EDWARDS LIFESCIENCES CORP (EW) Stock Fundamental Analysis
NYSE:EW - US28176E1082 - Common Stock
81.83 USD
+0.67 (+0.83%)
81.83 USD
0 (0%)
EW gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 187 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 has a correct valuation and a medium 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.
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
The Return On Assets of EW (30.75%) is better than 99.47% of its industry peers.
With an excellent Return On Equity value of 39.33%, EW belongs to the best of the industry, outperforming 98.93% of the companies in the same industry.
The Return On Invested Capital of EW (11.77%) is better than 92.51% of its industry peers.
EW had an Average Return On Invested Capital over the past 3 years of 15.82%. This is significantly above the industry average of 8.18%.
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 has a better Profit Margin (72.96%) than 98.40% of its industry peers.
In the last couple of years the Profit Margin of EW has grown nicely.
EW's Operating Margin of 27.94% is amongst the best of the industry. EW outperforms 94.65% of its industry peers.
EW's Operating Margin has been stable in the last couple of years.
EW has a better Gross Margin (78.87%) than 91.98% of its industry peers.
EW's Gross Margin has been stable in the last couple of years.
| 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
EW has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is 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 12.50 indicates that EW is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 12.50, EW belongs to the top of the industry, outperforming 91.98% of the companies in the same industry.
The Debt to FCF ratio of EW is 1.03, which is an excellent value as it means it would take EW, only 1.03 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 1.03, EW belongs to the best of the industry, outperforming 91.44% 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 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 1.03 | ||
| Altman-Z | 12.5 |
ROIC/WACC1.33
WACC8.83%
2.3 Liquidity
EW has a Current Ratio of 4.68. This indicates that EW is financially healthy and has no problem in meeting its short term obligations.
EW's Current ratio of 4.68 is fine compared to the rest of the industry. EW outperforms 74.33% of its industry peers.
EW has a Quick Ratio of 3.87. This indicates that EW is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of EW (3.87) is better than 73.26% 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.
EW shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.13% yearly.
EW shows a decrease in Revenue. In the last year, the revenue decreased by -1.09%.
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)-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
Based on estimates for the next years, EW will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.33% on average per year.
The Revenue is expected to grow by 8.44% on average over the next years. This is quite good.
EPS Next Y-1.88%
EPS Next 2Y4.69%
EPS Next 3Y7.22%
EPS Next 5Y9.33%
Revenue Next Year3.67%
Revenue Next 2Y6.67%
Revenue Next 3Y7.85%
Revenue Next 5Y8.44%
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 31.84 indicates a quite expensive valuation of EW.
Based on the Price/Earnings ratio, EW is valued a bit cheaper than 73.26% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.24, EW is valued at the same level.
Based on the Price/Forward Earnings ratio of 28.50, the valuation of EW can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of EW indicates a somewhat cheap valuation: EW is cheaper than 72.73% of the companies listed in the same industry.
EW's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 35.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.84 | ||
| Fwd PE | 28.5 |
4.2 Price Multiples
72.73% 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 71.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 83.13 | ||
| EV/EBITDA | 25.16 |
4.3 Compensation for Growth
EW has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)4.47
EPS Next 2Y4.69%
EPS Next 3Y7.22%
5. Dividend
5.1 Amount
No dividends for EW!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
81.83
+0.67 (+0.83%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners88.93%
Inst Owner Change-1.05%
Ins Owners0.16%
Ins Owner Change4.26%
Market Cap48.04B
Analysts76.28
Price Target89.98 (9.96%)
Short Float %1.38%
Short Ratio1.93
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)7.52%
PT rev (3m)9.74%
EPS NQ rev (1m)-1.86%
EPS NQ rev (3m)-3.65%
EPS NY rev (1m)0.56%
EPS NY rev (3m)0.69%
Revenue NQ rev (1m)0.98%
Revenue NQ rev (3m)3.08%
Revenue NY rev (1m)1.25%
Revenue NY rev (3m)1.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.84 | ||
| Fwd PE | 28.5 | ||
| P/S | 8.45 | ||
| P/FCF | 83.13 | ||
| P/OCF | 60.44 | ||
| P/B | 4.56 | ||
| P/tB | 6.32 | ||
| EV/EBITDA | 25.16 |
EPS(TTM)2.57
EY3.14%
EPS(NY)2.87
Fwd EY3.51%
FCF(TTM)0.98
FCFY1.2%
OCF(TTM)1.35
OCFY1.65%
SpS9.68
BVpS17.96
TBVpS12.94
PEG (NY)N/A
PEG (5Y)4.47
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 | 12.5 |
F-Score7
WACC8.83%
ROIC/WACC1.33
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-1.88%
EPS Next 2Y4.69%
EPS Next 3Y7.22%
EPS Next 5Y9.33%
Revenue 1Y (TTM)-1.09%
Revenue growth 3Y1.3%
Revenue growth 5Y4.58%
Sales Q2Q%-6.13%
Revenue Next Year3.67%
Revenue Next 2Y6.67%
Revenue Next 3Y7.85%
Revenue Next 5Y8.44%
EBIT growth 1Y0.21%
EBIT growth 3Y-4.72%
EBIT growth 5Y3.49%
EBIT Next Year10.05%
EBIT Next 3Y11.53%
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%