EDWARDS LIFESCIENCES CORP (EW) Stock Fundamental Analysis
USA - NYSE:EW - US28176E1082 - Common Stock
76.1 USD
-0.43 (-0.56%)
76.1 USD
0 (0%)
Overall EW gets a fundamental rating of 7 out of 10. We evaluated EW against 190 industry peers in the Health Care Equipment & Supplies industry. EW gets an excellent profitability rating and is at the same time showing great financial health properties. EW is not valued too expensively and it also shows a decent growth rate. With these ratings, EW could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
In the past year EW was profitable.
In the past year EW had a positive cash flow from operations.
EW had positive earnings in each of the past 5 years.
EW had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of EW (30.75%) is better than 99.47% of its industry peers.
EW has a better Return On Equity (39.33%) than 98.95% of its industry peers.
EW has a better Return On Invested Capital (11.77%) than 92.11% 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 8.88%.
The last Return On Invested Capital (11.77%) 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 Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 30.75% | ||
| ROE | 39.33% | ||
| ROIC | 11.77% |
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
EW has a Profit Margin of 72.96%. This is amongst the best in the industry. EW outperforms 98.42% of its industry peers.
EW's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 27.94%, EW belongs to the top of the industry, outperforming 94.74% of the companies in the same industry.
EW's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 78.87%, EW belongs to the top of the industry, outperforming 91.58% 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 | 27.94% | ||
| PM (TTM) | 72.96% | ||
| GM | 78.87% |
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
EW has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
EW has less shares outstanding than it did 1 year ago.
EW has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, EW has an improved debt to assets ratio.
2.2 Solvency
EW has an Altman-Z score of 11.87. This indicates that EW is financially healthy and has little risk of bankruptcy at the moment.
EW has a Altman-Z score of 11.87. This is amongst the best in the industry. EW outperforms 90.00% of its industry peers.
The Debt to FCF ratio of EW is 1.03, which is an excellent value as it means it would take EW, only 1.03 years of fcf income to pay off all of its debts.
EW has a better Debt to FCF ratio (1.03) than 91.58% of its industry peers.
A Debt/Equity ratio of 0.06 indicates that EW is not too dependend on debt financing.
EW has a Debt to Equity ratio of 0.06. This is in the better half of the industry: EW outperforms 68.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 1.03 | ||
| Altman-Z | 11.87 |
ROIC/WACC1.37
WACC8.58%
2.3 Liquidity
A Current Ratio of 4.68 indicates that EW has no problem at all paying its short term obligations.
EW has a better Current ratio (4.68) than 75.26% of its industry peers.
EW has a Quick Ratio of 3.87. This indicates that EW is financially healthy and has no problem in meeting its short term obligations.
EW has a Quick ratio of 3.87. This is in the better half of the industry: EW outperforms 73.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.68 | ||
| Quick Ratio | 3.87 |
3. Growth
3.1 Past
The earnings per share for EW have decreased by -0.77% in the last year.
EW 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, EW shows a decrease in Revenue. The Revenue has decreased by -1.09% in the last year.
EW shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.58% yearly.
EPS 1Y (TTM)-0.77%
EPS 3Y5.52%
EPS 5Y7.13%
EPS Q2Q%-4.29%
Revenue 1Y (TTM)-1.09%
Revenue growth 3Y1.3%
Revenue growth 5Y4.58%
Sales Q2Q%-6.13%
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 9.38% yearly.
Based on estimates for the next years, EW will show a quite strong growth in Revenue. The Revenue will grow by 8.39% on average per year.
EPS Next Y-1.75%
EPS Next 2Y4.72%
EPS Next 3Y7.26%
EPS Next 5Y9.38%
Revenue Next Year3.65%
Revenue Next 2Y6.66%
Revenue Next 3Y7.84%
Revenue Next 5Y8.39%
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
Based on the Price/Earnings ratio of 29.61, the valuation of EW can be described as expensive.
Based on the Price/Earnings ratio, EW is valued a bit cheaper than 74.21% of the companies in the same industry.
EW's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.91.
Based on the Price/Forward Earnings ratio of 26.49, the valuation of EW can be described as expensive.
EW's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. EW is cheaper than 74.21% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.92, EW is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.61 | ||
| Fwd PE | 26.49 |
4.2 Price Multiples
EW's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. EW is cheaper than 74.21% of the companies in the same industry.
72.11% of the companies in the same industry are more expensive than EW, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 77.31 | ||
| EV/EBITDA | 23.37 |
4.3 Compensation for Growth
The excellent profitability rating of EW may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)4.15
EPS Next 2Y4.72%
EPS Next 3Y7.26%
5. Dividend
5.1 Amount
No dividends for EW!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
76.1
-0.43 (-0.56%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners88.08%
Inst Owner Change-0.33%
Ins Owners0.16%
Ins Owner Change4.89%
Market Cap44.68B
Revenue(TTM)5.69B
Net Income(TTM)4.15B
Analysts76.28
Price Target89.82 (18.03%)
Short Float %1.29%
Short Ratio1.75
Dividend
| Industry Rank | Sector 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)4.25%
Min EPS beat(2)4.11%
Max EPS beat(2)4.4%
EPS beat(4)4
Avg EPS beat(4)3.37%
Min EPS beat(4)1.57%
Max EPS beat(4)4.4%
EPS beat(8)4
Avg EPS beat(8)0.66%
EPS beat(12)5
Avg EPS beat(12)0.01%
EPS beat(16)6
Avg EPS beat(16)-0.9%
Revenue beat(2)0
Avg Revenue beat(2)-1.11%
Min Revenue beat(2)-2.1%
Max Revenue beat(2)-0.12%
Revenue beat(4)0
Avg Revenue beat(4)-4.22%
Min Revenue beat(4)-13.79%
Max Revenue beat(4)-0.12%
Revenue beat(8)0
Avg Revenue beat(8)-3.15%
Revenue beat(12)1
Avg Revenue beat(12)-2.51%
Revenue beat(16)1
Avg Revenue beat(16)-2.76%
PT rev (1m)-0.39%
PT rev (3m)8.54%
EPS NQ rev (1m)0.67%
EPS NQ rev (3m)-0.98%
EPS NY rev (1m)0%
EPS NY rev (3m)0.7%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)0.98%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.61 | ||
| Fwd PE | 26.49 | ||
| P/S | 7.86 | ||
| P/FCF | 77.31 | ||
| P/OCF | 56.21 | ||
| P/B | 4.24 | ||
| P/tB | 5.88 | ||
| EV/EBITDA | 23.37 |
EPS(TTM)2.57
EY3.38%
EPS(NY)2.87
Fwd EY3.78%
FCF(TTM)0.98
FCFY1.29%
OCF(TTM)1.35
OCFY1.78%
SpS9.68
BVpS17.96
TBVpS12.94
PEG (NY)N/A
PEG (5Y)4.15
Graham Number32.23
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 30.75% | ||
| ROE | 39.33% | ||
| ROCE | 13.14% | ||
| ROIC | 11.77% | ||
| ROICexc | 17.73% | ||
| ROICexgc | 28.04% | ||
| OM | 27.94% | ||
| PM (TTM) | 72.96% | ||
| GM | 78.87% | ||
| FCFM | 10.17% |
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 | 1.03 | ||
| Debt/EBITDA | 0.34 | ||
| Cap/Depr | 142.95% | ||
| Cap/Sales | 3.82% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 45.68% | ||
| Profit Quality | 13.93% | ||
| Current Ratio | 4.68 | ||
| Quick Ratio | 3.87 | ||
| Altman-Z | 11.87 |
F-Score7
WACC8.58%
ROIC/WACC1.37
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)-0.77%
EPS 3Y5.52%
EPS 5Y7.13%
EPS Q2Q%-4.29%
EPS Next Y-1.75%
EPS Next 2Y4.72%
EPS Next 3Y7.26%
EPS Next 5Y9.38%
Revenue 1Y (TTM)-1.09%
Revenue growth 3Y1.3%
Revenue growth 5Y4.58%
Sales Q2Q%-6.13%
Revenue Next Year3.65%
Revenue Next 2Y6.66%
Revenue Next 3Y7.84%
Revenue Next 5Y8.39%
EBIT growth 1Y0.21%
EBIT growth 3Y-4.72%
EBIT growth 5Y3.49%
EBIT Next Year10.47%
EBIT Next 3Y11.73%
EBIT Next 5Y12.05%
FCF growth 1Y-15.26%
FCF growth 3Y-42.99%
FCF growth 5Y-22.01%
OCF growth 1Y-15.47%
OCF growth 3Y-32.1%
OCF growth 5Y-14.39%
EDWARDS LIFESCIENCES CORP / EW FAQ
What is the fundamental rating for EW stock?
ChartMill assigns a fundamental rating of 7 / 10 to EW.
What is the valuation status of EDWARDS LIFESCIENCES CORP (EW) stock?
ChartMill assigns a valuation rating of 4 / 10 to EDWARDS LIFESCIENCES CORP (EW). This can be considered as Fairly Valued.
How profitable is EDWARDS LIFESCIENCES CORP (EW) stock?
EDWARDS LIFESCIENCES CORP (EW) has a profitability rating of 9 / 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 (EW) is 29.61 and the Price/Book (PB) ratio is 4.24.
Can you provide the financial health for EW stock?
The financial health rating of EDWARDS LIFESCIENCES CORP (EW) is 9 / 10.