EDWARDS LIFESCIENCES CORP (1EW.MI) Stock Fundamental Analysis
Europe - BIT:1EW - US28176E1082 - Common Stock
66.48 EUR
-5.89 (-8.14%)
Taking everything into account, 1EW scores 7 out of 10 in our fundamental rating. 1EW was compared to 60 industry peers in the Health Care Equipment & Supplies industry. Both the health and profitability get an excellent rating, making 1EW a very profitable company, without any liquidiy or solvency issues. 1EW is quite expensive at the moment. It does show a decent growth rate. This makes 1EW very considerable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year 1EW was profitable.
1EW had a positive operating cash flow in the past year.
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
1EW has a Return On Assets of 31.98%. This is amongst the best in the industry. 1EW outperforms 98.33% of its industry peers.
The Return On Equity of 1EW (41.75%) is better than 96.67% of its industry peers.
The Return On Invested Capital of 1EW (11.51%) is better than 90.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 1EW is significantly above the industry average of 8.99%.
The 3 year average ROIC (15.82%) for 1EW is well above the current ROIC(11.51%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 31.98% | ||
| ROE | 41.75% | ||
| ROIC | 11.51% |
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
Looking at the Profit Margin, with a value of 76.28%, 1EW belongs to the top of the industry, outperforming 98.33% of the companies in the same industry.
In the last couple of years the Profit Margin of 1EW has grown nicely.
Looking at the Operating Margin, with a value of 27.13%, 1EW belongs to the top of the industry, outperforming 96.67% of the companies in the same industry.
1EW's Operating Margin has been stable in the last couple of years.
1EW has a Gross Margin of 79.23%. This is amongst the best in the industry. 1EW outperforms 86.67% of its industry peers.
1EW'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 1EW is still creating some value.
The number of shares outstanding for 1EW has been reduced compared to 1 year ago.
Compared to 5 years ago, 1EW has less shares outstanding
1EW has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 11.00 indicates that 1EW is not in any danger for bankruptcy at the moment.
1EW's Altman-Z score of 11.00 is amongst the best of the industry. 1EW outperforms 98.33% of its industry peers.
The Debt to FCF ratio of 1EW is 2.30, which is a good value as it means it would take 1EW, 2.30 years of fcf income to pay off all of its debts.
1EW's Debt to FCF ratio of 2.30 is amongst the best of the industry. 1EW outperforms 85.00% of its industry peers.
A Debt/Equity ratio of 0.06 indicates that 1EW is not too dependend on debt financing.
1EW has a Debt to Equity ratio of 0.06. This is amongst the best in the industry. 1EW outperforms 93.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 2.3 | ||
| Altman-Z | 11 |
ROIC/WACC1.3
WACC8.87%
2.3 Liquidity
1EW has a Current Ratio of 4.18. This indicates that 1EW is financially healthy and has no problem in meeting its short term obligations.
1EW has a Current ratio of 4.18. This is amongst the best in the industry. 1EW outperforms 88.33% of its industry peers.
1EW has a Quick Ratio of 3.45. This indicates that 1EW is financially healthy and has no problem in meeting its short term obligations.
1EW's Quick ratio of 3.45 is amongst the best of the industry. 1EW outperforms 90.00% 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.
1EW 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, 1EW shows a decrease in Revenue. The Revenue has decreased by -8.86% 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)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 9.63% on average over the next years. This is quite good.
1EW is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.38% yearly.
EPS Next Y-3.61%
EPS Next 2Y3.91%
EPS Next 3Y6.64%
EPS Next 5Y9.63%
Revenue Next Year0.84%
Revenue Next 2Y5.19%
Revenue Next 3Y6.87%
Revenue Next 5Y8.38%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
1EW is valuated quite expensively with a Price/Earnings ratio of 27.59.
Based on the Price/Earnings ratio, 1EW is valued a bit cheaper than 66.67% of the companies in the same industry.
1EW is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.28, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 28.67, the valuation of 1EW can be described as expensive.
1EW's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of 1EW to the average of the S&P500 Index (33.61), we can say 1EW is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.59 | ||
| Fwd PE | 28.67 |
4.2 Price Multiples
1EW's Enterprise Value to EBITDA ratio is in line with the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as 1EW.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 163.75 | ||
| EV/EBITDA | 23.32 |
4.3 Compensation for Growth
1EW has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)3.87
EPS Next 2Y3.91%
EPS Next 3Y6.64%
5. Dividend
5.1 Amount
1EW does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BIT:1EW (3/5/2025, 7:00:00 PM)
66.48
-5.89 (-8.14%)
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 Cap39.08B
Revenue(TTM)5.47B
Net Income(TTM)4.17B
Analysts73.66
Price Target77.45 (16.5%)
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 YearsN/A
Div Non Decr YearsN/A
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)-8.85%
Min Revenue beat(4)-16.65%
Max Revenue beat(4)-0.87%
Revenue beat(8)1
Avg Revenue beat(8)-4.76%
Revenue beat(12)1
Avg Revenue beat(12)-4.1%
Revenue beat(16)3
Avg Revenue beat(16)-3.23%
PT rev (1m)8.46%
PT rev (3m)8.46%
EPS NQ rev (1m)-19.08%
EPS NQ rev (3m)-19.08%
EPS NY rev (1m)0.08%
EPS NY rev (3m)0.08%
Revenue NQ rev (1m)-19.6%
Revenue NQ rev (3m)-19.6%
Revenue NY rev (1m)-2.16%
Revenue NY rev (3m)-2.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.59 | ||
| Fwd PE | 28.67 | ||
| P/S | 7.78 | ||
| P/FCF | 163.75 | ||
| P/OCF | 78.48 | ||
| P/B | 4.26 | ||
| P/tB | 6.04 | ||
| EV/EBITDA | 23.32 |
EPS(TTM)2.41
EY3.63%
EPS(NY)2.32
Fwd EY3.49%
FCF(TTM)0.41
FCFY0.61%
OCF(TTM)0.85
OCFY1.27%
SpS8.55
BVpS15.62
TBVpS11.01
PEG (NY)N/A
PEG (5Y)3.87
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 31.98% | ||
| ROE | 41.75% | ||
| ROCE | 12.86% | ||
| ROIC | 11.51% | ||
| ROICexc | 17.55% | ||
| ROICexgc | 28.77% | ||
| 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)15.82%
ROIC(5y)17.27%
ROICexc(3y)20.51%
ROICexc(5y)22.13%
ROICexgc(3y)29.09%
ROICexgc(5y)31.03%
ROCE(3y)17.66%
ROCE(5y)19.29%
ROICexgc growth 3Y-5.47%
ROICexgc 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 |
F-Score7
WACC8.87%
ROIC/WACC1.3
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 5Y9.63%
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 5Y8.38%
EBIT growth 1Y-15.39%
EBIT growth 3Y-4.72%
EBIT growth 5Y3.49%
EBIT Next Year10.11%
EBIT Next 3Y13.2%
EBIT Next 5Y10.38%
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%
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 for 1EW stock?
ChartMill assigns a valuation rating of 3 / 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 9 / 10.
Can you provide the expected EPS growth for 1EW stock?
The Earnings per Share (EPS) of EDWARDS LIFESCIENCES CORP (1EW.MI) is expected to decline by -3.61% in the next year.