EDWARDS LIFESCIENCES CORP (EWL.DE) Stock Fundamental Analysis
FRA:EWL - Deutsche Boerse Ag - US28176E1082 - Common Stock - Currency: EUR
Overall EWL gets a fundamental rating of 6 out of 10. We evaluated EWL against 55 industry peers in the Health Care Equipment & Supplies industry. EWL scores excellent points on both the profitability and health parts. This is a solid base for a good stock. While showing a medium growth rate, EWL is valued expensive at the moment. This makes EWL very considerable for quality investing!
1. Profitability
1.1 Basic Checks
EWL had positive earnings in the past year.
EWL had a positive operating cash flow in the past year.
EWL had positive earnings in each of the past 5 years.
Each year in the past 5 years EWL had a positive operating cash flow.
1.2 Ratios
The Return On Assets of EWL (31.98%) is better than 100.00% of its industry peers.
EWL's Return On Equity of 41.75% is amongst the best of the industry. EWL outperforms 98.18% of its industry peers.
The Return On Invested Capital of EWL (9.05%) is better than 83.64% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for EWL is above the industry average of 8.28%.
| 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
EWL has a Profit Margin of 76.28%. This is amongst the best in the industry. EWL outperforms 100.00% of its industry peers.
In the last couple of years the Profit Margin of EWL has grown nicely.
EWL has a better Operating Margin (27.13%) than 96.36% of its industry peers.
EWL's Operating Margin has been stable in the last couple of years.
With an excellent Gross Margin value of 79.23%, EWL belongs to the best of the industry, outperforming 87.27% of the companies in the same industry.
EWL's Gross Margin has been stable in the last couple of years.
| 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.
The number of shares outstanding for EWL has been reduced compared to 1 year ago.
Compared to 5 years ago, EWL has less shares outstanding
The debt/assets ratio for EWL has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 10.69 indicates that EWL is not in any danger for bankruptcy at the moment.
EWL has a better Altman-Z score (10.69) than 98.18% of its industry peers.
The Debt to FCF ratio of EWL is 2.30, which is a good value as it means it would take EWL, 2.30 years of fcf income to pay off all of its debts.
EWL's Debt to FCF ratio of 2.30 is amongst the best of the industry. EWL outperforms 83.64% 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.
EWL has a better Debt to Equity ratio (0.06) than 90.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 2.3 | ||
| Altman-Z | 10.69 |
ROIC/WACC1.02
WACC8.87%
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.
With an excellent Current ratio value of 4.18, EWL belongs to the best of the industry, outperforming 85.45% of the companies in the same industry.
A Quick Ratio of 3.45 indicates that EWL has no problem at all paying its short term obligations.
EWL has a better Quick ratio (3.45) than 87.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.18 | ||
| Quick Ratio | 3.45 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 4.38% over the past year.
EWL shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.13% yearly.
Looking at the last year, EWL shows a decrease in Revenue. The Revenue has decreased by -8.86% 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)4.38%
EPS 3Y5.52%
EPS 5Y7.13%
EPS Q2Q%-7.81%
Revenue 1Y (TTM)-8.86%
Revenue growth 3Y1.3%
Revenue growth 5Y4.58%
Sales Q2Q%-9.67%
3.2 Future
The Earnings Per Share is expected to grow by 9.78% 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 8.04% on average per year.
EPS Next Y-3.61%
EPS Next 2Y3.91%
EPS Next 3Y6.64%
EPS Next 5Y9.78%
Revenue Next Year0.84%
Revenue Next 2Y5.19%
Revenue Next 3Y6.87%
Revenue Next 5Y8.04%
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
With a Price/Earnings ratio of 26.65, EWL can be considered very expensive at the moment.
Based on the Price/Earnings ratio, EWL is valued a bit cheaper than the industry average as 76.36% of the companies are valued more expensively.
EWL is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 29.35, which is the current average of the S&P500 Index.
EWL is valuated quite expensively with a Price/Forward Earnings ratio of 27.61.
EWL's Price/Forward Earnings is on the same level as the industry average.
EWL is valuated rather expensively when we compare the Price/Forward Earnings ratio to 22.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.65 | ||
| Fwd PE | 27.61 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as EWL.
EWL's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 157.74 | ||
| EV/EBITDA | 22.37 |
4.3 Compensation for Growth
The excellent profitability rating of EWL may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)3.74
EPS Next 2Y3.91%
EPS Next 3Y6.64%
5. Dividend
5.1 Amount
EWL does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FRA:EWL (3/7/2025, 7:00:00 PM)
64.23
-3.1 (-4.6%)
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 Cap37.76B
Analysts73.66
Price Target77.48 (20.63%)
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)2.59%
PT rev (3m)6.71%
EPS NQ rev (1m)1.91%
EPS NQ rev (3m)2.29%
EPS NY rev (1m)0.35%
EPS NY rev (3m)0.69%
Revenue NQ rev (1m)-0.76%
Revenue NQ rev (3m)-2.1%
Revenue NY rev (1m)-0.17%
Revenue NY rev (3m)-1.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.65 | ||
| Fwd PE | 27.61 | ||
| P/S | 7.49 | ||
| P/FCF | 157.74 | ||
| P/OCF | 75.6 | ||
| P/B | 4.1 | ||
| P/tB | 5.82 | ||
| EV/EBITDA | 22.37 |
EPS(TTM)2.41
EY3.75%
EPS(NY)2.33
Fwd EY3.62%
FCF(TTM)0.41
FCFY0.63%
OCF(TTM)0.85
OCFY1.32%
SpS8.57
BVpS15.66
TBVpS11.04
PEG (NY)N/A
PEG (5Y)3.74
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 | 10.69 |
F-Score7
WACC8.87%
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)4.38%
EPS 3Y5.52%
EPS 5Y7.13%
EPS Q2Q%-7.81%
EPS Next Y-3.61%
EPS Next 2Y3.91%
EPS Next 3Y6.64%
EPS Next 5Y9.78%
Revenue 1Y (TTM)-8.86%
Revenue growth 3Y1.3%
Revenue growth 5Y4.58%
Sales Q2Q%-9.67%
Revenue Next Year0.84%
Revenue Next 2Y5.19%
Revenue Next 3Y6.87%
Revenue Next 5Y8.04%
EBIT growth 1Y-15.39%
EBIT growth 3Y-4.72%
EBIT growth 5Y3.49%
EBIT Next Year10.11%
EBIT Next 3Y13.2%
EBIT Next 5Y10.73%
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%