1Y (TTM)-2.29%
EPS 3Y1.06%
EPS 5Y6.67%
EPS Q2Q%-1.69%
Revenue 1Y (TTM)10.86%
Revenue growth 3Y10.77%
Revenue growth 5Y6.7%
Sales Q2Q%13.26%
3.2 Future
- The Earnings Per Share is expected to grow by 12.89% on average over the next years. This is quite good.
- EW is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.72% yearly.
EPS Next Y17.7%
EPS Next 2Y14.8%
EPS Next 3Y14.07%
EPS Next 5Y12.89%
Revenue Next Year10.66%
Revenue Next 2Y10.22%
Revenue Next 3Y10.13%
Revenue Next 5Y9.72%
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.
4. EW Valuation Analysis
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 30.42, the valuation of EW can be described as expensive.
- EW's Price/Earnings ratio is a bit cheaper when compared to the industry. EW is cheaper than 72.34% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 26.78. EW is around the same levels.
- Based on the Price/Forward Earnings ratio of 25.84, the valuation of EW can be described as expensive.
- Based on the Price/Forward Earnings ratio, EW is valued a bit cheaper than the industry average as 73.94% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Forward Earnings ratio of 23.54, EW is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.42 | ||
| Fwd PE | 25.84 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, EW is valued a bit cheaper than the industry average as 72.34% of the companies are valued more expensively.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of EW indicates a somewhat cheap valuation: EW is cheaper than 76.06% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.88 | ||
| EV/EBITDA | 22.74 |
4.3 Compensation for Growth
- The 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 14.07% in the coming years.
PEG (NY)1.72
PEG (5Y)4.56
EPS Next 2Y14.8%
EPS Next 3Y14.07%
5. EW Dividend Analysis
5.1 Amount
- No dividends for EW!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
EW Fundamentals: All Metrics, Ratios and Statistics
77.87
-1.28 (-1.62%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)02-10 2026-02-10/amc
Earnings (Next)04-29 2026-04-29/amc
Inst Owners91.12%
Inst Owner Change0%
Ins Owners0.11%
Ins Owner Change-2.52%
Market Cap45.23B
Revenue(TTM)6.07B
Net Income(TTM)1.07B
Analysts79.53
Price Target98.22 (26.13%)
Short Float %1.9%
Short Ratio2.3
Dividend
| Industry Rank | Sector 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)0.79%
PT rev (3m)1.13%
EPS NQ rev (1m)0.29%
EPS NQ rev (3m)6.86%
EPS NY rev (1m)1.35%
EPS NY rev (3m)2.04%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.73%
Revenue NY rev (1m)0.17%
Revenue NY rev (3m)0.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.42 | ||
| Fwd PE | 25.84 | ||
| P/S | 7.45 | ||
| P/FCF | 33.88 | ||
| P/OCF | 28.35 | ||
| P/B | 4.37 | ||
| P/tB | 6.08 | ||
| EV/EBITDA | 22.74 |
EPS(TTM)2.56
EY3.29%
EPS(NY)3.01
Fwd EY3.87%
FCF(TTM)2.3
FCFY2.95%
OCF(TTM)2.75
OCFY3.53%
SpS10.45
BVpS17.8
TBVpS12.81
PEG (NY)1.72
PEG (5Y)4.56
Graham Number32.02
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 10.94 |
F-Score6
WACC8.87%
ROIC/WACC1.35
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)-2.29%
EPS 3Y1.06%
EPS 5Y6.67%
EPS Q2Q%-1.69%
EPS Next Y17.7%
EPS Next 2Y14.8%
EPS Next 3Y14.07%
EPS Next 5Y12.89%
Revenue 1Y (TTM)10.86%
Revenue growth 3Y10.77%
Revenue growth 5Y6.7%
Sales Q2Q%13.26%
Revenue Next Year10.66%
Revenue Next 2Y10.22%
Revenue Next 3Y10.13%
Revenue Next 5Y9.72%
EBIT growth 1Y11.04%
EBIT growth 3Y1.54%
EBIT growth 5Y4.82%
EBIT Next Year25.88%
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.