EDWARDS LIFESCIENCES CORP (EW) Stock Fundamental Analysis
NYSE:EW • US28176E1082
79.78 USD
+0.86 (+1.09%)
At close: Feb 20, 2026
79.78 USD
0 (0%)
After Hours: 2/20/2026, 7:00:00 PM
We assign a fundamental rating of 6 out of 10 to EW. EW was compared to 185 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 decent growth rate and is not valued too expensively. This makes EW very considerable 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.
- Of the past 5 years EW 4 years had a positive operating cash flow.
1.2 Ratios
- EW's Return On Assets of 10.31% is amongst the best of the industry. EW outperforms 94.59% of its industry peers.
- EW has a better Return On Equity (13.40%) than 89.19% of its industry peers.
- With an excellent Return On Invested Capital value of 12.09%, EW belongs to the best of the industry, outperforming 92.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.31% | ||
| ROE | 13.4% | ||
| ROIC | 12.09% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- Looking at the Profit Margin, with a value of 23.25%, EW belongs to the top of the industry, outperforming 95.14% of the companies in the same industry.
- EW's Profit Margin has been stable in the last couple of years.
- The Operating Margin of EW (27.73%) is better than 96.22% of its industry peers.
- In the last couple of years the Operating Margin of EW has declined.
- EW has a better Gross Margin (78.19%) than 90.81% of its industry peers.
- 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-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. Health
2.1 Basic Checks
- EW has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- There is no outstanding debt for EW. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
- EW has an Altman-Z score of 11.73. This indicates that EW is financially healthy and has little risk of bankruptcy at the moment.
- EW has a Altman-Z score of 11.73. This is amongst the best in the industry. EW outperforms 90.81% of its industry peers.
- EW has a debt to FCF ratio of 0.75. This is a very positive value and a sign of high solvency as it would only need 0.75 years to pay back of all of its debts.
- The Debt to FCF ratio of EW (0.75) is better than 90.81% 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 67.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.75 | ||
| Altman-Z | 11.73 |
ROIC/WACC1.21
WACC10%
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 68.11% 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 better Quick ratio (3.29) than 68.11% 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 -2.29% in the last year.
- Measured over the past 5 years, EW shows a small growth in Earnings Per Share. The EPS has been growing by 6.67% on average per year.
- The Revenue has grown by 10.86% in the past year. This is quite good.
- Measured over the past years, EW shows a small growth in Revenue. The Revenue has been growing by 6.70% on average per year.
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
- Based on estimates for the next years, EW will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.79% on average per year.
- EW is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.72% yearly.
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. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 31.16, 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 73.51% of the companies are valued more expensively.
- The average S&P500 Price/Earnings ratio is at 26.99. EW is around the same levels.
- The Price/Forward Earnings ratio is 26.83, which means the current valuation is very expensive for EW.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of EW indicates a somewhat cheap valuation: EW is cheaper than 74.05% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 28.06, EW is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.16 | ||
| Fwd PE | 26.83 |
4.2 Price Multiples
- EW's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. EW is cheaper than 73.51% 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 71.89% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 57.9 | ||
| EV/EBITDA | 23.15 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates EW does not grow enough to justify the current Price/Earnings ratio.
- The decent 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)1.93
PEG (5Y)4.67
EPS Next 2Y13.34%
EPS Next 3Y13.01%
5. Dividend
5.1 Amount
- EW does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
79.78
+0.86 (+1.09%)
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 Change-0.52%
Ins Owners0.11%
Ins Owner Change-1%
Market Cap46.30B
Revenue(TTM)6.07B
Net Income(TTM)1.37B
Analysts79.53
Price Target98.01 (22.85%)
Short Float %1.41%
Short Ratio2.09
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)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)0.92%
PT rev (3m)9.17%
EPS NQ rev (1m)-0.25%
EPS NQ rev (3m)-0.06%
EPS NY rev (1m)0%
EPS NY rev (3m)0.84%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.38%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)0.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.16 | ||
| Fwd PE | 26.83 | ||
| P/S | 7.87 | ||
| P/FCF | 57.9 | ||
| P/OCF | 45.53 | ||
| P/B | 4.54 | ||
| P/tB | 6.34 | ||
| EV/EBITDA | 23.15 |
EPS(TTM)2.56
EY3.21%
EPS(NY)2.97
Fwd EY3.73%
FCF(TTM)1.38
FCFY1.73%
OCF(TTM)1.75
OCFY2.2%
SpS10.14
BVpS17.59
TBVpS12.59
PEG (NY)1.93
PEG (5Y)4.67
Graham Number31.83
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.31% | ||
| ROE | 13.4% | ||
| ROCE | 13.97% | ||
| ROIC | 12.09% | ||
| ROICexc | 18.01% | ||
| ROICexgc | 28.58% | ||
| OM | 27.73% | ||
| PM (TTM) | 23.25% | ||
| GM | 78.19% | ||
| FCFM | 13.59% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
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-Score5
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 | 11.73 |
F-Score5
WACC10%
ROIC/WACC1.21
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
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 1Y4.68%
EBIT growth 3Y1.54%
EBIT growth 5Y4.82%
EBIT Next Year24.3%
EBIT Next 3Y14.62%
EBIT Next 5Y14.72%
FCF growth 1Y67.7%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y26.09%
OCF growth 3YN/A
OCF growth 5YN/A
EDWARDS LIFESCIENCES CORP / EW FAQ
What is the fundamental rating for EW stock?
ChartMill assigns a fundamental rating of 6 / 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 7 / 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.