EDWARDS LIFESCIENCES CORP (EW)
US28176E1082 - Common Stock
Overall EW gets a fundamental rating of 7 out of 10. We evaluated EW against 195 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 is not valued too expensively and it also shows a decent growth rate. These ratings would make EW suitable 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
The Return On Assets of EW (14.98%) is better than 97.44% of its industry peers.
EW has a Return On Equity of 21.09%. This is amongst the best in the industry. EW outperforms 95.38% of its industry peers.
EW's Return On Invested Capital of 18.66% is amongst the best of the industry. EW outperforms 97.44% of its industry peers.
The Average Return On Invested Capital over the past 3 years for EW is significantly above the industry average of 8.50%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.98% | ||
| ROE | 21.09% | ||
| ROIC | 18.66% |
ROA(3y)17%
ROA(5y)15.7%
ROE(3y)24.35%
ROE(5y)23.26%
ROIC(3y)20.11%
ROIC(5y)19.51%
1.3 Margins
Looking at the Profit Margin, with a value of 23.35%, EW belongs to the top of the industry, outperforming 96.41% of the companies in the same industry.
EW's Profit Margin has improved in the last couple of years.
EW's Operating Margin of 29.22% is amongst the best of the industry. EW outperforms 96.92% of its industry peers.
EW's Operating Margin has been stable in the last couple of years.
With an excellent Gross Margin value of 77.02%, EW belongs to the best of the industry, outperforming 88.72% 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 | 29.22% | ||
| PM (TTM) | 23.35% | ||
| GM | 77.02% |
OM growth 3Y-0.54%
OM growth 5Y0.18%
PM growth 3Y7.55%
PM growth 5Y3.78%
GM growth 3Y0.73%
GM growth 5Y0.6%
2. Health
2.1 Basic Checks
EW has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, EW has less shares outstanding
Compared to 5 years ago, EW has less shares outstanding
EW has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 14.54 indicates that EW is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 14.54, EW belongs to the best of the industry, outperforming 91.79% of the companies in the same industry.
EW has a debt to FCF ratio of 0.95. This is a very positive value and a sign of high solvency as it would only need 0.95 years to pay back of all of its debts.
EW has a better Debt to FCF ratio (0.95) than 91.79% of its industry peers.
A Debt/Equity ratio of 0.09 indicates that EW is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.09, EW perfoms like the industry average, outperforming 58.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 0.95 | ||
| Altman-Z | 14.54 |
ROIC/WACC1.87
WACC9.99%
2.3 Liquidity
EW has a Current Ratio of 3.38. This indicates that EW is financially healthy and has no problem in meeting its short term obligations.
EW has a Current ratio (3.38) which is comparable to the rest of the industry.
A Quick Ratio of 2.40 indicates that EW has no problem at all paying its short term obligations.
EW has a Quick ratio (2.40) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.38 | ||
| Quick Ratio | 2.4 |
3. Growth
3.1 Past
EW shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.21%.
EW shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.89% yearly.
The Revenue has grown by 11.56% in the past year. This is quite good.
The Revenue has been growing by 10.03% on average over the past years. This is quite good.
EPS 1Y (TTM)1.21%
EPS 3Y10.64%
EPS 5Y9.89%
EPS growth Q2Q0%
Revenue 1Y (TTM)11.56%
Revenue growth 3Y11.04%
Revenue growth 5Y10.03%
Revenue growth Q2Q13.78%
3.2 Future
EW is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.79% yearly.
The Revenue is expected to grow by 10.37% on average over the next years. This is quite good.
EPS Next Y13.12%
EPS Next 2Y12.72%
EPS Next 3Y12.16%
EPS Next 5Y13.8%
Revenue Next Year9.26%
Revenue Next 2Y9.55%
Revenue Next 3Y9.43%
Revenue Next 5Y10.37%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 34.65, 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 75.90% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 24.95, EW is valued a bit more expensive.
The Price/Forward Earnings ratio is 30.63, which means the current valuation is very expensive for EW.
Based on the Price/Forward Earnings ratio, EW is valued a bit cheaper than 76.92% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of EW to the average of the S&P500 Index (21.40), we can say EW is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.65 | ||
| Fwd PE | 30.63 |
4.2 Price Multiples
74.36% 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 73.85% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 83.15 | ||
| EV/EBITDA | 26.74 |
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.
EW's earnings are expected to grow with 12.16% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.64
PEG (5Y)3.5
EPS Next 2Y12.72%
EPS Next 3Y12.16%
5. Dividend
5.1 Amount
No dividends for EW!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
EDWARDS LIFESCIENCES CORP
NYSE:EW (4/22/2024, 7:04:00 PM)
Premarket: 86.36 -0.6 (-0.69%)86.96
+1.02 (+1.19%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap52.34B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.65 | ||
| Fwd PE | 30.63 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.64
PEG (5Y)3.5
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.98% | ||
| ROE | 21.09% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 29.22% | ||
| PM (TTM) | 23.35% | ||
| GM | 77.02% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.64
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.38 | ||
| Quick Ratio | 2.4 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)1.21%
EPS 3Y10.64%
EPS 5Y
EPS growth Q2Q
EPS Next Y13.12%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)11.56%
Revenue growth 3Y11.04%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y