EDWARDS LIFESCIENCES CORP (EWL.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:EWL - US28176E1082 - Common Stock
72.85 EUR
+0.44 (+0.61%)
We assign a fundamental rating of 7 out of 10 to EWL. EWL was compared to 67 industry peers in the Health Care Equipment & Supplies industry. EWL gets an excellent profitability rating and is at the same time showing great financial health properties. EWL is valied quite expensively at the moment, while it does show a decent growth rate. These ratings could make EWL a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
- In the past year EWL was profitable.
- EWL had a positive operating cash flow in the past year.
- EWL had positive earnings in each of the past 5 years.
- Each year in the past 5 years EWL had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 10.31%, EWL belongs to the top of the industry, outperforming 89.55% of the companies in the same industry.
- With a decent Return On Equity value of 13.40%, EWL is doing good in the industry, outperforming 76.12% of the companies in the same industry.
- With a decent Return On Invested Capital value of 9.83%, EWL is doing good in the industry, outperforming 76.12% of the companies in the same industry.
- EWL had an Average Return On Invested Capital over the past 3 years of 12.44%. This is above the industry average of 9.84%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.31% | ||
| ROE | 13.4% | ||
| ROIC | 9.83% |
ROA(3y)21.77%
ROA(5y)18.87%
ROE(3y)29.68%
ROE(5y)26.56%
ROIC(3y)12.44%
ROIC(5y)13.58%
1.3 Margins
- Looking at the Profit Margin, with a value of 23.25%, EWL belongs to the top of the industry, outperforming 92.54% of the companies in the same industry.
- In the last couple of years the Profit Margin of EWL has grown nicely.
- EWL has a Operating Margin of 27.73%. This is amongst the best in the industry. EWL outperforms 95.52% of its industry peers.
- In the last couple of years the Operating Margin of EWL has remained more or less at the same level.
- EWL's Gross Margin of 78.19% is amongst the best of the industry. EWL outperforms 92.54% of its industry peers.
- In the last couple of years the Gross Margin of EWL has remained more or less at the same level.
| 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
- EWL has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- EWL has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, EWL has less shares outstanding
- EWL has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 12.45 indicates that EWL is not in any danger for bankruptcy at the moment.
- EWL has a Altman-Z score of 12.45. This is amongst the best in the industry. EWL outperforms 95.52% of its industry peers.
- The Debt to FCF ratio of EWL is 0.75, which is an excellent value as it means it would take EWL, only 0.75 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 0.75, EWL belongs to the top of the industry, outperforming 92.54% of the companies in the same industry.
- EWL has a Debt/Equity ratio of 0.06. This is a healthy value indicating a solid balance between debt and equity.
- The Debt to Equity ratio of EWL (0.06) is better than 86.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.75 | ||
| Altman-Z | 12.45 |
ROIC/WACC0.99
WACC9.97%
2.3 Liquidity
- A Current Ratio of 4.00 indicates that EWL has no problem at all paying its short term obligations.
- The Current ratio of EWL (4.00) is better than 91.04% of its industry peers.
- A Quick Ratio of 3.29 indicates that EWL has no problem at all paying its short term obligations.
- EWL has a better Quick ratio (3.29) than 91.04% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4 | ||
| Quick Ratio | 3.29 |
3. Growth
3.1 Past
- EWL 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, EWL 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, EWL shows a small growth in Revenue. The Revenue has grown by 4.67% in the last year.
- Measured over the past years, EWL shows a small growth in Revenue. The Revenue has been growing by 4.58% on average per year.
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
- EWL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.40% yearly.
- EWL is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.47% yearly.
EPS Next Y1.51%
EPS Next 2Y6.17%
EPS Next 3Y7.9%
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.
- 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
- With a Price/Earnings ratio of 33.11, EWL can be considered very expensive at the moment.
- EWL's Price/Earnings ratio is in line with the industry average.
- EWL's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.21.
- With a Price/Forward Earnings ratio of 28.88, EWL can be considered very expensive at the moment.
- EWL's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. EWL is more expensive than 61.19% of the companies in the same industry.
- EWL's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.11 | ||
| Fwd PE | 28.88 |
4.2 Price Multiples
- EWL's Enterprise Value to EBITDA is on the same level as the industry average.
- EWL's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 61.89 | ||
| EV/EBITDA | 25.21 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates EWL does not grow enough to justify the current Price/Earnings ratio.
- The excellent profitability rating of EWL may justify a higher PE ratio.
PEG (NY)21.89
PEG (5Y)4.64
EPS Next 2Y6.17%
EPS Next 3Y7.9%
5. Dividend
5.1 Amount
- EWL does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
EDWARDS LIFESCIENCES CORP / EWL.DE FAQ
Can you provide the ChartMill fundamental rating for EDWARDS LIFESCIENCES CORP?
ChartMill assigns a fundamental rating of 7 / 10 to EWL.DE.
What is the valuation status of EDWARDS LIFESCIENCES CORP (EWL.DE) stock?
ChartMill assigns a valuation rating of 2 / 10 to EDWARDS LIFESCIENCES CORP (EWL.DE). This can be considered as Overvalued.
What is the profitability of EWL stock?
EDWARDS LIFESCIENCES CORP (EWL.DE) has a profitability rating of 8 / 10.
What are the PE and PB ratios of EDWARDS LIFESCIENCES CORP (EWL.DE) stock?
The Price/Earnings (PE) ratio for EDWARDS LIFESCIENCES CORP (EWL.DE) is 33.11 and the Price/Book (PB) ratio is 4.85.