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Edwards Lifesciences

NYSE:EW
Snowflake Description

Flawless balance sheet with outstanding track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
EW
NYSE
$37B
Market Cap
  1. Home
  2. US
  3. Healthcare
Company description

Edwards Lifesciences Corporation provides products and technologies for structural heart disease and critical care monitoring in the United States and internationally. The last earnings update was 20 days ago. More info.


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EW Share Price and Events
7 Day Returns
-2.3%
NYSE:EW
-3.8%
US Medical Equipment
-3.9%
US Market
1 Year Returns
30.5%
NYSE:EW
10%
US Medical Equipment
1.4%
US Market
EW Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Edwards Lifesciences (EW) -2.3% -6.9% -0.3% 30.5% 81.2% 335.5%
US Medical Equipment -3.8% -3.9% -1.1% 10% 54.1% 90.5%
US Market -3.9% -3.6% 1.8% 1.4% 35.8% 40.8%
1 Year Return vs Industry and Market
  • EW outperformed the Medical Equipment industry which returned 10% over the past year.
  • EW outperformed the Market in United States of America which returned 1.4% over the past year.
Price Volatility
EW
Industry
5yr Volatility vs Market

Value

 Is Edwards Lifesciences undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Edwards Lifesciences to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Edwards Lifesciences.

NYSE:EW Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 22 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.3%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:EW
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Medical Equipment Unlevered Beta Simply Wall St/ S&P Global 0.9
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.896 (1 + (1- 21%) (1.8%))
0.939
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.94
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.939 * 5.96%)
8.33%

Discounted Cash Flow Calculation for NYSE:EW using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Edwards Lifesciences is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:EW DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 8.33%)
2019 700.33 Analyst x3 646.51
2020 920.00 Analyst x5 784.02
2021 1,056.67 Analyst x3 831.28
2022 1,443.00 Analyst x1 1,047.96
2023 1,595.00 Analyst x1 1,069.32
2024 1,719.86 Est @ 7.83% 1,064.41
2025 1,828.19 Est @ 6.3% 1,044.50
2026 1,923.77 Est @ 5.23% 1,014.63
2027 2,009.93 Est @ 4.48% 978.60
2028 2,089.41 Est @ 3.95% 939.11
Present value of next 10 years cash flows $9,420.33
NYSE:EW DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $2,089.41 × (1 + 2.73%) ÷ (8.33% – 2.73%)
$38,360.26
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $38,360.26 ÷ (1 + 8.33%)10
$17,241.49
NYSE:EW Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $9,420.33 + $17,241.49
$26,661.81
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $26,661.81 / 208.50
$127.87
NYSE:EW Discount to Share Price
Calculation Result
Value per share (USD) From above. $127.87
Current discount Discount to share price of $177.25
= -1 x ($177.25 - $127.87) / $127.87
-38.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Edwards Lifesciences is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Edwards Lifesciences's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Edwards Lifesciences's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:EW PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $3.67
NYSE:EW Share Price ** NYSE (2019-05-15) in USD $177.25
United States of America Medical Equipment Industry PE Ratio Median Figure of 64 Publicly-Listed Medical Equipment Companies 38.98x
United States of America Market PE Ratio Median Figure of 3,087 Publicly-Listed Companies 17.79x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Edwards Lifesciences.

NYSE:EW PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:EW Share Price ÷ EPS (both in USD)

= 177.25 ÷ 3.67

48.32x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Edwards Lifesciences is overvalued based on earnings compared to the US Medical Equipment industry average.
  • Edwards Lifesciences is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Edwards Lifesciences's expected growth come at a high price?
Raw Data
NYSE:EW PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 48.32x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 22 Analysts
17.6%per year
United States of America Medical Equipment Industry PEG Ratio Median Figure of 55 Publicly-Listed Medical Equipment Companies 2.21x
United States of America Market PEG Ratio Median Figure of 2,113 Publicly-Listed Companies 1.52x

*Line of best fit is calculated by linear regression .

NYSE:EW PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 48.32x ÷ 17.6%

2.75x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Edwards Lifesciences is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Edwards Lifesciences's assets?
Raw Data
NYSE:EW PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $16.54
NYSE:EW Share Price * NYSE (2019-05-15) in USD $177.25
United States of America Medical Equipment Industry PB Ratio Median Figure of 182 Publicly-Listed Medical Equipment Companies 4.28x
United States of America Market PB Ratio Median Figure of 5,195 Publicly-Listed Companies 1.83x
NYSE:EW PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:EW Share Price ÷ Book Value per Share (both in USD)

= 177.25 ÷ 16.54

10.71x

* Primary Listing of Edwards Lifesciences.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Edwards Lifesciences is overvalued based on assets compared to the US Medical Equipment industry average.
X
Value checks
We assess Edwards Lifesciences's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Medical Equipment industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Medical Equipment industry average (and greater than 0)? (1 check)
  5. Edwards Lifesciences has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Edwards Lifesciences expected to perform in the next 1 to 3 years based on estimates from 22 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
17.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Edwards Lifesciences expected to grow at an attractive rate?
  • Edwards Lifesciences's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Edwards Lifesciences's earnings growth is expected to exceed the United States of America market average.
  • Edwards Lifesciences's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:EW Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:EW Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 22 Analysts 17.6%
NYSE:EW Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 22 Analysts 9%
United States of America Medical Equipment Industry Earnings Growth Rate Market Cap Weighted Average 21.5%
United States of America Medical Equipment Industry Revenue Growth Rate Market Cap Weighted Average 8.1%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:EW Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 22 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:EW Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 5,839 1,965 3
2022-12-31 5,472 1,775 7
2021-12-31 5,065 1,507 1,421 14
2020-12-31 4,595 1,308 1,198 22
2019-12-31 4,157 1,114 1,077 22
NYSE:EW Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 3,821 777 765
2018-12-31 3,723 927 722
2018-09-30 3,634 998 712
2018-06-30 3,549 966 657
2018-03-31 3,447 1,024 560
2017-12-31 3,435 1,001 584
2017-09-30 3,315 838 745
2017-06-30 3,232 733 716
2017-03-31 3,150 726 657
2016-12-31 2,964 704 570
2016-09-30 2,867 607 552
2016-06-30 2,743 604 528

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Edwards Lifesciences's earnings are expected to grow by 17.6% yearly, however this is not considered high growth (20% yearly).
  • Edwards Lifesciences's revenue is expected to grow by 9% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:EW Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 22 Analyst Estimates (S&P Global) See Below

All data from Edwards Lifesciences Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:EW Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31 7.52 7.52 7.52 1.00
2021-12-31 6.71 6.71 6.71 3.00
2020-12-31 5.73 6.01 5.29 6.00
2019-12-31 5.02 5.22 4.72 6.00
NYSE:EW Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 3.67
2018-12-31 3.45
2018-09-30 3.40
2018-06-30 3.12
2018-03-31 2.66
2017-12-31 2.77
2017-09-30 3.52
2017-06-30 3.38
2017-03-31 3.09
2016-12-31 2.67
2016-09-30 2.58
2016-06-30 2.47

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Edwards Lifesciences is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Edwards Lifesciences's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Edwards Lifesciences has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Edwards Lifesciences performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Edwards Lifesciences's growth in the last year to its industry (Medical Equipment).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Edwards Lifesciences's year on year earnings growth rate has been positive over the past 5 years.
  • Edwards Lifesciences's 1-year earnings growth exceeds its 5-year average (36.7% vs 3%)
  • Edwards Lifesciences's earnings growth has exceeded the US Medical Equipment industry average in the past year (36.7% vs 31.9%).
Earnings and Revenue History
Edwards Lifesciences's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Edwards Lifesciences Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:EW Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 3,821.00 765.30 1,112.90 650.40
2018-12-31 3,722.80 722.20 1,088.60 622.20
2018-09-30 3,633.60 712.40 1,066.10 605.70
2018-06-30 3,548.50 656.60 1,041.20 586.80
2018-03-31 3,446.60 560.00 1,022.90 567.10
2017-12-31 3,435.30 583.60 996.50 552.60
2017-09-30 3,314.50 744.90 947.50 520.90
2017-06-30 3,232.40 716.20 932.50 491.00
2017-03-31 3,149.90 656.70 917.50 469.10
2016-12-31 2,963.70 569.50 904.70 442.20
2016-09-30 2,867.10 551.70 892.20 425.50
2016-06-30 2,743.20 528.40 874.60 413.50
2016-03-31 2,600.70 514.50 859.70 398.50
2015-12-31 2,493.70 494.90 850.70 382.90
2015-09-30 2,440.60 463.40 851.50 368.90
2015-06-30 2,432.50 439.90 861.70 355.50
2015-03-31 2,390.80 874.20 863.30 347.10
2014-12-31 2,322.90 811.10 858.00 346.50
2014-09-30 2,240.90 777.00 821.50 341.10
2014-06-30 2,129.10 759.20 777.10 337.60
2014-03-31 2,071.20 305.50 748.20 329.00
2013-12-31 2,045.50 389.10 733.40 323.00
2013-09-30 2,020.00 405.10 724.20 319.30
2013-06-30 1,972.30 397.50 714.20 309.00
2013-03-31 1,937.10 372.00 710.00 302.50
2012-12-31 1,899.60 291.50 697.40 291.30
2012-09-30 1,819.30 265.20 690.80 277.10
2012-06-30 1,784.10 247.60 688.50 265.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Edwards Lifesciences has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Edwards Lifesciences used its assets more efficiently than the US Medical Equipment industry average last year based on Return on Assets.
  • Edwards Lifesciences has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Edwards Lifesciences's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Medical Equipment industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Edwards Lifesciences has a total score of 6/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Edwards Lifesciences's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Edwards Lifesciences's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Edwards Lifesciences is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Edwards Lifesciences's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Edwards Lifesciences's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 3.6x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Edwards Lifesciences Company Filings, last reported 1 month ago.

NYSE:EW Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 3,447.50 666.20 963.00
2018-12-31 3,140.40 593.80 956.50
2018-09-30 3,361.30 1,193.50 1,595.70
2018-06-30 3,164.20 1,193.10 1,400.80
2018-03-31 3,245.70 1,054.60 1,499.30
2017-12-31 2,956.20 1,036.40 1,337.50
2017-09-30 3,162.50 1,034.00 1,402.80
2017-06-30 2,939.60 1,016.80 1,131.80
2017-03-31 2,742.70 847.90 918.20
2016-12-31 2,619.00 822.30 1,271.10
2016-09-30 2,691.80 600.60 1,200.30
2016-06-30 2,471.20 602.50 1,060.20
2016-03-31 2,299.30 602.20 951.80
2015-12-31 2,503.10 596.90 1,224.70
2015-09-30 2,421.40 604.90 1,250.50
2015-06-30 2,288.60 600.30 1,409.00
2015-03-31 2,213.90 602.70 1,370.80
2014-12-31 2,191.40 598.10 1,438.80
2014-09-30 2,043.40 611.10 1,515.10
2014-06-30 1,914.90 598.00 1,484.10
2014-03-31 1,340.80 727.30 831.60
2013-12-31 1,544.40 597.10 936.90
2013-09-30 1,437.40 532.10 757.60
2013-06-30 1,579.80 227.30 575.00
2013-03-31 1,592.00 192.70 557.90
2012-12-31 1,479.30 189.30 521.40
2012-09-30 1,536.30 175.40 622.50
2012-06-30 1,434.60 185.10 506.00
  • Edwards Lifesciences's level of debt (19.3%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (53.9% vs 19.3% today).
  • Debt is well covered by operating cash flow (116.6%, greater than 20% of total debt).
  • Edwards Lifesciences earns more interest than it pays, coverage of interest payments is not a concern.
X
Financial health checks
We assess Edwards Lifesciences's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Edwards Lifesciences has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Edwards Lifesciences's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Edwards Lifesciences dividends. Estimated to be 0% next year.
If you bought $2,000 of Edwards Lifesciences shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Edwards Lifesciences's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Edwards Lifesciences's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:EW Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 22 Analyst Estimates (S&P Global) See Below
United States of America Medical Equipment Industry Average Dividend Yield Market Cap Weighted Average of 24 Stocks 1.3%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1997 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:EW Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 0.00 2.00
2020-12-31 0.00 4.00
2019-12-31 0.00 4.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Edwards Lifesciences has not reported any payouts.
  • Unable to verify if Edwards Lifesciences's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Edwards Lifesciences's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Edwards Lifesciences has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Edwards Lifesciences's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess Edwards Lifesciences's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Edwards Lifesciences afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Edwards Lifesciences has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Edwards Lifesciences's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Mike Mussallem
COMPENSATION $10,278,949
AGE 65
TENURE AS CEO 19.3 years
CEO Bio

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 April 18, 2019. Mr. Mussallem serves as Chief Executive Officer of Edwards Lifesciences LLC. Mr. Mussallem serves as an Advisor of InCube Labs, LLC. He joined Baxter International Inc., in 1979 and served as a Group Vice President of its CardioVascular Business from 1994 to 2000 and Group Vice President of its Biopharmaceutical Business from 1998 to 2000. During his tenure at Baxter, Mr. Mussallem held a variety of positions with increasing responsibility in engineering, product development and senior management. He served as a General Manager of Access Products since 1984, Vice President and General Manager of Pharmaceuticals since 1986, President of the Perfusion Products business since 1988 and President of the Critical Care business since 1993. Mr. Mussallem served as a Group Vice President of Baxter's Surgical Group since 1994. He has been the Chairman of Edwards Lifesciences LLC and California Healthcare Institute and Member of the Board of Trustees at University of California since 2008. From 1996 to 1998, he served as the Chairman of Baxter's Asia Board overseeing Baxter's operations throughout Asia. He has been a Director of Edwards Lifesciences Corp., since 2000. He serves as a Director of OCTANe LLC and OCTANe. He serves as a Director of Advanced Medical Technology Association (AdvaMed). He served as a Director of Abbott Medical Optics Inc. (Advanced Medical Optics Inc.) from June 2002 to February 26, 2009. He served as a Director of World Heart Corporation from July 25, 2000 to June 15, 2003. Mr. Mussallem holds a Bachelor of Science in Chemical Engineering and an Honorary Doctorate in 1999 from the Rose-Hulman Institute of Technology in Indiana.

CEO Compensation
  • Mike's compensation has been consistent with company performance over the past year.
  • Mike's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Edwards Lifesciences management team in years:

6.3
Average Tenure
52.5
Average Age
  • The average tenure for the Edwards Lifesciences management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Mike Mussallem

TITLE
Chairman & CEO
COMPENSATION
$10M
AGE
65
TENURE
19.3 yrs

Scott Ullem

TITLE
Corporate VP & CFO
COMPENSATION
$3M
AGE
51
TENURE
5.3 yrs

Don Bobo

TITLE
Corporate Vice President of Strategy & Corporate Development
COMPENSATION
$3M
AGE
56
TENURE
3.3 yrs

Larry Wood

TITLE
Corporate Vice President of Transcatheter Aortic Valve Replacement
COMPENSATION
$3M
AGE
52
TENURE
12.3 yrs

Robert W. Sellers

TITLE
Principal Accounting Officer

Todd Brinton

TITLE
Corporate VP of Advanced Technology & Chief Scientific Officer
TENURE
0.3 yrs

David Erickson

TITLE
Vice President of Investor Relations

Aimee Weisner

TITLE
Corporate VP & General Counsel
AGE
49
TENURE
8.3 yrs

Dirksen Lehman

TITLE
Corporate Vice President of Public Affairs
TENURE
5.9 yrs

Christine McCauley

TITLE
Corporate Vice President of Human Resources
AGE
53
TENURE
6.8 yrs
Board of Directors Tenure

Average tenure and age of the Edwards Lifesciences board of directors in years:

4.3
Average Tenure
65.5
Average Age
  • The tenure for the Edwards Lifesciences board of directors is about average.
Board of Directors

Mike Mussallem

TITLE
Chairman & CEO
COMPENSATION
$10M
AGE
65
TENURE
19.3 yrs

Bill Link

TITLE
Independent Director
COMPENSATION
$308K
AGE
72
TENURE
10 yrs

Leslie Heisz

TITLE
Independent Director
COMPENSATION
$306K
AGE
58
TENURE
2.8 yrs

Wes von Schack

TITLE
Lead Independent Director
COMPENSATION
$320K
AGE
74

Nick Valeriani

TITLE
Independent Director
COMPENSATION
$290K
AGE
61
TENURE
4.5 yrs

Kieran Gallahue

TITLE
Independent Director
COMPENSATION
$295K
AGE
55
TENURE
4.3 yrs

Martha Marsh

TITLE
Independent Director
COMPENSATION
$290K
AGE
69
TENURE
3.6 yrs

Steve Loranger

TITLE
Independent Director
COMPENSATION
$281K
AGE
66
TENURE
3.2 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
30. Nov 18 Sell Wesley von Schack Individual 29. Nov 18 29. Nov 18 -1,319 $160.96 $-212,302
21. Nov 18 Sell William Link Individual 19. Nov 18 19. Nov 18 -13,578 $150.06 $-2,035,568
05. Sep 18 Sell Donald Bobo Individual 31. Aug 18 31. Aug 18 -75 $144.24 $-10,818
24. May 18 Sell Donald Bobo Individual 23. May 18 23. May 18 -10,000 $137.52 $-1,375,144
24. May 18 Sell Catherine Szyman Individual 24. May 18 24. May 18 -9,815 $139.39 $-1,368,113
X
Management checks
We assess Edwards Lifesciences's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Edwards Lifesciences has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Was Edwards Lifesciences Corporation's (NYSE:EW) Earnings Growth Better Than The Industry's?

Assessing Edwards Lifesciences Corporation's (NYSE:EW) past track record of performance is a useful exercise for investors. … Let's see if it is merely because of an industry uplift, or if Edwards Lifesciences has experienced some company-specific growth. … I recommend you continue to research Edwards Lifesciences to get a more holistic view of the stock by looking at: Future Outlook: What are well-informed industry analysts predicting for EW’s future growth?

Simply Wall St -

Have Insiders Been Selling Edwards Lifesciences Corporation (NYSE:EW) Shares This Year?

So we'll take a look at whether insiders have been buying or selling shares in Edwards Lifesciences Corporation (NYSE:EW). … In the last twelve months, the biggest single sale by an insider was when the Independent Director, William Link, sold US$2.0m worth of shares at a price of US$150 per share. … While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign

Simply Wall St -

A Closer Look At Edwards Lifesciences Corporation's (NYSE:EW) Impressive ROE

By way of learning-by-doing, we'll look at ROE to gain a better understanding of Edwards Lifesciences Corporation (NYSE:EW). … One way to conceptualize this, is that for each $1 of shareholders' equity it has, the company made $0.23 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

When Should You Buy Edwards Lifesciences Corporation (NYSE:EW)?

The company's stock. … As a large-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock … However, could the stock still be trading at a relatively cheap price?

Simply Wall St -

Is It Too Late To Buy Edwards Lifesciences Corporation (NYSE:EW) At Its April Price?

Growth expectations for Edwards Lifesciences Corporation (NYSE:EW) are high, but many investors are starting to ask whether its last close at $189.96 can still be rationalized by the future potential. … View our latest analysis for Edwards Lifesciences? … One reason why investors are attracted to EW is the high growth potential in the near future

Simply Wall St -

Here's What Edwards Lifesciences Corporation's (NYSE:EW) P/E Is Telling Us

Edwards Lifesciences has a price to earnings ratio of 55.04, based on the last twelve months. … How Do I Calculate Edwards Lifesciences's Price To Earnings Ratio … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

Edwards Lifesciences's (NYSE:EW) Wonderful 413% Share Price Increase Shows How Capitalism Can Build Wealth

To wit, the Edwards Lifesciences Corporation (NYSE:EW) share price has soared 413% over five years. … One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. … Over half a decade, Edwards Lifesciences managed to grow its earnings per share at 15% a year.

Simply Wall St -

How Much Of Edwards Lifesciences Corporation (NYSE:EW) Do Institutions Own?

A look at the shareholders of Edwards Lifesciences Corporation (NYSE:EW) can tell us which group is most powerful. … Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. … Edwards Lifesciences is a pretty big company.

Simply Wall St -

How Do Analysts See Edwards Lifesciences Corporation (NYSE:EW) Performing Over The Next Year?

On 31 December 2018, Edwards Lifesciences Corporation (NYSE:EW) announced its earnings update. … the consensus outlook from analysts appear highly confident, … as a 52% rise in profits is expected in the upcoming year,

Simply Wall St -

How Should Investors Feel About Edwards Lifesciences Corporation's (NYSE:EW) CEO Pay?

How Does Mike Mussallem's Compensation Compare With Similar Sized Companies. … According to our data, Edwards Lifesciences Corporation has a market capitalization of US$36b, and pays its CEO total annual compensation worth US$11m. … We took a group of companies with market capitalizations over US$8.0b, and calculated the median CEO compensation to be US$11m

Simply Wall St -

Company Info

Description

Edwards Lifesciences Corporation provides products and technologies for structural heart disease and critical care monitoring in the United States and internationally. It offers transcatheter heart valve therapy products comprising transcatheter aortic valve replacement, and transcatheter mitral and tricuspid therapies for the nonsurgical replacement of heart valves. The company also provides surgical heart valve therapy products, such as pericardial valves for aortic and mitral surgical valve replacement; aortic heart valves; annuloplasty rings; and cardiac cannula devices, as well as various procedure-enabling platforms to advance minimally invasive surgery. In addition, it offers critical care products, such as hemodynamic monitoring systems to measure a patient’s heart function in surgical and intensive care settings; pulmonary artery catheters; Oximetry Central Venous catheters, as well as clinical monitoring platforms that display a patient's physiological status; Acumen Hypotension Prediction Index, an advanced algorithm that indicates the likelihood of a patient developing hypotension; and disposable pressure monitoring devices and closed blood sampling systems to protect patients and clinicians from infection. The company distributes its products through direct sales force and independent distributors. Edwards Lifesciences Corporation was founded in 1999 and is headquartered in Irvine, California.

Details
Name: Edwards Lifesciences Corporation
EW
Exchange: NYSE
Founded: 1999
$36,956,909,131
208,501,603
Website: http://www.edwards.com
Address: Edwards Lifesciences Corporation
One Edwards Way,
Irvine,
California, 92614,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE EW Common Stock New York Stock Exchange US USD 27. Mar 2000
DB EWL Common Stock Deutsche Boerse AG DE EUR 27. Mar 2000
LSE 0REN Common Stock London Stock Exchange GB CHF 27. Mar 2000
SWX EW Common Stock SIX Swiss Exchange CH CHF 27. Mar 2000
BMV EW * Common Stock Bolsa Mexicana de Valores MX MXN 27. Mar 2000
Number of employees
Current staff
Staff numbers
12,800
Edwards Lifesciences employees.
Industry
Health Care Equipment
Healthcare
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/16 01:21
End of day share price update: 2019/05/15 00:00
Last estimates confirmation: 2019/04/30
Last earnings filing: 2019/04/26
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.