Edwards Lifesciences Corporation provides products and technologies for structural heart disease, and critical care and surgical monitoring in the United States, Europe, Japan, and internationally. More Details
Flawless balance sheet with moderate growth potential.
Share Price & News
How has Edwards Lifesciences's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: EW is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: EW's weekly volatility (3%) has been stable over the past year.
7 Day Return
US Medical Equipment
1 Year Return
US Medical Equipment
Return vs Industry: EW underperformed the US Medical Equipment industry which returned 33.2% over the past year.
Return vs Market: EW underperformed the US Market which returned 49% over the past year.
Long-Term Price Volatility Vs. Market
How volatile is Edwards Lifesciences's share price compared to the market and industry in the last 5 years?
Simply Wall St News
3 days ago | Simply Wall StShould You Investigate Edwards Lifesciences Corporation (NYSE:EW) At US$90.40?
2 weeks ago | Simply Wall StEdwards Lifesciences Corporation's (NYSE:EW) CEO Will Probably Have Their Compensation Approved By Shareholders
4 weeks ago | Simply Wall StInvestors Shouldn't Overlook The Favourable Returns On Capital At Edwards Lifesciences (NYSE:EW)
Is Edwards Lifesciences undervalued compared to its fair value and its price relative to the market?
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: EW ($87.94) is trading above our estimate of fair value ($59.79)
Significantly Below Fair Value: EW is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: EW is poor value based on its PE Ratio (64.3x) compared to the US Medical Equipment industry average (57.2x).
PE vs Market: EW is poor value based on its PE Ratio (64.3x) compared to the US market (19.8x).
Price to Earnings Growth Ratio
PEG Ratio: EW is poor value based on its PEG Ratio (4.8x)
Price to Book Ratio
PB vs Industry: EW is overvalued based on its PB Ratio (11.7x) compared to the US Medical Equipment industry average (4.3x).
How is Edwards Lifesciences forecast to perform in the next 1 to 3 years based on estimates from 25 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: EW's forecast earnings growth (13.3% per year) is above the savings rate (2%).
Earnings vs Market: EW's earnings (13.3% per year) are forecast to grow slower than the US market (14.8% per year).
High Growth Earnings: EW's earnings are forecast to grow, but not significantly.
Revenue vs Market: EW's revenue (10% per year) is forecast to grow faster than the US market (8.9% per year).
High Growth Revenue: EW's revenue (10% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: EW's Return on Equity is forecast to be high in 3 years time (21.8%)
How has Edwards Lifesciences performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: EW has a large one-off loss of $411.9M impacting its March 31 2021 financial results.
Growing Profit Margin: EW's current net profit margins (19%) are lower than last year (24.7%).
Past Earnings Growth Analysis
Earnings Trend: EW's earnings have grown by 10.5% per year over the past 5 years.
Accelerating Growth: EW's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: EW had negative earnings growth (-23.2%) over the past year, making it difficult to compare to the Medical Equipment industry average (21.6%).
Return on Equity
High ROE: EW's Return on Equity (18.3%) is considered low.
How is Edwards Lifesciences's financial position?
Financial Position Analysis
Short Term Liabilities: EW's short term assets ($3.1B) exceed its short term liabilities ($799.0M).
Long Term Liabilities: EW's short term assets ($3.1B) exceed its long term liabilities ($1.8B).
Debt to Equity History and Analysis
Debt Level: EW's debt to equity ratio (12.8%) is considered satisfactory.
Reducing Debt: EW's debt to equity ratio has reduced from 25.4% to 12.8% over the past 5 years.
Debt Coverage: EW's debt is well covered by operating cash flow (192.8%).
Interest Coverage: EW earns more interest than it pays, so coverage of interest payments is not a concern.
What is Edwards Lifesciences's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate EW's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate EW's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if EW's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if EW's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of EW's dividend in 3 years as they are not forecast to pay a notable one for the US market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Mike Mussallem (67 yo)
Mr. Michael A. Mussallem, also known as Mike, has been Chairman and Chief Executive Officer of Edwards Lifesciences Corp. since 2000. Mr. Mussallem has been the President of CAS Medical Systems, Inc. since...
CEO Compensation Analysis
Compensation vs Market: Mike's total compensation ($USD10.05M) is about average for companies of similar size in the US market ($USD11.15M).
Compensation vs Earnings: Mike's compensation has been consistent with company performance over the past year.
Experienced Management: EW's management team is seasoned and experienced (7.3 years average tenure).
Experienced Board: EW's board of directors are considered experienced (5 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: EW insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Edwards Lifesciences Corporation's company bio, employee growth, exchange listings and data sources
- Name: Edwards Lifesciences Corporation
- Ticker: EW
- Exchange: NYSE
- Founded: 1958
- Industry: Health Care Equipment
- Sector: Healthcare
- Market Cap: US$54.667b
- Shares outstanding: 621.64m
- Website: https://www.edwards.com
Number of Employees
- Edwards Lifesciences Corporation
- One Edwards Way
- United States
Edwards Lifesciences Corporation provides products and technologies for structural heart disease, and critical care and surgical monitoring in the United States, Europe, Japan, and internationally. It offe...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/05/14 03:50|
|End of Day Share Price||2021/05/13 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.