EDWARDS LIFESCIENCES CORP (EW) Fundamental Analysis & Valuation
NYSE:EW • US28176E1082
84.61 USD
-0.48 (-0.56%)
At close: Mar 12, 2026
84.61 USD
0 (0%)
After Hours: 3/12/2026, 8:04:00 PM
This EW fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
EW gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 184 industry peers in the Health Care Equipment & Supplies industry. EW has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. EW has a correct valuation and a medium growth rate. These ratings would make EW suitable for quality investing!
1. EW Profitability Analysis
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.
- Each year in the past 5 years EW had a positive operating cash flow.
1.2 Ratios
- With an excellent Return On Assets value of 7.84%, EW belongs to the best of the industry, outperforming 88.59% of the companies in the same industry.
- EW has a better Return On Equity (10.38%) than 84.24% of its industry peers.
- The Return On Invested Capital of EW (12.01%) is better than 92.39% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for EW is above the industry average of 9.18%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.84% | ||
| ROE | 10.38% | ||
| ROIC | 12.01% |
ROA(3y)18.26%
ROA(5y)18.16%
ROE(3y)24.41%
ROE(5y)25.04%
ROIC(3y)13.04%
ROIC(5y)15.54%
1.3 Margins
- With an excellent Profit Margin value of 17.69%, EW belongs to the best of the industry, outperforming 92.93% of the companies in the same industry.
- In the last couple of years the Profit Margin of EW has remained more or less at the same level.
- With an excellent Operating Margin value of 27.17%, EW belongs to the best of the industry, outperforming 95.65% of the companies in the same industry.
- In the last couple of years the Operating Margin of EW has declined.
- Looking at the Gross Margin, with a value of 78.01%, EW belongs to the top of the industry, outperforming 90.22% 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 | 27.17% | ||
| PM (TTM) | 17.69% | ||
| GM | 78.01% |
OM growth 3Y-8.34%
OM growth 5Y-1.77%
PM growth 3Y-19.64%
PM growth 5Y-1.18%
GM growth 3Y-2.35%
GM growth 5Y0.69%
2. EW Health Analysis
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.
- The number of shares outstanding for EW has been reduced compared to 5 years ago.
- Compared to 1 year ago, EW has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 11.55 indicates that EW is not in any danger for bankruptcy at the moment.
- EW's Altman-Z score of 11.55 is amongst the best of the industry. EW outperforms 91.85% of its industry peers.
- EW has a debt to FCF ratio of 0.45. This is a very positive value and a sign of high solvency as it would only need 0.45 years to pay back of all of its debts.
- With an excellent Debt to FCF ratio value of 0.45, EW belongs to the best of the industry, outperforming 90.76% 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.
- With a decent Debt to Equity ratio value of 0.06, EW is doing good in the industry, outperforming 68.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.45 | ||
| Altman-Z | 11.55 |
ROIC/WACC1.2
WACC9.99%
2.3 Liquidity
- A Current Ratio of 3.72 indicates that EW has no problem at all paying its short term obligations.
- With a decent Current ratio value of 3.72, EW is doing good in the industry, outperforming 63.04% of the companies in the same industry.
- EW has a Quick Ratio of 3.09. This indicates that EW is financially healthy and has no problem in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 3.09, EW is in the better half of the industry, outperforming 66.30% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.72 | ||
| Quick Ratio | 3.09 |
3. EW Growth Analysis
3.1 Past
- EW shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.29%.
- The Earnings Per Share has been growing slightly by 6.67% on average over the past years.
- EW shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.86%.
- The Revenue has been growing slightly by 6.70% on average over the past years.
EPS 1Y (TTM)-2.29%
EPS 3Y1.06%
EPS 5Y6.67%
EPS Q2Q%-1.69%
Revenue 1Y (TTM)10.86%
Revenue growth 3Y10.77%
Revenue growth 5Y6.7%
Sales Q2Q%13.26%
3.2 Future
- The Earnings Per Share is expected to grow by 12.79% on average over the next years. This is quite good.
- Based on estimates for the next years, EW will show a quite strong growth in Revenue. The Revenue will grow by 9.72% on average per year.
EPS Next Y16.14%
EPS Next 2Y13.34%
EPS Next 3Y13.01%
EPS Next 5Y12.79%
Revenue Next Year10.47%
Revenue Next 2Y10.14%
Revenue Next 3Y10.12%
Revenue Next 5Y9.72%
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. EW Valuation Analysis
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 33.05, which means the current valuation is very expensive for EW.
- EW's Price/Earnings ratio is a bit cheaper when compared to the industry. EW is cheaper than 72.28% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 25.71. EW is valued slightly more expensive when compared to this.
- EW is valuated quite expensively with a Price/Forward Earnings ratio of 28.46.
- Based on the Price/Forward Earnings ratio, EW is valued a bit cheaper than the industry average as 72.28% of the companies are valued more expensively.
- EW's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.05 | ||
| Fwd PE | 28.46 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EW indicates a somewhat cheap valuation: EW is cheaper than 72.28% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, EW is valued a bit cheaper than the industry average as 75.54% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.78 | ||
| EV/EBITDA | 24.63 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- The excellent profitability rating of EW may justify a higher PE ratio.
- A more expensive valuation may be justified as EW's earnings are expected to grow with 13.01% in the coming years.
PEG (NY)2.05
PEG (5Y)4.95
EPS Next 2Y13.34%
EPS Next 3Y13.01%
5. EW Dividend Analysis
5.1 Amount
- No dividends for EW!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
EW Fundamentals: All Metrics, Ratios and Statistics
84.61
-0.48 (-0.56%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)02-10 2026-02-10/amc
Earnings (Next)04-21 2026-04-21/amc
Inst Owners89.94%
Inst Owner Change1.03%
Ins Owners0.11%
Ins Owner Change-1.9%
Market Cap49.10B
Revenue(TTM)6.07B
Net Income(TTM)1.07B
Analysts79.53
Price Target97.45 (15.18%)
Short Float %1.38%
Short Ratio1.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)1
Avg EPS beat(2)0.39%
Min EPS beat(2)-8.84%
Max EPS beat(2)9.63%
EPS beat(4)3
Avg EPS beat(4)2.32%
Min EPS beat(4)-8.84%
Max EPS beat(4)9.63%
EPS beat(8)5
Avg EPS beat(8)1.48%
EPS beat(12)5
Avg EPS beat(12)0.35%
EPS beat(16)7
Avg EPS beat(16)-0.13%
Revenue beat(2)1
Avg Revenue beat(2)-0.31%
Min Revenue beat(2)-1.47%
Max Revenue beat(2)0.85%
Revenue beat(4)1
Avg Revenue beat(4)-0.71%
Min Revenue beat(4)-2.1%
Max Revenue beat(4)0.85%
Revenue beat(8)1
Avg Revenue beat(8)-2.84%
Revenue beat(12)2
Avg Revenue beat(12)-2.11%
Revenue beat(16)2
Avg Revenue beat(16)-2.28%
PT rev (1m)-0.57%
PT rev (3m)1.7%
EPS NQ rev (1m)5.73%
EPS NQ rev (3m)6.23%
EPS NY rev (1m)0%
EPS NY rev (3m)1.11%
Revenue NQ rev (1m)1.79%
Revenue NQ rev (3m)1.48%
Revenue NY rev (1m)0.67%
Revenue NY rev (3m)0.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.05 | ||
| Fwd PE | 28.46 | ||
| P/S | 8.09 | ||
| P/FCF | 36.78 | ||
| P/OCF | 30.78 | ||
| P/B | 4.75 | ||
| P/tB | 6.6 | ||
| EV/EBITDA | 24.63 |
EPS(TTM)2.56
EY3.03%
EPS(NY)2.97
Fwd EY3.51%
FCF(TTM)2.3
FCFY2.72%
OCF(TTM)2.75
OCFY3.25%
SpS10.46
BVpS17.81
TBVpS12.82
PEG (NY)2.05
PEG (5Y)4.95
Graham Number32.03
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.84% | ||
| ROE | 10.38% | ||
| ROCE | 13.87% | ||
| ROIC | 12.01% | ||
| ROICexc | 18.64% | ||
| ROICexgc | 29.98% | ||
| OM | 27.17% | ||
| PM (TTM) | 17.69% | ||
| GM | 78.01% | ||
| FCFM | 22% |
ROA(3y)18.26%
ROA(5y)18.16%
ROE(3y)24.41%
ROE(5y)25.04%
ROIC(3y)13.04%
ROIC(5y)15.54%
ROICexc(3y)18.54%
ROICexc(5y)20.56%
ROICexgc(3y)28.25%
ROICexgc(5y)29.44%
ROCE(3y)15.07%
ROCE(5y)17.95%
ROICexgc growth 3Y0.42%
ROICexgc growth 5Y-1.8%
ROICexc growth 3Y-6.11%
ROICexc growth 5Y-3.98%
OM growth 3Y-8.34%
OM growth 5Y-1.77%
PM growth 3Y-19.64%
PM growth 5Y-1.18%
GM growth 3Y-2.35%
GM growth 5Y0.69%
F-Score6
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.45 | ||
| Debt/EBITDA | 0.33 | ||
| Cap/Depr | 166.16% | ||
| Cap/Sales | 4.29% | ||
| Interest Coverage | 81.62 | ||
| Cash Conversion | 88.36% | ||
| Profit Quality | 124.36% | ||
| Current Ratio | 3.72 | ||
| Quick Ratio | 3.09 | ||
| Altman-Z | 11.55 |
F-Score6
WACC9.99%
ROIC/WACC1.2
Cap/Depr(3y)177.3%
Cap/Depr(5y)193.25%
Cap/Sales(3y)4.93%
Cap/Sales(5y)5.41%
Profit Quality(3y)58.49%
Profit Quality(5y)66.28%
High Growth Momentum
Growth
EPS 1Y (TTM)-2.29%
EPS 3Y1.06%
EPS 5Y6.67%
EPS Q2Q%-1.69%
EPS Next Y16.14%
EPS Next 2Y13.34%
EPS Next 3Y13.01%
EPS Next 5Y12.79%
Revenue 1Y (TTM)10.86%
Revenue growth 3Y10.77%
Revenue growth 5Y6.7%
Sales Q2Q%13.26%
Revenue Next Year10.47%
Revenue Next 2Y10.14%
Revenue Next 3Y10.12%
Revenue Next 5Y9.72%
EBIT growth 1Y11.04%
EBIT growth 3Y1.54%
EBIT growth 5Y4.82%
EBIT Next Year25.88%
EBIT Next 3Y16.1%
EBIT Next 5Y14.72%
FCF growth 1Y413.66%
FCF growth 3Y11.88%
FCF growth 5Y15.59%
OCF growth 1Y194.16%
OCF growth 3Y9.4%
OCF growth 5Y8.64%
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 for 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 8 / 10.
What is the earnings growth outlook for EDWARDS LIFESCIENCES CORP?
The Earnings per Share (EPS) of EDWARDS LIFESCIENCES CORP (EW) is expected to grow by 16.14% in the next year.