EDWARDS LIFESCIENCES CORP (EW) Stock Fundamental Analysis
USA - NYSE:EW - US28176E1082 - Common Stock
74.64 USD
+1.99 (+2.74%)
74.5 USD
-0.14 (-0.19%)
We assign a fundamental rating of 7 out of 10 to EW. EW was compared to 190 industry peers in the Health Care Equipment & Supplies industry. Both the health and profitability get an excellent rating, making EW a very profitable company, without any liquidiy or solvency issues. EW is not valued too expensively and it also shows a decent growth rate. With these ratings, EW could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
EW had positive earnings in the past year.
EW had a positive operating cash flow in the past year.
Each year in the past 5 years EW has been profitable.
In the past 5 years EW always reported a positive cash flow from operatings.
1.2 Ratios
EW has a Return On Assets of 30.75%. This is amongst the best in the industry. EW outperforms 99.48% of its industry peers.
EW's Return On Equity of 39.33% is amongst the best of the industry. EW outperforms 98.95% of its industry peers.
The Return On Invested Capital of EW (11.77%) is better than 92.15% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for EW is significantly above the industry average of 8.88%.
The last Return On Invested Capital (11.77%) for EW is well below the 3 year average (15.82%), which needs to be investigated, but indicates that EW had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 30.75% | ||
| ROE | 39.33% | ||
| ROIC | 11.77% |
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 72.96% is amongst the best of the industry. EW outperforms 98.43% of its industry peers.
In the last couple of years the Profit Margin of EW has grown nicely.
The Operating Margin of EW (27.94%) is better than 94.76% of its industry peers.
EW's Operating Margin has been stable in the last couple of years.
EW's Gross Margin of 78.87% is amongst the best of the industry. EW outperforms 91.62% 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 | 27.94% | ||
| PM (TTM) | 72.96% | ||
| GM | 78.87% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 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
EW has an Altman-Z score of 11.64. This indicates that EW is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 11.64, EW belongs to the top of the industry, outperforming 90.05% of the companies in the same industry.
EW has a debt to FCF ratio of 1.03. This is a very positive value and a sign of high solvency as it would only need 1.03 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 1.03, EW belongs to the best of the industry, outperforming 91.62% 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.
Looking at the Debt to Equity ratio, with a value of 0.06, EW is in the better half of the industry, outperforming 68.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 1.03 | ||
| Altman-Z | 11.64 |
ROIC/WACC1.37
WACC8.58%
2.3 Liquidity
A Current Ratio of 4.68 indicates that EW has no problem at all paying its short term obligations.
With a decent Current ratio value of 4.68, EW is doing good in the industry, outperforming 75.39% of the companies in the same industry.
A Quick Ratio of 3.87 indicates that EW has no problem at all paying its short term obligations.
EW has a better Quick ratio (3.87) than 73.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.68 | ||
| Quick Ratio | 3.87 |
3. Growth
3.1 Past
The earnings per share for EW have decreased by -0.77% 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 7.13% on average per year.
Looking at the last year, EW shows a decrease in Revenue. The Revenue has decreased by -1.09% 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)-0.77%
EPS 3Y5.52%
EPS 5Y7.13%
EPS Q2Q%-4.29%
Revenue 1Y (TTM)-1.09%
Revenue growth 3Y1.3%
Revenue growth 5Y4.58%
Sales Q2Q%-6.13%
3.2 Future
The Earnings Per Share is expected to grow by 9.38% on average over the next years. This is quite good.
The Revenue is expected to grow by 8.39% on average over the next years. This is quite good.
EPS Next Y-1.75%
EPS Next 2Y4.72%
EPS Next 3Y7.26%
EPS Next 5Y9.38%
Revenue Next Year3.65%
Revenue Next 2Y6.66%
Revenue Next 3Y7.84%
Revenue Next 5Y8.39%
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
EW is valuated quite expensively with a Price/Earnings ratio of 29.04.
Based on the Price/Earnings ratio, EW is valued a bit cheaper than the industry average as 73.82% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.42. EW is around the same levels.
The Price/Forward Earnings ratio is 25.98, which means the current valuation is very expensive for EW.
73.82% of the companies in the same industry are more expensive than EW, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of EW to the average of the S&P500 Index (22.94), we can say EW is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.04 | ||
| Fwd PE | 25.98 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EW is valued a bit cheaper than 74.35% of the companies in the same industry.
72.25% of the companies in the same industry are more expensive than EW, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 75.83 | ||
| EV/EBITDA | 22.74 |
4.3 Compensation for Growth
The excellent profitability rating of EW may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)4.07
EPS Next 2Y4.72%
EPS Next 3Y7.26%
5. Dividend
5.1 Amount
No dividends for EW!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
74.64
+1.99 (+2.74%)
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-0.33%
Ins Owners0.16%
Ins Owner Change4.89%
Market Cap43.82B
Analysts76.28
Price Target89.82 (20.34%)
Short Float %1.25%
Short Ratio1.58
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)4.25%
Min EPS beat(2)4.11%
Max EPS beat(2)4.4%
EPS beat(4)4
Avg EPS beat(4)3.37%
Min EPS beat(4)1.57%
Max EPS beat(4)4.4%
EPS beat(8)4
Avg EPS beat(8)0.66%
EPS beat(12)5
Avg EPS beat(12)0.01%
EPS beat(16)6
Avg EPS beat(16)-0.9%
Revenue beat(2)0
Avg Revenue beat(2)-1.11%
Min Revenue beat(2)-2.1%
Max Revenue beat(2)-0.12%
Revenue beat(4)0
Avg Revenue beat(4)-4.22%
Min Revenue beat(4)-13.79%
Max Revenue beat(4)-0.12%
Revenue beat(8)0
Avg Revenue beat(8)-3.15%
Revenue beat(12)1
Avg Revenue beat(12)-2.51%
Revenue beat(16)1
Avg Revenue beat(16)-2.76%
PT rev (1m)-0.39%
PT rev (3m)8.54%
EPS NQ rev (1m)0.67%
EPS NQ rev (3m)-0.98%
EPS NY rev (1m)0%
EPS NY rev (3m)0.7%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)0.98%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.04 | ||
| Fwd PE | 25.98 | ||
| P/S | 7.71 | ||
| P/FCF | 75.83 | ||
| P/OCF | 55.13 | ||
| P/B | 4.16 | ||
| P/tB | 5.77 | ||
| EV/EBITDA | 22.74 |
EPS(TTM)2.57
EY3.44%
EPS(NY)2.87
Fwd EY3.85%
FCF(TTM)0.98
FCFY1.32%
OCF(TTM)1.35
OCFY1.81%
SpS9.68
BVpS17.96
TBVpS12.94
PEG (NY)N/A
PEG (5Y)4.07
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 30.75% | ||
| ROE | 39.33% | ||
| ROCE | 13.14% | ||
| ROIC | 11.77% | ||
| ROICexc | 17.73% | ||
| ROICexgc | 28.04% | ||
| OM | 27.94% | ||
| PM (TTM) | 72.96% | ||
| GM | 78.87% | ||
| FCFM | 10.17% |
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%
ROICexcg growth 3Y-5.47%
ROICexcg 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-Score7
Asset Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 1.03 | ||
| Debt/EBITDA | 0.34 | ||
| Cap/Depr | 142.95% | ||
| Cap/Sales | 3.82% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 45.68% | ||
| Profit Quality | 13.93% | ||
| Current Ratio | 4.68 | ||
| Quick Ratio | 3.87 | ||
| Altman-Z | 11.64 |
F-Score7
WACC8.58%
ROIC/WACC1.37
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)-0.77%
EPS 3Y5.52%
EPS 5Y7.13%
EPS Q2Q%-4.29%
EPS Next Y-1.75%
EPS Next 2Y4.72%
EPS Next 3Y7.26%
EPS Next 5Y9.38%
Revenue 1Y (TTM)-1.09%
Revenue growth 3Y1.3%
Revenue growth 5Y4.58%
Sales Q2Q%-6.13%
Revenue Next Year3.65%
Revenue Next 2Y6.66%
Revenue Next 3Y7.84%
Revenue Next 5Y8.39%
EBIT growth 1Y0.21%
EBIT growth 3Y-4.72%
EBIT growth 5Y3.49%
EBIT Next Year10.47%
EBIT Next 3Y11.73%
EBIT Next 5Y12.05%
FCF growth 1Y-15.26%
FCF growth 3Y-42.99%
FCF growth 5Y-22.01%
OCF growth 1Y-15.47%
OCF growth 3Y-32.1%
OCF growth 5Y-14.39%