EDWARDS LIFESCIENCES CORP (EWL.DE) Stock Fundamental Analysis
FRA:EWL - Deutsche Boerse Ag - US28176E1082 - Common Stock - Currency: EUR
EWL gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 54 industry peers in the Health Care Equipment & Supplies industry. EWL has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. EWL is valied quite expensively at the moment, while it does show a decent growth rate. These ratings could make EWL a good candidate 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.
In the past 5 years EWL has always been profitable.
EWL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 31.98%, EWL belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
EWL's Return On Equity of 41.75% is amongst the best of the industry. EWL outperforms 98.15% of its industry peers.
EWL's Return On Invested Capital of 9.05% is amongst the best of the industry. EWL outperforms 83.33% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for EWL is above the industry average of 7.93%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 31.98% | ||
| ROE | 41.75% | ||
| ROIC | 9.05% |
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
With an excellent Profit Margin value of 76.28%, EWL belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
EWL's Profit Margin has improved in the last couple of years.
The Operating Margin of EWL (27.13%) is better than 98.15% of its industry peers.
EWL's Operating Margin has been stable in the last couple of years.
The Gross Margin of EWL (79.23%) is better than 85.19% 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 | 27.13% | ||
| PM (TTM) | 76.28% | ||
| GM | 79.23% |
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 just above the Cost of Capital (WACC), so EWL is still creating some value.
EWL has less shares outstanding than it did 1 year ago.
EWL has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, EWL has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 11.37 indicates that EWL is not in any danger for bankruptcy at the moment.
EWL has a better Altman-Z score (11.37) than 98.15% of its industry peers.
EWL has a debt to FCF ratio of 2.30. This is a good value and a sign of high solvency as EWL would need 2.30 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.30, EWL belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
EWL has a Debt/Equity ratio of 0.06. This is a healthy value indicating a solid balance between debt and equity.
EWL's Debt to Equity ratio of 0.06 is amongst the best of the industry. EWL outperforms 92.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 2.3 | ||
| Altman-Z | 11.37 |
ROIC/WACC1.02
WACC8.84%
2.3 Liquidity
EWL has a Current Ratio of 4.18. This indicates that EWL is financially healthy and has no problem in meeting its short term obligations.
EWL has a better Current ratio (4.18) than 88.89% of its industry peers.
EWL has a Quick Ratio of 3.45. 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 3.45, EWL belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.18 | ||
| Quick Ratio | 3.45 |
3. Growth
3.1 Past
EWL shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.96%.
The Earnings Per Share has been growing slightly by 7.13% on average over the past years.
The Revenue has decreased by -6.00% in the past 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)1.96%
EPS 3Y5.52%
EPS 5Y7.13%
EPS Q2Q%-3.03%
Revenue 1Y (TTM)-6%
Revenue growth 3Y1.3%
Revenue growth 5Y4.58%
Sales Q2Q%-11.61%
3.2 Future
The Earnings Per Share is expected to grow by 9.41% 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 8.22% on average per year.
EPS Next Y-3.21%
EPS Next 2Y4.08%
EPS Next 3Y6.77%
EPS Next 5Y9.41%
Revenue Next Year0.76%
Revenue Next 2Y5.11%
Revenue Next 3Y6.88%
Revenue Next 5Y8.22%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 29.08, the valuation of EWL can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of EWL indicates a somewhat cheap valuation: EWL is cheaper than 70.37% of the companies listed in the same industry.
EWL is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.78, which is the current average of the S&P500 Index.
EWL is valuated quite expensively with a Price/Forward Earnings ratio of 26.65.
EWL's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 21.32. EWL is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.08 | ||
| Fwd PE | 26.65 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as EWL.
The rest of the industry has a similar Price/Free Cash Flow ratio as EWL.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 171.07 | ||
| EV/EBITDA | 24.48 |
4.3 Compensation for Growth
EWL has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)4.08
EPS Next 2Y4.08%
EPS Next 3Y6.77%
5. Dividend
5.1 Amount
EWL does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FRA:EWL (4/25/2025, 7:00:00 PM)
66.59
+0.4 (+0.6%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners88.15%
Inst Owner ChangeN/A
Ins Owners0.22%
Ins Owner ChangeN/A
Market Cap39.15B
Analysts73.66
Price Target70.33 (5.62%)
Short Float %N/A
Short RatioN/A
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)2.48%
Min EPS beat(2)1.57%
Max EPS beat(2)3.4%
EPS beat(4)2
Avg EPS beat(4)0.64%
Min EPS beat(4)-2.08%
Max EPS beat(4)3.4%
EPS beat(8)2
Avg EPS beat(8)-0.63%
EPS beat(12)4
Avg EPS beat(12)-0.95%
EPS beat(16)6
Avg EPS beat(16)-0.03%
Revenue beat(2)0
Avg Revenue beat(2)-7.33%
Min Revenue beat(2)-13.79%
Max Revenue beat(2)-0.87%
Revenue beat(4)0
Avg Revenue beat(4)-4.96%
Min Revenue beat(4)-13.79%
Max Revenue beat(4)-0.87%
Revenue beat(8)1
Avg Revenue beat(8)-2.81%
Revenue beat(12)1
Avg Revenue beat(12)-2.8%
Revenue beat(16)3
Avg Revenue beat(16)-2.25%
PT rev (1m)-9.23%
PT rev (3m)-8.78%
EPS NQ rev (1m)-0.23%
EPS NQ rev (3m)2.05%
EPS NY rev (1m)0.01%
EPS NY rev (3m)0.89%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)-2.17%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)-0.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.08 | ||
| Fwd PE | 26.65 | ||
| P/S | 8.12 | ||
| P/FCF | 171.07 | ||
| P/OCF | 81.99 | ||
| P/B | 4.45 | ||
| P/tB | 6.31 | ||
| EV/EBITDA | 24.48 |
EPS(TTM)2.29
EY3.44%
EPS(NY)2.5
Fwd EY3.75%
FCF(TTM)0.39
FCFY0.58%
OCF(TTM)0.81
OCFY1.22%
SpS8.2
BVpS14.97
TBVpS10.55
PEG (NY)N/A
PEG (5Y)4.08
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 31.98% | ||
| ROE | 41.75% | ||
| ROCE | 12.86% | ||
| ROIC | 9.05% | ||
| ROICexc | 13.8% | ||
| ROICexgc | 22.62% | ||
| OM | 27.13% | ||
| PM (TTM) | 76.28% | ||
| GM | 79.23% | ||
| FCFM | 4.75% |
ROA(3y)21.77%
ROA(5y)18.87%
ROE(3y)29.68%
ROE(5y)26.56%
ROIC(3y)12.44%
ROIC(5y)13.58%
ROICexc(3y)16.13%
ROICexc(5y)17.4%
ROICexgc(3y)22.87%
ROICexgc(5y)24.4%
ROCE(3y)17.66%
ROCE(5y)19.29%
ROICexcg growth 3Y-5.47%
ROICexcg 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-Score7
Asset Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 2.3 | ||
| Debt/EBITDA | 0.36 | ||
| Cap/Depr | 181.96% | ||
| Cap/Sales | 5.16% | ||
| Interest Coverage | 75.76 | ||
| Cash Conversion | 33.07% | ||
| Profit Quality | 6.23% | ||
| Current Ratio | 4.18 | ||
| Quick Ratio | 3.45 | ||
| Altman-Z | 11.37 |
F-Score7
WACC8.84%
ROIC/WACC1.02
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)1.96%
EPS 3Y5.52%
EPS 5Y7.13%
EPS Q2Q%-3.03%
EPS Next Y-3.21%
EPS Next 2Y4.08%
EPS Next 3Y6.77%
EPS Next 5Y9.41%
Revenue 1Y (TTM)-6%
Revenue growth 3Y1.3%
Revenue growth 5Y4.58%
Sales Q2Q%-11.61%
Revenue Next Year0.76%
Revenue Next 2Y5.11%
Revenue Next 3Y6.88%
Revenue Next 5Y8.22%
EBIT growth 1Y-15.39%
EBIT growth 3Y-4.72%
EBIT growth 5Y3.49%
EBIT Next Year8%
EBIT Next 3Y10.92%
EBIT Next 5Y10.65%
FCF growth 1Y-58.71%
FCF growth 3Y-42.99%
FCF growth 5Y-22.01%
OCF growth 1Y-39.46%
OCF growth 3Y-32.1%
OCF growth 5Y-14.39%