EDWARDS LIFESCIENCES CORP (EW) Stock Fundamental Analysis
USA - NYSE:EW - US28176E1082 - Common Stock
86.3 USD
+0.19 (+0.22%)
86.3 USD
0 (0%)
EW gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 189 industry peers in the Health Care Equipment & Supplies industry. EW gets an excellent profitability rating and is at the same time showing great financial health properties. EW is not valued too expensively and it also shows a decent growth rate. These ratings could make EW a good candidate 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.
In the past 5 years EW has always been profitable.
EW had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
EW has a better Return On Assets (30.75%) than 99.47% of its industry peers.
EW's Return On Equity of 39.33% is amongst the best of the industry. EW outperforms 98.94% of its industry peers.
Looking at the Return On Invested Capital, with a value of 11.77%, EW belongs to the top of the industry, outperforming 92.59% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for EW is significantly above the industry average of 8.99%.
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 Profit Margin of 72.96%. This is amongst the best in the industry. EW outperforms 97.88% of its industry peers.
EW's Profit Margin has improved in the last couple of years.
EW has a better Operating Margin (27.94%) than 95.77% of its industry peers.
In the last couple of years the Operating Margin of EW has remained more or less at the same level.
With an excellent Gross Margin value of 78.87%, EW belongs to the best of the industry, outperforming 91.53% of the companies in the same industry.
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.
Compared to 1 year ago, EW has less shares outstanding
EW has less shares outstanding than it did 5 years ago.
The debt/assets ratio for EW has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 13.01 indicates that EW is not in any danger for bankruptcy at the moment.
The Altman-Z score of EW (13.01) is better than 92.06% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 1.03, EW belongs to the top of the industry, outperforming 91.53% 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.
EW has a Debt to Equity ratio of 0.06. This is in the better half of the industry: EW outperforms 67.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 1.03 | ||
| Altman-Z | 13.01 |
ROIC/WACC1.36
WACC8.68%
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 76.19% of the companies in the same industry.
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.
Looking at the Quick ratio, with a value of 3.87, EW is in the better half of the industry, outperforming 74.60% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.68 | ||
| Quick Ratio | 3.87 |
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.
The Revenue has been growing slightly by 4.58% on average over the past years.
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 9.50% on average per year.
Based on estimates for the next years, EW will show a quite strong growth in Revenue. The Revenue will grow by 8.55% on average per year.
EPS Next Y0.42%
EPS Next 2Y5.67%
EPS Next 3Y7.57%
EPS Next 5Y9.5%
Revenue Next Year4.33%
Revenue Next 2Y7.03%
Revenue Next 3Y7.98%
Revenue Next 5Y8.55%
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
The Price/Earnings ratio is 33.58, 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 70.90% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 25.89. EW is valued slightly more expensive when compared to this.
The Price/Forward Earnings ratio is 29.50, which means the current valuation is very expensive for EW.
Based on the Price/Forward Earnings ratio, EW is valued a bit cheaper than the industry average as 73.02% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 34.59. EW is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.58 | ||
| Fwd PE | 29.5 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EW is valued a bit cheaper than 72.49% of the companies in the same industry.
69.84% 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 | 87.67 | ||
| EV/EBITDA | 26.61 |
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.
EW has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)79.23
PEG (5Y)4.71
EPS Next 2Y5.67%
EPS Next 3Y7.57%
5. Dividend
5.1 Amount
No dividends for EW!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
86.3
+0.19 (+0.22%)
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-0.41%
Ins Owners0.16%
Ins Owner Change-1.08%
Market Cap50.67B
Revenue(TTM)5.88B
Net Income(TTM)4.15B
Analysts77.67
Price Target89.77 (4.02%)
Short Float %1.34%
Short Ratio1.83
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)-0.05%
PT rev (3m)7.27%
EPS NQ rev (1m)0.67%
EPS NQ rev (3m)0.9%
EPS NY rev (1m)2.21%
EPS NY rev (3m)2.92%
Revenue NQ rev (1m)0.13%
Revenue NQ rev (3m)0.06%
Revenue NY rev (1m)0.65%
Revenue NY rev (3m)0.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.58 | ||
| Fwd PE | 29.5 | ||
| P/S | 8.91 | ||
| P/FCF | 87.67 | ||
| P/OCF | 63.74 | ||
| P/B | 4.8 | ||
| P/tB | 6.67 | ||
| EV/EBITDA | 26.61 |
EPS(TTM)2.57
EY2.98%
EPS(NY)2.93
Fwd EY3.39%
FCF(TTM)0.98
FCFY1.14%
OCF(TTM)1.35
OCFY1.57%
SpS9.68
BVpS17.96
TBVpS12.94
PEG (NY)79.23
PEG (5Y)4.71
Graham Number32.23
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%
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-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 | 13.01 |
F-Score7
WACC8.68%
ROIC/WACC1.36
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 Y0.42%
EPS Next 2Y5.67%
EPS Next 3Y7.57%
EPS Next 5Y9.5%
Revenue 1Y (TTM)4.67%
Revenue growth 3Y1.3%
Revenue growth 5Y4.58%
Sales Q2Q%14.67%
Revenue Next Year4.33%
Revenue Next 2Y7.03%
Revenue Next 3Y7.98%
Revenue Next 5Y8.55%
EBIT growth 1Y0.21%
EBIT growth 3Y-4.72%
EBIT growth 5Y3.49%
EBIT Next Year10.47%
EBIT Next 3Y11.73%
EBIT Next 5Y12.76%
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%
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 of EDWARDS LIFESCIENCES CORP (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 valuation of EDWARDS LIFESCIENCES CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for EDWARDS LIFESCIENCES CORP (EW) is 33.58 and the Price/Book (PB) ratio is 4.8.
Can you provide the financial health for EW stock?
The financial health rating of EDWARDS LIFESCIENCES CORP (EW) is 9 / 10.