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EDWARDS LIFESCIENCES CORP (EW) Stock Fundamental Analysis

NYSE:EW - New York Stock Exchange, Inc. - US28176E1082 - Common Stock - Currency: USD

77.83  -0.21 (-0.27%)

After market: 77.5 -0.33 (-0.42%)

Fundamental Rating

7

We assign a fundamental rating of 7 out of 10 to EW. EW was compared to 189 industry peers in the Health Care Equipment & Supplies industry. EW scores excellent points on both the profitability and health parts. This is a solid base for a good stock. EW has a correct valuation and a medium growth rate. This makes EW very considerable for quality investing!


Dividend Valuation Growth Profitability Health

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9

1. Profitability

1.1 Basic Checks

In the past year EW was profitable.
EW had a positive operating cash flow in the past year.
EW had positive earnings in each of the past 5 years.
Each year in the past 5 years EW had a positive operating cash flow.
EW Yearly Net Income VS EBIT VS OCF VS FCFEW Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B

1.2 Ratios

The Return On Assets of EW (31.98%) is better than 99.47% of its industry peers.
Looking at the Return On Equity, with a value of 41.75%, EW belongs to the top of the industry, outperforming 99.47% of the companies in the same industry.
EW has a better Return On Invested Capital (11.51%) than 93.65% of its industry peers.
EW had an Average Return On Invested Capital over the past 3 years of 15.82%. This is significantly above the industry average of 7.87%.
The last Return On Invested Capital (11.51%) for EW is well below the 3 year average (15.82%), which needs to be investigated, but indicates that EW had better years and this may not be a problem.
Industry RankSector 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%
EW Yearly ROA, ROE, ROICEW Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30 40

1.3 Margins

Looking at the Profit Margin, with a value of 76.28%, EW belongs to the top of the industry, outperforming 98.94% of the companies in the same industry.
In the last couple of years the Profit Margin of EW has grown nicely.
EW has a better Operating Margin (27.13%) than 95.77% of its industry peers.
EW's Operating Margin has been stable in the last couple of years.
EW's Gross Margin of 79.23% is amongst the best of the industry. EW outperforms 92.06% of its industry peers.
EW's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
EW Yearly Profit, Operating, Gross MarginsEW Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60 80

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9

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so EW is still creating some value.
Compared to 1 year ago, EW has less shares outstanding
Compared to 5 years ago, EW has less shares outstanding
Compared to 1 year ago, EW has an improved debt to assets ratio.
EW Yearly Shares OutstandingEW Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M
EW Yearly Total Debt VS Total AssetsEW Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B 10B

2.2 Solvency

EW has an Altman-Z score of 11.65. This indicates that EW is financially healthy and has little risk of bankruptcy at the moment.
EW has a better Altman-Z score (11.65) than 92.06% of its industry peers.
EW has a debt to FCF ratio of 2.30. This is a good value and a sign of high solvency as EW would need 2.30 years to pay back of all of its debts.
The Debt to FCF ratio of EW (2.30) is better than 89.42% of its industry peers.
EW has a Debt/Equity ratio of 0.06. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.06, EW is in the better half of the industry, outperforming 63.49% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.06
Debt/FCF 2.3
Altman-Z 11.65
ROIC/WACC1.28
WACC9.02%
EW Yearly LT Debt VS Equity VS FCFEW Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B

2.3 Liquidity

EW has a Current Ratio of 4.18. This indicates that EW is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 4.18, EW is in the better half of the industry, outperforming 65.61% of the companies in the same industry.
EW has a Quick Ratio of 3.45. This indicates that EW is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of EW (3.45) is better than 67.72% of its industry peers.
Industry RankSector Rank
Current Ratio 4.18
Quick Ratio 3.45
EW Yearly Current Assets VS Current LiabilitesEW Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B

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5

3. Growth

3.1 Past

The Earnings Per Share has been growing slightly by 1.96% over the past year.
The Earnings Per Share has been growing slightly by 7.13% on average over the past years.
EW shows a decrease in Revenue. In the last year, the revenue decreased by -6.00%.
The Revenue has been growing slightly by 4.58% on average over the past years.
EPS 1Y (TTM)1.96%
EPS 3Y5.52%
EPS 5Y7.13%
EPS Q2Q%-3.03%
Revenue 1Y (TTM)-6%
Revenue growth 3Y1.3%
Revenue growth 5Y4.58%
Sales Q2Q%-11.61%

3.2 Future

EW is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.41% yearly.
The Revenue is expected to grow by 8.22% on average over the next years. This is quite good.
EPS Next Y-2.56%
EPS Next 2Y4.27%
EPS Next 3Y6.72%
EPS Next 5Y9.41%
Revenue Next Year2.24%
Revenue Next 2Y5.81%
Revenue Next 3Y7.29%
Revenue Next 5Y8.22%

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.
EW Yearly Revenue VS EstimatesEW Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2B 4B 6B 8B
EW Yearly EPS VS EstimatesEW Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 1 2 3 4

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4

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 29.93, EW can be considered very expensive at the moment.
74.60% of the companies in the same industry are more expensive than EW, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of EW to the average of the S&P500 Index (26.60), we can say EW is valued inline with the index average.
A Price/Forward Earnings ratio of 27.32 indicates a quite expensive valuation of EW.
71.43% of the companies in the same industry are more expensive than EW, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of EW to the average of the S&P500 Index (22.43), we can say EW is valued slightly more expensively.
Industry RankSector Rank
PE 29.93
Fwd PE 27.32
EW Price Earnings VS Forward Price EarningsEW Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, EW is valued a bit cheaper than the industry average as 71.96% of the companies are valued more expensively.
69.84% of the companies in the same industry are more expensive than EW, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 176.05
EV/EBITDA 25.35
EW Per share dataEW EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15

4.3 Compensation for Growth

The excellent profitability rating of EW may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)4.2
EPS Next 2Y4.27%
EPS Next 3Y6.72%

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0

5. Dividend

5.1 Amount

No dividends for EW!.
Industry RankSector Rank
Dividend Yield N/A

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EDWARDS LIFESCIENCES CORP

NYSE:EW (5/20/2025, 8:04:00 PM)

After market: 77.5 -0.33 (-0.42%)

77.83

-0.21 (-0.27%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)04-23 2025-04-23/amc
Earnings (Next)07-22 2025-07-22/amc
Inst Owners88.15%
Inst Owner Change1.61%
Ins Owners0.22%
Ins Owner Change4.62%
Market Cap45.76B
Analysts74.15
Price Target82 (5.36%)
Short Float %1.42%
Short Ratio1.72
Dividend
Industry RankSector 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)1.02%
PT rev (3m)2.66%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.14%
EPS NY rev (1m)0.67%
EPS NY rev (3m)1.06%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.21%
Revenue NY rev (1m)1.47%
Revenue NY rev (3m)1.22%
Valuation
Industry RankSector Rank
PE 29.93
Fwd PE 27.32
P/S 8.36
P/FCF 176.05
P/OCF 84.37
P/B 4.58
P/tB 6.49
EV/EBITDA 25.35
EPS(TTM)2.6
EY3.34%
EPS(NY)2.85
Fwd EY3.66%
FCF(TTM)0.44
FCFY0.57%
OCF(TTM)0.92
OCFY1.19%
SpS9.31
BVpS17.01
TBVpS11.98
PEG (NY)N/A
PEG (5Y)4.2
Profitability
Industry RankSector 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%
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 RankSector 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 11.65
F-Score7
WACC9.02%
ROIC/WACC1.28
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)1.96%
EPS 3Y5.52%
EPS 5Y7.13%
EPS Q2Q%-3.03%
EPS Next Y-2.56%
EPS Next 2Y4.27%
EPS Next 3Y6.72%
EPS Next 5Y9.41%
Revenue 1Y (TTM)-6%
Revenue growth 3Y1.3%
Revenue growth 5Y4.58%
Sales Q2Q%-11.61%
Revenue Next Year2.24%
Revenue Next 2Y5.81%
Revenue Next 3Y7.29%
Revenue Next 5Y8.22%
EBIT growth 1Y-15.39%
EBIT growth 3Y-4.72%
EBIT growth 5Y3.49%
EBIT Next Year8%
EBIT Next 3Y10.92%
EBIT Next 5Y10.65%
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%