EDWARDS LIFESCIENCES CORP (EW) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EW - US28176E1082 - Common Stock
85.14 USD
+1.68 (+2.01%)
85.05 USD
-0.09 (-0.11%)
EW gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 186 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 is not valued too expensively and it also shows a decent growth rate. This makes EW very considerable 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
- Looking at the Return On Assets, with a value of 10.31%, EW belongs to the top of the industry, outperforming 94.62% 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 89.25% of its industry peers.
- EW has a Return On Invested Capital of 12.50%. This is amongst the best in the industry. EW outperforms 93.01% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for EW is significantly above the industry average of 8.84%.
| 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
- EW's Profit Margin of 23.25% is amongst the best of the industry. EW outperforms 94.62% of its industry peers.
- EW's Profit Margin has improved in the last couple of years.
- EW has a Operating Margin of 27.73%. This is amongst the best in the industry. EW outperforms 96.24% 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 90.32% of the companies in the same industry.
- EW's Gross Margin has been stable in the last couple of years.
| 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 just above the Cost of Capital (WACC), so EW is still creating some value.
- Compared to 1 year ago, EW has less shares outstanding
- EW has less shares outstanding than it did 5 years ago.
- EW has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 12.25 indicates that EW is not in any danger for bankruptcy at the moment.
- EW's Altman-Z score of 12.25 is amongst the best of the industry. EW outperforms 89.25% 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.
- Looking at the Debt to FCF ratio, with a value of 0.75, EW belongs to the top of the industry, outperforming 90.86% of the companies in the same industry.
- 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 67.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.75 | ||
| Altman-Z | 12.25 |
ROIC/WACC1.25
WACC10.02%
2.3 Liquidity
- A Current Ratio of 4.00 indicates that EW has no problem at all paying its short term obligations.
- EW has a Current ratio of 4.00. This is in the better half of the industry: EW outperforms 69.35% of its industry peers.
- A Quick Ratio of 3.29 indicates that EW has no problem at all paying its short term obligations.
- Looking at the Quick ratio, with a value of 3.29, EW is in the better half of the industry, outperforming 68.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4 | ||
| Quick Ratio | 3.29 |
3. Growth
3.1 Past
- EW shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.75%.
- Measured over the past 5 years, EW shows a small growth in Earnings Per Share. The EPS has been growing by 7.13% on average per year.
- Looking at the last year, EW shows a small growth in Revenue. The Revenue has grown by 4.67% 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)-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
- Based on estimates for the next years, EW will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.40% on average per year.
- The Revenue is expected to grow by 8.47% on average over the next years. This is quite good.
EPS Next Y1.27%
EPS Next 2Y6.3%
EPS Next 3Y7.79%
EPS Next 5Y9.4%
Revenue Next Year4.68%
Revenue Next 2Y7.17%
Revenue Next 3Y8.07%
Revenue Next 5Y8.47%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- 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
- With a Price/Earnings ratio of 33.13, 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 73.12% of the companies are valued more expensively.
- EW is valuated rather expensively when we compare the Price/Earnings ratio to 26.94, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 28.76, EW can be considered very expensive at the moment.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of EW indicates a somewhat cheap valuation: EW is cheaper than 73.66% of the companies listed in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 23.94. EW is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.13 | ||
| Fwd PE | 28.76 |
4.2 Price Multiples
- 73.12% of the companies in the same industry are more expensive than EW, based on the Enterprise Value to EBITDA ratio.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of EW indicates a somewhat cheap valuation: EW is cheaper than 72.04% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 61.79 | ||
| EV/EBITDA | 24.62 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- EW has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)26.15
PEG (5Y)4.65
EPS Next 2Y6.3%
EPS Next 3Y7.79%
5. Dividend
5.1 Amount
- EW does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
85.14
+1.68 (+2.01%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)10-30 2025-10-30/amc
Earnings (Next)02-10 2026-02-10/amc
Inst Owners89.94%
Inst Owner Change0.09%
Ins Owners0.11%
Ins Owner Change-1.3%
Market Cap49.41B
Revenue(TTM)5.88B
Net Income(TTM)1.37B
Analysts79.52
Price Target97.99 (15.09%)
Short Float %1.25%
Short Ratio2.14
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)2.26%
PT rev (3m)9.1%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.81%
EPS NY rev (1m)-0.24%
EPS NY rev (3m)3.07%
Revenue NQ rev (1m)0.19%
Revenue NQ rev (3m)0.38%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)0.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.13 | ||
| Fwd PE | 28.76 | ||
| P/S | 8.4 | ||
| P/FCF | 61.79 | ||
| P/OCF | 48.59 | ||
| P/B | 4.84 | ||
| P/tB | 6.76 | ||
| EV/EBITDA | 24.62 |
EPS(TTM)2.57
EY3.02%
EPS(NY)2.96
Fwd EY3.48%
FCF(TTM)1.38
FCFY1.62%
OCF(TTM)1.75
OCFY2.06%
SpS10.14
BVpS17.59
TBVpS12.59
PEG (NY)26.15
PEG (5Y)4.65
Graham Number31.89
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 | 12.25 |
F-Score6
WACC10.02%
ROIC/WACC1.25
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 Y1.27%
EPS Next 2Y6.3%
EPS Next 3Y7.79%
EPS Next 5Y9.4%
Revenue 1Y (TTM)4.67%
Revenue growth 3Y1.3%
Revenue growth 5Y4.58%
Sales Q2Q%14.67%
Revenue Next Year4.68%
Revenue Next 2Y7.17%
Revenue Next 3Y8.07%
Revenue Next 5Y8.47%
EBIT growth 1Y4.68%
EBIT growth 3Y-4.72%
EBIT growth 5Y3.49%
EBIT Next Year13%
EBIT Next 3Y12.27%
EBIT Next 5Y12.3%
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 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 9 / 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 1.27% in the next year.