EDWARDS LIFESCIENCES CORP (EW) Stock Fundamental Analysis
USA - NYSE:EW - US28176E1082 - Common Stock
84.74 USD
-1.56 (-1.81%)
84.74 USD
0 (0%)
Overall EW gets a fundamental rating of 7 out of 10. We evaluated EW against 188 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 has a decent growth rate and is not valued too expensively. These ratings could make EW a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
EW had positive earnings in the past year.
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 10.31%, EW belongs to the best of the industry, outperforming 93.09% of the companies in the same industry.
EW has a Return On Equity of 13.40%. This is amongst the best in the industry. EW outperforms 88.83% of its industry peers.
EW's Return On Invested Capital of 12.50% is amongst the best of the industry. EW outperforms 92.55% of its industry peers.
The Average Return On Invested Capital over the past 3 years for EW is significantly above the industry average of 8.98%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.31% | ||
| ROE | 13.4% | ||
| ROIC | 12.5% |
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
The Profit Margin of EW (23.25%) is better than 93.62% of its industry peers.
In the last couple of years the Profit Margin of EW has grown nicely.
EW's Operating Margin of 27.73% is amongst the best of the industry. EW outperforms 95.74% of its industry peers.
EW's Operating Margin has been stable in the last couple of years.
With an excellent Gross Margin value of 78.19%, EW belongs to the best of the industry, outperforming 91.49% 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 | 27.73% | ||
| PM (TTM) | 23.25% | ||
| GM | 78.19% |
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 well above the Cost of Capital (WACC), so EW is creating 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 12.51 indicates that EW is not in any danger for bankruptcy at the moment.
EW's Altman-Z score of 12.51 is amongst the best of the industry. EW outperforms 91.49% of its industry peers.
The Debt to FCF ratio of EW is 0.75, which is an excellent value as it means it would take EW, only 0.75 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of EW (0.75) is better than 91.49% 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.
EW's Debt to Equity ratio of 0.06 is fine compared to the rest of the industry. EW outperforms 67.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.75 | ||
| Altman-Z | 12.51 |
ROIC/WACC1.44
WACC8.71%
2.3 Liquidity
EW has a Current Ratio of 4.00. 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 4.00, EW is in the better half of the industry, outperforming 70.21% of the companies in the same industry.
EW has a Quick Ratio of 3.29. This indicates that EW is financially healthy and has no problem in meeting its short term obligations.
EW has a Quick ratio of 3.29. This is in the better half of the industry: EW outperforms 70.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4 | ||
| Quick Ratio | 3.29 |
3. Growth
3.1 Past
The earnings per share for EW have decreased by -3.75% 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 small growth in Revenue. The Revenue has grown by 4.67% in the last year.
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)-3.75%
EPS 3Y5.52%
EPS 5Y7.13%
EPS Q2Q%0%
Revenue 1Y (TTM)4.67%
Revenue growth 3Y1.3%
Revenue growth 5Y4.58%
Sales Q2Q%14.67%
3.2 Future
The Earnings Per Share is expected to grow by 9.50% 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 8.55% on average per year.
EPS Next Y0.42%
EPS Next 2Y5.67%
EPS Next 3Y7.57%
EPS Next 5Y9.5%
Revenue Next Year4.33%
Revenue Next 2Y7.03%
Revenue Next 3Y7.98%
Revenue Next 5Y8.55%
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
A Price/Earnings ratio of 32.97 indicates a quite expensive valuation of EW.
71.81% of the companies in the same industry are more expensive than EW, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 25.56, EW is valued a bit more expensive.
With a Price/Forward Earnings ratio of 28.97, EW can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, EW is valued a bit cheaper than 72.34% of the companies in the same industry.
EW's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 34.62.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.97 | ||
| Fwd PE | 28.97 |
4.2 Price Multiples
72.34% of the companies in the same industry are more expensive than EW, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, EW is valued a bit cheaper than the industry average as 71.81% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 62.22 | ||
| EV/EBITDA | 25.36 |
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.
PEG (NY)77.8
PEG (5Y)4.62
EPS Next 2Y5.67%
EPS Next 3Y7.57%
5. Dividend
5.1 Amount
No dividends for EW!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
84.74
-1.56 (-1.81%)
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-1.29%
Ins Owners0.16%
Ins Owner Change0.11%
Market Cap49.75B
Revenue(TTM)5.88B
Net Income(TTM)1.37B
Analysts77.67
Price Target89.77 (5.94%)
Short Float %1.57%
Short Ratio1.9
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)7.01%
Min EPS beat(2)4.4%
Max EPS beat(2)9.63%
EPS beat(4)4
Avg EPS beat(4)5.38%
Min EPS beat(4)3.4%
Max EPS beat(4)9.63%
EPS beat(8)5
Avg EPS beat(8)2.27%
EPS beat(12)6
Avg EPS beat(12)1.21%
EPS beat(16)7
Avg EPS beat(16)-0.18%
Revenue beat(2)1
Avg Revenue beat(2)0.37%
Min Revenue beat(2)-0.12%
Max Revenue beat(2)0.85%
Revenue beat(4)1
Avg Revenue beat(4)-0.56%
Min Revenue beat(4)-2.1%
Max Revenue beat(4)0.85%
Revenue beat(8)1
Avg Revenue beat(8)-2.7%
Revenue beat(12)2
Avg Revenue beat(12)-2.12%
Revenue beat(16)2
Avg Revenue beat(16)-2.48%
PT rev (1m)-0.05%
PT rev (3m)0.05%
EPS NQ rev (1m)1.1%
EPS NQ rev (3m)2.4%
EPS NY rev (1m)2.21%
EPS NY rev (3m)2.92%
Revenue NQ rev (1m)-0.13%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0.65%
Revenue NY rev (3m)0.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.97 | ||
| Fwd PE | 28.97 | ||
| P/S | 8.46 | ||
| P/FCF | 62.22 | ||
| P/OCF | 48.93 | ||
| P/B | 4.88 | ||
| P/tB | 6.81 | ||
| EV/EBITDA | 25.36 |
EPS(TTM)2.57
EY3.03%
EPS(NY)2.93
Fwd EY3.45%
FCF(TTM)1.36
FCFY1.61%
OCF(TTM)1.73
OCFY2.04%
SpS10.02
BVpS17.38
TBVpS12.44
PEG (NY)77.8
PEG (5Y)4.62
Graham Number31.7
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.31% | ||
| ROE | 13.4% | ||
| ROCE | 13.97% | ||
| ROIC | 12.5% | ||
| ROICexc | 18.63% | ||
| ROICexgc | 29.56% | ||
| OM | 27.73% | ||
| PM (TTM) | 23.25% | ||
| GM | 78.19% | ||
| FCFM | 13.59% |
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-Score6
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.75 | ||
| Debt/EBITDA | 0.33 | ||
| Cap/Depr | 138.79% | ||
| Cap/Sales | 3.69% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 56.86% | ||
| Profit Quality | 58.45% | ||
| Current Ratio | 4 | ||
| Quick Ratio | 3.29 | ||
| Altman-Z | 12.51 |
F-Score6
WACC8.71%
ROIC/WACC1.44
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)-3.75%
EPS 3Y5.52%
EPS 5Y7.13%
EPS Q2Q%0%
EPS Next Y0.42%
EPS Next 2Y5.67%
EPS Next 3Y7.57%
EPS Next 5Y9.5%
Revenue 1Y (TTM)4.67%
Revenue growth 3Y1.3%
Revenue growth 5Y4.58%
Sales Q2Q%14.67%
Revenue Next Year4.33%
Revenue Next 2Y7.03%
Revenue Next 3Y7.98%
Revenue Next 5Y8.55%
EBIT growth 1Y4.68%
EBIT growth 3Y-4.72%
EBIT growth 5Y3.49%
EBIT Next Year10.47%
EBIT Next 3Y11.73%
EBIT Next 5Y12.76%
FCF growth 1Y1.45%
FCF growth 3Y-42.99%
FCF growth 5Y-22.01%
OCF growth 1Y-2.42%
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 32.97 and the Price/Book (PB) ratio is 4.88.
Can you provide the financial health for EW stock?
The financial health rating of EDWARDS LIFESCIENCES CORP (EW) is 9 / 10.