EDWARDS LIFESCIENCES CORP (1EW.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1EW - US28176E1082 - Common Stock
70.76 EUR
+4.28 (+6.44%)
We assign a fundamental rating of 7 out of 10 to 1EW. 1EW was compared to 63 industry peers in the Health Care Equipment & Supplies industry. 1EW gets an excellent profitability rating and is at the same time showing great financial health properties. 1EW is valied quite expensively at the moment, while it does show a decent growth rate. This makes 1EW very considerable for quality investing!
1. Profitability
1.1 Basic Checks
- 1EW had positive earnings in the past year.
- In the past year 1EW had a positive cash flow from operations.
- Each year in the past 5 years 1EW has been profitable.
- 1EW had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 10.31%, 1EW belongs to the top of the industry, outperforming 90.16% of the companies in the same industry.
- 1EW's Return On Equity of 13.40% is fine compared to the rest of the industry. 1EW outperforms 78.69% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 12.50%, 1EW belongs to the top of the industry, outperforming 88.52% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for 1EW is significantly above the industry average of 9.95%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.31% | ||
| ROE | 13.4% | ||
| ROIC | 12.5% |
ROA(3y)21.77%
ROA(5y)18.87%
ROE(3y)29.68%
ROE(5y)26.56%
ROIC(3y)15.82%
ROIC(5y)17.27%
1.3 Margins
- 1EW's Profit Margin of 23.25% is amongst the best of the industry. 1EW outperforms 93.44% of its industry peers.
- 1EW's Profit Margin has improved in the last couple of years.
- 1EW has a Operating Margin of 27.73%. This is amongst the best in the industry. 1EW outperforms 98.36% of its industry peers.
- In the last couple of years the Operating Margin of 1EW has remained more or less at the same level.
- The Gross Margin of 1EW (78.19%) is better than 91.80% of its industry peers.
- In the last couple of years the Gross Margin of 1EW 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 well above the Cost of Capital (WACC), so 1EW is creating value.
- 1EW has less shares outstanding than it did 1 year ago.
- The number of shares outstanding for 1EW has been reduced compared to 5 years ago.
- The debt/assets ratio for 1EW has been reduced compared to a year ago.
2.2 Solvency
- 1EW has an Altman-Z score of 12.38. This indicates that 1EW is financially healthy and has little risk of bankruptcy at the moment.
- 1EW has a better Altman-Z score (12.38) than 95.08% of its industry peers.
- 1EW 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.
- With an excellent Debt to FCF ratio value of 0.75, 1EW belongs to the best of the industry, outperforming 93.44% of the companies in the same industry.
- 1EW has a Debt/Equity ratio of 0.06. This is a healthy value indicating a solid balance between debt and equity.
- 1EW has a Debt to Equity ratio of 0.06. This is amongst the best in the industry. 1EW outperforms 86.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.75 | ||
| Altman-Z | 12.38 |
ROIC/WACC1.45
WACC8.62%
2.3 Liquidity
- A Current Ratio of 4.00 indicates that 1EW has no problem at all paying its short term obligations.
- Looking at the Current ratio, with a value of 4.00, 1EW belongs to the top of the industry, outperforming 91.80% of the companies in the same industry.
- 1EW has a Quick Ratio of 3.29. This indicates that 1EW is financially healthy and has no problem in meeting its short term obligations.
- The Quick ratio of 1EW (3.29) is better than 91.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4 | ||
| Quick Ratio | 3.29 |
3. Growth
3.1 Past
- 1EW 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.
- Looking at the last year, 1EW shows a small growth in Revenue. The Revenue has grown by 4.67% in the last year.
- Measured over the past years, 1EW shows a small growth in Revenue. The Revenue has been growing by 4.58% on average per year.
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
- Based on estimates for the next years, 1EW will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.50% on average per year.
- Based on estimates for the next years, 1EW will show a quite strong growth in Revenue. The Revenue will grow by 8.55% on average per year.
EPS Next Y0.42%
EPS Next 2Y5.67%
EPS Next 3Y7.57%
EPS Next 5Y9.5%
Revenue Next Year4.33%
Revenue Next 2Y7.03%
Revenue Next 3Y7.98%
Revenue Next 5Y8.55%
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
- A Price/Earnings ratio of 31.73 indicates a quite expensive valuation of 1EW.
- Compared to the rest of the industry, the Price/Earnings ratio of 1EW is on the same level as its industry peers.
- Compared to an average S&P500 Price/Earnings ratio of 27.25, 1EW is valued at the same level.
- Based on the Price/Forward Earnings ratio of 27.86, the valuation of 1EW can be described as expensive.
- 1EW's Price/Forward Earnings ratio is in line with the industry average.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, 1EW is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.73 | ||
| Fwd PE | 27.86 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, 1EW is valued a bit more expensive than the industry average as 60.66% of the companies are valued more cheaply.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1EW is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 59.16 | ||
| EV/EBITDA | 25.01 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- 1EW has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)74.87
PEG (5Y)4.45
EPS Next 2Y5.67%
EPS Next 3Y7.57%
5. Dividend
5.1 Amount
- 1EW does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
EDWARDS LIFESCIENCES CORP / 1EW.MI FAQ
Can you provide the ChartMill fundamental rating for EDWARDS LIFESCIENCES CORP?
ChartMill assigns a fundamental rating of 7 / 10 to 1EW.MI.
What is the valuation status of EDWARDS LIFESCIENCES CORP (1EW.MI) stock?
ChartMill assigns a valuation rating of 2 / 10 to EDWARDS LIFESCIENCES CORP (1EW.MI). This can be considered as Overvalued.
How profitable is EDWARDS LIFESCIENCES CORP (1EW.MI) stock?
EDWARDS LIFESCIENCES CORP (1EW.MI) has a profitability rating of 8 / 10.
What is the valuation of EDWARDS LIFESCIENCES CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for EDWARDS LIFESCIENCES CORP (1EW.MI) is 31.73 and the Price/Book (PB) ratio is 4.64.
What is the expected EPS growth for EDWARDS LIFESCIENCES CORP (1EW.MI) stock?
The Earnings per Share (EPS) of EDWARDS LIFESCIENCES CORP (1EW.MI) is expected to grow by 0.42% in the next year.