EDWARDS LIFESCIENCES CORP (EW) Stock Fundamental Analysis
NYSE:EW - New York Stock Exchange, Inc. - US28176E1082 - Common Stock - Currency: USD
Taking everything into account, EW scores 7 out of 10 in our fundamental rating. EW was compared to 187 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!
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.
EW 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 32.10%, EW belongs to the top of the industry, outperforming 99.47% of the companies in the same industry.
EW has a better Return On Equity (41.28%) than 98.93% of its industry peers.
EW's Return On Invested Capital of 11.82% is amongst the best of the industry. EW outperforms 94.12% 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 7.89%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 32.1% | ||
| ROE | 41.28% | ||
| ROIC | 11.82% |
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's Profit Margin of 75.48% is amongst the best of the industry. EW outperforms 98.93% of its industry peers.
In the last couple of years the Profit Margin of EW has grown nicely.
EW's Operating Margin of 27.71% is amongst the best of the industry. EW outperforms 96.26% of its industry peers.
EW's Operating Margin has been stable in the last couple of years.
EW has a better Gross Margin (79.38%) than 93.05% of its industry peers.
EW's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.71% | ||
| PM (TTM) | 75.48% | ||
| GM | 79.38% |
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 EW is still creating some value.
EW has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, EW has less shares outstanding
Compared to 1 year ago, EW has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 12.05 indicates that EW is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 12.05, EW belongs to the top of the industry, outperforming 89.84% of the companies in the same industry.
EW has a debt to FCF ratio of 0.96. This is a very positive value and a sign of high solvency as it would only need 0.96 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 0.96, EW belongs to the best of the industry, outperforming 91.44% of the companies in the same industry.
EW has a Debt/Equity ratio of 0.06. This is a healthy value indicating a solid balance between debt and equity.
EW's Debt to Equity ratio of 0.06 is fine compared to the rest of the industry. EW outperforms 63.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.96 | ||
| Altman-Z | 12.05 |
ROIC/WACC1.33
WACC8.91%
2.3 Liquidity
A Current Ratio of 4.45 indicates that EW has no problem at all paying its short term obligations.
EW has a Current ratio of 4.45. This is in the better half of the industry: EW outperforms 69.52% of its industry peers.
EW has a Quick Ratio of 3.66. This indicates that EW is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of EW (3.66) is better than 70.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.45 | ||
| Quick Ratio | 3.66 |
3. Growth
3.1 Past
EW shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.96%.
EW shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.13% yearly.
EW shows a decrease in Revenue. In the last year, the revenue decreased by -6.00%.
Measured over the past years, EW shows a small growth in Revenue. The Revenue has been growing by 4.58% on average per year.
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
Based on estimates for the next years, EW will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.07% 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 8.27% on average per year.
EPS Next Y-2.49%
EPS Next 2Y4.29%
EPS Next 3Y6.72%
EPS Next 5Y9.07%
Revenue Next Year2.36%
Revenue Next 2Y5.89%
Revenue Next 3Y7.35%
Revenue Next 5Y8.27%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
With a Price/Earnings ratio of 29.53, EW can be considered very expensive at the moment.
Based on the Price/Earnings ratio, EW is valued a bit cheaper than the industry average as 74.87% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of EW to the average of the S&P500 Index (27.45), we can say EW is valued inline with the index average.
A Price/Forward Earnings ratio of 26.95 indicates a quite expensive valuation of EW.
Based on the Price/Forward Earnings ratio, EW is valued a bit cheaper than the industry average as 71.66% of the companies are valued more expensively.
EW is valuated rather expensively when we compare the Price/Forward Earnings ratio to 21.90, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.53 | ||
| Fwd PE | 26.95 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EW is valued a bit cheaper than 72.19% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of EW indicates a somewhat cheap valuation: EW is cheaper than 71.12% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 72.29 | ||
| EV/EBITDA | 24.28 |
4.3 Compensation for Growth
The excellent profitability rating of EW may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)4.14
EPS Next 2Y4.29%
EPS Next 3Y6.72%
5. Dividend
5.1 Amount
No dividends for EW!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
76.79
-0.23 (-0.3%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners89.36%
Inst Owner Change1.62%
Ins Owners0.19%
Ins Owner Change4.51%
Market Cap45.05B
Analysts74.15
Price Target82.75 (7.76%)
Short Float %1.05%
Short Ratio1.38
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)3.76%
Min EPS beat(2)3.4%
Max EPS beat(2)4.11%
EPS beat(4)3
Avg EPS beat(4)1.75%
Min EPS beat(4)-2.08%
Max EPS beat(4)4.11%
EPS beat(8)3
Avg EPS beat(8)-0.01%
EPS beat(12)4
Avg EPS beat(12)-0.74%
EPS beat(16)6
Avg EPS beat(16)-0.44%
Revenue beat(2)0
Avg Revenue beat(2)-1.49%
Min Revenue beat(2)-2.1%
Max Revenue beat(2)-0.87%
Revenue beat(4)0
Avg Revenue beat(4)-5.21%
Min Revenue beat(4)-13.79%
Max Revenue beat(4)-0.87%
Revenue beat(8)0
Avg Revenue beat(8)-3.29%
Revenue beat(12)1
Avg Revenue beat(12)-2.9%
Revenue beat(16)2
Avg Revenue beat(16)-2.48%
PT rev (1m)0.92%
PT rev (3m)1.56%
EPS NQ rev (1m)0.15%
EPS NQ rev (3m)0.82%
EPS NY rev (1m)0.07%
EPS NY rev (3m)1.17%
Revenue NQ rev (1m)0.13%
Revenue NQ rev (3m)2%
Revenue NY rev (1m)0.12%
Revenue NY rev (3m)1.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.53 | ||
| Fwd PE | 26.95 | ||
| P/S | 8.13 | ||
| P/FCF | 72.29 | ||
| P/OCF | 51.41 | ||
| P/B | 4.45 | ||
| P/tB | 6.28 | ||
| EV/EBITDA | 24.28 |
EPS(TTM)2.6
EY3.39%
EPS(NY)2.85
Fwd EY3.71%
FCF(TTM)1.06
FCFY1.38%
OCF(TTM)1.49
OCFY1.95%
SpS9.44
BVpS17.27
TBVpS12.23
PEG (NY)N/A
PEG (5Y)4.14
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 32.1% | ||
| ROE | 41.28% | ||
| ROCE | 13.2% | ||
| ROIC | 11.82% | ||
| ROICexc | 17.78% | ||
| ROICexgc | 28.77% | ||
| OM | 27.71% | ||
| PM (TTM) | 75.48% | ||
| GM | 79.38% | ||
| FCFM | 11.25% |
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 Turnover0.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.96 | ||
| Debt/EBITDA | 0.35 | ||
| Cap/Depr | 165.1% | ||
| Cap/Sales | 4.57% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 51.91% | ||
| Profit Quality | 14.9% | ||
| Current Ratio | 4.45 | ||
| Quick Ratio | 3.66 | ||
| Altman-Z | 12.05 |
F-Score7
WACC8.91%
ROIC/WACC1.33
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-2.49%
EPS Next 2Y4.29%
EPS Next 3Y6.72%
EPS Next 5Y9.07%
Revenue 1Y (TTM)-6%
Revenue growth 3Y1.3%
Revenue growth 5Y4.58%
Sales Q2Q%-11.61%
Revenue Next Year2.36%
Revenue Next 2Y5.89%
Revenue Next 3Y7.35%
Revenue Next 5Y8.27%
EBIT growth 1Y-8.81%
EBIT growth 3Y-4.72%
EBIT growth 5Y3.49%
EBIT Next Year8.84%
EBIT Next 3Y11%
EBIT Next 5Y11.13%
FCF growth 1Y-36.77%
FCF growth 3Y-42.99%
FCF growth 5Y-22.01%
OCF growth 1Y-29.28%
OCF growth 3Y-32.1%
OCF growth 5Y-14.39%