EDWARDS LIFESCIENCES CORP (EWL.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:EWL - US28176E1082 - Common Stock
67.88 EUR
-1.36 (-1.96%)
Taking everything into account, EWL scores 7 out of 10 in our fundamental rating. EWL was compared to 63 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 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.
- EWL had a positive operating cash flow in the past year.
- In the past 5 years EWL has always been profitable.
- Each year in the past 5 years EWL had a positive operating cash flow.
1.2 Ratios
- EWL's Return On Assets of 10.31% is amongst the best of the industry. EWL outperforms 88.89% of its industry peers.
- EWL has a better Return On Equity (13.40%) than 77.78% of its industry peers.
- EWL's Return On Invested Capital of 9.83% is fine compared to the rest of the industry. EWL outperforms 77.78% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for EWL is above the industry average of 9.95%.
| 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 better Profit Margin (23.25%) than 92.06% of its industry peers.
- EWL's Profit Margin has improved in the last couple of years.
- EWL's Operating Margin of 27.73% is amongst the best of the industry. EWL outperforms 95.24% of its industry peers.
- In the last couple of years the Operating Margin of EWL has remained more or less at the same level.
- Looking at the Gross Margin, with a value of 78.19%, EWL belongs to the top of the industry, outperforming 92.06% of the companies in the same industry.
- 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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so EWL is still creating some value.
- Compared to 1 year ago, EWL has less shares outstanding
- EWL has less shares outstanding than it did 5 years ago.
- EWL has a better debt/assets ratio than last year.
2.2 Solvency
- EWL has an Altman-Z score of 11.99. This indicates that EWL is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of EWL (11.99) is better than 93.65% of its industry peers.
- The Debt to FCF ratio of EWL is 0.75, which is an excellent value as it means it would take EWL, only 0.75 years of fcf income to pay off all of its debts.
- EWL has a better Debt to FCF ratio (0.75) than 92.06% 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.
- The Debt to Equity ratio of EWL (0.06) is better than 87.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.75 | ||
| Altman-Z | 11.99 |
ROIC/WACC0.98
WACC10.02%
2.3 Liquidity
- EWL has a Current Ratio of 4.00. This indicates that EWL is financially healthy and has no problem in meeting its short term obligations.
- EWL has a Current ratio of 4.00. This is amongst the best in the industry. EWL outperforms 92.06% 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.
- EWL has a better Quick ratio (3.29) than 92.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4 | ||
| Quick Ratio | 3.29 |
3. Growth
3.1 Past
- EWL shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.75%.
- The Earnings Per Share has been growing slightly by 7.13% on average over the past years.
- EWL shows a small growth in Revenue. In the last year, the Revenue has grown by 4.67%.
- The Revenue has been growing slightly by 4.58% on average over the past years.
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
- EWL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.40% yearly.
- EWL is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.47% yearly.
EPS Next Y1.27%
EPS Next 2Y6.3%
EPS Next 3Y7.79%
EPS Next 5Y9.4%
Revenue Next Year4.63%
Revenue Next 2Y7.15%
Revenue Next 3Y8.06%
Revenue Next 5Y8.47%
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
- The Price/Earnings ratio is 31.57, which means the current valuation is very expensive for EWL.
- Compared to the rest of the industry, the Price/Earnings ratio of EWL is on the same level as its industry peers.
- Compared to an average S&P500 Price/Earnings ratio of 28.39, EWL is valued at the same level.
- EWL is valuated quite expensively with a Price/Forward Earnings ratio of 27.44.
- EWL's Price/Forward Earnings is on the same level as the industry average.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.72, EWL is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.57 | ||
| Fwd PE | 27.44 |
4.2 Price Multiples
- EWL's Enterprise Value to EBITDA ratio is in line with the industry average.
- EWL's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 58.96 | ||
| EV/EBITDA | 23.9 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates EWL does not grow enough to justify the current Price/Earnings ratio.
- The excellent profitability rating of EWL may justify a higher PE ratio.
PEG (NY)24.92
PEG (5Y)4.43
EPS Next 2Y6.3%
EPS Next 3Y7.79%
5. Dividend
5.1 Amount
- EWL does not give a dividend.
| 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 3 / 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 31.57 and the Price/Book (PB) ratio is 4.62.