EDWARDS LIFESCIENCES CORP (EW) Fundamental Analysis & Valuation
NYSE:EW • US28176E1082
Current stock price
79.15 USD
-2.56 (-3.13%)
At close:
79.15 USD
0 (0%)
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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
- EW had positive earnings in the past year.
- In the past year EW had a positive cash flow from operations.
- EW had positive earnings in each of the past 5 years.
- EW had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- EW's Return On Assets of 7.84% is amongst the best of the industry. EW outperforms 88.83% of its industry peers.
- Looking at the Return On Equity, with a value of 10.38%, EW belongs to the top of the industry, outperforming 84.57% of the companies in the same industry.
- EW's Return On Invested Capital of 12.01% is amongst the best of the industry. EW outperforms 92.02% of its industry peers.
- EW had an Average Return On Invested Capital over the past 3 years of 13.04%. This 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
- Looking at the Profit Margin, with a value of 17.69%, EW belongs to the top of the industry, outperforming 93.09% of the companies in the same industry.
- EW's Profit Margin has been stable in the last couple of years.
- EW has a better Operating Margin (27.17%) than 95.74% of its industry peers.
- EW's Operating Margin has declined in the last couple of years.
- EW has a Gross Margin of 78.01%. This is amongst the best in the industry. EW outperforms 90.43% 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 | 27.17% | ||
| 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
- EW has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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
- EW has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 11.20 indicates that EW is not in any danger for bankruptcy at the moment.
- The Altman-Z score of EW (11.20) is better than 90.43% of its industry peers.
- EW has a debt to FCF ratio of 0.45. This is a very positive value and a sign of high solvency as it would only need 0.45 years to pay back of all of its debts.
- With an excellent Debt to FCF ratio value of 0.45, EW belongs to the best of the industry, outperforming 90.96% 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.
- EW has a better Debt to Equity ratio (0.06) than 68.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.45 | ||
| Altman-Z | 11.2 |
ROIC/WACC1.36
WACC8.85%
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 better Current ratio (3.72) than 60.11% of its industry peers.
- EW has a Quick Ratio of 3.09. This indicates that EW is financially healthy and has no problem in meeting its short term obligations.
- The Quick ratio of EW (3.09) is better than 65.43% of its industry peers.
| 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.
- The Earnings Per Share has been growing slightly by 6.67% on average over the past years.
- The Revenue has grown by 10.86% in the past year. This is quite good.
- 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
- Based on estimates for the next years, EW will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.89% on average per year.
- The Revenue is expected to grow by 9.72% on average over the next years. This is quite good.
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
- 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. EW Valuation Analysis
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 30.92, 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 72.34% of the companies are valued more expensively.
- EW is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.91, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 26.27, the valuation of EW can be described as expensive.
- Based on the Price/Forward Earnings ratio, EW is valued a bit cheaper than 73.40% of the companies in the same industry.
- EW is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.92 | ||
| Fwd PE | 26.27 |
4.2 Price Multiples
- 72.34% of the companies in the same industry are more expensive than EW, based on the Enterprise Value to EBITDA ratio.
- 75.53% 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 | 34.43 | ||
| EV/EBITDA | 23.56 |
4.3 Compensation for Growth
- EW's 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)1.75
PEG (5Y)4.63
EPS Next 2Y14.8%
EPS Next 3Y14.07%
5. EW Dividend Analysis
5.1 Amount
- EW does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
EW Fundamentals: All Metrics, Ratios and Statistics
79.15
-2.56 (-3.13%)
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 Cap45.97B
Revenue(TTM)6.07B
Net Income(TTM)1.07B
Analysts79.53
Price Target98.22 (24.09%)
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 | 30.92 | ||
| Fwd PE | 26.27 | ||
| P/S | 7.58 | ||
| P/FCF | 34.43 | ||
| P/OCF | 28.82 | ||
| P/B | 4.45 | ||
| P/tB | 6.18 | ||
| EV/EBITDA | 23.56 |
EPS(TTM)2.56
EY3.23%
EPS(NY)3.01
Fwd EY3.81%
FCF(TTM)2.3
FCFY2.9%
OCF(TTM)2.75
OCFY3.47%
SpS10.45
BVpS17.8
TBVpS12.81
PEG (NY)1.75
PEG (5Y)4.63
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 | 11.2 |
F-Score6
WACC8.85%
ROIC/WACC1.36
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.