EDWARDS LIFESCIENCES CORP (EW)
US28176E1082 - Common Stock
Overall EW gets a fundamental rating of 7 out of 10. We evaluated EW against 191 industry peers in the Health Care Equipment & Supplies industry. Both the health and profitability get an excellent rating, making EW a very profitable company, without any liquidiy or solvency issues. EW has a correct valuation and a medium growth rate. This makes EW very considerable for quality investing!
1. Profitability
1.1 Basic Checks
EW had positive earnings in the past year.
EW had a positive operating cash flow in the past year.
Each year in the past 5 years EW has been profitable.
In the past 5 years EW always reported a positive cash flow from operatings.
1.2 Ratios
EW has a Return On Assets of 14.52%. This is amongst the best in the industry. EW outperforms 97.38% of its industry peers.
EW has a Return On Equity of 19.86%. This is amongst the best in the industry. EW outperforms 94.24% of its industry peers.
The Return On Invested Capital of EW (17.73%) is better than 97.38% of its industry peers.
EW had an Average Return On Invested Capital over the past 3 years of 20.11%. This is significantly above the industry average of 8.47%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.52% | ||
| ROE | 19.86% | ||
| ROIC | 17.73% |
ROA(3y)17%
ROA(5y)15.7%
ROE(3y)24.35%
ROE(5y)23.26%
ROIC(3y)20.11%
ROIC(5y)19.51%
1.3 Margins
EW's Profit Margin of 23.01% is amongst the best of the industry. EW outperforms 95.81% of its industry peers.
EW's Profit Margin has improved in the last couple of years.
EW has a better Operating Margin (28.66%) than 96.86% of its industry peers.
In the last couple of years the Operating Margin of EW has remained more or less at the same level.
With an excellent Gross Margin value of 76.63%, EW belongs to the best of the industry, outperforming 89.53% of the companies in the same industry.
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 | 28.66% | ||
| PM (TTM) | 23.01% | ||
| GM | 76.63% |
OM growth 3Y-0.54%
OM growth 5Y0.18%
PM growth 3Y7.55%
PM growth 5Y3.78%
GM growth 3Y0.73%
GM growth 5Y0.6%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), EW is creating value.
Compared to 1 year ago, EW has less shares outstanding
EW has less shares outstanding than it did 5 years ago.
EW has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 15.00 indicates that EW is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 15.00, EW belongs to the top of the industry, outperforming 91.10% of the companies in the same industry.
EW has a debt to FCF ratio of 2.51. This is a good value and a sign of high solvency as EW would need 2.51 years to pay back of all of its debts.
EW's Debt to FCF ratio of 2.51 is amongst the best of the industry. EW outperforms 87.96% of its industry peers.
A Debt/Equity ratio of 0.08 indicates that EW is not too dependend on debt financing.
EW's Debt to Equity ratio of 0.08 is in line compared to the rest of the industry. EW outperforms 57.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | 2.51 | ||
| Altman-Z | 15 |
ROIC/WACC1.89
WACC9.36%
2.3 Liquidity
EW has a Current Ratio of 3.75. This indicates that EW is financially healthy and has no problem in meeting its short term obligations.
EW's Current ratio of 3.75 is in line compared to the rest of the industry. EW outperforms 56.54% of its industry peers.
EW has a Quick Ratio of 2.67. This indicates that EW is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of EW (2.67) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.75 | ||
| Quick Ratio | 2.67 |
3. Growth
3.1 Past
EW shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.00%.
Measured over the past years, EW shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.89% on average per year.
Looking at the last year, EW shows a quite strong growth in Revenue. The Revenue has grown by 11.68% in the last year.
EW shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.03% yearly.
EPS 1Y (TTM)2%
EPS 3Y10.64%
EPS 5Y9.89%
EPS Q2Q%6.45%
Revenue 1Y (TTM)11.68%
Revenue growth 3Y11.04%
Revenue growth 5Y10.03%
Sales Q2Q%9.5%
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 11.77% on average per year.
Based on estimates for the next years, EW will show a quite strong growth in Revenue. The Revenue will grow by 9.40% on average per year.
EPS Next Y13.42%
EPS Next 2Y13.15%
EPS Next 3Y12.38%
EPS Next 5Y11.77%
Revenue Next Year9.97%
Revenue Next 2Y9.88%
Revenue Next 3Y9.7%
Revenue Next 5Y9.4%
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 stable.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
EW is valuated quite expensively with a Price/Earnings ratio of 34.23.
EW's Price/Earnings ratio is a bit cheaper when compared to the industry. EW is cheaper than 75.39% of the companies in the same industry.
EW's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 28.39.
The Price/Forward Earnings ratio is 27.16, which means the current valuation is very expensive for EW.
75.39% of the companies in the same industry are more expensive than EW, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 19.91, EW is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.23 | ||
| Fwd PE | 27.16 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EW is valued a bit cheaper than 72.77% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, EW is valued a bit cheaper than 68.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 220.92 | ||
| EV/EBITDA | 26.73 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates EW does not grow enough to justify the current Price/Earnings ratio.
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 12.38% in the coming years.
PEG (NY)2.55
PEG (5Y)3.46
EPS Next 2Y13.15%
EPS Next 3Y12.38%
5. Dividend
5.1 Amount
EW does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
EDWARDS LIFESCIENCES CORP
NYSE:EW (6/14/2024, 7:06:24 PM)
After market: 87.33 +0.04 (+0.05%)87.29
-0.38 (-0.43%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap52.60B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.23 | ||
| Fwd PE | 27.16 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.55
PEG (5Y)3.46
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.52% | ||
| ROE | 19.86% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 28.66% | ||
| PM (TTM) | 23.01% | ||
| GM | 76.63% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.63
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.75 | ||
| Quick Ratio | 2.67 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)2%
EPS 3Y10.64%
EPS 5Y
EPS Q2Q%
EPS Next Y13.42%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)11.68%
Revenue growth 3Y11.04%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y