EDWARDS LIFESCIENCES CORP (EWL.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:EWL - US28176E1082 - Common Stock
71.2 EUR
-1.65 (-2.26%)
EWL gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 67 industry peers in the Health Care Equipment & Supplies industry. Both the health and profitability get an excellent rating, making EWL a very profitable company, without any liquidiy or solvency issues. EWL is quite expensive at the moment. It does show a decent growth rate. This makes EWL very considerable for quality investing!
1. Profitability
1.1 Basic Checks
- In the past year EWL was profitable.
- In the past year EWL had a positive cash flow from operations.
- EWL had positive earnings in each of the past 5 years.
- In the past 5 years EWL always reported a positive cash flow from operatings.
1.2 Ratios
- EWL's Return On Assets of 10.31% is amongst the best of the industry. EWL outperforms 89.55% of its industry peers.
- EWL has a better Return On Equity (13.40%) than 76.12% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 9.83%, EWL is in the better half of the industry, outperforming 76.12% of the companies in the same industry.
- EWL had an Average Return On Invested Capital over the past 3 years of 12.44%. This is above the industry average of 9.84%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.31% | ||
| ROE | 13.4% | ||
| ROIC | 9.83% |
ROA(3y)21.77%
ROA(5y)18.87%
ROE(3y)29.68%
ROE(5y)26.56%
ROIC(3y)12.44%
ROIC(5y)13.58%
1.3 Margins
- EWL has a Profit Margin of 23.25%. This is amongst the best in the industry. EWL outperforms 92.54% of its industry peers.
- EWL's Profit Margin has improved in the last couple of years.
- EWL has a better Operating Margin (27.73%) than 95.52% of its industry peers.
- In the last couple of years the Operating Margin of EWL has remained more or less at the same level.
- The Gross Margin of EWL (78.19%) is better than 92.54% of its industry peers.
- In the last couple of years the Gross Margin of EWL has remained more or less at the same level.
| 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), EWL is creating some value.
- EWL has less shares outstanding than it did 1 year ago.
- The number of shares outstanding for EWL has been reduced compared to 5 years ago.
- Compared to 1 year ago, EWL has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 12.45 indicates that EWL is not in any danger for bankruptcy at the moment.
- EWL has a better Altman-Z score (12.45) than 95.52% of its industry peers.
- EWL 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.
- EWL has a better Debt to FCF ratio (0.75) than 92.54% of its industry peers.
- EWL has a Debt/Equity ratio of 0.06. This is a healthy value indicating a solid balance between debt and equity.
- Looking at the Debt to Equity ratio, with a value of 0.06, EWL belongs to the top of the industry, outperforming 86.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.75 | ||
| Altman-Z | 12.45 |
ROIC/WACC0.99
WACC9.95%
2.3 Liquidity
- A Current Ratio of 4.00 indicates that EWL has no problem at all paying its short term obligations.
- EWL has a better Current ratio (4.00) than 91.04% of its industry peers.
- EWL has a Quick Ratio of 3.29. This indicates that EWL is financially healthy and has no problem in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 3.29, EWL belongs to the top of the industry, outperforming 91.04% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4 | ||
| Quick Ratio | 3.29 |
3. Growth
3.1 Past
- The earnings per share for EWL have decreased by -3.75% in the last year.
- Measured over the past 5 years, EWL shows a small growth in Earnings Per Share. The EPS has been growing by 7.13% on average per year.
- Looking at the last year, EWL shows a small growth in Revenue. The Revenue has grown by 4.67% in the last year.
- EWL 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
- The Earnings Per Share is expected to grow by 9.40% on average over the next years. This is quite good.
- Based on estimates for the next years, EWL will show a quite strong growth in Revenue. The Revenue will grow by 8.47% on average per year.
EPS Next Y1.51%
EPS Next 2Y6.17%
EPS Next 3Y7.9%
EPS Next 5Y9.4%
Revenue Next Year4.68%
Revenue Next 2Y7.17%
Revenue Next 3Y8.07%
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.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 32.36, the valuation of EWL can be described as expensive.
- The rest of the industry has a similar Price/Earnings ratio as EWL.
- EWL is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 28.22 indicates a quite expensive valuation of EWL.
- Based on the Price/Forward Earnings ratio, EWL is valued a bit more expensive than 61.19% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of EWL to the average of the S&P500 Index (24.26), we can say EWL is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.36 | ||
| Fwd PE | 28.22 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as EWL.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of EWL is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 60.49 | ||
| EV/EBITDA | 25.21 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- EWL has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)21.4
PEG (5Y)4.54
EPS Next 2Y6.17%
EPS Next 3Y7.9%
5. Dividend
5.1 Amount
- No dividends for EWL!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
EDWARDS LIFESCIENCES CORP / EWL.DE FAQ
Can you provide the ChartMill fundamental rating for EDWARDS LIFESCIENCES CORP?
ChartMill assigns a fundamental rating of 7 / 10 to EWL.DE.
What is the valuation status of EDWARDS LIFESCIENCES CORP (EWL.DE) stock?
ChartMill assigns a valuation rating of 2 / 10 to EDWARDS LIFESCIENCES CORP (EWL.DE). This can be considered as Overvalued.
What is the profitability of EWL stock?
EDWARDS LIFESCIENCES CORP (EWL.DE) has a profitability rating of 8 / 10.
What are the PE and PB ratios of EDWARDS LIFESCIENCES CORP (EWL.DE) stock?
The Price/Earnings (PE) ratio for EDWARDS LIFESCIENCES CORP (EWL.DE) is 32.36 and the Price/Book (PB) ratio is 4.74.